No preview available
HomeMy WebLinkAboutR-2009-066 Marvin Gardens Homes; Habitat for Humanity ReimbursementRESOLUTION NO. R-2009-66 A RESOLUTION authorizing the City Manager to execute an agreement with Habitat for Humanity a qualified Community Housing Development Organization (CHDO) for a grant of $50,000 for the reimbursement of design upgrades in five (5) homes being constructed in Marvin Gardens WHEREAS, Habitat for Humanity is a Qualified Community Housing Development Organization (CHDO); and WHEREAS, Habitat for Humanity has requested Fifty Thousand dollars ($50,000) in HOME funding to provide design upgrades to five (5) new homes under construction in the City of Yakima housing project Marvin Gardens; and WHEREAS, the City is a recipient and is responsible for the administration of its annual allocation of HOME funds made available through the United States Department of Housing and Urban Development (HUD); and WHEREAS, federal regulations goveming the use of HOME funds for addressing affordable housing activities allow the City to use such funds to provide grants to assist Community Housing Development Organizations (CHDO) to construct such housing; and WHEREAS, the provision of HOME assistance to Habitat for Humanity for this purpose will assist in providing affordable 1-iusing to low -low income families in the 30-60 percentile of the median family income within the City of Yakima; WHEREAS, these design upgrades provide substantial appropriate public benefits to the City, by creating uniform consistent housing within this housing development; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute a grant agreement, with Habitat for Humanity in the amount of Fifty Thousand dollars ($50,000) in HOME funds to provide design upgrades for five (5) newly constructed homes within the City of Yakima housing project Marvin Gardens. ADOPTED BY THE CITY CO NCIL this 21st day of April 2019 ATTEST: DavisEd er, Mayor OIC/MARVIN GARDENS AGREEMENT AMENDMENT THIS AGREEMENT AMENDMENT (hereafter "Amendment") is entered into on this /8 qday of u_ , 2009, by OIC of Washington, a Washington non-profit corporation and the City of akima, a Washington Municipal Corporation (hereafter "City"). Contractor and City are parties to that certain Funding Contract dated April 4, 2008 (hereafter "Contract"), whereby City agreed to fund to Contractor Five Hundred Thousand Dollars ($500,000.00) for the purpose of constructing fifteen (15) homes in the Marvin Gardens subdivision for low to moderate income residents. City and Contractor desire to amend certain terms of the Contract to included additional language required by HUD. CHDO PROVISION: It is understood that OIC has certified that it is and will maintain CHDO status for the term of the Project in accordance with 24 CFR 92. OIC agrees to provide information as may be requested by the CITY to document its continued compliance. Budget for the project must include sources and uses of funds for the project including non - HOME assistance. USE OF HOME FUNDS: OIC will use the HOME funds for new construction to provide affordable homeownership opportunities to low income Yakima city residents. Homebuyers are to use the home as their principal residence. Eligible homebuyers will meet the affordability requirements as found in 24 CFR 92.254, of income not exceeding eighty percent (80%) of the Area Median Income Guidelines (Attachment A). The property will conform to the HOME requirement 92.254(a)(2), of the maximum purchase price not exceeding 95% of the median purchase price limit for Yakima County, currently $271,050. Recorded loan documents will state use restrictions to homebuyer regarding period of affordability (5 years) as per 92.254(a)(4), and recapture of HOME funds, as per 92.254(a)(5), when the five (5) years is not met. The City shall have the recapture provisions language included in the Deed of Trust. OTHER ADDITIONS: Accessibility Standard as set forth in 92.251(a)(3). ➢ Washington State/Local Building Codes/Housing Quality Standards (24 CFR 882.109). No employee, agent, consultant, elected official, or appointed official of Contractor may obtain a financial interest or unit benefits from a HOME -assisted activity, either for themselves or those with whom they have family or business ties, dunng their tenure All other terms and conditions of the Contract not specifically amended herein shall remain in full force and effect. IN WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed and delivered 'by their duly authorized representatives on the day and year first above written. City of Yakima, A W(a&j ington municipal corporation By: Print Name: R.A. Zais Jr. Title: City Manager Date: CITY CONTRAC f N" 02009 -.53 RESOLUTION NO: By its signature below, the anticipated assignee of the Contract, OIC hereby consents to the Amendment of the Agreement executed by the City of Yakima and OIC/Marvin Gardens Subdivision on the 4th day of April, 2008. OIC of Washington, A Washington nonprofit corporation B daQ , l` Print Name: g01,1 j 1am/13N/1 Title: Gard aAa l i - Date: K _ 2_04 9.1 - toLa, AGREEMENT BETWEEN THE CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 1. Contracting Organization: Habitat for Humanity "Contractor") 2. Address: 2500 S. 26th Ave., Yakima, WA. 98902 3. Phone: (509) 453-8077 4. Contact Person: Mike Nixon 5. Title of Service or Program being funded: Marvin Gardens ( 5 design upgrades for New home construction) 6. Amount of Contract Award: $50,000 Fifty Thousand Dollars 7. The term of this Contract shall commence upon execution hereof and shall terminate at midnight, April 21, 2011, unless sooner terminated by either party in accordance with Section XXII of Exhibit "A", attached hereto and incorporated herein by this reference. 8. This contract award and the rights and obligations of both parties hereto shall be subject to and govemed by the following: 1) 'Terms and conditions" attached hereto as Exhibit "A" and incorporated herein by this reference; and 2) Operating budget including the funding sources and uses statement and the work plan, attached hereto as Exhibit "B" and incorporated herein by this reference. 