HomeMy WebLinkAboutR-1997-153 United Builders of Washington, Inc.RESOLUTION NO. R-97- 153
A RESOLUTION authorizing and directing the City Manager and the City Clerk of
the City of Yakima to execute an agreement with United Builders of
Washington, Inc. in order to reimburse said corporation for
construction of infrastructure necessary for low to moderate income
housing.
WHEREAS, the City desires affordable housing for low to moderate income
residents; and
WHEREAS, the City is willing to assist in the development of such housing by
providing Community Development Block Grant funds to finance construction of
infrastructure necessary for the development of such low to moderate income housing;
and
WHEREAS, on April 10, 1996, United Builders offered to build six (6) single
family residential units for low to moderate income families on property owned by
United Builders and located at Ledwich and Pierce Avenue, Yakima, Washington,
conditioned upon the City financing construction of the necssary infrastructure; and
WHEREAS, on October 8, 1996, the Office of Neighborhood Development
Services ("ONDS") and United Builders executed a Memorandum of Understanding
that outlined the general nature of the relationship between the parties regarding
United Builder's proposal, and provided the City would finance construction of the
necessary infrastructure; and
WHEREAS, United Builders has now completed construction of the six (6) single
family residential units for low to moderate income families and necessary
infrastructure at Ledwich and Pierce Avenue, Yakima, Washington and has requested
reimbursement from the City in the amount of $44,450.00 for the costs of the
infrastructure construction; and
WHEREAS, the City desires to reimburse United Builders for the cost of said
infrastructure; and
WHEREAS, the City Council deems it to be in the best interest of the City of
Yakima to reimburse United Builders for the costs of the infrastructure construction in
accordance with and authorize execution of the attached and incorporated
Infrastructure Agreement, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager and the City Clerk of the City of Yakima are hereby
authorized and directed to execute the attached and incorporated agreement with
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United Builders of Washington, Inc, in order to reimburse said corporation for
construction of infrastructure necessary for low to moderate income housing. The final
form of the Agreement shall be approved by the City Attorney.
ADOPTED BY THE CITY COUNCIL this ? clay of Dec
ATTEST:
ytiin._ 1G011
/Tcri'4 City Clerk
e
(pm) United Builders/Infra/Contract
INFRASTRUCTURE AGREEMENT
THIS AGREEMENT is made and entered into by and between the City of
Yakima, a Washington municipal corporation (hereinafter the "City"), and
United Builder's of Washington, Inc. (hereinafter "United Builders").
WHEREAS, the City desires affordable housing for low to moderate
income residents.
WHEREAS, the City is willing to assist in the development of such
housing by providing Community Development Block Grant funds to finance
construction of infrastructure necessary for the development of such low to
moderate income housing.
WHEREAS, on April 10, 1996, United Builders offered to build six (6)
single family residential units for low to moderate income families on property
owned by United Builders and located at Ledwich and Pierce Avenue, Yakima,
Washington, conditioned upon the City financing construction of the necssary
infrastructure.
WHEREAS, on October 8, 1996, the Office of Neighborhood Development
Services ("ONDS") and United Builders executed a Memorandum of
Understanding that outlined the general nature of the relationship between the
parties regarding United Builder's proposal, a copy of which is attached hereto
as Exhibit "A.".
WHEREAS, United Builders has now completed construction of the six
(6) single family residential units for low to moderate income families and
necessary infrastructure at Ledwich and Pierce Avenue, Yakima, Washington
and has requested reimbursement from the City in the amount of $44,450.00
for the costs of the infrastructure construction, a copy of the request is
attached hereto as Exhibit "B."
WHEREAS, the City desires to reimburse United Builders for the cost of
said infrastructure in accordance with Exhibit "B."
NOW, THEREFORE, in consideration of the mutual covenants, promises,
and agreements set forth herein, it is agreed by and between the City and
United Builders as follows:
1. Scope of Services and Consideration. The City hereby agrees to pay
United Builders Forty -Four Thousand and Four Hundred and Fifty Dollars
($44,450.00) as full, complete and final compensation for construction of
infrastructure documented on Exhibit B, and necessary for development of the
six (6) single family residential units for low to moderate income families on
property owned by United Builders and located at Ledwich and Pierce Avenue,
Yakima, Washington. United Builders shall submit any additional
documentation requested by the City regarding said infrastructure
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construction. The City shall make payment to United Builders within thirty
(30) calendar days of receipt of all requested documentation from United
Builders; provided, however that said payment is also expressly conditioned
upon the Infrastructure being satisfactory to the City.
2. Term. The term of this Agreement shall commence upon execution
hereof and shall terminate upon payment by the City to United Builders as set
forth in Section 1, unless sooner terminated in accordance with Section 3 of
this Agreement.
3. Termination. The City or United Builders may terminate this
Agreement, with or without cause, by giving the other party ten (10) days
written notice of termination.
4. Status of United Builders. United Builders and the City understand
and expressly agree that United Builders is an independent contractor in the
performance of each and every part of this Agreement and construction of the
infrastructure documented on Exhibit B. United Builders and its employees
shall make no claim of City employment nor shall claim against the City any
related employment benefits, social security, and/or retirement with regard to
performance of this Agreement and construction of the infrastructure
documented on Exhibit B.
5. Taxes and Assessments, United Builders shall be solely responsible for
compensating its employees and for paying all related taxes, deductions, and
assessments, including but not limited to, sales tax, federal income tax, FICA,
social security tax, assessments for unempioymerit and ini dusu iai injury, and
other deductions from income which may be required by law or assessed
against either party as a result of this Agreement. In the event the City is
assessed a tax or assessment as a result of this Agreement, United Builders
shall pay the same when it becomes due.
6. Nondiscrimination Provision. During the performance of this
Agreement, United Builders shall not discriminate on the basis of race, age,
color, sex, religion, national origin, creed, marital status, political affiliation, or
the presence of any sensory, mental or physical handicap. This provision shall
include but not be limited to the following: employment, upgrading, demotion,
transfer, recruitment, advertising, layoff or termination, rates of pay or other
forms of compensation, and selection for training.
7. Compliance With Law. United Builders represents that it has
constructed the infrastructure documented on Exhibit B in full compliance
with any and all applicable laws, rules, and regulations adopted or
promulgated by any governmental agency or regulatory body, whether federal,
state, local, or otherwise.
8. No Conflict of Interest. United Builders represents that it or its
employees did not have any interest and shall not hereafter acquire any
interest, direct or indirect, which would conflict in any manner or degree with
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the performance of this Agreement and construction of the infrastructure
documented on Exhibit B.
9. No Insurance. It is understood the City does not maintain liability
insurance for United Builders and/or its employees.
10. Indemnification and Hold Harmless. United Builders agrees to protect,
defend, indemnify, and hold harmless the City, its elected officials, agents,
officers, employees from any and all claims, demands, losses, liens, liabilities,
penalties, fines, lawsuits, and other proceedings and all judgments, awards,
costs and expenses (including attorneys' fees and disbursements) resulting
from United Builder's performance and/or non-performance of this Agreement
and construction of the infrastructure documented on Exhibit B.
11. Non -Waiver. The failure of the City or the United Builders to insist upon
strict performance of any provision of this Agreement or to exercise any right
based upon a breach thereof or the acceptance of any performance during such
breach shall not constitute a waiver of any right under this Agreement.
12. Severability. If any portion of this Agreement is changed per mutual
agreement or any portion is held invalid, the remainder of the Agreement shall
remain in full force and effect.
13. Integration. This written document constitutes the entire agreement
between the City and United Builders. There are no other oral or written
Agreements between the parties as to the subjects covered herein. No changes
or additions to this Agreement shall be valid or binding upon either party
unless such change or addition be in writing and executed by both parties.
14. Notices. Unless stated otherwise herein, all notices and demands shall
be in writing and sent to the parties to their addresses as follows:
TO CITY: ONDS Manager
City of Yakima
112 South 8th Street
Yakima, Washington 98901
TO ENGINEER: Jerry Sturgill
President
United Builders of Washington, Inc.
2112 W. Nob Hill Boulevard
Yakima, Washington 98902
or to such other addresses as the parties may hereafter designate in writing.
Notices and/or demands shall be sent by registered or certified mail, postage
prepaid. Such notices shall be deemed effective when mailed or hand delivered
at the addresses specified above.
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15. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Washington.
1 r. Venue.
The
fo action
t.. of interpret tl.4 , Agreement
LQ. V CIIIIC. I IIC VCIIUC for any ciC UU11 W enforce or ull \ 1 jJrl . uuo 11 1 \ ♦ iaa� aaa
shall lie in the Superior Court of Washington for Yakima County, Washington.
CITY OF YAKIMA UNITED BUILDERS OF
WASHINGTON, INC.
By: By:
R A. Zais, Jr., City Manager Jerry Sturgill, President
DATE: DATE:
A1'1'EST:
City Clerk
City Contract No.
STATE OF WASHINGTON
County of
:ss.
)
On this day of , 1997, before me the undersigned, a
Notary Public in and for the State of Washington, duly commissioned and
sworn, personally appeared Jerry Sturgill, the President of United Builders of
Washington, Inc. and who executed the foregoing instrument, and
acknowledged to me that he/she signed and sealed the said instrument as
his/her free and voluntary act and deed for the uses and purposes therein
mentioned.
