HomeMy WebLinkAbout10198RESOLUTION NO. 10198
A RESOLUTION APPROVING AN AGREEMENT BETWEEN NEIGHBORHOOD HOUSING
SERVICES OF PUEBLO, INC., AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION,
FOR ACQUISITION SERVICES, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL
TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Agreement dated August 9, 2004 between Neighborhood Housing Services of Pueblo,
Inc., and the City of Pueblo, a Municipal Corporation, ( "the Agreement "), for acquisition services, a
copy of which is attached and incorporated herein, having been approved as to form by the City
Attorney, is hereby approved.
SECTION 2.
The President of the City Council is hereby authorized to execute Agreement in the name of
the City and the City Clerk is directed to affix the seal of the City thereto and attest same.
INTRODUCED August 9, 2004
BY Robert D. Schilling
Councilperson
�F�I��ESL
Background Paper for Proposed
RESOLUTION
AGENDA ITEM # S
DATE: August 9, 2004
DEPARTMENT: HOUSING AND CITIZEN SERVICES / TONY BERUMEN
TITLE
A RESOLUTION APPROVING AN AGREEMENT BETWEEN NEIGHBORHOOD
HOUSING SERVICES OF PUEBLO, INC., AND THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, FOR ACQUISITION SERVICES, AND
AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE
SAME
ISSUE
�- To approve an agreement between the City of Pueblo and Neighborhood
Housing Services allowing them to provide acquisition services to the City for the
purposes of neighborhood revitalization.
RECOMMENDATION
Approve
BACKGROUND
The City, Neighborhood Housing Services and Habitat for Humanity have
partnered to revitalize a targeted section of the Bessemer neighborhood. The
targeted area has several vacant lots and boarded up properties. The City
acknowledges that in order to revitalize neighborhoods it cannot work alone.
This Agreement allows NHS to provide acquisition services to the City on the
identified properties. The City will provide the funding for the acquisition costs
from HOME federal funds. Upon closing the properties will be conveyed to the
City's Vacant Lot Recycle Program, and will be available to qualified families,
non - profits and private developers for rehabilitation and new construction.
Habitat has identified properties that it wishes to undertake for rehabilitation
purposes and NHS has identified properties it wishes to undertake for new
construction purposes. The beneficiaries of these properties will be low to
moderate - income households of Pueblo as defined by HUD.
There will be no displacement of families and or businesses and no eminent
domain will be exercised. Appraisals will be required.
FINANCIAL IMPACT
The actual costs of acquisition cannot be anticipated, however, funds are
available for this project and were approved by Council for Infill Housing projects
from the 2004 HOME grant. The funds are available in the 251 Fund.
Lot Purchase
7/8/04
AGREEMENT FOR CONEMMTY DEVELOPMENT SERVICES
�- (Property Acquisition Services)
(non -profit entity)
THIS AGREEMENT ( "Agreement ") is made and entered into this 9th day of August, 2004, by and between
the City of Pueblo, a Municipal Corporation, hereinafter referred to as the "City" and Neighborhood Housing Services
of Pueblo, Inc., hereinafter referred to as the "Contractor ".
WAj0 .t ;My:rr:aV41 &V
WHEREAS, there exists within the City of Pueblo an insufficient supply of safe, decent and sanitary housing
which is affordable to low and moderate income families; and
WHEREAS, the provision of sufficient decent, safe and sanitary housing for low and moderate income persons
serves municipal and public purposes; and
WHEREAS, acquisition and rehabilitation of existing housing, and the construction of new housing on vacant
lots, in established neighborhoods will assist in providing affordable housing, will reduce the spread of urban blight and
will serve to revitalize urban neighborhoods; and
WHEREAS, the City has entered into grant agreements with the U.S. Department of Housing and Urban
Development ( "HUD "), whereby federal financial assistance may be made available to City as a participating jurisdiction
for the purpose of expanding the availability of affordable housing pursuant to the Home Investment Partnerships Act
( "the Act ") (42 U.S.C. 12701 et. seg.), the Cranston - Gonzales National Affordable Housing Act and implementing
regulations, including but not limited to those at 24 CFR Part 92 as well as under Title I of the Housing and Community
Development Act of 1974, as amended; and
WHEREAS, Contractor has represented to City that it is a non -profit corporation which is eligible and willing
to undertake certain approved elements of City's housing strategy, including acquisition of vacant lots and existing
housing, as identified herein and in the Scope of Services attached hereto; and
WHEREAS, federal financial assistance is necessary and required for acquisition, rehabilitation and
construction in order to create affordable housing; and
WHEREAS, based upon Contractor's representations, the City believes Contractor is capable or can reasonably
be expected to become capable of carrying out certain approved elements of City's housing strategy, including the
undertaking of acquisition of vacant lots and single family homes for subsequent rehabilitation or new construction and
resale as affordable housing for low and moderate income families;
NOW, THEREFORE, in consideration of the foregoing recitals and the terms and conditions set forth herein,
the parties hereto do mutually agree as follows:
SCOPE OF SERVICES: RESPONSIBILITIES OF CONTRACTOR
(a) Contractor shall provide acquisition services for City as specified in the Scope of Services attached
hereto as Exhibit "A." Essentially, Contractor shall provide property acquisition services including the negotiation for
and purchase of the vacant lots and substandard dwellings identified in Exhibit "A" located within established
neighborhoods via voluntary sale, execution of purchase contracts, obtaining fee simple title and prompt reconveyance
of title to each of the properties to the City. Contractor will not provide rehabilitation or new construction services under
this Agreement.
(b) Contractor agrees to satisfactorily perform and complete all services and items of work, and furnish
all labor and materials encompassed within or reasonably necessary to accomplish the tasks and functions described in
the Scope of Services attached hereto as Exhibit "A" and incorporated herein by reference, in full compliance with all
provisions of this Agreement.
(c) Contractor warrants and represents that it: (i) has the requisite authority and capacity to perform all
terms and conditions on Contractor's part to be performed hereunder; (ii) that it is duly organized as a non - profit
organization under state law and is in good standing with the Secretary of State of Colorado; (iii) that it is fully aware
of and understands its duty to perform all functions and services in accordance with the regulatory requirements of 24
CFR Part 92 and 24 CFR Part 570 and those identified in Exhibit "C" hereto; and (iv) that it is accepting federal financial
assistance hereunder subject to certain mandatory repayment provisions.
2. RESPONSIBILITIES OF THE C=
The City shall designate a representative of the City who will be authorized to make all necessary decisions
required of the City on behalf of the City in connection with the performance of this Agreement and the disbursement
of funds in connection with the program In the absence of such a designation, the City Manager shall be deemed as
City's authorized representative.
CONTRACTOR'S COMPENSATION AND METHOD OF PAYMENT
(a) As further limited in the Scope of Services attached hereto, the City will pay to Contractor an amount
not to exceed that specified in subparagraph (c) of this paragraph as full compensation for all services and work to be
performed or undertaken by Contractor under this Agreement. Payment of funds to Contractor is subject to all of the
following requirements, which shall be conditions precedent to payment: (i) that Contractor has expended funds for
eligible approved acquisition expenditures, (ii) that Contractor is not in default of any material provision of this
Agreement nor applicable law or regulation, (iii) that Contractor has timely submitted requests for payment or
reimbursement detailing the eligible payment or reimbursement items in a format approved by City, (iv) that Contractor
has certified with each payment or reimbursement request compliance with the requirements identified in Exhibit "C"
and that all expenditures for which reimbursement is sought were made for and in furtherance of an approved project
and are an eligible use of federal assistance under the Act and federal regulations, and (v) that City has timely received
from HUD sufficient federal assistance under the Act to make the payment or reimbursement hereunder.
(b) Payment hereunder is also subject to and may only be disbursed in accordance with applicable HUD
regulations including but not limited to those at 24 CFR Part 570, as presently promulgated and as same may be revised
from time to time in the future, all other terms of this Agreement, and any special provisions in the Scope of Services.
All payments received by Contractor hereunder are subject to repayment by Contractor as provided in 24 CFR Part 570.
(c) The aggregate of all payments which may be made hereunder, including reimbursable acquisition costs
and Service Fees, shall not exceed Seventy -Five Thousand (U.S. $75.000.00 ) .
(d) Upon expiration of the term of this Agreement or upon any prior termination, except for fully earned
Service Fees, Contractor shall transfer to City any funds provided hereunder which are on hand at the time of expiration
or termination together with any accounts receivable attributable to the use of funds provided hereunder.
4. TERM OF AGREEMENT
The term of this Agreement shall be from August 9, 2004 to January 30, 2005 unless sooner terminated as
herein provided.
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(a) For Cause This Agreement may be terminated by City for cause, including any nonperformance by
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the Contractor, upon ten (10) days written notice to Contractor including a statement of the reasons therefor, and after
an opportunity for a hearing has been afforded. If a hearing is requested, it shall be held before the City's Director of
Housing and Citizen Services whose decision shall be final. The determination of the City as to the cause of termination
and the appropriateness thereof shall be final and binding upon both City and Contractor. In accordance with 24 CFR
85.43, cause for termination shall include any material failure by Contractor to comply with any term of this Agreement.
(b) For Convenience This Agreement may be terminated for convenience in accordance with the
provisions of 24 CFR 85.44. This Agreement shall automatically terminate at the end of its term as well as in the event
of any suspension, reduction or non - receipt of Community Development funds by City.
(c) Post Termination Procedures In the event of termination, all property acquired by Contractor with
grant funds, all grant funds, program income, and loans originated with grant funds or by payments therefrom and
payments received under such mortgage loans, held, owned or retained by the Contractor shall immediately become the
sole and separate property of the City and the Contractor shall perform all acts and execute all instruments necessary
to transfer and assign such property, funds, income, and mortgage loans to City. All finished or unfinished documents,
data, studies, reports and work product prepared by the Contractor under this Agreement or with grant funds shall, at the
option of the City, become City's property and the Contractor shall be entitled to receive just and equitable compensation
only for satisfactory work completed for which compensation has not previously been paid nor reimbursement made.
6. ASSIGNABILITY
This Agreement shall not be assigned or transferred by the Contractor without the prior written consent of the
City. Any assignment or attempted assignment made in violation of this provision shall, at City's election, be deemed
void and of no effect whatsoever.
CONFLICT OF INTEREST
The Contractor certifies and warrants that neither it nor any members of its Board of Directors, officers or
employees has or will derive any personal or financial interest or benefit from the activity or activities assisted pursuant
to this Agreement, nor has an interest in any contract, subcontract or agreement with respect thereto, nor the proceeds
thereunder, either for themselves or for those with whom they have family or business ties, during their tenure and for
one year thereafter. Contractor shall avoid all conflicts of which are prohibited by applicable federal regulations,
including but not limited to those set forth in 24 CFR Part 570 as presently promulgated and as same may be revised from
time to time in the future.
8. CONTRACTOR RECORDS
Contractor shall maintain records as to all services provided, reimbursable expenses incurred in performing the
Scope of Services and complete accounting records. Accounting records shall be kept on a generally recognized
accounting basis and as requested by the City's auditor. The Contractor agrees to comply with all applicable uniform
administrative requirements described or referenced in 24 CFR 570.502. The Compliance Provisions attached as Exhibit
"B" hereto are made a part of this Agreement and Contractor agrees to perform and comply with same. The City, HUD,
the Comptroller General of the United States, the Inspector General of HUD and any of their authorized representatives,
shall have the right to inspect and copy, during reasonable business hours, all books, documents, papers and records of
the Contractor which relate to this Agreement for the purpose of making an audit or examination. Upon completion of
the work and end of the term of this Agreement, the City may require all of Contractor's financial records relating to this
Agreement to be turned over to City.
9. MONITORING AND EVALUATION
The City shall have the right to monitor and evaluate the progress and performance of the Contractor to assure
that the terms of this Agreement are being satisfactorily fulfilled in accordance with HUD's, City's and other applicable
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monitoring and evaluation criteria and standards. The City shall at least quarterly review the Contractor's performance
using on -site visits, progress reports required to be submitted by the Contractor, audit findings, disbursement transactions
and contact with the Contractor as necessary. The Contractor shall furnish to the City monthly or quarterly program and
financial reports of its activities in such form and manner as may be requested by the City. Contractor shall fully
cooperate with City relating to such monitoring and evaluation.
10. CONTRACTOR FILES AND INFORMATION REPORTS
The Contractor shall maintain files containing information which shall clearly document all activities performed
in conjunction with this Agreement, including, but not limited to, financial transactions, conformance with assurances,
activity reports, and program income. These records shall be retained by the Contractor for a period of three years after
the completion of the project. Activity reports shall be submitted monthly or quarterly no later than the ninth day of the
month following the end of month or quarter for which the report is submitted.
11. INDEPENDENCE OF CONTRACTOR
Nothing herein contained nor the relationship of Contractor to City, which relationship is expressly declared
to be that of an independent contractor, shall make or be construed to make Contractor or any of Contractor's agents or
employees the agents or employees of the City. Contractor shall be solely and entirely responsible for its acts and the
acts of its agents, employees and subcontractors.
12. LIABILITY. INSURANCE
(a) As to the City, Contractor agrees to assume the risk of all personal injury, including death and bodily
injury, and damage to and destruction of property, including loss of use therefrom, caused by or sustained, in whole or
in part, in conjunction with or arising out of the performance or nonperformance of this Agreement by Contractor or by
the conditions created thereby. Contractor further agrees to indemnify and save harmless the City, its officers, agents
and employees, from and against any and all claims, liabilities, costs, expenses, penalties and attorney fees arising from
such injuries to persons or damages to property or based upon or arising out of the performance or nonperformance of
this Agreement by Contractor or out of any violation by Contractor of any statute, ordinance, rule or regulation.
(b) Contractor agrees that it shall procure and will maintain during the term of this Agreement, such
insurance as will protect it from claims under workers'compensation acts, claims for damages because of personal injury
including bodily injury, sickness or disease or death of any of its employees or of any person other than its employees,
and from claims or damages because of injury to or destruction of property including loss of use resulting therefrom; and
such insurance will provide for coverage in such amounts as set forth in subparagraph (c).
(c) The minim insurance coverage which Contractor shall obtain and keep in force is as follows:
(i) Workers' Compensation Insurance complying with statutory requirements in Colorado.
(ii) Comprehensive General and Automobile Liability Insurance with limits not less than Six
Hundred Thousand and No /100 Dollars ($600,000.00) per person and occurrence for personal injury, including but not
limited to death and bodily injury, and Six Hundred Thousand and No /100 Dollars ($600,000.00) per occurrence for
property damage.
(d) In the event Contractor's obligations under this Agreement are secured by a deed of trust or mortgage
instrument as provided in paragraph 14(c) of this Agreement, Contractor agrees to procure and maintain, at its own
expense, hazard and fire insurance upon the property described in said deed of trust on an "all risk" form in such amounts
as City's Department of Housing and Citizen Services may require, but in any event, for not less than the amount of all
liens against the property and the amount of funds provided by City pursuant to this Agreement. Contractor shall furnish
a certificate of insurance certifying such coverage to City's Director of Finance prior to disbursement of any funds to
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Contractor. Both said certificate of insurance and the policy procured by Contractor shall name the City as a loss payee.
13. CERTIFICATIONS.
The Contractor agrees to execute and abide by the certifications contained in Exhibit "C" hereto, which are
hereby made a part of this Agreement.
14. PROGRAM INCOME: REVERSION OF ASSETS
(a) Unless otherwise authorized by City in writing, all program income shall be returned to City within
30 days of receipt by Contractor. In the event City authorizes Contractor to retain any portion of program income, it shall
only be used to accomplish the work set forth in the Scope of Services, and the amount of grant funds payable by City
to Contractor shall be adjusted as provided by 24 CFR §570.504(b)(2)(i) and (ii).
(b) Upon expiration of the term of this Agreement, or upon any prior termination, Contractor shall transfer
to City any funds provided hereunder which are on hand at the time of expiration or termination together with any
accounts receivable attributable to the use of funds provided hereunder.
(c) Any real property under Contractor's control that was acquired or improved in whole or in part with
funds provided pursuant to this Agreement in excess of U.S. $25,000 shall either (i) be used to meet one of the national
objectives set forth in 24 CFR §570.208 until five years after expiration or termination of this Agreement, or (ii) not be
used in accordance with subparagraph (c)(i), in which event Contractor shall pay to City an amount equal to the current
market value of the property less any portion of the value attributable to expenditures of funds not provided under this
Agreement for the acquisition of, or improvement to, the property. The use restriction and repayment obligation set forth
in this subparagraph shall survive termination or expiration of this Agreement and shall be fully enforceable and subject
to collection by City or HUD in accordance with applicable laws. If requested by City, Contractor shall execute a deed
of trust or mortgage instrument which shall be and constitute a lien upon all real property acquired or improved with
funds provided hereunder, and which shall secure all obligations of Contractor hereunder.
(d) In the event City incurs any cost or expense in enforcing the requirements of this paragraph 14 or in
bringing any action to recover the property or amount of any repayment obligation, City shall be entitled to recover its
costsand expenses, including reasonable attorneys
15. SPECIAL REOUIRENoIEENTS APPLICABLE TO IMPROVEMENTS TO PROPERTY
(a) In addition to all procurement requirements otherwise applicable to Contractor pursuant to any other
provision of this Agreement or pursuant to any requirement of law or regulation incorporated in this Agreement by
reference, if any portion of the funds provided to Contractor under this Agreement is to be used for making improvements
to real property, including new construction, rehabilitation, or remodeling, then in such event Contractor shall comply
with all requirements of this Paragraph 15.
(b) No improvements shall be undertaken to real property with funds (or reimbursement) provided
hereunder unless and until: (i) plans and specifications therefor have been prepared by either a registered Professional
Engineer in good standing and duly licensed to practice in the State of Colorado or an Architect duly licensed and
authorized to conduct a practice of architecture in the state of Colorado; (ii) such plans and specifications have been filed
with the City and approved by both the City's designated representative and the City's Director of Public Works; and (iii)
all construction contracts for improvements for which payment is sought from City shall have been awarded only after
an open, competitive bidding process which has been approved by City's Director of Purchasing and which allows
qualified contractors to reasonably participate in the competitive bidding procedures.
(c) If this Paragraph 15 is applicable, no disbursement of funds to Contractor shall be made by City
hereunder unless and until all conditions precedent to payment specified elsewhere in this Agreement have been satisfied
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and Contractor files with City's Director of Housing and Citizen Services a written request for payment signed by an
officer of Contractor that certifies (i) that the amounts included in the request for payment have not been included in any
prior request for payment, and (ii) that the improvements listed therein for which payment is sought have been completed
in accordance with the approved plans and specifications therefor.
(d) In every contract for construction of improvements for which payment or reimbursement from City
is to be provided under this Agreement, Contractor shall include a contract clause or clauses, approved by City's Director
of Purchasing, requiring the contractor, and all of the contractor's subcontractors of all tiers, to comply with the
requirements of the Davis -Bacon Act and implementing regulations, and to pay all laborers and mechanics engaged in
work upon the improvements at the prevailing wage rates for such work as determined by the U.S. Department of labor.
16. RECOGNITION OF HUD, CITY.
In all printed materials, project descriptions and other activities undertaken with funds provided under this
Agreement, Contractor shall provide recognition that funds have been provided by the U.S. Department of Housing and
Urban Development and the City of Pueblo. Recognition shall be accomplished by prominent disclosure of the role of
HUD and the City in all such printed materials and project signage, if any.
17. ENTIRE AGREEMENT: AMENDMENTS.
The provisions set forth in this Agreement, and all Exhibits and attachments to this Agreement, constitute the
entire and complete agreement of the parties hereto and supersede all prior written and oral agreements, understandings
or representations related thereto. No amendment or modification of this Agreement, and no waiver of any provision
of this Agreement, shall be binding unless made in writing and executed by the duly authorized officers of both the
Contractor and City.
18. SIGNATURES The persons signing this Agreement on behalf of Contractor represent and warrant that such
persons and Contractor have the requisite power and authority to enter into, execute and deliver this Agreement and that
this Agreement is a valid and legally binding obligation of Contractor enforceable against Contractor in accordance with
its terms.
IN WITNESS WHEREOF, the Contractor and the City have executed this Agreement as of the date first above
written and under the laws of the State of Colorado.
ATTEST:
City Cler
[SEAL]
ATTEST:
CITY OF PUEBLO,
A MCORPORATION
By
City Council
CONTRACTOR:
PUEBLO, INC.
HOUSING SERVICES OF
By
Name: c9 r- G KI5 L_ k 1 N G
Title: e5t �
M
EXHIBIT "A"
i--
SCOPE OF SERVICES
This Scope of Services sets forth additional terms and conditions of the Agreement for
Community Development Services to which it is attached and describes more particularly the
services to be performed by Contractor. This Scope of Services is intended to supplement the
Agreement, but to the extent of any conflict between this Scope of Services and the Agreement, the
provisions of this Scope of Services shall control and supersede any inconsistent provisions of the
Agreement.
1. In accordance with the terms set forth herein, Contractor shall use its best efforts to
acquire, through voluntary acquisition, merchantable fee simple title, free from all liens and
encumbrances, to each of the following described parcels of real property (hereinafter, each parcel
may be referred to as "Acquisition Target ") located in Pueblo County, Colorado:
Parcel #001 Lot 21, Block 43, Bessemer, aka 1115 Pine Street, Pueblo, Colorado.
Parcel #002 Lot E, Fishers Sub (of Lots 1 to 4), Block 42, Bessemer
Parcel #003 Lot 6, Block 43, Bessemer, aka 1122 Cedar, Pueblo, Colorado
r— Parcel #004 Lots 22 and 23, Block 8, Lake Avenue Addition, aka 911 Division
Street, Pueblo, Colorado.
2. Contractor shall be responsible for expeditiously taking all reasonable and appropriate
steps toward acquiring the Acquisition Targets, including undertaking (a) title review or
examination, (b) physical inspection, (c) obtaining tax information, (d) negotiating with owners, (e)
preparing contract documents to acquire, (f) obtaining appraisals, and (g) all other ancillary actions
necessary to acquire the Acquisition Targets.
3. Contractor shall not consummate a purchase of any Acquisition Target unless the
purchase price is equal to or less than the opinion of market value for the Acquisition Target stated
in an independent appraisal prepared by a licensed and qualified real estate appraiser which has been
submitted to and approved by the City. In entering into contracts to purchase any Acquisition Target,
Contractor shall include an appraisal contingency on purchase, if necessary, to implement this
section.
4. Before executing any contract to purchase an Acquisition Target, Contractor shall
provide a copy of the proposed contract to City and obtain specific authorization from City to do so.
5. All contracts to purchase Acquisition Targets shall provide for payment of closing
costs by buyer and seller in accordance with general custom in Pueblo, Colorado, except that City
may approve alternate arrangements on a case by case basis, provided that the addition of any non-
customary closing costs to the purchase price does not exceed 1 % of the Purchase Price and that such
costs are not payable to Contractor.
6. Contractor shall obtain title to Acquisition Target by Warranty Deed and obtain a
Title Insurance Policy with the City as a name insured.
7. City agrees to reimburse Contractor for the purchase price and actual, reasonable
closing costs incurred by Contractor with respect to each Acquisition Target. In addition to such
reimbursement, City will pay a lump sum service fee to Contractor of $250.00 for Contractor's
services for each Acquisition Target actually purchased. No other compensation or payments will
be made to Contractor for its services hereunder.
8. Within 3 days of obtaining title to each Acquisition Target, Contractor shall convey
the Acquisition Target to City via warranty deed. Whenever possible, conveyance to City shall be
completed on the same day as the original acquisition by Contractor. Reimbursement and payment
by City to Contractor as provided in paragraph 7 is conditioned and shall be made only upon City's
receipt of the duly executed warranty deed from Contractor to City.