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HomeMy WebLinkAboutR-2003-008 Next Step Housing HOME / CHDO Grant Request (re: Sommerset Apartments )RESOLUTION NO. R-2003 — 08 A RESOLUTION approving a $85,000 grant request from 2003 federal HOME funds to Next Step Housing to purchase and rehabilitate the Sommerset Apartments, and authorizing and directing the City Manager and the City Clerk to execute all necessary grant documents, including a grant agreement, between the City of Yakima and Next Step Housing. WHEREAS, the City of Yakima is a recipient of 2003 federal HOME funds which may be used, among other things, for Community Housing Development Organization Programs; and WHEREAS, the City of Yakima is required by the HOME program regulations to make at least 15% of its annual HOME allocation available to local CHDOs; and WHEREAS, Next Step Housing is requesting a grant of $85,000 in HOME funds to purchase and rehabilitate the Sommerset Apartments; and WHEREAS, at January 14, 2003 City Council Neighborhood Development Sub -committee meeting, the sub -committee recommended to forward the proposal to full Council; and WHEREAS, the City Council has determined that it is in the best interest of the City to approve the $85,000 grant request from Next Step Housing to purchase and rehabilitate the Sommerset Apartments, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. A grant of $85,000 in HOME funds to Next Step Housing to purchase the Sommerset Apartments is hereby approved with the following conditions: • Execution of a foiinal grant agreement between the City of Yakima and Next Step Housing. • After completion of the purchase, Next Step Housing will inform Neighborhood businesses and residents about their plans for the project, and invite public comment. • Next step housing will consult with ONDS on exterior changes to their project including property fencing. 2. The City Manager is hereby authorized and directed to execute all necessary grant documents, including a grant agreement, between the City of Yakima and Next Step Housing. The final foiili of these documents shall be reviewed and approved by the City Attorney. ADOPTED BY THE CITY COUNCIL this 21st day of January, 2 ATTEST: City Clerk Mary P . ' e, Mayor CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 1. Contracting Organization: Next Step Housing 2. Address: PO Box 784 (hereinafter "Contractor") Yakima, WA 98907 3. Phone: (509) 577-7434 4. Contact Person:John Mifsud, Executive Director 5. Title of Service or Program being Funded: The Sommerset Apartments 6. Amount of Contract Award: $ 85,000 (HOME) 7. The term of this Contract shall commence upon execution hereof and shall terminate at midnight 2O/0 y , unless sooner terminated by either party in accordance with Section XXII 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) Operating budget including sources and uses statement, work plan and all attached hereto as Exhibit "B" and incorporated herein by this reference. 3) City of Yakima Resolution No.2003-08, a copy of which is attached hereto as Exhibit "C" and incorporated herein by this reference. 9. Final Contract payment shall be subject to satisfactory completion of project described in Exhibit B, Contractor/Subcontractor lien releases, and satisfaction of all contract terms and conditions as stated in Exhibit "A" and Exhibit "C". This written document and incorporated exhibits constitutes the entire Contract between the parties. IN WITNESS THEREOF the parties have executed this Contract as of the day and year indicated R.A. Zais, Jr., City Manager 9/1/10 Contractor Title: %/C ' Ut) -1)(JZaFUfC— ATTEST• Acr-0, City Clerk `( A /C/A, City Contract No.: A003-554 go2 50 Ad; 0/U /Qx003-0 44 Da °3 5/0/ 3 Date 517-0 0,3 Date EXHIBIT "A" TERMS AND CONDITIONS DESIGNATION The City of Yakima, as recipient of a housing and community development grant from the U.S. Department of Housing and Urban Development, hereby designates Contractor to undertake, and the Contractor 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). ONDS shall furnish the Contractor 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 Contractor $ 85.000 for said project. III GENERAL BUDGET PROVISIONS The Contractor 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 Contractor or obligation of the Contractor 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 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 Contractor 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 Contractor 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 Contractor prior to the Contractor incurring any expenditures against the revised budget sub -object categories. 2 of 13 4/22/03 2. When the revision of the Contractor budget does not exceed ten percent (10%) of an approved budget sub -object category, the Contractor must submit a revised budget to the City of Yakima ONDS prior to the submittal of claims against the budget. IV COMMENCEMENT OF WORK The City of Yakima ONDS shall furnish the Contractor 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 Contractor 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 substantially the amount of local financial support for community development activities below the level of such support prior to the availability of such assistance. VII BUDGET SURPLUS The Contractor 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 and may be negotiated if they are to be included in future Contracts. VIII COMPLIANCE WITH LAWS A. GENERAL The Contractor, 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 Contractor 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., 3 of 13 4/22/03 implementing regulations, and Chapter 70.92 RCW. 5. Clean Air Act as amended, 42 USC Section 1857 et weq; 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, and Contractor 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 Contractor, the County, and the United States are beneficiaries of and entitled to enforce such covenant. The Contractor, 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)). 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 Contractor to furnish data, information and assistance for the City's review and assessment in determining whether the City must prepare an Environmental Impact Statement. 4 of 13 4/22/03 B. SEPA The Contractor 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 Contractor 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 Contractor 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 Contractor 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. X NON-DISCRIMINATION IN CLIENT SERVICES A. The Contractor agrees to affirmatively market units 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 Contractor 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 Contractor shall take such action as may be required to ensure full compliance with the provisions of this clause, including sanctions for noncompliance. 5 of 13 4/22/03 XI LICENSING AND PROGRAM STANDARDS The Contractor 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. XII MONITORING AND ACCESS TO RECORDS A. Contractor agrees that City may carry out monitoring and evaluation activities so as to ensure compliance by Contractor with this Contractor agreement, with the HOME Compliance Documents, and with all other laws, regulations, and ordinances related to the performance hereof. Contractor 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, Contractor 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. Contractor 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 Contractor 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 Contractor 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. XV STANDARDS FOR FISCAL ACCOUNTABILITY A. The Contractor agrees to provide project line item draw requests, annual verification of rents, annual audited financial statement to compare income and expenses, 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 Contractor 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 Contractor shall retain all books, records, documents and other 6 of 13 4/22/03 material relevant to the Contract for seven (7) years after settlement of this Contract. The Contractor 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 Contractor agrees that any contributions or payments made for services furnished under this Contract 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 Contractor 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. 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 Contractor 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 Contractor. 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 Contractor 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 approval of the City of Yakima ONDS. 7. Any nonexpendable personal property furnished to, or purchased by, the Contractor, 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 Contractor 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 9A of RCW Chapter 62A. 9. The Contractor 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 7 of 13 4/22/03 results from negligence, willful misconduct, or lack of good faith on the part of the Contractor to maintain and administer in accordance with sound management practices that 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 Contractor. No agent, employee, or representatives of the Contractor shall be deemed to be an employee, agent, servant or representative of the City of Yakima for any purpose, and the employees of the Contractor are not entitled to any of the benefits the City of Yakima provides for City Employees. The Contractor 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 Contract. In the event the City is assessed a tax or assessment as a result of this Contract, Contractor shall pay the same before it becomes due. XIX QUARTERLY REPORT The Contractor 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 A. NO INSURANCE It is understood that the City does not maintain liability insurance for the Contractor and/or its employees, agents, officers, and subcontractors. B. COMMERCIAL LIABILITY INSURANCE On or before the effective date of this Contract, 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 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 thjs Contract. 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. C. COMMERCIAL AUTOMOBILE LIABILITY INSURANCE On or before the date this Contract is fully executed by the parties, Contractor shall provide the City with a certificate of insurance as proof of commercial automobile liability insurance with minimum liability limit of One Million Dollars ($1,000,000.00) combined single limit bodily injury and property damage. Automobile liability will apply 8 of 13 4/22/03 to "Any Auto" and be shown on the certificate. The certificate shall clearly state who the provider is, the amount of coverage, the policy number, and when the policy and provisions 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 Contract. 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 initialed 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. D. 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. E. INSURANCE PROVIDED BY SUBCONTRACTORS The Contractor shall ensure that all subcontractors it utilizes for work/services rendered under this Contract shall comply with all of the above insurance requirements. XXI INDEMNIFICATION AND HOLD HARMLESS All services to rendered or performed under this Contract will be performed or rendered entirely to the Contractor's own risk and the Contractor expressly agrees to defend, indemnify and hold harmless the City of Yakima and all of its officers, agents, employees and elected officials from any and all liability, loss, fines, penalties 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 judgments against the City of Yakima which result from, arise out of, or are in any way connected with the services to be preformed by the Contractor under this Contract. Nothing in this section of the Contract shall be construed to create a liability or a right of indemnification in any third party. XXII CONTRACT, TERMINATION AND CLOSE OUT If the Contractor 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. A. TERMINATION FOR CAUSE If the Contractor 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 Contractor 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; 9 of 13 4/22/03 3. The Contractor 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 Contractor of the termination, the reasons therefore and the effective date provided such effective date shall not be prior to notification to the Contractor. 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 ONDS 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 under this Section shall be effective upon receipt of written notice by the Contractor or its representative. The City of Yakima ONDS agrees to promptly notify the Contractor of any proposed reduction in funding by Federal or other officials. The Contractor 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 Contract 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 Contractor, the City of Yakima shall make or arrange for payment to the Contractor of allowable reimbursable costs not covered by previous payments. 2. The Contractor 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 Contractor after fully considering the recommendation on disallowed costs resulting from the final audit. 10 of 13 4/22/03 XXIII 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 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. XXIV CONFLICT OF INTEREST The City may, by written notice to the Contractor: A. Terminate 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. XXV 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 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. )(XVI 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). 11 of 13 4/22/03 3. Those attachments incorporated by reference herein, including the statement of work/project description, approved HUD grant budget, in the order in which attached, (Exhibit B), 4. City of Yakima Resolution No. 2003-08 (Exhibit C), and 5. 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. XXVII GOVERNING LAW 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 agreed by each party hereto that this Contract shall be governed by laws of the State of Washington, both as to interpretation and performance. XXVIII VENUE The venue for any action to enforce or interpret this Contract shall lie in the Superior Court of Washington for 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. 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. Income is to be used to continue or benefit the program, as determined by the intent and purpose of the project. XXXII RETURN OF HOME FUNDS The Contractor shall return to the City all monies provided hereunder by the City to the Contractor if any of the following occur: 1. The Contractor materially changes the primary purpose and scope of the HOME Project as described on Exhibit "B" to the Contract; or 2. The Department of Housing and Urban Development requires a 20 year "Affordability Period" from the date of execution of the Contract, and if the real property that is the subject of the HOME Project described on Exhibit "B" to the Contract is sold or transferred in any way by the Contractor. 12 of 13 4/22/03 XXXIII PROJECT PROCEEDS HOME funds provided by the City of Yakima to the Contractor shall be repaid to the City at no interest from project cash flow if and to the extent that annual net operating income to the Contractor (after project operating expense and first lien debt service) exceeds ten (10) percent of the Contractors investment in the project (including equity and private lending) in any of the first five (5) years after issuance of a Certificate of Occupancy. 13 of 13 4/22/03 EXHIBIT "B" NFXT STEP HousING SLR\'I LENRICI•ED • "T RANSI I IONAL & ('ERMANEN Project Description PROPERTY DESCRIPTION: Next Step Housing (NSH) will purchase and rehab an existing 42 - unit, 3 -story complex in Yakima called The Sommerset Apartments. The Sommerset is made up of three buildings in good condition comprising a total of 21 one -bedroom and 21 two-bedroom units. A large courtyard/playground extends between. Off street parking and carport crown the northern side of the lot. All one -bedrooms are on the ground floor. A two-story, two-bedroom townhouse sits on top of every one -bedroom. These individual apartments will be preserved as permanent housing for a mixed -income Alcohol and Drug Free Community (ADFC). All households will have special needs and receive comprehensive, in-home case -management as appropriate. PLANNED REHABILITATION: Traho Architects detailed cost estimates for rehab of the site. Successful funding will ensure preservation for the next 30 years. Exterior systems that will require rehab or total replacement include: 1) A new roof with additional attic insulation; 2) Refurbishing and reinforcing all staircases to the second floor; 3) New steel front doors to increase safety and replace existing wooden doors; 4) New windows and sliding glass patio doors will be double -paned and energy-efficient; 5) Redesigning and replacing the landscaping/irrigation system. Interior systems rehabilitation will include: 1) New paint in 15 units; 2) Appliance replacement in almost all units; 3) New carpet in 30 units and new vinyl flooring in 25 units; 4) Creating 4 one -bedroom and 2 two-bedroom wheelchair accessible units. Our new configuration creates a total of 41 units: 18 one -bedrooms and 23 two -bedrooms. PROJECT LOCATION: The location of the Sommerset is outstanding! The site is especially suited for serving special needs residents. Public transportation is on the same block! The Sommerset is right across the street from Providence Medical Center, a major employer of high - functioning adults living with DD. The proximity of this major employer will be a boon to our special needs residents. Also with -in one block is a 144 -unit convalescent center with employment opportunities. Cornerstone and Yakima Medical Centers, Yakima National Bank, Davis High School and the First Presbyterian Church are within two blocks. Yakima Medical Associates, Safeway and many medical/dental clinics are within a three -block radius of this convenient downtown location providing a wealth of employment opportunities. The Scarbourough Fair Mall is also within three blocks with a host of retail shopping including Long's Drugs, ethnic groceries, fast food restaurants, a beauty salon, a training center and two video/electronics stores. Barton's Pharmacy, Bi -Mart, First Baptist Church are also within three blocks. So is Lion's Park with an open year-round community swimming pool. Next Step Housing — Sommerset Apartments Page 1 ON SITE SERVICES: All DD residents will be referred by Yakima DSHS DDD and come with on-site case -management. Next Step will subcontract services for the balance of residents recovering from substance abuse to Rainier Case Management, Inc. Rainier is one of the largest case -management service providers in Washington. They will provide intensive in-home case management, learning differences screening and skill -building services to our residents. Rainier has computerized, state-of-the-art assessment systems with an impressive track record of success remediating adult learners by increasing self-sufficiency through education and employment. RESIDENT HEALTH AND SAFETY: The location is a safe downtown neighborhood. New steel front doors and outdoor lighting will increase security. The entire site is currently open to the street. Next Step plans to gate the entire property to increase safety and privacy. Residents will be encouraged to develop a Neighborhood BlockWatch. This will create linkage between and local law enforcement agencies to address security concerns. Because over 70% of violent crimes in the United States involve substance abuse, our Zero Tolerance of Alcohol and Drug Use Policy inherently creates safer communities with fewer incidents of violent crime. Intensive on-site case management services will also contribute to the increasing mental and physical health of all residents and an on-site Resident Manager will be on call 24/7 for emergencies. RESPONSIVE DESIGN ELEMENTS: Patios, balconies, replacing landscaping and gating the interior courtyard will create an inviting outdoor area for each apartment, the residents and their children. More important, our design for the rehab includes creating wheelchair accessible units where none previously existed. Next Step plans to fully convert 4 first -floor, one -bedrooms into wheelchair accessible units. Another existing 3 one -bedroom units will be converted into 2 wheelchair accessible two-bedroom apartments to be responsive to the needs of our special needs residents and their families. Next Step Housing — Sommerset Apartments Page 2 Exhibit 3-4 DEVELOPMENT BUDGET Residential Note: Add an extra page if more columns are needed. Do NOT combine funding sources in a column, I -i_..... .._ Total I Project Residential $1,500,000 8400,000 885,000 $400,000 Cost Total HTF McKinney ONDS i"HLB Acquisition Costs Purchase Price _Liens .j.._ Closing, Title & Recording Costs Hxte4lon payment Otheri SUBTOTAL Construction Basic Construction Contract Bond Premium Tnfntstructum Improvements Hazardous Abate, & Monitoring Construction Contingency (i15%) • I Sales Taxes Other Construction Costs: Other Con.truotion - -SUBTOTAL Development Costs: P Lrofessional Appraisal ? Architect/Engineer Environmental Assessment Geotechnical Study Boundary & Topographic Survey Leal r Developer Cee __- 110 7% ?ro)cct management Technical Assistancc Other Consultants; OWter----• SUBTOTAL Other Development Costs Real Estate Tax insurance Relocation Bidding Costs --i Permits, Fees & Hookups 1 -1rr!pecl/Mitigation Fen $1,350,000 $0 $1,350,000 $1,104,603 $245,397 $0 $5,850 85,850 $5,850 $0 $0 $0 $10,000 US BANK $0 $1,355,850 81,355,850 $1,J10,453 05,397 $ • $635,266 8635,266 8221,268 $154,603 $18,220 $241,175 895290 $65,019 $0 $0 $795,575 $95,990 $65,019 $76,780 818,510 $65,019 $795,575 $298,048 $154,603 $1.8,220 $324,704 $5,500 $5,500 $32.000 81,800 $32,000 81,800 $0 $0 80 $0 $0 $0 $169,417 $169,417 $51,821. $42,300 $75,296 Development Period Utilities Construction Loan Hees Construction Interest 0111C1 Lvnu Fuc; (WC1?LP, State HTP, 1.1hiTC Fees Accounting/Audit Marketln_p/Leasing Expenses Carrying Costs at Rent up Operating Reserves r 1 -T Other. SUBTOTAL 511,933 $11,933 $11,933 $0 80 $3,480 $3,000 $3,480 $3,000 $3,480 $3,000 $98,0 $0 $0 $0 $0 OU $111,000 $0 80 $0 $0 $0 $0 $18,000 837,745 ..$17,745 827.745 80 80 810,000 $74,158 $74,158 839,678 $0 $24,4$0 $0 $10,000 Tonal Development Cost: r$2,395,0001I82,395,000 $1,500,000 $400,000 885,00.0 $400,000 -i $0 I s0 30 *Minimum: 10% for New Construction, 15'4 for Rehabilitation, Please explain variations, • $0 1 $4651 EXHIBIT "C" RESOLUTION NO. R-2003— 08 A RESOLUTION approving a $85,000 grant request from 2003 federal HOME funds to Next Step Housing to purchase and rehabilitate the Sommerset Apartments, and authorizing and directing the City Manager and the City Clerk to execute all necessary grant documents, including a grant agreement, between the City of Yakima and Next Step Housing. WHEREAS, the City of Yakima is a recipient of 2003 federal HOME funds which may be used, among other things, for Community Housing Development Organization Programs; and WHEREAS, the City of Yakima is required by the HOME program regulations to make at least 15% of its annual HOME allocation available to local CHDOs; and WHEREAS, Next Step Housing is requesting a grant of $85,000 in HOME funds to purchase and rehabilitate the Sommerset Apartments; and WHEREAS, at January 14, 2003 City Council Neighborhood Development Sub -committee meeting, the sub -committee recommended to forward the proposal to full Council; and WHEREAS, the City Council has determined that it is in the best interest of the City to approve the $85,000 grant request from Next Step Housing to purchase and rehabilitate the Sommerset Apartments, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. A grant of $85,000 in HOME funds to Next Step Housing to purchase the Sommerset Apartments is hereby approved with the following conditions: • Execution of a formal grant agreement between the City of Yakima and Next Step Housing. • After completion of the purchase, Next Step Housing will inform Neighborhood businesses and residents about their plans for the project, and invite public comment. • Next step housing will consult with ONDS on exterior changes to their project including property fencing. 2. The City Manager is hereby authorized and directed to execute all necessary grant documents, including a grant agreement, between the City of Yakima and Next Step Housing. The final form of these documents shall be reviewed and approved by the City Attorney. ADOPTED BY THE CITY COUNCIL this 21st day of January, 2003. ATTEST: 8/ MARY PLACE Mary Place, Mayor KiVitEhl S. ROBERTS, CMC City Clerk BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.: For Meeting of: January 21, 2003 ITEM TITLE: 2003 Community Housing Development Organization (CHDO) Request SUBMITTED BY: William Cook, Director of Community and Economic Development CONTACT PERSON/TELEPHONE: William Cobabe, Neighborhood Development Services, Manager (575-6101) SUMMARY EXPLANATION: The City of Yakima receives an annual allocation of HOME Investment Partnership funds from the Federal government. HOME funds may only be used for housing activities. This program requires that the City form partnerships with local housing developers and providers. These organizations are known as Community Housing Development Organizations (CHDOs). CHDOs are entitled to receive at least 15% of a jurisdiction's allocated federal HOME monies. HOME Program funds may be used by the CHDO's for housing development which is sponsored and/or owned by the CHDO. Eligible activities include predevelopment costs and the acquisition, rehabilitation and new construction of rental housing, homeownership and rental assistance. Next Step Housing is requesting a grant of $85,000 of HOME CHDO funds from the 2003 federal allocations to purchase and rehabilitate the Sommerset Apartments located at 711 West Walnut Street, Yakima, Washington. Up to lh of the units at the Sommerset Apartments will be made available to very low income developmentally disabled persons. This proposal was discussed at a meeting of the City Council's Neighborhood Development Committee on January 14, 2002, and the committee recommended that this proposal be forwarded to the full Council for approval. Approval of this resolution will authorize and direct the City Manager to execute a contract with Next Step Housing which will include a project description, work plan with identification of funding sources. Resolution X Funding Source: Ordinance Contract Other Specify 2003 HOME CHDO F d APPROVAL FOR SUBMITTAL: City - ager STAFF RECOMMENDATION: Approve Resolution BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2003-08