WITNESS my hand and official seal hereto affixed the day and year in
this certificate above written.
NOTARY PUBLIC in and for the State of
Washington, residing at
My commission expires:
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This Memorandum of Understanding ("Memorandum") is between the City of Yakima,
Office of Neighborhood Development Services ("ONDS"), and United Builders of
Washington, Incorporated. This Memorandum sets forth the understanding of the parties
concerning the responsibilities in the development of a demonstration program to exhibit the
need for public and private partnerships to financially support the building of affordable
housing for our communities' low and moderate income residents.
It is the intent of this agreement to outline the proposed activities and their respective
responsible parties in the development of the United Builders Project;
This project will be the development of six single family residential units on the land located
at Ledwich and Pierce, owned by United Builders of Washington, Incorporated will
construct the units. The Office of Neighborhood Development will finance the required
infrastructure and also provide homeowner subsidy financing for take out loans provided by
a local lender.
It shall become the responsibility of the following entities to accomplish the activities in
relationship to the project.
The Office of Neighborhood Development Services will provide the following:
.. Funds for the Down Payment
a. This will be a deferred lien for the matching funds provided to each home buyer
through the Homestarter Program.
b. Funds used will be recycled from the Community Development Block Grant program
revenue.
c. Can be used to off -set closing costs and principle reduction.
... Prescreen the six applicant families that qualify for first time homeownership
a. at or below 80% of the federal medium income guidelines.
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b. family size equal to occupancy of a three bedroom unit.
c. have acceptable credit for bank financing.
d. employed in the same trade for a period of one year.
Provide the financing for the required infrastructure of the project: water, sewer, streets,
curbs, gutter and streets. •
Provide technical assistance and project oversight to the project construction
Yakima Federal Savings and Loan will provide the following:
Provide an appraisal on the property to determine value.
Establish an escrow account to save down payment received by the preapproved applicant
families.
Arrange bank financing for the prequalified families in the first time homeownership
program
Applicant Families will provide the following:
Provide documentation for prequalification.
as Landscaping and/or fencing.
Deposit down payment into savings escrow account and first years insurance payment.
United Builders will provide the following:
Provide construction plans for the project.
Secure all permits and city approval for the development.
Provide the construction financing for the development for a turn key transfer.
Complete the construction and land development to agreed upon specifications.
All parties agree to the maximum time period not to exceed one year starting for the date of
this memorandum of understanding.
Any party may withdraw for this memorandum of understand at any time if the intent is
given in writing within 30 days notice with full understanding that costs accrued for lack of
fulfillment of their specified responsibilities could be a result in financial obligations.
2
By:
Date:
By:
Date:
Jer
President of United Builders of Washington, Incorporated
Dixie L. Kracht, Block Grant Manager of the City of Yakima Office of
Neighborhood Development Services
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CITY '1F YAKIMA YAO1 nISBURSEMENT
PAID
-REQUEST
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DEPARTMENTNAME/NUMBER
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ADDRESS P.O. Box 9488
BID/CONTRACT
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DATE
Yakima, . WA 9890 # NEW ;
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CERTIFICATION: I! THE UNDERSIGNED DO HEREBY CERTIFY UNDER PENALTY OF
;T LL PERJURY THAT THE MATERIALS HAVE BEEN FURNISHED, THE SERVICES RENDERED
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DEPARTMENT HEAD DATE AUTHORIZED RECEIVER DATE
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UNITED BUILDERS
PO BOX 9488
YAKIMA, WA 9(3909
70 BOX 10203 YAKIMA, WA 10909
(509) 240-6023
TLEDWICN — PIERCE
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71187 08/07/97
PLEASE REMIT TO: P.O. t3OX 84921, SEATTLE, WA 90124-6221
37
BILLING FOR BALANCE OF CONTRACT
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5963.00
5963.00
SUPERIOR ASPHALT & CONCRETE CO.
UNITED BUILDERS
P.O. BOX 9488
YAKIMA, WA 98909
P.O. BOX 10268 YAKIMA, WA 98909
(509) 248-6823
P
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PLEASE REMIT TO: P.O. BOX 84921, SEATTLE, WA 98124-6221
•
JOB NUMBER
71187
INVOICE
No. 3383
(07/25/
DATE 07/21/t.
DATE COMPLETED
07/21/67
Ca)
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PROGRESS BILLING FOR CONSTRUCTION
LEDWICN PIERCE
ADD FOR 6" CONCRETE DRIEWAY 360.000 SF
UNIT
PRICING
0.750
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AMOUNT
33787.00
270.00
34e 0
A FINANCE CI InnOE 01' I v,% PEFi MON111 (109. ANNUAL nA1 E1 WILL BE C11AnGED ON VOUn PnEV10US MON TFrS BALANCE. SUBJECT 10 APPLICABLE STATES LAW IF MAXIMUM IS DIFFEnENT.
Onginai invoice Wince • Accounting flocord Vetlow • S.IOs Flecord Pink • f.to Copy Bh, • Numericat nevoid Tag
TO:
Huibregtse, Louman Associates, Inc.
CIVIL ENGINEERING • LAND SURVEYING • PLANNING
BILLING
April 1, 1997
United Builders of Washington, Inc.
Attn: Jerry Sturgill
P.O. Box 9488
Yakima, WA 98909
William L Huibregtse, PE
Jeffrey T. Low -
Theodore W. Pc
Dennis J.Whitt.
Donald H.Wilto..,...a
SPR -8 1997
Job No. 97020
FOR:
Professional Engineering Services in connection with a 6 -lot short plat, Parcel No. 191331-
21472, at Ledwich & Pierce Streets, per your request, for services performed March 1
through March 31, 1997.
100 percent complete (1.00) (4,430.00) 4,430.00
Less Amounts Previously Billed -3,765.50
Total
$664.50
AMOUNT DUE FOR CURRENT BILLING PERIOD $664.50
Sincerely,
HUIBR GTSE, LOUMAN ASSOCIATES, INC.
William L. Huibregtse
WLH/jk
B13-25
3800 Summitview, Suite 100 v Yakima.WA 98902 4 (Sn91 QAK-7nnn .. c v IrA&t n. r
•
A{ Huibregtse, Louman Associates, Inc.
CIVIL ENGINEERING • LAND SURVEYING • PLANNING
lirrgrr
BILLING
March 3, 1997
TO: United Builders of Washington, Inc.
Attn: Jerry Sturgill
P.O. Box 9488
Yakima, WA 98909
.MAR 1 0 1997
William L Huibregtse.ee
Jeffrey? Louman
Theodore W. Poolei
Dennis J.Whltdsrz,
Donald H.Wilton.Rs
Job No. 97020
FOR:
Professional Engineering Services in connection with a 6 -lot short plat, Parcel No. 191331-
21472, at Ledwich & Pierce Streets, per your request, for services performed through
February 28, 1997.
85 percent complete (0.85) (4,430.00) 3,765.50
CI,j Less Amounts Previously Billed
Total -0.00
$3,765.50
0
AMOUNT DUE FOR CURRENT BILLING PERIOD $3,765.50
Sincerely,
HUIB EGTSE, LOUMAN ASSOCIATES, INC.
William L. Huibregtse
WLH/jk
B13-25
3800 iummirv(o... C..:. inn ... v_.
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
_2_
For Meeting Of: December 2. 1997
ITEM TITLE: Ratify Memorandum of Understanding with United Builders of Washington, Inc.
SUBMITTED BY: Glenn J. Valenzuela, Director of Community & Economic Dev.
CONTACTPERSON / TELEPHONE: William Cook, Neighborhood Development Services
Manager, 575-6101
SUMMARY EXPLANATION:
On April 10, 1996, Jerry SturgilI, President of United Builders of Washington, Incorporated,
proposed to construct six affordable homes on their property at the corner of Ledwich and Pierce
Avenue. United Builders offered to build and sell the homes for $72,000 each excluding the cost
for water mains, storm drains, streets, curbs, gutters, and sidewalk or street lighting.
On October 8, 1996, United Builders and the City of Yakima, Office of Neighborhood
Development Services entered into a Memorandum of Understanding agreeing to the United
Builders' April 10th proposal. It was proposed that the Engineering Division would provide the
engineering, however, when it was time for the project to begin the Engineering Division was busy
with other work. Neighborhood Development Services asked United Builders to sub out the
engineering work.
All six new homes are now completed and occupied. The Office of Neighborhood Development
Services is requesting that the City of Yakima ratify the Memorandum of Understanding approving
a payment of $44,450 to the United Builders for their work on six homes. United Builders has
already paid Huibregtse, Louman associates, Inc. $4,430 for engineering services and Superior
Asphalt & Concrete Company $40,020 for infrastructure installation.
Funding for this project was authorized by Council in 1996-1997 as part of the Federal
Consolidated Plan.
Resolution X Ordinance_ ContractOther (Specify)
Funding Source j f/
APPROVAL FOR SUBMITTAL: AGit'\
ity Manager
STAFF RECOMMENDATION: Approve Memorandum of Understanding Ratification
BOARD RECOMMENDATION:
COUNCIL ACTION: