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HomeMy WebLinkAbout09515 ORDINANCE NO. 9515 AN ORDINANCE ESTABLISHING PROJECT NO. CI1910, BUDGETING AND APPROPRIATING $162,500 FROM THE GENERAL FUND BALANCE TO PROJECT NO. CI1910, BUDGETING AND APPROPRIATING $62,500 FROM THE DEPARTMENT OF HOUSING AND CITIZEN SERVICES’ HOME MATCH ACCOUNT HO1860 TO PROJECT NO. CI1910, AND APPROVING AGREEMENTS BETWEEN THE CITY OF PUEBLO AND THE PUEBLO RESCUE MISSION, A NON-PROFIT CORPORATION, FOR THE REHABILITATION OF THE HOMELESS SHELTER LOCATED AT 728 WEST 4TH STREET AND OPERATIONAL FUNDS FOR SHELTER SERVICES WHEREAS, there exists a need for the establishment of a permanent homeless shelter in the City of Pueblo; and WHEREAS, there exists a need to provide basic services to individuals experiencing homelessness in the community; and WHEREAS, the Pueblo Rescue Mission, a nonprofit corporation, owns the property th located at 728 W. 4 Street, Pueblo, Colorado; and WHEREAS, the Pueblo Rescue Mission has applied to the State of Colorado, Department of Local Affairs, for Housing Development Grant funds to further the renovation of the homeless th shelter located at 728 W. 4 Street; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 Capital Project No. CI1910 is approved and hereby established. SECTION 2 Funds in the amount of $162,500.00 are hereby budgeted and appropriated from the General Fund to Capital Project No. CI1910. SECTION 3 Funds in the amount of $62,500.00 are hereby budgeted and appropriated from the 251 Account, Project HO1860, to Capital Project No. CI1910. SECTION 4 The City of Pueblo Homeless Shelter Development Agreement between the Pueblo Rescue Mission, a Colorado Nonprofit Corporation, and the City of Pueblo, a Municipal Corporation, in the amount of $100,000, for the development of a homeless shelter located at 728 th W. 4 Street, Pueblo, Colorado, a copy of which is attached hereto and incorporated herein, having been approved as to form by the City Attorney, is hereby approved and shall be executed contingent upon award of State funds to the Pueblo Rescue Mission. SECTION 5 The Agreement for Community Development Services between the Pueblo Rescue Mission, a Colorado Nonprofit Corporation, and the City of Pueblo, a Municipal Corporation, in the amount of $125,000, providing operational funds for homeless shelter services, a copy of which is attached hereto and incorporated herein, having been approved as to form by the City Attorney, is hereby approved and shall be executed contingent upon award of State funds to the Pueblo Rescue Mission. SECTION 6 The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance and the attached Agreements to effectuate the transactions described therein SECTION 7 If any section, paragraph, clause, or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause, or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 8 This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on August 12, 2019 . Final adoption of Ordinance by City Council on August 26, 2019 . President of City Council Action by the Mayor: ☒ Approved on August 28, 2019 . □ Disapproved on based on the following objections: Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # R-10 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: August 12, 2019 TO: President Dennis E. Flores and Members of City Council CC: Nicholas A. Gradisar, Mayor VIA: Brenda Armijo, City Clerk FROM: Bryan Gallagher, Director, Housing and Citizen Services SUBJECT: AN ORDINANCE ESTABLISHING PROJECT NO. CI1910, BUDGETING AND APPROPRIATING $162,500 FROM THE GENERAL FUND BALANCE TO PROJECT NO. CI1910, BUDGETING AND APPROPRIATING $62,500 FROM THE DEPARTMENT OF HOUSING AND CITIZEN SERVICES’ HOME MATCH ACCOUNT HO1860 TO PROJECT NO. CI1910, AND APPROVING AGREEMENTS BETWEEN THE CITY OF PUEBLO AND THE PUEBLO RESCUE MISSION, A NON- PROFIT CORPORATION, FOR THE REHABILITATION OF THE TH HOMELESS SHELTER LOCATED AT 728 WEST 4 STREET AND OPERATIONAL FUNDS FOR SHELTER SERVICES SUMMARY: This Ordinance establishes Project No. CI1910, budgets and appropriates $162,500 from the general fund to Project No. CI1910, budgets and appropriates $62,500 from the Department of Housing and Citizen Services’ HOME Match Account HO1860 to Project No. CI1910, and approves agreements between the City of Pueblo and the Pueblo Rescue Mission for the th rehabilitation and operation of the homeless shelter located at 728 W. 4 Street. PREVIOUS COUNCIL ACTION: The City Council has not taken any previous action on this matter. BACKGROUND: The City has been without a dedicated homeless shelter for approximately two years. Attempts have been made to establish a temporary warming shelter in the winter months, but currently the City is without a temporary or permanent shelter for homeless individuals and families. Through the State Division of Housing, a $1.3M grant to renovate the homeless shelter located at 728 W. th 4 Street was awarded to the Pueblo Rescue Mission. As owner and operator, the Pueblo Rescue Mission, Inc., a non-profit corporation, has applied for grant funding to fill the shelter needs of the homeless in our community. As a requirement of the State grant, the project must show support from local government, and demonstrate the long-term viability of the investment. The State is allowing operational funding to be used for the required 1:1 construction grant match. FINANCIAL IMPLICATIONS: This Ordinance approves $225,000 ($162,500 from the General Fund Balance, $62,500 from the HOME Grant Match Project HO1860) to assist the Pueblo Rescue Mission. Funds authorized by this Ordinance are to be distributed as follows: $100,000 to fund the renovation of the homeless th shelter facility located at 728 W 4 Street, Pueblo, Colorado, and $125,000 in operational funding to the Pueblo Rescue Mission for homeless shelter services. Funds provided by this Ordinance will match and leverage $1.3M in State funds for the renovation of the facility. BOARD/COMMISSION RECOMMENDATION: The Pueblo Commission on Homelessness, after a review of available sites, recommended the th homeless shelter be located at 728 W. 4 Street, Pueblo, Colorado. STAKEHOLDER PROCESS: The Pueblo Commission on Homelessness has held a series of public meetings, and during the April 1, 2019, Work Session, Staff presented the recommendations of the Pueblo Homelessness Commission. ALTERNATIVES: City Council can choose not to fund the homeless shelter; however, the Pueblo Rescue Mission will not have the match and local support required to receive the $1.3M grant from the State, and the City will have unmet shelter needs for homeless individuals. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: Attachment 1: Community Development Services Agreement Attachment 2: Homeless Shelter Development Agreement Rev.5/30/2019 CITY OF PUEBLO HOMELESS SHELTER DEVELOPMENT AGREEMENT J�- This Agreement is made and entered into this�day of August 2019, by and between the City of Pueblo, a Municipal Corporation (hereinafter referred to as "City"), and Pueblo Rescue Mission, a Colorado Nonprofit Corporation (hereinafter referred to as "Developer"). WITNESSETH, that: WHEREAS, the Developer has entered or intends to enter into agreements with the State of Colorado, Division of Housing, whereby financial assistance may be made available to Developer for the renovation of a homeless shelter located at 728 W. 4th Street, Pueblo, Colorado 81003; and WHEREAS,financial assistance, subject to deobligation(and subject to appropriation with respect to any assistance payable out of future fiscal year allotments), may be made available to qualifying non-profit entities for the purpose of carrying out specific elements of the City's housing strategy, including the development of a shelter and associated services for the homeless; and WHEREAS, Developer has submitted a project proposal for the rehabilitation of a homeless shelter in fulfillment of a portion of the housing strategy and has been selected to receive a grant for such project; WHEREAS, Developer has represented to City that it is a duly qualified nonprofit corporation with experience developing shelter accommodations and is willing to undertake its proposed project, as further amended by this Agreement and the attachments hereto; and NOW, THEREFORE, in consideration of the foregoing recitals and the covenants, terms and conditions set forth herein, the parties agree as follows: 1. DEVELOPER SERVICES. (a) Developer shall, directly or indirectly, in accordance with all applicable federal, state and local laws and regulations, undertake the rehabilitation of a 100-person homeless shelter project, with the shelter space being assisted hereunder, in furtherance of the City's housing strategy. The project, as described herein, may be referred to as the "Pueblo Rescue Mission Homeless Shelter" or the "Project". Developer may undertake same as the Project sponsor with ownership of the Project to be held by either the Developer or by a limited liability partnership or limited liability limited partnership in which Developer acts as the sole general partner, or by a limited liability company in which Developer is the managing member. Developer shall satisfactorily perform and complete, or cause to be performed and completed, all services and items of work, and the furnishing of all labor and materials encompassed within or reasonably necessary to construct all of the improvements for the Project, and accomplish the tasks and —1— 1 W functions described in the Scope of Services attached hereto as Exhibit "A" and incorporated herein by reference, in full compliance with all of the provisions of this Agreement. Before proceeding with the Project, Developer shall furnish City with all reasonable information which City may request concerning the Project, execute all certifications and security instruments required by this Agreement and applicable laws and regulations, demonstrate eligibility of the Project for assistance under this Agreement, and obtain the written approval of City's authorized representatives as to the Project, which approval will be granted in City's sole and absolute discretion. (b) Developer warrants and represents that(i)it has the requisite authority and capacity to perform all terms and conditions on Developer's part to be performed hereunder; (ii) that it is duly organized as a nonprofit corporation under the laws of the State of Colorado; (iii) that it is aware of and understands its duty to perform all functions and services in accordance with the regulatory requirements of those identified in Exhibit "C" hereto; and (iv) that it is accepting financial assistance hereunder subject to certain mandatory repayment provisions. (c) Time is of the essence hereof. Developer agrees that it shall meet the following deadlines with respect to the Project: (i) Developer shall obtain satisfactory evidence that it or the Owner of the Project has the financial ability to undertake,rehabilitate and develop the Project, including proof that it has secured funds necessary, obtained loan commitments for any construction loan(s)needed for financing for the Project, and furnish such evidence to City,on or before August 26, 2019. (ii) Developer or Owner shall obtain all required funds and loans on or before September 30, 2019; (iii) Developer or the Project Owner shall commence rehabilitation and construction and demolition of the Project not later than October 1, 2019; and (iv) Developer or the Project Owner shall substantially complete all elements of the Scope of Service of the Project not later than January 10, 2020. 2. ROLE AND RESPONSIBILITIES OF THE CITY. All obligations of Developer under this Agreement shall run directly to City and be fully enforceable by City and in the name of the City. 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, approval of the Project to be undertaken by Developer hereunder, and the disbursement of funds in connection therewith. In the absence of such a designation, the Mayor shall be deemed as City's authorized representative. —2— 3. FINANCIAL ASSISTANCE AND METHOD OF PAYMENT. (a) Upon execution of all documents required by City, the City will grant to Developer an amount up to that specified in paragraph (c) of this section as the public investment in the Project assisted under this Agreement. Disbursement of funds to Developer is subject to all of the following requirements, which shall be conditions precedent to payment: (i)that Developer or the Owner of the Project has expended funds after August 15,2019 for eligible approved expenditures with respect to the Project, (ii) that neither Developer nor the Owner is in default of any material provision of this Agreement nor applicable law or regulation, (iii) that Developer has timely submitted requests for disbursement detailing the eligible draw-down items in a format approved by City, (iv) that Developer has certified with each payment or loan draw-down request compliance with the requirements identified in Exhibit "C" and that all expenditures for which draw-down is sought were made for and in furtherance of the Project and are an eligible use of funds. (b) Payment hereunder is also subject to and may only be disbursed on a reimbursement basis with 10% held in retainage from the contractor until satisfactory completion of the project. Funds provided hereunder for Project may only be used for development hard and soft costs. (c) The aggregate of all payments made hereunder shall not exceed One-Hundred Thousand and No/100 Dollars (U.S. S100,000.00). (d) Upon expiration of the term of this agreement or upon any prior termination, Developer 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; SECURITY. (a) Unless sooner terminated, the term of this Agreement, for purposes of making the grant and undertaking the construction and completion of the Project, shall be from the date of execution hereof until March 2,2020; provided however,that with respect to the Project for which Developer has received financial assistance under and during the term of this Agreement, Developer and the Owner of the Project shall have continuing responsibility to comply with the performance, certifications,repayment,affirmative marketing, and recordkeeping requirements of this Agreement. As used herein, "period of affordability" shall be 15-years from the date of substantial completion of the Project. (b) (i) The full amount of grant assistance provided to Developer for the Project pursuant to this Agreement shall constitute an indebtedness of the Owner and Developer to City, which shall be evidenced by a promissory note (hereinafter referred to as the "Promissory Note" or "Note") which shall be due and payable with interest as provided therein and which shall be secured by the following described real property situate in the County of Pueblo, State of Colorado (the "Property"): —3— Lots 18 through 24, Block 3, Thatcher and Gast Subdivision, also known as 728 W. 4th Street, Pueblo, Colorado 81003 as evidenced by a Deed of Trust to be executed contemporaneously with said Promissory Note. The loan instruments shall require the Owner and Developer to pay to City or holder of the indebtedness as and to the extent same becomes due under the provisions of the Promissory Note and this Agreement. Developer shall include terms in said Promissory Note or Deed of Trust stating that the amount of the assistance shall continue as an indebtedness until paid in full, and notwithstanding such payment in full, the affordability restrictions described in this Agreement shall continue in effect and be enforceable for the full period of affordability without regard to the term specified in the Note or Deed of Trust for repayment. (ii) In order to secure the affordability provisions and other requirements of this Agreement, City may, at any time, require an assignment and transfer of said Note and Deed of Trust. (c) During the full Term of this Agreement and for the period of affordability, (i) any failure by the Owner or Developer to perform any obligation, covenant or provision of the Note or this Agreement required to be performed by the Owner or Developer, or (ii) any breach of any warranty made by Developer in this Agreement, or (iii) any other violation of any material term of this Agreement or the Deed of Trust given to secure the Note, shall constitute a default under this Agreement. Upon any such default, the City may demand that Developer and Owner repay to City the full amount of assistance provided hereunder, plus interest at the rate of 2% per annum from and after the date of such default. Developer and Owner further agree that no release of any security for the indebtedness or extension of time for payment of same, or any installment thereof, and no alteration,amendment or waiver of any provision of the Note or the Deed of Trust securing same shall in any manner, release, discharge, modify or affect the obligations of Developer and Owner under this Agreement. 5. TERMINATION OF AGREEMENT. (a) For Cause. This Agreement may be terminated by City for cause, including any nonperformance by Developer or Owner, upon ten (10)days written notice to Developer or Owner 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 as to both the grounds for termination and the appropriateness thereof shall be final and binding upon both City and Developer or Owner. Cause for termination shall include any material failure by Developer or Owner to comply with any term of this Agreement. (b) For Convenience. This Agreement may be terminated by City for convenience upon thirty (30)days' notice to Developer or Owner. This Agreement shall terminate immediately upon any non-appropriation of funds, regardless of cause. —4— (c) Post Termination Procedures. In the event of termination, Developer shall continue to be responsible for those matters which survive termination identified in section 4 above, unless City takes over the Project and, in connection therewith, prospectively releases Developer from one or more specific responsibilities in writing. Additionally, at City's sole option, all property acquired by Developer with grant funds, all grant funds, program income, and mortgage loans originated with grant funds or by payments therefrom and payments received under such mortgage loans, held, owned or retained by Developer shall immediately become the sole and separate property of the City, and Developer and Owner 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 Developer or Owner or its agents and assigns under this Agreement or with grant funds shall, at the option of the City, become its property and Developer and shall be entitled to receive just and equitable compensation only for satisfactory work completed and eligible costs for which compensation has not previously been paid nor reimbursement made. 6. ASSIGNABILITY. This Agreement shall not be assigned or transferred by Developer or Owner without the prior written consent of the City; provided however, that this limitation shall not be construed to prohibit Developer from undertaking activities under this Agreement through a Project Owner meeting the requirements of Section 1(a) of this Agreement. Any assignment or attempted assignment made in violation of this provision shall, at City's election, be deemed void and of no effect whatsoever. 7. CONFLICT OF INTEREST. Developer and Owner shall avoid all conflicts prohibited by applicable regulations as presently promulgated and as same may be revised from time to time in the future. 8. DEVELOPER RECORDKEEPING. Developer shall maintain, and shall require the Owner to maintain, records as to the Project work and activities undertaken with assistance hereunder, services provided, reimbursable expenses incurred in connection with the Project and complete accounting records. Accounting records shall be kept on a generally recognized accounting basis and as requested by the City's auditor. The compliance provisions attached as Exhibit "B" hereto are made a part of this Agreement, and Developer agrees to perform and comply with same, and shall require the Owner to do likewise. The City, and any of its authorized representatives, shall have the right to inspect and copy, during reasonable business hours, all books, documents, papers, and records of Developer and the Owner 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, at any time during the period of affordability or within five (5) years thereafter, require all of Developer's and the Owner's financial records relating to this Agreement to be turned over to the City. —5— M Vc I \ 9. MONITORING AND EVALUATION. The City shall have the right to monitor and evaluate the progress and performance of Developer and Owner to assure that the terms of this Agreement are being satisfactorily fulfilled in accordance with City's and other applicable monitoring and evaluation criteria and standards. The City shall at least monthly review Developer's performance using on-site visits, progress reports required to be submitted by Developer, audit findings, disbursement transactions and contact with Developer or Owner as necessary. Developer 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. Developer shall fully cooperate with City relating to such monitoring and evaluation. 10. DEVELOPER FILES AND INFORMATION REPORTS. Developer and Owner 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 for a period of five (5)years, except that with respect to the Project undertaken with assistance provided hereunder, such records shall be maintained for the full required period of affordability. Activity reports shall be submitted monthly no later than the ninth day of the month following the end of month. 11. INDEPENDENCE OF DEVELOPER. Nothing herein contained nor the relationship of Developer to the City, which relationship is expressly declared to be that of an independent contractor, shall make or be construed to make Developer or any of Developer's agents or employees, or the Owner, the agents or employees of the City. Developer 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, Developer 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 Developer or by the conditions created thereby. Developer 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 Developer or out of any violation by Developer of any statute, ordinance, rule or regulation. —6— (b) Developer 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 minimum insurance coverage which Developer 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/l00 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) Developer further agrees that it shall procure and maintain, or require the Owner of the Project to procure and maintain, at Developer's or the Owner's expense, hazard and fire insurance upon the property described in the 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 to Developer by City pursuant to this Agreement. (e) Developer shall furnish a certificate of insurance certifying all insurance coverage to City's Director of Finance prior to disbursement of any funds to Developer. Both said certificates of insurance and the policy procured by the Owner shall name the City as an additional loss payee. 13. CERTIFICATIONS. Developer agrees to execute and abide by the certifications contained in Exhibit"C" hereto, which are hereby expressly made a part of this Agreement. 14. PROGRAM INCOME; PROJECT PROCEEDS; REVERSION OF ASSETS. (a) Upon expiration of the term of this Agreement, or upon any prior termination, Developer 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. (b) The Project, the Property, and any other real property acquired, rehabilitated, constructed or improved in whole or in part with funds provided pursuant to this Agreement shall —7— be used as a homeless shelter for the full period of affordability as defined in section 4 hereof. In the event the Project, the Property or such other property ceases to be so used, Developer shall immediately pay to City the greater of: (i) an amount equal to the current market value of the Project and Property less any portion of the value attributable to expenditures of funds not provided under this Agreement for the construction of the Project or acquisition of, or improvement to, the Property (that is, the calculation of the portion of value attributable to expenditures not provided by City under this agreement shall be the market value multiplied by a fraction whose numerator is the total Project cost or costs of acquisition determined as of the date of Project completion less the amount of assistance provided by City, and whose denominator is the total Project cost or cost of acquisition determined as of the date of Project completion); or (ii) the remaining principal balance and accrued interest owing under the Note. 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 in accordance with applicable laws. (c) In the event City incurs any cost or expense in enforcing the requirements of this Agreement, including but not limited to the requirements of this section 14, or in bringing any action to recover the amount of any repayment obligation,or, upon assignment of the Note and the Deed of Trust, to foreclose or obtain sale under the Deed of Trust or mortgage instrument, City shall be entitled to recover its costs and expenses, including reasonable attorney's fees. (d) In the event the Developer should sell or transfer title to the Project, the Property or other real property or improvements constructed or improved with funds provided pursuant to this Agreement, within 15-years after substantial completion of the Project or said improvements, the Note and Deed of Trust shall provide that the entire indebtedness under the Note shall immediately become due and payable and repaid to City, together with interest thereon at the rate of 2% per annum from the time of substantial completion until said repayment is made. (e) It is the intent of the parties that §38-30-165, C.R.S. and any similar statute hereafter enacted, be inapplicable and void as to this Agreement in order to maintain affordability of the Property's use as a homeless shelter. Consequently, the Note and Deed of Trust executed by the Owner(collectively, the "Loan Documents") shall not be assumable, and the indebtedness shall be due and payable upon sale, transfer or assignment, or any attempted sale or transfer of the Property by the Owner, unless all of the following circumstances are demonstrated to exist: (i) more than 15 years have elapsed since the substantial completion of the Project, (ii)the sale of the Property is to a subsequent purchaser who agrees in writing to possess and operate the facility as a homeless shelter in a manner that meets the requirements of this Agreement and other applicable requirements, and(iii) both the City and the holder of the Note expressly consent to assumption of the Owner's obligations under the Note by the subsequent purchaser prior to sale or transfer,which consent shall be granted only upon the Owner's showing circumstances (i) and (ii) have or will be satisfied. 15. SPECIAL REQUIREMENTS APPLICABLE TO IMPROVEMENTS TO PROPERTY. (a) In addition to all procurement requirements otherwise applicable to the Project pursuant to any other provision of this Agreement or pursuant to any requirement of law or —8— " 1(\(� \ ' regulation incorporated in this Agreement by reference, Developer shall comply with all requirements of this section 15. (b) No construction work or improvements shall be undertaken to the Property or other 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, except that if the nature of the work does not ordinarily require plans or specifications prepared by an engineer or architect, this requirement may be waived in writing by City's Director of Housing and Citizen Services; (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 funds are provided 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; provided, however, that the open competitive bidding process required herein need not follow the City's procurement requirements for City improvements. Developer may submit its proposed bidding process to the City for review and approval or disapproval prior to receipt of any funds hereunder. (c) No disbursement of funds to Developer shall be made by City hereunder unless and until all conditions precedent to payment specified elsewhere in this Agreement have been satisfied and Developer files with City's Director of Housing and Citizen Services a written request for payment signed by an officer of Developer that certifies(i)that the amounts included in the request for payment have not been included in any prior request for payment, (ii) that the improvements listed therein for which payment is sought have been completed in accordance with the approved plans and specifications therefor,and(iii)that the improvements for which payment is sought have been constructed so as to comply with City of Pueblo building codes. (d) Every contract for construction of improvements, and all lower tier covered transactions, shall include a requirement that the contractor, subcontractor or vendor certify that neither it nor its principal is debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in any government funded project. (e) Developer shall, provide for relocation assistance to persons displaced as a result of the Project, if any, in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and applicable implementing regulations. Relocation expenses are an eligible use of Project funds. 16. RECOGNITION OF CITY. In all printed materials, Project descriptions and other activities undertaken with funds provided under this Agreement,Developer shall provide recognition that funds have been provided by the City of Pueblo. Recognition shall be accomplished by prominent disclosure of the role of the State and City in all such printed materials and Project signage, if any. —9— 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 Developer and City. 18. SUBJECT TO LAW. (a) This Agreement is expressly made subject to the limitations of the Colorado Constitution. Nothing herein shall constitute, nor be deemed to constitute, the creation of a debt or multi- year fiscal obligation or an obligation of future appropriations by the City Council of Pueblo, contrary to Article X, §20 of the Colorado Constitution or any other constitutional,statutory or charter debt limitation. Notwithstanding any other provision of this Agreement, with respect to any financial obligation of City which may arise under this Agreement in any fiscal year, in the event the budget or other means of appropriations for any such year fails to provide funds in sufficient amounts to discharge such obligation,such failure shall not constitute a default by or breach of this Agreement, including any sub-agreement, attachment, schedule or exhibit thereto, by the City. City may in its sole and absolute discretion terminate this Agreement for reasons of non-appropriation immediately upon written notice without causing default or breach. (b) Nothing in this Agreement is intended, nor should it be construed, to create or extend any rights, claims or benefits or assume any liability for or on behalf of any third party,or to waive any immunities or limitations otherwise conferred upon the City of Pueblo, a Municipal Corporation under or by virtue of federal or state law, including but not limited to the Colorado Governmental Immunity Act,C.R.S. §24-10-101, et seq. (c) This Agreement shall be governed by the laws of the State of Colorado. Venue for any action arising under this Agreement or for the enforcement of this Agreement shall be in a state court with jurisdiction located in Pueblo County, Colorado. 19. SIGNATURES. The persons signing this Agreement on behalf of Developer represent and warrant that such persons and Developer 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 Developer enforceable against Developer in accordance with its terms. —10— IN WITNESS WHEREOF, Developer and the City have executed this Agreement as of the date first above written and under the laws of the State of Colorado. CITY OF PUEBLO ATTEST: A Municipal Corporation $ y1L By: ��` City Clerk Nicholas A. radisar, Mayor [SEAL] ATTEST: PUEBLO RESCUE MISSION, a Colorado Non-Profit Corporation By: ✓/"(4,4044,, Title: ?IRSCJon_, 1 C S Name: hce., C flees la. Title: oI (JAI r —I1— EXHIBIT A SCOPE OF SERVICES Developer will undertake the following activities to be known as the "Project," which shall be in compliance with all local and State codes,ordinances,and regulations,and the certifications found in Exhibit"C." Homeless Shelter Renovation in accordance with local building codes and sufficient to provide shelter for a minimum of 100-shelter occupants. a. 728 W. 4th Street, Pueblo, Colorado 81003 i. Scope of Rehabilitation: 1. Required ADA accessibility to and throughout the entire facility, including but not limited to: accessible parking, signage, doorways, service/eating counters, lavatories, showers, and toilet facilities sufficient to provide equal access. 2. Environmental mitigation. 3. Health and safety requirements. 4. Construction of male and female bathroom and shower facilities 5. Building and Fire code requirements. 6. Public Works, Traffic, and Zoning code requirements. 7. Upgrade of appliances as required. 8. Sound proofing of exterior components. 9. Installation of Commercial Kitchen Facilities. 10. Parking and surfacing requirements. 11. Landscaping of exterior, non-hardscape areas. —12— '" EXHIBIT B ACCOUNTING SYSTEM COMPLIANCE PROVISIONS 1. As used in this Exhibit, the term "Developer" shall mean the entity entering into the Agreement with the City of Pueblo, a Municipal Corporation to which this Exhibit is attached. 2. Developer agrees to maintain Project and accounting records in accordance with generally accepted accounting principles which accurately reflect all costs chargeable to the Project, utilize adequate internal controls,and maintain source documentation for all costs incurred. The City shall have the right to review and approve Developer's accounting system and internal controls prior to the release of any funds under the Agreement. 3. During the preconstruction and construction phases of the Project, the Developer shall not materially deviate from any approved Project budget unless any proposed major revision thereto has been submitted to City and approved in writing. Change orders of less than $10,000 each or$50,000 in the aggregate shall not be deemed to be material deviations or major revisions to the Project budget. 4. Nothing in the Agreement or the Exhibits thereto shall obligate City to any third parties, nor to any contractors, subcontractors, consultants, suppliers or workmen who have contracted with Developer or provided any materials or services to Developer. 5. The City has the right to periodically perform interim audits and a final audit of the Project and funds provided under the Agreement. Developer shall fully cooperate with City in undertaking any such audit and shall provide a suitable work area for City's audit personnel to inspect and copy records. —13— t EXHIBIT C CERTIFICATIONS The entity entering into this Agreement with the City hereby certifies that the Project will be conducted and administered in compliance with all of the following requirements: (1) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352; 42 U.S.C. 2000d, et seq.) and implementing regulations issued at 24 CFR Part 1; (2) Title VIII of the Civil Rights Act of 1968(Pub. L. 90-284;42 U.S.C. 3601,et seq.), as amended; and that the grantee will administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing; (3) Executive Order 11246, as amended by Executive Orders 11375 and 12086, and implementing regulations issued at 41 CFR Chapter 60; (4) Executive Order 11063,as amended by Executive Orders 12259, and implementing regulations at 24 CFR Part 107; (5) Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and implementing regulations when published for effect; (6) The Age Discrimination Act of 1975 (Pub. L. 94-135), as amended, and implementing regulations when published for effect; (7) The Clean Air Act (42 U.S.C. 7401 et. seq.) as amended; particularly section 176 (c) and (d) [42 U.S.C. 7506 (c) and(d)]; (8) The Safe Drinking Water Act of 1974(42 U.S.C. 201,300(t)et. seq.,and 21 U.S.C. 349) as amended; particularly section 1424 (e) (42 U.S.C. 300 (h)-303(e)); (9) It will comply with the Lead-Based Paint Poisoning Prevention requirements of 25 CFR Part 35 issued pursuant to the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821 et. seq.); (10) Where asbestos is present in property undergoing rehabilitation, Federal requirements apply regarding worker exposure, abatement procedures and disposal. CPD-90-44 EPA/OSHA. Signature_044-C._ —14— AGREEMENT FOR COMMUNITY DEVELOPMENT SERVICES (Non-profit entity) THIS AGREEMENT ("Agreement") is made and entered into this2day of August 2019, by and between the City of Pueblo, a Municipal Corporation, hereinafter referred to as the "City," and Pueblo Rescue Mission, P.O. Box 9167, Pueblo,CO 81008, hereinafter referred to as the"Subrecipient," for Homeless Support Services Program,C11907. WITNESSETH THAT: WHEREAS, the City is undertaking certain activities necessary for the execution of a project situated in the project area described in the Scope of Services; and WHEREAS,the City desires to disburse funds to the Subrecipient to execute certain projects and/or perform certain services in connection with such undertaking of the City; and WHEREAS,Subrecipient has represented to the City that is duly qualified,eligible and willing to undertake certain projects and/or services identified herein and in the Scope of Services attached hereto. NOW, THEREFORE, in consideration of the foregoing recitals and the terms and conditions set forth herein,the parties hereto do mutually agree as follows: 1. SCOPE OF SERVICES; RESPONSIBILITIES OF SUBRECIPIENT. (a) Subrecipient agrees to satisfactorily perform and complete all services and items of work, and furnish all labor and materials encompassed within or reasonable 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. (b) Subrecipient warrants and represents that it: (i) has the requisite authority and capacity to perform all terms and conditions on Subrecipient'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, including those identified in Exhibit "C" hereto. 2. RESPONSIBILITIES OF THE CITY. 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 Mayor shall be deemed as City's authorized representative. 3. SUBRECIPIENT'S COMPENSATION AND METHOD OF PAYMENT. (a) The City will pay to Subrecipient an amount up to that specified in subparagraph (b) of this paragraph as full compensation for all services and work to be performed or undertaken by Subrecipient under this Agreement. Payment of funds to Subrecipient is subject to all of the following requirements, which shall be conditions precedent to payment: (i) that Subrecipient has expended funds for eligible approved expenditures, (ii) that Subrecipient is not in default of any material provision of this 1 Agreement nor applicable law or regulation, (iii) that Subrecipient has timely submitted requests for payment or reimbursement detailing the eligible payment or reimbursement items in a format approved by City, and (iv) that Subrecipient 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 funds under this Agreement. (b) The aggregate of all payments made hereunder shall not exceed One-Hundred Twenty-Five Thousand and 00/100 dollars(U.S. $125,000.00). (c) Upon expiration of the term of this Agreement or upon any prior termination, Subrecipient 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 November 1, 2019 to December 31, 2021 unless sooner terminated as herein provided. 5. TERMINATION OF AGREEMENT. (a)For Cause: This Agreement may be terminated by City for cause,including any nonperformance by the Subrecipient, upon ten (10) days written notice to Subrecipient including a statement of the reasons therefore,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 Subrecipient. Cause for termination shall include any failure by Subrecipient to comply with any term of this Agreement. (b) For Convenience: This Agreement may be terminated by City for convenience upon thirty (30) days written notice to Subrecipient. This Agreement shall automatically terminate at the end of its term. (c) Post Termination Procedures: In the event of termination, all property acquired by Subrecipient 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 Subrecipient shall immediately become the sole and separate property of the City and the Subrecipient shall perform all acts and execute all instruments necessary to transfer and assign such property, funds, income, and mortgage loans to City. Everything finished or unfinished, documents, data, studies, reports, and work product prepared by the Subrecipient under this Agreement or with grant funds shall, at the option of the City, become City's property and the Subrecipient 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 Subrecipient 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. 2 7. CONFLICT OF INTEREST. The Subrecipient certifies and warrants that neither it nor any members of its Boards 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 thereunto, 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. Subrecipient shall avoid all conflicts of interest which are prohibited by applicable state and federal regulations. 8. SUBRECIPIENT RECORDS. Subrecipient 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 Compliance Provisions attached as Exhibit "B" hereto are made a part of this Agreement and Subrecipient agrees to perform and comply with same. The City shall have the right to inspect and copy,during reasonable business hours,all books,documents, papers and records of the Subrecipient which relate to this Agreement for making an audit or examination. Upon completion of the work and end of the term of this Agreement, the City may require all Subrecipient'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 Subrecipient to assure that the terms of this Agreement are being satisfactorily fulfilled in accordance with the City's and other applicable monitoring and evaluation criteria and standards. The City shall at least quarterly review the Subrecipient's performance using on-site visits,progress reports required to be submitted by the Subrecipient, audit findings, disbursements, transactions and contact with the Subrecipient as necessary. The Subrecipient 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. Subrecipients shall fully cooperate with City relating to such monitoring and evaluation. 10. SUBRECIPIENT FILES AND INFORMATION REPORTS. The Subrecipient shall maintain tiles 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 Subrecipient 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 no later than the following dates: I. First Quarter: April 15, 2020; April 15, 2021 2. Second Quarter: July 15,2020; July 15,2021 3. Third Quarter: October 15,2020; October 15, 2021 4. Fourth Quarter: January 15,2021 5. Close-out Report: January 15,2022; January 15,2022 3 11. INDEPENDENCE OF SUBRECIPIENT. Nothing herein contained nor the relationship of Subrecipient to City, which relationship is expressly declared to be that of an independent contractor,shall make or be construed to make Subrecipient or any of Subrecipient's agents or employees the agents or employees of the City. Subrecipient 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, Subrecipient 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 Subrecipient or by the conditions created thereby. Subrecipient further agrees to indemnify and save harmless the City, its officers, agents and employees, from and against 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 Subrecipient or out of any violation by Subrecipient of any statue, ordinance, rule or regulation. (b) Subrecipient 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 minimum insurance coverage which Subrecipient 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)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) per occurrence for property damage. (d) In the event Subrecipient's obligations under this Agreement are secured by a deed of trust or mortgage instrument as provided in paragraph 14 (c) of this Agreement, Subrecipient 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 of all liens against the property and the amount of funds provided by City pursuant to this Agreement. (e) Subrecipient shall furnish a certificate of insurance certifying such coverage to City's Director of Finance prior to disbursement of any funds to Subrecipient. Both said certificate of insurance and the policy procured by Subrecipient shall name the City as a loss payee. 13. CERTIFICATIONS. The Subrecipient agrees to execute and abide by the certifications contained in Exhibit"C" hereto, which are hereby made a part of this Agreement. 4 �� 1 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 Subrecipient. In the event City authorizes Subrecipient 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 Subrecipient shall be adjusted. (b) Upon expiration of the term of this Agreement, or upon any prior termination, Subrecipient 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 Subrecipient'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 provide shelter and shelter services for the benefit of homeless individuals until five years after expiration or termination of this Agreement,or(ii) not be used in accordance with subparagraph(c)(i), in which event Subrecipient 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 in accordance with applicable laws. If requested by City,Subrecipient 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 Subrecipient hereunder. (d) In the event City incurs any costs or expenses 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 costs and expenses, including reasonable attorney's fees. 15. SPECIAL REQUIREMENTS APPLICABLE TO IMPROVEMENTS TO PROPERTY. (a) In addition to all procurement requirements otherwise applicable to Subrecipient 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 Subrecipient under this Agreement is to be used for making improvements to real property, including new construction, rehabilitation, or remodeling,then in such event Subrecipient 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 therefore have been prepared by 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; and (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. (c) If this Paragraph 15 is applicable, no disbursement of funds to Subrecipient shall be made by City hereunder unless and until all conditions precedent to payment specified elsewhere in this Agreement have been satisfied and Subrecipient files with City's Director of Housing and Citizen Services a written request for payment signed by an officer of Subrecipient 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 therefore. 5 16. RECOGNITION OF CITY. In all printed materials, project descriptions and other activities undertaken with funds provided under this Agreement, Subrecipient shall provide recognition that funds have been provided by the City of Pueblo. Recognition shall be accomplished by prominent disclosure of the role of the City in all such printed materials and project signage, if any. 17. PERA LIABILITY. The Contractor shall reimburse the City for the full amount of any employer contribution required to be paid by the City of Pueblo to the Public Employees' Retirement Association ("PERA") for salary or other compensation paid to a PERA retiree performing contracted services for the city under this Agreement. The Contractor shall fill out the questionnaire attached as Exhibit "D" and submit the completed form to Finance Office as part of the signed Agreement. 18. 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 provisions of this Agreement shall be binding unless made in writing and executed by the duly authorized officers of both the Subrecipient and City. 19. SUBJECT TO LAW. (a) This Agreement is expressly made subject to the limitations of the Colorado Constitution. Nothing herein shall constitute,nor be deemed to constitute,the creation of a debt or multi-year fiscal obligation or an obligation of future appropriations by the City Council of Pueblo, contrary to Article X, §20 of the Colorado Constitution or any other constitutional, statutory or charter debt limitation. Notwithstanding any other provision of this Agreement,with respect to any financial obligation of City which may arise under this Agreement in any fiscal year, in the event the budget or other means of appropriations for any such year fails to provide funds in sufficient amounts to discharge such obligation,such failure shall not constitute a default by or breach of this Agreement, including any sub- agreement, attachment, schedule or exhibit thereto, by the City. City may in its sole and absolute discretion terminate this Agreement for reasons of non-appropriation immediately upon written notice without causing default or breach. (b) Nothing in this Agreement is intended, nor should it be construed, to create or extend any rights, claims or benefits or assume any liability for or on behalf of any third party,or to waive any immunities or limitations otherwise conferred upon the City of Pueblo,a Municipal Corporation under or by virtue of federal or state law, including but not limited to the Colorado Governmental Immunity Act, C.R.S. §24-10-101, et seq. (c)This Agreement shall be governed by the laws of the State of Colorado. Venue for any action arising under this Agreement or for the enforcement of this Agreement shall be in a state court with jurisdiction located in Pueblo County,Colorado. 6 20. SIGNATURES. The persons signing this Agreement on behalf of Subrecipient represent and warrant that such persons and Subrecipient have the requisite power and authority to enter, execute and deliver this Agreement and that this Agreement is a valid and legally binding obligation of Subrecipient enforceable against Subrecipient in accordance with its terms. IN WITNESS,WHEREOF,the Subrecipient 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 OF PUEBLO, A MUNICIPAL CORPORATION Qn( iiiativ-4By /[t�G[ City Clerk Nicholas A. Gradisar, ayor [SEAL] Subrecipient: Pueblo Rescue Mission ATTEST: By _ By Signature Signature Name ElLifiSAJ �.t�o�.ri�+42_ Name ()IIatthew 6.— i4a.SIad( Title pleV A?I 'PO-CC5 Title SoD.rd 014:f 7 EXHIBIT A SCOPE OF SERVICES A. Principal Tasks The Subrecipient will be responsible for administering a supportive services program for homeless individuals. The Subrecipient will administer all tasks about the aforesaid program in compliance with all applicable federal, state and local rules and regulations governing these funds and, in a manner, satisfactory to the Grantee. The major goal of the Subrecipient's efforts under this Agreement will be as follows: 1. Subrecipient will provide supportive services such as emergency housing, comprehensive case management services, and registration of participants in the Homeless Management Information System allowing data to be shared with partner agencies. Additionally, the subrecipient shall employ a Director to manage operations and an accountant to manage the financial operation of the agency. 2. Pueblo Rescue Mission commits to the Goals, Outcomes and Units of Service outlined in its application,as amended and attached herein. Changes in the scope of services,budget,or method of compensation contained in this Agreement,unless otherwise noted may only be made through a written amendment to this Agreement,executed by the Subrecipient and Grantee. Subrecipient will submit at a minimum quarterly report that address the Agency's ability to meet the goals and outcomes as submitted with the initial application. B. Budget and Method of Compensation The Subrecipient will submit reimbursement requests for salaries, services rendered, operating expenditures and materials purchased supported by original invoices. Approved budget is as follows: Contract Year 2020 Contract Year 2021 Staffing $40,000 $40,000 Security Services $10,000 $10,000 Contracted Services $7,500 $7,500 Shelter Operations $5,000 $5,000 Total Grant $62,500 $62,500 C. Performance Monitoring: The City will monitor the performance of the Subrecipient against goals and performance standards required herein. Substandard performance as determined by the City non-compliance with this agreement. If actions to correct such substandard performance arc not taken by the Subrecipient within a reasonable period of time after being notified by the City contract suspension or termination procedures will be initiated. D. Time of Performance: Services shall start on December 1,2019 and end on the December 31,2021. The term of this agreement and the provisions herein shall be extended to cover any additional time period during which the Subrecipient remains in control of funds and other assets including program income. 8 GOALS,OUTCOMES, AND UNITS OF'SERVICE FORM AGENCY: Pueblo Rescue Mission PROJECT: Homeless Shelter Services for adults experiencing homelessness in Pueblo Colorado Description of Scope of Sal,ices Describe the services you will provide with City of Pueblo Funds, Identify the Target Population (include appropriate demographic information such as age,ethnicity,gender,elderly,low-income,single parent,etc.)for which this program is intended, and the unmet needs of the community it will address The purpose of the program is to provide shelter with an intense case management component to assist participants in gaining independent sustainable housing. Funds will provide support for the shelter services. Programming includes 25 beds for women and 75 beds for men. Participants will be required to develop a case plan with staff and attend weekly CM sessions. Target population is homeless men/women 18 years and older. Program is open to all ages, gender, ethnicity, all are considered at poverty level. No other homeless shelter for unaccompanied men/women exists in Pueblo. Based on full occupancy anticipated annual shelter bed nights is 36500. Shelter will provide overflow access during the coldest times of the tear. Performance Measures State the program/project performance measures below in terms of outputs and outcomes. OUTPUTS Individuals Served/Proposed 2020 250(Permanent Shelter) Individuals Served/Proposed 2019 578 (Warming Shelter) Individuals Served Actual 2018 322 (Warming Shelter) Are the individuals Duplicated or Unduplicated? Unduplicated Unit Descriptions Related to the Program(i.e. meals, hours,trips, persons,visitors, etc.) Shelter Bed Nights Units Projected to Pros ide IN,5110 Shelter Bed Nights PROGRAM OUTCOMES Outcomes are the measurable impacts,benefits or changes for participants during or after your services. The changes in participants are expressed in terms of knowledge and skills, attitudes or behavior, status or condition, etc. • 100%of all shelter participants will be registered in the Homeless Management Information System (HMIS) • 100% of all shelter participants will be sheltered, nourished and clothed upon entry into the program. • 100%of all shelter participants will receive initial case management services. • 45%of all shelter participants will achieve an independent sustainable living environment within 18 months after entry into the program. 9 MEASUREMENT and EVALUATION Describe the tools used to determine and measure the effectiveness of services • PRM will use the Homeless Management Information System (HMIS) tool to track the program objectives and outcomes. 100% participants will participate. • PRM will also participate in administering the Vulnerability Index to help the most vulnerable in our community access community resources. • PRM will also measure and track the number of individuals who arc placed in housing, those who receive services to improve health and those who are placed in employment and work opportunities. How will you evaluate progress towards your goals? To determine organizational effectiveness, PRM will measure: the number of emergency shelter bed nights provide. Beginning with their first visit, we can begin tracking the services each client receives(for example,the number of nights of shelter received)and the progress each makes towards stability through HMIS. As PRM expands its emergency shelter and begins collecting data through HMIS on clients served,staff will begin to develop additional programming to meet the varied needs of clients, particularly in the areas of employment and housing. What steps do you take to address goals that are not progressing as projected? • If during the project, PRM learns that clients are not accessing the shelter as anticipated or are not taking a step toward stability through case management, PRM staff will conduct outreach to clients to determine the obstacles preventing those individuals from receiving services as we anticipated and make necessary program shifts to apply resources that will benefit the client's desired goal for a sustainable living environment. 10 cf\\; EXHIBIT B COMPLIANCE PROVISIONS INCORPORATED IN A CONTRACT FOR SERVICES 1. An accounting system using the accrual basis of generally accepted accounting principles which accurately reflects all costs chargeable(paid and unpaid)to the project should the project terminate the next day is mandatory. A receipts and disbursements ledger must be maintained. A general ledger with an income and expense account for each budgeted line item is necessary. Paid invoices revealing check number, date paid, and item is necessary. Paid invoices revealing check number, date paid, and evidence of goods or services received are to be filed per the expense account they were charged. The City must review and approve your account system and internal controls prior to the release of funds. 2. There is no flexibility on budgets. Line items may be changed only by the City's written concurrence of a budget amendment. 3. A log listing all long-distance telephone calls must be maintained (showing date, city and agency called, person making call and person called). 4. Eligible expenses are those considered reasonable and necessary costs for the efficient operation of the program as determined by the City. All costs must be budgeted items. Request for advance or reimbursements of expenses must be accompanied by: i. Original invoice marked with funding source ii. Detailed listing of each expense showing: a) recipient b) brief description of purchase c) amount with method of computation detailed Cost Summary must be submitted monthly to reflect entries through the closing date for the books(indicate Closing Date on Cost Summary). 5. All employees handling funds are required to be insured by a fidelity bond. 6. The City shall not be obligated to any third parties of the contractor. Each contractor is further cautioned against obligating funds beyond the contract date of the agreement between the City and the contractor. (Example: rent or lease agreements, service contracts, insurance, etc.) 7. The contractor will furnish the City such statements, records, data and information, and permit such interviews with personnel as the City may request to effectively monitor and evaluate the project. S. City auditors will periodically make interim audits and may, upon completion of the project, make a final audit. 9. All records must be retained by the agency for a period of three years following the last day of each contract. (Cost summary reports must reflect actual general ledger balances.) 11 EXHIBIT C CERTIFICATIONS Subrecipient hereby certifies that the grant will be conducted and administered in compliance with: (1) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352; 42 U.S.C. 2000d, et seq.) and implementing regulations issued at 24 CFR Part I; (2) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-284; 42 U.S.C. 3601, et seq.), as amended; and that the grantee will administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing; (3) Section 109 of the Housing and Community Development Act of 1974, as amended; and the regulations issued pursuant thereto; (4) Executive Order 11246, as amended by Executive Orders 11375 and 12086, and implementing regulations issued at 41 CFR Chapter 60; (5) Executive Order 11063, as amended by Executive Orders 12259, and implementing regulations at 24 CFR Part 107; (6) Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and implementing regulations when published for effect; (7) The Age Discrimination Act of 1975 (Pub. L. 94-135),as amended, and implementing regulations when published for effect; (8) The Safe Drinking Water Act of 1974 (42 U.S.C. 201, 300 (f) et seq., and 21 U.S.C. 349) as amended;particularly section 1424(c)(42 U.S.C. 300(h)-303 (e)); Signature: _%((1(14(ft Board President 12 EXHIBIT D COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION SUPPLEMENTAL QUESTIONNAIRE TO BE ANSWERED BY ANY BUSINESS PERFORMING SERVICES FOR THE CITY OF PUEBLO Pursuant to section 24-51-1 101(2),C.R.S.,salary or other compensation from the employment,engagement,retention or other use of a person receiving retirement benefits(Retiree)through the Colorado Public Employees Retirement Association(PERA) in an individual capacity or of any entity owned or operated by a PERA Retiree or an affiliated party by the City of Pueblo to perform any service as an employee,contract employee,consultant,independent contractor,or through other arrangements, is subject to employer contributions to PERA by the City of Pueblo. Therefore, as a condition of contracting for services with the City of Pueblo,this document must be completed,signed and returned to the City of Pueblo: a) Are you,or do you employ or engage in any capacity, including an independent contractor,a PERA Retiree who will perform any services for the City of Pueblo? Yes ,No)( . b) If you answered"yes"to(a)above,please answer the following question: Are you an individual,sole proprietor or partnership, or a business or company owned or operated by a PERA Retiree or an affiliated party? Yes No If you answered"yes"please state which of the above entities best describes your business: c) If you answered"yes"to both(a)and(b),please provide the name,address and social security number of each such PERA Retiree. Name Name Address Address Social Security Number Social Security Number (If more than two,please attach a supplemental list) Failure to accurately complete,sign and return this document to the City of Pueblo may result in your being denied the privilege or doing business with the City of Pueblo. If you answered"yes"to both(a)and(b),you agree to reimburse the City of Pueblo for any employer contribution required to be paid by the City of Pueblo to PERA for salary or other compensation paid to you as a PERA Retiree or paid to any employee or independent contractor of yours who is a PERA Retiree performing sery ices for the City of Pueblo. You further authorize the City of Pueblo to deduct and withhold all such contributions from any moneys due or payable to you by the City of Pueblo under any current orr�future contract or other arrangement for services between you and the City of Pueblo. Signed `ielt6 (4— C•e --- ,20 i g . Name: 014,t'htly G HAS 14/ Title: 13 4,4,.( O &:- For purposes of responding to question(b) above, an"affiliated party" includes(I)any person who is the named beneficiary or co-beneficiary on the PERA account of the PERA Retiree;(2)any person who is a relative of the PERA Retiree by blood or adoption to and including parents, siblings, half-siblings, children, and grandchildren; (3)any person who is a relative of the PERA Retiree by marriage to and including spouse, spouse's parents, stepparents, stepchildren, stepsiblings, and spouse's siblings; and (4) any person or entity with whom the PERA Retiree has an agreement to share or otherwise profit from the performance of services for the City of Pueblo by the PERA Retiree other than the PERA Retiree's regular salary or compensation. 13 EXHIBIT E ADDITIONAL REPORTING REQUIREMENTS You must submit the following forms and/or information with your signed contract(s). A. Board of Directors Roster; B. Staff Roster; C. Budget. You must submit the following forms and information with each request for disbursement of funds. A. Request for reimbursement form; B. Copies of canceled checks; C. Copies of invoices or receipts; D. Signed payroll sheets; E. Demographic information of clients served(can be done quarterly); F. Any other report or information as required by the grantor or federal agency. Requests for disbursements of funds will not be processed until all necessary information and forms are complete. Incomplete requests will be returned to the agency. /ecutive Vector 14 Rev.- 08/01/19 DEED OF TRUST HOMELESS SHELTER THIS DEED OF TRUST, made this _____ day of August, 2019, between Pueblo Rescue Mission, a nonprofit corporation, whose address is P.O. Box 9167, Pueblo, Colorado 81008, hereinafter referred to as "Grantor", and the Public Trustee of the County of Pueblo, in the State of Colorado, hereinafter referred to as "Trustee", WITNESSETH: WHEREAS, Pueblo Rescue Mission, a Not-For-Profit Development Corporation, a Colorado corporation, hereinafter referred to as "Developer," has entered into the City of Pueblo Homeless Shelter Development Agreement dated the _____ day of August, 2019 with the City of Pueblo, a Municipal Corporation, hereinafter referred to as the "Agreement;" and WHEREAS, Grantor has agreed to undertake and perform the obligations of Developer under the Agreement; and WHEREAS, the Developer has executed a Promissory Note, hereinafter referred to as the "Note," dated the _____ day of August, 2019 for the principal sum of One Hundred Thousand and No/100 Dollars ($100,000.00), payable to the order of the City of Pueblo, a Municipal Corporation, which amount is an indebtedness of Grantor payable with interest in accordance with the terms of said Note; and, WHEREAS, the Grantor is desirous of securing performance of all obligations of Developer and Grantor under said Agreement and Note and payment of the indebtedness as specified therein. NOW, THEREFORE, the Grantor, in consideration of the premises and for the purposes aforesaid, does hereby grant, bargain, sell and convey unto Trustee in trust forever, for the use and benefit of the City of Pueblo, a Municipal Corporation (the "Beneficiary"), the following described property, situate in the County of Pueblo, State of Colorado to wit: Lots 18 through 24, Block 3,Thatcher and Gast Subdivision according to the Plat recorded December 20, 1890 in Book 7 at Page 15, County of Pueblo, State of Colorado th also known as street and numbers 728 W. 4 Street, Pueblo, Colorado, 81003. TO HAVE AND TO HOLD the same, together with all and singular the privileges and appurtenances thereunto belonging: In Trust Nevertheless, That in case of default in the Note or any part thereof or payment as specified therein, according to the tenor and effect of said Note, or in the payment of any prior encumbrances, principal or interest, if any, or in case of a breach of any term of the Agreement, or in case default shall be made in or in case of violation or breach of any of the terms, conditions, covenants or agreements herein contained, the Beneficiary hereunder may declare a violation of any of the covenants herein contained and elect to advertise said property for sale and demand such sale, then, upon filing notice of such election and demand for sale with the Trustee, who shall upon receipt of such notice of election and demand for sale cause a copy of the same to be recorded in the recorder's office of the county in which said real estate is situated, it shall and may be lawful for said Trustee to sell and dispose of the same (en masse or in separate parcels, as the said Trustee may think best), and all the right, title and interest of Grantor, its successors or assigns therein, at public auction at the south front door of the Court House, in the County of Pueblo, State of Colorado, or on said premises, or any part thereof as may be specified in the notice of said sale, for the highest and best price the same will bring in cash, four weeks' public notice having been previously given of the time and place of such sale, by advertisement, weekly, in some newspaper of general circulation at that time published in said County of Pueblo, a copy of which notice shall be mailed within ten days from the date of the first publication thereof to the Grantor at the address herein given and to such person or persons appearing to have acquired a subsequent record interest in said real estate at the address given in the recorded instrument; where only the county and state is given as the address then such notice shall be mailed to the county seat, and to make and give to the purchaser or purchasers of such property at such sale, a certificate or certificates in writing describing such property purchased, and the sum or sums paid therefor, and the time when the purchaser or purchasers (or other person entitled thereto) shall be entitled to a deed or deeds therefor, unless the same shall be redeemed as is provided by law; and said Trustee shall, upon demand by the person or persons holding the same certificate of purchase, when said demand is made, or upon demand by the person entitled to a deed to and for the property purchased, at the time such demand is made, the time for redemption having expired, make and execute to such person or persons a deed or deeds to the said property purchased, which said deed or deeds shall be in the ordinary form of a conveyance, and shall be signed, acknowledged and delivered by the said Trustee, as grantor, and shall convey and quit-claim to such person or persons entitled to such deed, as grantee, the said property purchased as aforesaid and all the right, title, interest, benefit and equity of redemption of the Grantor, its successors and assigns therein, and shall recite the sum or sums for which the said property was sold and shall refer to the power of sale therein contained, and to the sale or sales made by virtue thereof; and in case of an assignment of such certificate or certificates of purchase, or in case of the redemption of such property, by a subsequent encumbrancer, such assignment or redemption shall also be referred to in such deed or deeds; but the notice of sale need not be set out in such deed or deeds and the said Public Trustee shall, out of the proceeds or avails of such sale, after first paying and retaining all fees, charges and costs of making said sale, pay to the Beneficiary hereunder or the legal holder of the indebtedness, all moneys and amounts due, according to the tenor and effect thereof, and all moneys advanced by such Beneficiary or legal holder of said indebtedness for insurance, taxes and assessments, with interest thereon at 12 per cent per annum, rendering the overplus, if any, unto the said Grantor, his legal representatives or assigns; which sale or sales and said deed or deeds so made shall be a perpetual bar, both in law and equity, against the Grantor, its successors and assigns, and all other persons claiming the said property, or any part thereof, by, from, through or under said Grantor, or any of them. The Beneficiary or holders of the indebtedness may purchase said property or any part thereof; and it shall not be obligatory upon the purchaser or purchasers at such sale to see to the application of the purchase money. If a release deed be required, it is agreed that Grantor, its successors and assigns, will pay the expense thereof. And the Grantor, for itself and for its successors and assigns covenants and agrees to and with the Trustee, that at the time of the ensealing of and delivery of these presents he is well seized of the said land and tenements in fee simple, and has good right, full power and lawful authority to grant, bargain, sell and convey the same in the manner and form as aforesaid; hereby fully and absolutely waiving and releasing all rights and claims he may have in or to said lands, tenements and property as a Homestead Exemption, or other exemption, now existing or which may hereafter be enacted in relation thereto and that the same are free and clear of all liens and encumbrances whatsoever, except for deeds of trust described hereinbelow and the above bargained property in the quiet and peaceable possession of the said Trustee, his successors and assigns, against all and every person or persons lawfully claiming or to claim the whole or any part thereof, the said Grantor shall and will Warrant and Forever Defend. And that during the continuance of said Note or the indebtedness arising thereunder, the said Grantor