3) City of Yakima Resolution No. R-2009-/4 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 the project described in Exhibit "B", the City's receipt of all required Contractor/Subcontractor lien releases, and satisfaction of all contract terms and conditions as stated in Exhibit "A", Exhibit "B" and Exhibit This written document, together with all of the incorporated exhibits hereto, constitutes the entire Contract and terms of agreement between the parties hereto. IN WITNESS - EOF the : • is lave executed this Contract as of the day a d year stated below. \l. oOk C A C." ractor r / Title: 2 *C ATTEST: City Clerk City Contract No.: ‘,2009_.5-..3 h - 2.c(%rl ( :tpKiM1 ate ��ZS�a9 Date `7" Ze(Q7 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 (hereinafter "the project"). CHDO PROVISION: 1t is understood that Habitat for Humanity has certified that it is and will maintain CHDO status for the term of the Project in accordance with 24 CFR 92. Habitat for Humanity agrees to provide information as may be requested by the CITY to document its continued compliance. I! 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 fumish 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 of Yakima shall provide to the Contractor HOME funds for the design upgrades of up to five (5) homes in the Marvin Gardens Subdivision. HOME funds shall be provided in the amount of Fifty Thousand Dollars ($50,000) will be given to the Contractor to be used for "Design upgrades". These funds shall be provided at the rate of Ten Thousand Dollars ($10,000) per home, at the time a building permit is issued for the home. This grant may be provided from HOME fund sources, in an amount not to exceed Fifty Thousand Dollars ($50,000)." C. USE OF HOME FUNDS: CHDO will use the HOME funds for new construction to provide affordable homeownership opportunities to low income Yakima city residents. Homebuyers are to use the home as their principal residence. Eligible homebuyers will meet the affordability requirements as found in 24 CFR 92.254, of income not exceeding eighty percent (80%) of the Area Median Income Guidelines (Attachment A). The property will conform to the HOME requirement 92.254(a)(2), of the maximum purchase price not exceeding 95% of the median purchase price limit for Yakima County, currently $257,497. Recorded loan documents will state use restrictions to homebuyer regarding period of affordability (5 yrs years) as per 92.254(a)(4), and recapture of HOME funds, as per 92.254(a)(5), when the (5 yrs) years is not met. III GENERAL BUDGET PROVISIONS 2 of 15 A. The City reserves the right to hold payment until adequate documentation has been provided by the Contractor and reviewed by the City. 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 obligations 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 that also fall within the applicable 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. 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 (1 0%) or more per home, from what has been set forth in the approved budget subject category. The City's written budget revision approval must be received by the Contractor prior to the Contractor incurring any expenditures against the revised budget subject categories. 2. When the revision of the Contractor budget does not exceed ten percent (1 0%) per home, or of an approved budget subject 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 fumish 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 substantially 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 of 15 VII BUDGET SURPLUS The Contractor agrees that funds determined by the City of Yakima ONDS to be surplus budget funds at the end of the project shall 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., implementing regulations, and Chapter 70.92 RCW. • 5. Accessibility Standard as set forth in 92.251(a)(3). 6. 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. 7. 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). 8. Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333, (Overtime Compensation). 9. Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and RCW Chapter 3 —12 (Prevailing Wage Rates). 10. Attachment 0 of the Office of management and Budget Circular, A-102 (Procurement Standards) and Federal Management Circular, FMC 74-4. 4 of 15 C 11. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570. 12. 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. 13. Age Discrimination Act of 1975 (24 CFR 146). 14 Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1). 15. Washington State/Local Building Codes/Housing Quality Standards (24 CFR 882.109). 16 WBE/MBE (24 CFR 85.36 (e)). 17. 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 fumish 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 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 5 of 15 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. 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 6of15 4. 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 City shall,have the right to review and audit all records of the Contractor pertaining to any payment by the City. Said records shall be maintained for a period of five years after the completion of the project. D. 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 Govemments", 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 allbooks, records, documents and other 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 fumished 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 govemment. Final ownership and disposition of such property shall be determined under the provisions of 7of15 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 Toss, 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 property in lieu of claiming the acquisition property shall remain with the Contractor. claim acquisition cost as a direct item of cost depreciate such nonexpendable personal cost as a direct item of cost, title to such An election to capitalize and depreciate or 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 fumished to, or purchased by, the Contractor, title to which is vested in the City of Yakima ONDS or federal govemment 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 govemment, the Contractor agrees to execute such security agreements and other documents as shall be necessary for the City of Yakima ONDS or federal govemment 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 goverment (including expenses entered thereunto) which 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 govemment 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 shall 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 8 of 15 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 shall 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 this Contract. The policy shall name the City, its elected officials, officers, agents and employees as additional insured, 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 -VD 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 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 insured/s, 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 9of15 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 contractor's workers' compensation coverage will be fumished 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, Toss, 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; 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 10 of 15 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, notwithstanding 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 notwithstanding 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. CLOSEOUT 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 closeout 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. 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 11 of 15 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. C. The Contractor warrants and covenants that it presently has no interest and shall not acquire any interest, directly or indirectly, which could conflict in any manner or degree with the performance of its services hereunder. The Contractor further warrants and covenants that in the performance of this contract, no person having such interest shall be employed. D. No employee, agent, consultant, elected official, or appointed official of Contractor may obtain a financial interest or unit benefits from a HOME -assisted activity, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. 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 fumished under this agreement, of all invasions of the right of privacy contained therein and of all portions of such data copiedfrom 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. XXVI 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: 12 of 15 t 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, (Exhibit B), 4. City of Yakima Resolution No R-2009 - (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 13 of 15 as described on Exhibit "B" to the Contract; or 2. The Department of Housing and Urban Development requires a Five (5) year "Affordability Period" from the date of the closing of activity as reported in "HUD's IDIS" financial reporting system, 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, other than sold to qualified low/moderate income homeowner/s as per HUD program regulations. XXXIII DEED RESTRICTIONS OR COVENANT 1. The City shall have either a deed restriction outlining a lien on the property to be forgiven after such time as the affordability period for the project is satisfied according to HUD guidelines; or 2. The City shall agree to a covenant restriction recorded against the property outlining the "Affordability Period" and need for the project to continue its low to moderate benefit as specified within HOME regulatory guidelines. 3. The City shall have the recapture provisions language included in the Deed of Trust. XXXIV 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. XXXV NON -COMPLETION OF THE PROJECT In the unlikely event that the Contractor is unable to complete the project, ownership of any unsold portion of the project shall be offered with a "First Right of Refusal" to the City of Yakima subject to any existing project based liens. 14 of 15 EXHIBIT "B" 1. These CHDO grant funds are to pay for design upgrades bom by the Yakima Valley Partners Habitat for Humanity to make the 5 homes under construction as part of the Marvin Gardens development, compatible with the homes OIC is building. 2. These design upgrades are specific design upgrades beyond the normal house model used by the Yakima Valley Partners Habitat for Humanity. 3. The upgrades are associated with the following costs: o Garage Materials and Labor to complete an attached car garage ❑ Porch Materials and Labor to complete a front porch ❑ House Materials and Labor to complete an elevated pitched roof beyond the standard 4/12. 15 of 15 • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 1c ZO For Meeting of April 21, 2009 ITEM TITLE: Consideration of a resolution authorizing a Habitat for Humanity request for reimbursement of $50,000 for design upgrades concerning five (5) homes under construction in Marvin Gardens. SUBMITTED BY: William R. Cook, Community & Economic Development Director CONTACT PERSON / TELEPHONE: Michael Morales, Community and Economic Development Deputy Director (575-3533) SUMMARY EXPLANATION: As the annual recipient of HOME Investments Partnerships (HOME) funds from Housing and Urban Development (HUD), the City of Yakima is required to invest these funds for "Affordable Housing" within its jurisdiction. Habitat for Humanity as a Qualified Community Housing Development Organization (CHDO) is requesting Fifty Thousand dollars ($50,000) for the reimbursement of design upgrades for five (5) homes in conjunction with OIC of Washington in the City of Yakima housing development project called "Marvin Gardens". The design upgrades include the addition of a front porch,. an attached garage and an elevated roof slope so that the Habitat for Humanity homes) present a more uniform blend of construction with the other fifteen. (15) homes under construction in the "Marvin Gardens" project. These are additional upgrade design costs of $10,000 per home. If the costs are not funded by the City of Yakima through the use of HOME funds, it could present a financial burden to the intended low-income families. The income of the families that would purchase these homes is in the 30-60 percentile range of median family income. Resolution Ordinance Other (Specify) Contract Mail to (name and address): Phone: Funding Source 2009 HOME nds APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Staff recommends approval BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The Neighborhood Development Committee met on April 8, 2009 and recommended that this proposal be forwarded to the full Council for approval. • COUNCIL ACTION: