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HomeMy WebLinkAboutR-1997-140 HOME fundsRESOLUTION NO. R-97- 1 4 0 A RESOLUTION authorizing and directing the City Manager and the City Clerk to execute a loan agreement with Washington Association of Minority Entrepreneurs for a $7,000 loan from 1997 federal HOME funds. WHEREAS, the City of Yakima was a recipient of 1997 federal HOME funds which may be used, among other things, for Community Housing Development Organization Programs; and WHEREAS, at the December 17, 1996 meeting, the City Council considered and approved the One Year Plan and budget including $472,000 of HOME funds; and WHEREAS, the Washington Association of Minority Entrepreneurs (WAME) is a state -approved CHDO and is requesting a loan of $7,000 of 1997 federal HOME funds for costs associated with planning the 55-75 unit low and moderate income elderly housing component of the Mercado project; and WHEREAS, pursuant to federal regulations, the $7,000 loan will be converted to a grant if the elderly housing project is not build, or the elderly housing project's net cash flow cannot repay the loan within five years from initial occupancy; and WHEREAS, the City desires that the loan of $7,000 be conditioned upon WAME raising $40,000 of matching predevelopment funds for the Mercado project and completing the predevelopment phase of the project by July 31, 1998; and WHEREAS, the City Council has determined that it is in the best interest of the City to contract with the Washington Association of Minority Entrepreneurs to develop this project, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager and the City Clerk are hereby authorized and directed to execute a $7,000 loan agreement between the City of Yakima and WAME for costs associated with the planning of an elderly housing project from 1997 federal HOME funds. The final form of the loan agreement shall be reviewed and approved by the City Attorney. / ADOPTED BY THE CITY COUNCIL this i day of /Vou`eNw ', , 1997. Lam_!I' Air: s�nn Buchanan, Mayor -irnt.(,..,, 77A C ty Clerk CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 1. Contracting Organization:Washington Association of Minority Entreprenuers, Inc. 2. Address: 24 South 3rd Avenue Yakima, WA 98902 3. Phone: (509) 453-5133 4. Contact Person: Luz Gutierrez 5. Title of Service or Program being Funded: Predevelopment funds 6. Amount of Contract Award:$ 7,000.00 (HOME) � 7. The term of this agreement shall commence on 1�/4�, 4 / ' 7 and shall terminate at 12:00 p.m.,Julv 31,1998, unless sooner terminated by either party in accordance with Section XXIII or Section XXV of incorporated Exhibit "A". 8. This contract award and the rights and obligations of both parties hereto shall be subject to and governed by the following: 1) "Terms and conditions" attached hereto as Exhibit "A" and incorporated herein by this reference; and 2) Work plan attached hereto as Exhibit "B" and incorporated herein by this reference. 9. Final contract payment shall be subject to satisfactory completion of project described in Exhibit B, and satisfaction of all contract terms and conditions as stated in Exhibit "A". This written document and incorporated exhibits constitutes the entire agreement between the parties. IN WITNESS TI�F-EREOF the parties and year . _ . owl/, Glenn /✓I Valenzu l have executed this contract as of the day C2:9)07 la, CED Director ager Date Da'e Signature F7 Contr ng Organization Date 4 trn Title Resolution No. R-97-140 Contract No. 98-48 1 TERMS AND CONDITIONS DESIGNATION The City of Yakima, as recipient of a HOME grant from the U.S. Department of Housing and Urban Development, hereby designates the Contracting Organization to undertake, and the Contracting Organization hereby agrees to undertake that certain community development or housing assistance project described in Exhibit "B", Scope of Work. II SUB -GRANT A. NOTICE TO PROCEED No work on the project shall occur prior to or without written approval from the City of Yakima Office of Neighborhood Development Services (ONDS) shall furnish the Contracting Organization with written notice to proceed upon release of funds from HUD related to the project pursuant to 24 CFR Part 58. B. AMOUNT OF GRANT The City hereby sub -grants to the Contracting Organization $7,000.00 for said project. III GENERAL BUDGET PROVISIONS The Contracting Organization agrees to the following provisions in satisfying the terms and conditions of this contract: A. PAYMENT AND DISBURSEMENTS Disbursements by the City of Yakima from this contract/grant award shall be on a reimbursement basis covering actual expenditures by the Contracting Organization or obligation of the Contracting Organization currently due and owing, but not paid. Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions: 1. Receipt by the City of Yakima ONDS of a written reimbursement request on forms provided by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries, or other acceptable documentation; and 2. Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the 2 principles set forth in Federal Management Circular 74-4 "eligible costs under the HOME Program" and come within the Project Budget. B. No payment shall be made for any service rendered by the Contracting Organization except for services within the scope of a category set forth in the budget in Exhibit "B" of this Contract, and all funds received must be used for service as identified in Exhibit "B" of this Contract. C. 1. The Contracting Organization shall submit to the City of Yakima ONDS a written request for approval of budget revision when a proposed revision would result in an increase or decrease of ten percent (10%) or more in an approved budget subject category. Written budget revision approval must be received by the Contracting Organization prior to the Contracting Organization incurring any expenditures against the revised budget sub -object categories. 2. When the revision of the Contracting Organization budget does not exceed ten percent (10%) of an approved budget sub -object category, the Contracting Organization must submit a revised budget to the City of Yakima OND prior to the submittal of claims against the budget. IV COMMENCEMENT OF WORK The City of Yakima OND shall furnish the Contracting Organization with written notice to proceed upon release of funds from HUD related to the project. No work on the project shall occur prior to the notice to proceed without written approval from the City of Yakima ONDS. V BILLING PROCEDURES A. The Contracting Organization shall submit monthly written claims for reimbursement of services performed under this contract in the manner prescribed in paragraph III above, and as prescribed by the City of Yakima ONDS. VI LOCAL FINANCIAL SUPPORT The sub -grant shall not be utilized to reduce the amount of local financial support for community development activities below the level of such support prior to the availability of such assistance. 3 VII BUDGET SURPLUS The Contracting Organization agrees that funds determined by the City of Yakima ONDS to be surplus at the end of the project within the budget of this Contract will be subject to cancellation by the City of Yakima ONDS. VIII COMPLIANCE WITH LAWS A. GENERAL The Contracting Organization, in performance of this Contract, agrees to comply with all applicable Federal, State and Local Laws and ordinances, and the rules and regulations promulgated by the U.S. Department of Housing and Urban Development, including, but not limited to, Federal HOME Regulations and other policies and guidelines established by the City of Yakima ONDS. B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT REQUIREMENTS The following federal provisions may apply, among others, to this contract: 1. Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and 24 CFR 570.601 (Discrimination prohibited). 2. The Lead Based Paint Poisoning Prevention Act, 42 USC Section 4831 et seq., and HUD regulations implementing the Act, 24 CFR Part 35, where, residential structures are involved. The Contracting Organization shall provide whatever assistance is necessary to enable the City of Yakima's Building Official to carry out its inspection and certification responsibility under those regulations. 3. Historic and Archaeological Preservation requirements as set forth in 24 CFR Section 570.604.36 CFR Part 800, RCW 27.44.010 (Native American Burial Law), RCW 27.53.010-.090 (Protection of Archaeological Resources), and RCW 43.51.750-.820 (Preservation of Historic Properties). 4. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq., implementing regulations, and Chapter 70.92 RCW. 4 5. Clean Air Act as amended, 42 USC Section 1857 et seq; Water Pollution Control Act, as amended, 33 USC Section 1251 et seq.; and Environmental Protection Agency regulations, 40 CFR Part 15. 6. Section 3 of the Housing and Urban Development Act of 1968 (12 USC Section 1701u) and 24 CFR Part 135 (Employment opportunities for project area businesses and low income persons). 7. Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333, (Overtime Compensation). 8. Davis -Bacon Act, as amended, 40 USC Sections 276a - 276a-5, and RCW Chapter 3-12 (Prevailing Wage Rates). 9. Attachment 0 of the Office of Management and Budget Circular, A-102 (Procurement Standards) and Federal Management Circular, FMC 74-4. 10. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570. 11. Title VI of the Civil Rights Act of 1964 (P.L. 88- 352) as amended, and HUD regulations with respect thereto including the regulations under 24 CFR Part 1. In the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, the Contracting Organization shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon, and providing that the Contracting Organization, the County, and the United States are beneficiaries of and entitled to enforce such covenant. The Contracting Organization, in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate. 12. Age Discrimination Act of 1975 (24 CFR 146). 13. Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1) 14. Housing Quality Standards (24 CFR 882.109). 15. WBE/MBE (24 CFR 85.36(e)). 5 16. ENVIRONMENTAL REVIEW A. NEPA The City of Yakima ONDS retains environmental review responsibility for purposes of fulfilling requirements of the National Environmental Policy Act, under which the City of Yakima ONDS may require the Contracting Organization to furnish data, information and assistance for the City's review and assessment in determining whether the City must prepare an Environmental Impact Statement. B. SEPA The Contract Organization retains responsibility for fulfilling the requirements of the State Environmental Policy Act and regulations and ordinance adopted thereunder. C. COMPLIANCE AS PRE -CONDITION Performance by either the City of Yakima ONDS or the Contracting Organization under this Agreement shall be contingent upon satisfaction of all applicable requirements of the National and State Environmental Policy Acts. IX NON-DISCRIMINATION IN EMPLOYMENT A. The City of Yakima is an Equal Opportunity Employer. B. The Contracting Organization agrees that it shall not discriminate against any employee or applicant on the grounds of race, creed, color, religion, national origin, sex, marital status, age, or the presence of any sensory, mental or -physical handicap. Such action shall include, but not be limited to: employment, upgrading, demotion or transfer;recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and programs for training including apprenticeships. The Contracting Organization specifically agrees to abide by the Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and HUD Anti Discrimination Requirements, 24 CFR 570.601. 6 X NON-DISCRIMINATION IN CLIENT SERVICES A. The Contracting Organization agrees to affirmatively market services made available through this contract (24 CFR 92.352), and shall not, on the grounds of race, color, sex, religion, national origin, creed, marital status, or age: 1. Deny a qualified individual any facilities, financial aid, services or other benefits provided under this Contract; 2. Provide any service(s) or other benefits to a qualified individual which are different, or are provided in a different manner, from those provided to others under this Contract; separate treatment in any manner related to his receipt of any service(s) or other benefits provided under this Contract; 3. Deny any qualified individual an opportunity to participate in any program provided by this Contract through the provision of service(s) or otherwise, or will afford him an opportunity to do so which is different from that afforded others under this Contract. B. The Contracting Organization shall abide by all provisions of Section 504 of the HEW Rehabilitation Act of 1973 prohibiting discrimination against handicapped individuals either through purpose or intent. C. If assignment and/or subcontracting has been authorized, said assignment or subcontract shall include appropriate safeguards against discrimination in client services binding upon each contractor or subcontractor. The Contracting Organization shall take such action as may be required to ensure full compliance with the provisions of this clause, including sanctions for noncompliance. XI LICENSING AND PROGRAM STANDARDS The Contracting Organization agrees to comply with all applicable Federal, State, County and Municipal standards for licensing, certification and operation of facilities and programs, and accreditation and licensing of individuals, and any other standards or criteria as described in the Contract to assure quality of services. 7 XII MONITORING AND ACCESS TO RECORDS A. Contracting Organization agrees that City may carry out monitoring and evaluation activities so as to ensure compliance by Contracting Organization with this Contracting Organization agreement, with the HOME Compliance Documents, and with all other laws, regulations, and ordinances related to the performance hereof. Contracting Organization agrees to provide City with any data determined by City to be necessary for its effective fulfillment of its monitoring and evaluation responsibilities. B. At any reasonable time and as often as City may deem necessary, Contracting Orgainization shall make all of its records available to City, HUD, the Comptroller General of the United States, or any of their authorized representatives, and shall permit City, HUD, the Comptroller General of the United States, or any of their authorized representatives to audit, examine, and make excerpts and/or copies of same. Contracting Organization records shall include, but shall not be limited to, the following: payroll, personnel and employment records; procurement bidding documents; contracts; sales closing statements; and invoices. C. The Contract Organization shall be required to make reasonable changes in the services as completed or to be completed if said services fall below the standards and specifications set forth in the Special Terms and Conditions, Project Description, or Statement of Work. XIII SAFEGUARDING OF CLIENT INFORMATION The use or disclosure by any party of any confidential information concerning a recipient or client for any purpose not directly connected with the City's or the Contractor's responsibilities with respect to services provided under this Contract is prohibited except on written consent of the recipient or client, his/her attorney or his/her responsible parent or guardian or as otherwise provided by law. XIV ASSIGNMENT AND/OR SUBCONTRACTING The Contracting Organization shall not assign or subcontract any portion of the services provided within the terms of this Contract without obtaining prior written approval from the City. All terms and conditions of this Contract shall apply to any approved subcontract or assignment related to the Contract. 8 XV STANDARDS FOR FISCAL ACCOUNTABILITY A. The Contracting Organization agrees to provide project line item draw requests, annual audited financial statements, records, documents and accounting procedures which accurately reflect all direct and indirect costs related to the performance of this Contract. Such fiscal books, records, documents, reports and other data shall be retained in a manner consistent with the "Budgeting, Accounting, Reporting System for Counties and Cities, and Other Local Governments", hereinafter referred to as "BARS", as issued by the Office of State Auditor, State of Washington. The Contracting Organization further agrees that the City of Yakima ONDS shall have the right to monitor and audit the fiscal components of the organization to insure that actual expenditures remain consistent with the terms of this Contract. The Contracting Organization shall retain all books,records, documents and other material relevant to the Contract for seven (7) years after settlement of this Contract. The Contracting Organization agrees that the City of Yakima, the U.S.Department of Housing and Urban Development, the Washington State Auditor, or their designees, shall have full access to and a right to examine any of said materials at all reasonable times during said period. B. The Contracting Organization agrees that any contributions or payments made for services furnished under this agreement shall be used for the sole benefit of this program. XVI PROGRAM PROPERTY Any personal property having a useful life of more than one year and purchased wholly or in part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall upon its purchase or receipt become the property of the City of Yakima and/or federal government. Final ownership and disposition of such property shall be determined under the provisions of Attachment N of OMB, A-102. The Contracting Organization shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements: 1. Property records shall be maintained accurately and provide for: A description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of HOME funds used in the purchase of property; location, use, and condition of the property. 9 2. A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property. 3. A control system shall be in effect to insure adequate safeguards to prevent lose, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. 4. Adequate maintenance procedures shall be implemented to keep the property in good condition. 5. If the Contracting Organization elects to capitalize and depreciate such nonexpendable personal property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Contracting Organization. An election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable. 6. Nonexpendable personal property purchased by the Contracting Organization under the terms of this Contract, in which title is vested in the City of Yakima or Federal Government shall not be rented, loaned, or otherwise passed to any person,partnership, corporation, association or organization without the prior express written approval of the City of Yakima ONDS. 7. Any nonexpendable personal property furnished to, or purchased by, the Contracting Organization, title to which is vested in the City of Yakima ONDS or federal government shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of activities defined in this Contract. 8. As a condition prerequisite to reimbursement for the purchase of nonexpendable personal property, title to which shall vest in the City of Yakima ONDS or federal government, the Contracting Organization agrees to execute such security agreements and other documents as shall be necessary for the City of Yakima ONDS or federal government to perfect its interest in such property in accordance with the "Uniform Commercial Code - Secured Transactions" as codified in Article 9 of RCW Chapter 62A. 9. The Contracting Organization shall be responsible for any loss or damage to the property of the City of Yakima ONDS or federal government (including expenses entered thereunto) which results from negligence, willful misconduct, or lack of good faith on the part of the Contracting Organization to maintain and administer in accordance with sound management practices that 10 property, to ensure that the property will be returned to the City of Yakima ONDS or federal government in like condition to that in which condition the property was acquired by purchase, fair wear and tear accepted. XVII RELATIONSHIP OF THE PARTIES The parties intend that an independent contractor/city relationship will be created by this Contract. The City of Yakima ONDS is interested only in the results to be achieved, the implementation of services will lie solely with the Contracting Organization. No agent, employee, or representatives of the Contracting Organization shall be deemed to be an employee, agent, servant or representative of the City of Yakima for any purpose, and the employees of the Contracting Organization are not entitled to any of the benefits the City of Yakima provides for City Employees. The Contracting • Organization will be solely and entirely responsible for its acts and for the acts of its agents, employees, servants, subcontractors, or otherwise during the performance of this Contract. XVIII TAXES AND ASSESSMENTS Contractor shall be solely responsible for and shall pay all taxes, deductions, and assessments, including but not limited to, sales tax, federal income tax, FICA, social security tax, assessments for unemployment and industrial injury insurance, and other deductions from income which may be required by law or assessed against either party as a result of this Agreement. In the event the City is assessed a tax or assesssment as a result of this Agreement, Contractor shall pay the same before it becomes due. XIX QUARTERLY REPORT The Contracting Organization agrees to submit a written quarterly report outlining the progress towards completion of activities included in Exhibit B, to the City of Yakima. XX INSURANCE All insurance checked below shall be required with an effective date preceeding the effective date of this contract. 0 A. COMMERCIAL LIABILITY INSURANCE On or before the effective date of this Agreement, the Contractor shall provide the City with a certificate of insurance as proof of liability insurance in the amount of One Million Dollars ($1,000,000.00) that clearly states who the provider is, the amount of coverage, the policy number, and when the policy and provisions 11 ❑ B. provided are in effect (any statement in the certificate to the effect of "this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration of this Agreement. The policy shall name the City, its elected officials, officers, agents and employees as additional insureds, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initiated by the insurance agent). The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington. The Contractor shall also provide the City with a true and correct copy of the said insurance policy on or before the effective date of this Agreement. AUTOMOBILE LIABILITY Contractor agrees to carry auto insurance for injuries and damages caused by contractor owned vehicle on the job site. Automobile liability: $1,000,000 combined single limit bodily injury and property damage. ❑ C. DIRECTORS AND OFFICERS LIABILITY INSURANCE The Contractor shall obtain Directors and Officers Liability insurance policy with a minimum limit of One Million Dollars ($1,000,000.00) and a maximum retention of Five Thousand Dollars ($5,000.00). On or before the effective date of this Agreement, the Contractor shall provide the City with a true and correct copy of said insurance policy. The definition of insured under said policy shall include the Contractor, its individual directors, officers, trustees, employees, and volunteers. Said policy shall have a retroactive date on or before the effective date of this Agreement. Coverage under said policy shall remain in full force and effect for a three (3) year period after the - expiration/termination date of this Agreement with the same retroactive date either through renewal policies or "tail" coverage on the current policy. ❑ D. PERFORMANCE AND PAYMENT BOND A Performance Bond for 100% of the contract price to secure fulfillment of all of the contractor's obligations under this contract. ❑ E. FIDELITY BOND Employee Dishonesty coverage or a fidelity bond will be obtained in the amount of $ . The policy will cover claims resulting from employee theft of money 12 associated with the performance of this contract. The policy will be written on a blanket basis covering all employees, or upon prior approval by the City, on those employees having access to funds. A copy of the policy will be furnished to the City. ❑ F. WORKERS' COMPENSATION The Contractor agrees to pay all premiums provided for by the Workman's Compensation Act of the State of Washington. Evidence of the contractors workers' compensation coverage will be furnished to the City. The contractor holds the City harmless for any injury or death to the contractor's employees while performing this contract. XXI INDEMNIFICATION All services to be rendered or performed under this Contract will be performed or rendered entirely at the Contracting Organization's own risk and the Contracting Organization expressly agrees to indemnify the City of Yakima and all of its officers, agents, employees, or otherwise, from any and all liability, loss or damage they may suffer as a result of claims, demands, actions, or damages to any and all persons or property, costs, or judgements against which result from, arise out of, or are in any way connected with the services to be performed by the Contracting Organization under this Contract. XXII HOLD HARMLESS All services to be rendered or performed under this Contract will be performed or rendered entirely at the Contracting Organization's own risk and the Contracting Organization expressly agrees to indemnify and hold harmless the City of Yakima and all of its officers, agents, employees, or otherwise, from any and all liability, loss or damage, inducing reasonable cost of defense they may suffer as a result of claims, demands, actions, or damages to any and all - persons or property, costs or judgements against the City of Yakima which result from, arise out of, or are in any way connected with the services to be performed by the Contracting Organization under this Contract. XXIII CONTRACT, TERMINATION AND CLOSE OUT If the Contracting Organization fails to comply with the terms and conditions of this Contract, the City of Yakima ONDS may pursue such remedies as are legally available including but not limited to, the termination of this Contract in the manner specified herein. 13 A. TERMINATION FOR CAUSE If the Contracting Organization fails to comply with the terms and conditions of this Contract and any of the following conditions exist: 1. The lack of compliance with the provisions of this Contract are of such scope and nature that the City of Yakima ONDS deems continuation of this Contract to be substantially non -beneficial to the public interest; 2. The Contracting Organization has failed to take satisfactory corrective action as directed by the City of Yakima ONDS or its authorized representative within the time specified by same; 3. The Contracting Organization has failed within the time specified by the City of Yakima ONDS or its authorized representative to satisfactorily substantiate its compliance with the terms and conditions of this Contract, then: The City of Yakima ONDS may terminate this contract in whole or in part, and thereupon shall notify the Contracting Organization of the termination, the reasons therefore and the effective date provided such effective date shall not be prior to notification to the Contracting Organization. After this effective date, no charges incurred under any terminated portions are allowable. B. TERMINATIONS ON OTHER GROUNDS This Contract may also be terminated in whole or in part by mutual agreement of the parties. C. TERMINATION FOR WITHDRAWAL, REDUCTION OR LIMITATION OF FUNDING In the event that funding from the Federal government is withdrawn, reduced or limited in any way after the effective date of this contract, and prior to its normal completion, the City of Yakima ONDS may summarily terminate this Contract as to the funds reduced or limited, nonwithstanding any other termination provision of this contract. If the level of funding so reduced or limited is so great that the City of Yakima OND deems that the continuation of the program covered by this contract is no longer in the best interest of the public, the City of Yakima ONDS may summarily terminate this contract in whole nonwithstanding any other termination provisions of this contract. Termination 14 s�z under this Section shall be effective upon receipt of written notice by the Contracting Organization or its representative. The City of Yakima ONDS agrees to promptly notify the Contracting Organization of any proposed reduction in funding by Federal or other officials. The Contracting Organization agrees that upon receipt of such notice it shall take appropriate and reasonable action to reduce its spending in the affected funding area so that expenditures do not exceed the funding level which would result if said proposed reduction became effective. This agreement may further be terminated by the City of Yakima upon written demand by the City of Yakima ONDS for assurances that the terms of the Project Description are being timely complied with, if such assurances are not made to the City's satisfaction within thirty (30) days of the date of such written demand. D. CLOSE-OUT In the event that this Contract is terminated in whole or in part for any reason, the following provisions shall apply: 1. Upon written request by the Contracting Organization, the City of Yakima shall make or arrange for payment to the Contracting Organization of allowable reimbursable costs not covered by previous payments; ,.2. The Contracting Organization shall submit within thirty (30) days after the date of expiration of this Contract, all financial, performance and other reports required by this Contract, and in addition, will cooperate in a program audit by the City of Yakima or its designee. 3. In the event a financial audit has not been performed prior to close-out of this Contract, the City of Yakima ONDS retains the right to withhold a just and reasonable sum from the final payment to the Contracting Organization after fully considering the recommendation on disallowed costs resulting from the final audit. XXIV COVENANT AGAINST CONTINGENT FEES The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established commercial or selling agency maintained by the Contractor for the purpose of 15 Li+Jrf.•. f. Td�• y:.s securing business. The City of Yakima ONDS shall have the right, in the event of breach of this clause by the Contractor, to annul this Contract without liability or, in its discretion, to deduct from the Contract price or consideration or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee. XXV CONFLICT OF INTEREST The City may, by written notice to the Contractor: A. Terminate the right of the Contractor to proceed under this Contract if it is found, after due notice and hearing, by the City that gratuities in the form of entertainment, gifts, or otherwise offered or given by the Contractor, or agent or representative of the Contractor, to any officer or employee of the City of Yakima, with a view towards securing this Contract or securing favorable treatment with respect to the awarding or amending or the making of any determinations with respect to this contract. B. In the event this Contract is terminated as provided in (A) above, the City of Yakima shall be entitled to pursue the same remedies against the Contractor as it could pursue in the event of a breach of the Contract by the Contractor. The rights and remedies of the City of Yakima provided for in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law. The existence of facts upon which the City of Yakima makes any determination under this clause shall be an issue and may be reviewed as provided in the "Disputes" clause of this Agreement. XXVI RIGHTS IN DATA The City of Yakima ONDS may duplicate, use and disclose in any manner and for any purposes whatsoever, and have others so do, all data delivered under this agreement. The contractor hereby grants to the City of Yakima, a royalty - free, non-exclusive, and irrevocable license to publish, translate, reproduce, deliver, perform, dispose of, and to authorize others to do so, all data now or hereinafter covered by copyright: Provided, that with respect to data not originated in the performance of this contract such license shall be only to the extent that the Contractor has the right to grant such license without becoming liable to pay compensation to others because of such grant. The Contractor shall exert all reasonable effort to advise the City of Yakima ONDS, at the time of delivery of data furnished under this agreement, of all invasions of the right of privacy contained therein and of all portions of such data copied from work not composed or produced in the performance of this 16 agreement and not licensed under this clause. The Contractor shall report to the City of Yakima ONDS, promptly and in written detail,each notice or claim of copyright infringement received by the Contractor with respect to all data delivered under this agreement. The Contractor shall not affix any restrictive markings upon any data, and if such markings are affixed, the City of Yakima ONDS shall have the right at any time to modify, remove, obliterate, or ignore such markings. XXVII RULE OF CONSTRUCTION In the event of an inconsistency in this contract/grant award unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: 1. Appropriate provisions of state and federal statutes and regulations including HUD Home Regulations. 2. General Terms and Conditions (Exhibit A). 3. Those attachments incorporated by reference herein, including the statement of work/project description, approved HUD grant budget, in the order in which attached, and 4. Any other provisions whether incorporated by reference herein or otherwise provided that nothing herein shall be construed as giving preference to provisions of this contract/grant award over any provisions of law. XXVIII VENUE STIPULATION This Contract has been and shall be construed as having been entered into and delivered within the State of Washington, and it is mutually understood and greed by each party hereto that this Contract shall be governed by laws of the State of Washington, both as to interpertation and performance. Any action at law, suite in equity, or judicial proceeding for the enforcement of this Contract or any provisions thereof, shall be instituted and maintained only in any of the courts of competent jurisdiction at Yakima in Yakima County, Washington. XXIX MODIFICATION Either party may request changes in this Contract, however, no change or addition to this Contract shall be valid or binding upon either party unless such change or addition be in writing, and executed by both parties, except budget adjustments as specified in Section IV of this Contract. 17 XXX SEVERABILITY It is understood and agreed by the parties hereto that if any part, term, or provision of this Contract is held by the courts to be illegal, the validity of the remaining provisions shall not be affected; and the rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the particular provision held to be invalid. If it should appear that any provision hereof is in conflict with any statutory provision of the United States or the State of Washington, said provision which may conflict, therewith, and shall be deemed modified to conform to such statutory provision. XXXI PROGRAM INCOME Any program income shall be accounted for by the Contractor, over the contract time period, and shall be reported to the City. Program income is to be used to continue or benefit the program, as approved in writing by the City of Yakima ONDS. XXXII CONFLICT OF INTEREST No member, officer, or employee of the City of Yakima, or the Contracting Organization, or assignees or agents, no member of the governing body of the City of Yakima, and no other public official of the City of Yakima or such other localities who exercises any functions or responsibilities with respect to the program during his tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with a City of Yakima Home funded program. XXXIII RETURN OF HOME FUNDS The Contracting Organization shall return to the City all monies provided hereunder by the City to the Contracting Organization if the Contracting Organization materially changes the primary purpose and scope of the CHDO Project as described on Exhibit "B" to the contract without written approval from the City of Yakima ONDS or fails to raise $40,000 of non -city funds and complete the predevelopment phase of the project by the stated date on page 1 of this Contract. This loan will be converted to a grant if 1) the project is not built, or 2) the project's net cash flow cannot repay the loan within 5 years from initial occupancy. 18 October 23, 1997 TO: CITY OF YAKIMA From: Washington Association of Minority Entrepreneurs (WAME) a Certified State of Washington & City Community Housing Development Organization (CHDO) RE: WORK PLAN the proposed MERCADO & Senior Housing Development Project, Pre -Development Phase *********k***************k:Fac*****************;k*cede*fie***fir*k******** Project Pre -Development Team: A Representative of: ► Washington Association of Minority Entrepreneurs, Inc.,a non-profit community development corporation and certified CHDO • Community Development Resources (CDR),(A for profit minority owned business) ► California Lutheran Homes, a non profit senior housing operator ► City of Yakima, Community & Economic Development Department, Office of Housing & Community Development ► Yakima City Council • Project Architect • Sisters of Providence Pre -Development Phase: The Pre -Development Phase of the Mercado & Senior Housing Project will involve the collaborative efforts of city officials, non- profit organizations and private business. Their task will be to gather and evaluate data to properly assess the feasibility of developing a culturally enhancing Community Retail Center together with a Senior Housing complex that will expand the supply of affordable housing for low and moderate income Senior Americans within the City of Yakima. The proposed project is the first of its kind in the entire Northwest. The project is based on two very successful models in San Diego and San Jose, California. The vision is threefold: (1) Provide decent, safe, sanitary and affordable housing for seniors;"(2)Provide a showcase retail center facility for established businesses as well as new and emerging _ businesses; and (3) Provide a magnet for tourism, i.e EI Ranchito. 1 THE PROPOSED MERCADO SENIOR HOUSING PROJECT Phase 1I, Pre -Development During 1995, the Mercado Project's momentum signii.cantly slowed. This was due to several factors. First, WAME was not in a financial position to support any additional consulting services, nor could it afford to continue to mount its own campaign to sustain the project's momentum. Secondly, although the City of Yakima's Community & Economic Development Office continued to express interest in the project, staffing constraints limited office's ability to provide the necessary personnel commitment to take it to the next phase. Since August of 1995, the project has gone through several "on again", "off again�r scenarios. On May, 1997, during a meeting with City officials about Eastside issues, the Mercado project once again surfaced. Mayor Buchanan convened the meeting and Council members Pucinelli and Klingele were invited to participate. The outcome of that meeting was a general consensus by those present to support the project and attempt to move it to the next phase. More importantly, the meeting produced a project mentor, Councilman Pucinelli, who has sees this as a valuable project and has made the commitment to see it through its completion. Another important aspect of the meeting, was the introduction of the availability of development funds through a HUD program called HOME. Upon certification as a Community Housing Development Organization (CHDO), WAME could access capital needed to develop the Pre Development phase of the senior housing component through HOME funds. Concurrently, a source of pre -development monies from the Washington State Development Loan Fund for the commercial phase were identified. A work and budget was developed for both the commercial retail and senior housing component. In July, 1997, WAME applied to the State for CHDO Certification and was approved. Once approved by the State, WAME requested Certification by the City of Yakima. On September 16, 1997 WAME was certified as a CHDO and therefore became eligible for HOME monies for the senior housing component. The following tasks will need to be accomplished to complete the Senior Housing Pre -Development Phase: WASHINGTON ASSOCIATION OF MINORITY ENTREPRENUERS, INC. EXHIBIT "B" Following is a list of accomplishments that will be completed during the Pre -Development Phase of the Senior Housing Project. ACCOMPLISHMENT START/COMPLETION DATE ESTIMATED COST TO COMPLETE Senior Housing Needs Assessment January 15, 1998 February 15. 1998 $1.000 _ Site Identification December 1, 1997 January 15. 1998 $2.000 Land Evaluation December 15, 1997 February 5. 1998 $ 500 Arch Site Plan Development February 2, 1998 February 28. 1998 $3.500 Total Estimated Pre -Development Budget 1 $7,000 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No: / For meeting of: Nov. 4, 1997 ITEM TITLE: 1997 Community Housing Development Organization Contract SUBMITTED BY: Glenn Valenzuela, Dir. of Community and Economic Developrne CONTRACT PERSON / TELEPHONE: William Cook, Neighborhood Development Services Manager (575-6101) SUMMARY EXPLANATION: Community Housing Development Organizations (CHDO's) are entitled to 15% of the jurisdictions allocated federal IIOME monies. HOME Program Funds may be used for housing development, sponsored and/or owned by CHDO's. Eligible activities include predevelopment costs and the acquisition, rehabilitation and new construction of rental housing, homeownership and renter assistance. The Washington Association of Minority Entrepreneurs (WAME), a state certified CHDO is requesting a loan of $7,000 of 1997 CHDO funds to assist in the design and site selection for a 55-75 unit low and moderate income elderly housing component of a mixed use housing and commercial project. As authorized by federal regulations, this loan will be converted to a grant if 1) the project is not built, or 2) the project's net cash flow cannot repay the loan within 5 years from initial occupancy. Total predevelopment cost for the mixed use project is $54,000 with WAME raising $40,000 from other sources and applying for an additional $7,000 loan for predevelopment funds from the City of Yakima in 1998 if needed. Approval of this resolution will authorize and direct the City Manager to execute a contract with the Washington Association of Minority Entrepreneurs which will include a project description, work plan with identification of funding sources, a requirement that WAME raise $40,000 of non -city funds, and complete the predevelopment phase of the project by July 31, 1998. Resolution Ordinance Contract Other Specify Funding Source: HOME FUNDS APPROVAL FOR SUBMITTAL: - City Manager STAFF RECOMMENDATION: Approve resolution BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-97-140 October 23, 1997 TO: CITY OF YAKIMA From: Washington Association of Minority Entrepreneurs (WAME) a Certified State of Washington & City Community Housing Development Organization (CHDO) RE: WORK PLAN the proposed MERCADO & Senior Hot'sing Development Project, Pre -Development Phase ***************************************************************** Project Pre -Development Team: A Representative of: ► Washington Association of Minority Entrepreneurs, Inc.,a non-profit community development corporation and certified CHDO ► Community Development Resources (CDR),(A for profit minority owned business) ► California Lutheran Homes, a non profit senior housing operator ► City of Yakima, Community & Economic Development Department, Office of Housing & Community Development ► Yakima City Council ► Project Architect ► Sisters of Providence Pre -Development Phase: The Pre -Development Phase of the Mercado & Senior Housing Project will involve the collaborative efforts of city officials, non- profit organizations and private business. Their task will be to gather and evaluate data to properly assess the feasibility of developing a culturally enhancing Community Retail Center together with a Senior Housing complex that will expand the supply of affordable housing for low and moderate income Senior Americans within the City of Yakima. The proposed project is the first of its kind in the entire Northwest. The project is based on two very successful models in San Diego and San Jose, California. The vision is threefold: (1) Provide decent, safe, sanitary and affordable housing for seniors; (2)Provide a showcase retail center facility for established businesses as well as new and emerging businesses; and (3) Provide a magnet for tourism, i.e El Ranchito. 1 THE PROPOSED MERCADO SENIOR HOUSING PROJECT Phase 1I, Pre -Development During 1995, the Mercado Project's momentum signi 'icantly slowed. This was due to several factors. First, WAME was not'iri a financial position to support any additional consulting services, nor could it afford to continue to mount its own campaign to sustain the project's momentum. Secondly, although the City of Yakima's Community & Economic Development Office continued to express interest in the project, staffing constraints limited office's ability to provide the necessary personnel commitment to take it to the next. phase . Since August of 1995, the project has gone through several "on again", "off again" scenarios. On May, 1997, during a meeting with City officials about Eastside issues, the Mercado project once again surfaced. Mayor Buchanan convened the meeting and Council members Pucinelli and Klingele were invited to participate. The outcome of that meeting was a general consensus by those present to support the project and attempt to move it to the next phase. More importantly, the meeting produced a project mentor, Councilman Pucinelli, who has sees this as a valuable project and has made the commitment to see it through its completion. Another important aspect of the meeting, was the introduction of the availability of development funds through a HUD program called HOME. Upon certification as a Community Housing Development Organization (CHDO), WAME could access capital needed to develop the Pre Development phase of the senior housing component through HOME funds. Concurrently, a source of pre -development monies from the Washington State Development Loan Fund for the commercial phase were identified. A work and budget was developed for both the commercial retail and senior housing component. In July, 1997, WAME applied to the State for CHDO Certification and was approved. Once approved by the State, WAME requested Certification by the City of Yakima. On September 16, 1997 WAME was certified as a CHDO and therefore became eligible for HOME monies for the senior housing component. The following tasks will need to be accomplished to complete the Senior Housing Pre -Development Phase: 2 WORKPLAN Task to be Accomplished Entity Responsible Start Date Comp Date Cost of Completion Senior Housing CLH,WAME Dec 1, 1997 $ 1,000* Needs Asses Feb 15, 1998 Site CDR, WAME Nov 1, 1997 $ 2,000* Identificatio Dec 15, 1998 Land Valuation CDR, WAME Dec 1, 1997 $ 500* Dec 15, 1998 Architectural CDR, Architect Dec 1, 1997 $ 3,500* Site Plan Jan 30, 1998 Development CDR Dec 15, 1997 $ 1,500* Issues Jan 15, 1998 Project Cost & CDR Nov 15, 1997 $ 5,500* Revenue Ass Feb 6, 1998 Partnership CDR,CLH, WAME Nov 15, 1997 $ 3,000** Agree CDR/WAME Nov 31, 1997 & CLH/WAME WAME Board Dev CG, MHC Nov 15, 1997 $ 2,000** Jan 30, 1997 Total Cost $19,000 (Estimated) (1997 & 98) WAME: Washington Association of Minority Entrepreneurs CDR: Community Development Resources, Inc. OHND: City of Yakima's Office of Housing & Neighborhood Development CLH: California Lutheran Homes CG : Common Ground (CHDO TA) TBD: To Be Determined * CHDO Resources ** Other Related resources 3 RETAIL CENTER WORKPLAN Retail Rental Survey CDR Jan 1, 1997 Feb 15, 1998 $1,500* Redevelopment Report Sorting CDR Feb 15, 1998 March 15, 1998 $2,000* Cost & Cashflow Proforma CDR March 15, 1998 April 30. 1998 $9,000* Development of Marketing Coll WANE Jan 15, 1998 $1,500* Identification & Negotiations Anchor Tenant WANE/CDR Jan 15, 1998 April 15, 1998 $10,000* Phase I Environmental TBD May 1, 1998 $ 5,000* Contract Dev WAME/Partners WAME/Partners June 30, 1998 $ 6,000** Total Costs $35,000 WAME: Washington Association of Minority Entrepreneurs CDR: Community Development Resources, Inc. OHND: City of Yakima's Office of Housing & Neighborhood Development CLH: California Lutheran Homes CG : Common Ground (CHDO TA) TBD: To Be Determined * Wash Dev Loan Fund ** Other Resources 4 Phase I, Concept Development Phase, Completed on May 20, 1995 In 1992, the WAME Board of Directors set into motion the development of a subsidiary, Del Norte, CDC, for the purpose of developing local economic projects. After several planning sessions, an organizational plan was developed with the assistance of the Pacific Power & Light's PacifiCorp Economic Development Department. A copy of the plan was provided to the City of Yakima's Community & Economic Development Department. One of the primary objectives of the Del Norte CDC was the development of a Retail Center that would serve as a retail incubator for small business along with office space for local service agencies. The name assigned to the retail center was the "Mercado" meaning market place. The Mercado Project was endorsed by the Hispanic Chamber of Commerce and local Hispanic businesses as a result of a townhall meeting and local surveys of interest taken in October, 1993. The project's description and scope was discussed at several informal meetings with City of Yakima officials. Although, the City was supportive, a plan of action never developed to move the project forward. In November, 1994, the Department of Commerce, Economic Development Administration (EDA) awarded WAME a small planning grant for the development of a bilingual business training program and manual. Included in the grant, was a $5,000 set aside for the development of a Pre -Development Study for the Mercado project. The grant was used to conduct a feasibility study for the purpose of identifying property parcels in the 6-8 acres size range which would accommodate the development of approximately 20,000 square feet of retail and 55 to 75 units of decent, safe, sanitary and affordable senior housing units. WAME's Executive Director, Luz Bazan Gutierrez, was instructed by the board to contract the services of a consultant that was reputable and knowledgeable about Senior housing and Commercial development to conduct the study. The services requested were: ► Assist in defining the project's scope ► Develop the site selection criteria ► Identify potential sites ► Define the development process and related issues ► Develop a conceptual architectural project site plan and elevation ► Assist the Chair in developing a recommendation for a governing board structure to facilitate the on going business activities of the project. 5 A contract was developed with Community Development Resources, Inc. CDR) in February, 1995 to develop the Concept Development Phase of the Mercado/Senior Housing project. In May of 1995, the Concept Development Feasibility Plan was finalized and approved by the Board of Directors. Please see attached copy of the report dated May 20, 1995. During the formulation of the report, it was assessed that in order for the senior housing element of the project to be:successful, an experienced senior housing operator would be needed as part of the development team. CDR, through its contacts, introduced California Lutheran Homes (CLH), a highly respected operator in the industry. Upon a site visit to Yakima, their representative Nancy Spring committed CLH's support for the project. In June of 1995, the Mercado and Senior Housing Concept Development Plan was presented to the Economic Development Committee of the City Council of the City of Yakima. The committee was impressed with the amount of work WAME and the consultants had accomplished. In turn, they voted to support the project and encouraged WAME to further develop the project. The findings of the report were encouraging. It identified several sites within the City of Yakima's economically depressed areas that would accommodate the project's land requirements. The estimated project costs and revenue data gathered, further supported the project's concept and purpose. The Consultant and the Executive Director presented the project's report to local businesses, lending institutions representatives and the City of Yakima's Community & Economic Development Director. Their reaction to the report was to express high praise and support. Through the use of the $5,000 planning grant, WAME was able to leverage $19,325 of consulting services. CDR,Inc. Consulting service contract $ 5,000 In- kind Contributions: • Eighty five (85) additional hours of consulting services by CDR @ $125 per hour (Includes additional travel & lodging ) $10, 625 • Sixty five (65) hours of project evaluation by Nancy Spring, California Lutheran Homes @ $100 per hour (Travel & Lodging) $6, 500 • Twenty (20) hours of architectural drawing and site layout work @ 110 per hour $2,,200 Total Capital & In -Kind Investment $19,325 6