will in due season pay all taxes and assessments levied on said property; all amounts due on account of principal and interest on prior encumbrances, if any; and will keep all buildings that may at any time be on said lands, insured against loss by fire with extended coverage endorsements in a company authorized to issue such insurance in the State of Colorado, for such sum or sums as such company or companies will insure for, not to exceed the amount of said indebtedness and any prior encumbrances, except at the option of said Grantor, with loss, if any, payable to the Beneficiary hereunder, as its interest may appear, and will deliver the policy or policies of insurance to the Beneficiary hereunder, as further security for the indebtedness aforesaid. And in case of the failure of Grantor to thus insure and deliver the policies of insurance, or to pay such taxes or assessments or amounts due or to become due on any prior encumbrances, if any, then the Beneficiary may procure such insurance, or pay such taxes or assessments or amount due upon prior encumbrances, if any, and all moneys thus paid, with interest thereon at 12 per centum per annum, shall become so much additional indebtedness, secured by this Deed of Trust, and shall be paid out of the proceeds of the sale of the property aforesaid, if not otherwise paid by Grantor, and Beneficiary may for such failure declare a violation of this covenant and agreement. If all or any part of the property or an interest therein is sold or transferred by Grantor without Beneficiary's prior written consent, excluding the creation of a lien or encumbrance subordinate to this Deed of Trust, Beneficiary may, at Beneficiary's option, declare all the sums secured by this Deed of Trust to be immediately due and payable. AND THAT IN CASE OF ANY DEFAULT, Whereby the right of foreclosure occurs hereunder, the Trustee or the Beneficiary or holder of certificate of purchase, shall at once become entitled to the possession, use and enjoyment of the property aforesaid, and to the rents, issues and profits thereof, from the accruing of such right and during the pendency of foreclosure proceedings and through the period of redemption, if any there be; and such possession shall at once be delivered to the Trustee or the Beneficiary or the holder of the certificate of purchase on request, and on refusal, the delivery of such possession may be enforced by the Trustee or the Beneficiary or holder of the certificate of purchase by any appropriate civil suit or proceeding, and the Trustee or Beneficiary or the holder of the certificate of purchase, or any thereof, shall be entitled to a Receiver for said property, and of the rents, issues and profits thereof, after such default, including the time covered by foreclosure proceedings and the period of redemption, if any there be, and shall be entitled thereto as a matter of right without regard to the solvency or insolvency of the Grantor or of the then owner of said property and without regard to the value thereof, and such Receiver may be appointed by any court of competent jurisdiction upon ex parte application and without notice--notice being hereby expressly waived--and all rents, issues and profits, income and revenue therefrom shall be applied by such Receiver to the payment of the indebtedness hereby secured, according to the law and the orders and directions of the Court. AND, That in case of default in any of said payments of principal or interest, according to the tenor and effect of said Note aforesaid, or any part thereof, or a breach of any term of the Agreement, or of a breach or violation of any of the covenants or agreements herein, by the Grantor, its successors or assigns, then and in that case the whole of the indebtedness hereby secured, and the interest thereon to the time of the sale, may at once, at the option of the Beneficiary or the legal holder of the indebtedness, become due and payable, and the said property be sold in the manner and with the same effect as if said indebtedness had matured, and that if foreclosure be made by the Public Trustee, a reasonable attorney's fee for services in the supervision of said foreclosure proceedings shall be allowed by the Public Trustee as part of the cost of foreclosure, and if foreclosure be made through the courts a reasonable attorney's fee shall be taxed by the court as a part of the costs of such foreclosure proceedings. Notwithstanding any other provision of this Deed of Trust, Grantor and Beneficiary hereby expressly agree that this Deed of Trust is subject to and subordinate in all respects to the construction loan deed of trust securing a loan of $1,300,000.00 in favor of the State of Colorado and to all liens, terms, covenants and conditions of said deed of trust and to all advances heretofore made or which may hereafter be made pursuant to said deed of trust, including all sums advanced for the purpose of: (a) protecting or further securing the liens of the construction loan deed of trust, curing defaults by the Grantors under the construction loan deed of trust or for any other purpose expressly permitted by the construction loan deed of trust, or (b) constructing, furnishing, fixturing or equipping the said property. The terms and provisions of the construction loan deed of trust are paramount and controlling, and they supersede any terms and provisions hereof in conflict therewith. In the event of a foreclosure or deed in lieu of foreclosure of the construction loan deed of trust, any provisions herein or any provisions in any collateral agreement restricting the use of said property to low or moderate income households or otherwise restricting the Grantor's ability to sell said property shall have no effect on subsequent owners or purchasers of said property. Any person, including his successors or assigns (other than the Grantor or a related entity of the Grantor), receiving title to said property through a foreclosure or deed in lieu of foreclosure of the construction loan deed of trust shall receive title to said property free and clear from such restrictions. If any notice of default under the Note or this Deed of Trust or notice of acceleration of the maturity of the indebtedness is given to Grantor, irrespective of any legal obligation to do so, a copy of said notice shall also be given to the Primary Lender; provided, however, that nothing in this paragraph is intended, nor shall it be construed, to grant any rights whatsoever to Grantor or create any condition precedent to the exercise of any right or remedy by the Beneficiary; nor shall any noncompliance with the requirements of this paragraph constitute any defense against enforcement of the Note or this Deed of Trust, including without limitation, Beneficiary's right to accelerate maturity of the entire indebtedness and demand sale of the said property. Should any provisions of this Deed of Trust be found to violate the statutes or court decisions of the State of Colorado, or of the United States, such provision shall be deemed to be amended to comply with and conform to such statutes and decisions. IN WITNESS WHEREOF, the Grantor has hereunto set its hand and seal the day and year first above written. GRANTOR: PUEBLO RESCUE MISSION a Colorado Nonprofit Corporation By ___________________________________________ Matthew Haslar, Its President STATE OF COLORADO ) ) ss. COUNTY OF PUEBLO ) On _______________________________ before me, ____________________________________________, Notary Public, personally appeared Matthew Haslar, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or entity upon behalf which the person acted, executed the instrument. WITNESS my hand and official seal. ___________________________________________ PROMISSORY NOTE Principal Amount: U.S. $100,000.00 Date of Note: ____________________ FOR VALUE RECEIVED, the undersigned Pueblo Rescue Mission, a Colorado nonprofit corporation, hereinafter referred to as "Borrower," and its successors in interest, promises to pay to the City of Pueblo, a Municipal Corporation, hereinafter referred to as the "Note Holder," the principal sum of One Hundred Thousand and No/100 (U.S. Dollars ($100,000.00), provided payment is made in accordance herewith, and payable at the Note Holder's office at 1 City Hall Place, Pueblo, Colorado, 81003, or such other place as Note Holder may designate, upon demand of the Note Holder after occurrence of the events specified in this Note. The indebtedness shall be reduced by .5556% of the principal sum for each full calendar month, starting from the date of substantial completion of the Project, that the Borrower owns and Commented \[TG1\]: You mentioned in your email that the note operates the property as a homeless shelter, serving and assisting homeless individuals. is to be forgiven at a prorated rate after 10 years, but the ‘period of affordability’ per the Agreement is 15 years. If we stay on the 10 year forgiveness track, the Note will be ineffective in securing the The grant evidenced by this Note is being made to finance a homeless shelter project last 5 years of the Agreement. (hereinafter referred to as the "Project") in accordance with the City of Pueblo Homeless Shelter Development Agreement by and between Borrower and Note Holder (the “Agreement”). This Note and all principal payable hereunder are secured by a Deed of Trust of even date herewith upon real property, upon which the Project is located or to be located, and all improvements thereon, situated in the County of Pueblo, State of Colorado (hereinafter referred to as the "Property") and described more particularly as: LOT 18 THROUGH 24 BLK 3 THATCHER AND GAST SUBIVISION th also, known as 728 W. 4 Street, Pueblo, CO 81003. The terms, conditions, covenants, provisions, stipulations, and agreements of said Deed of Trust and said Agreement are hereby made a part of this Note by reference in the same manner and with the same effect as if they were fully set forth herein, and the Borrower hereby covenants and promises to abide by and comply with each and every covenant and condition set forth in this Note, the Deed of Trust, and the Agreement. The Borrower reserves the right to prepay all or any part of the principal owing on this Note at any time or times prior to maturity without notice and payment of any premium or penalty. Upon the occurrence of any of the following events, the entire unpaid principal hereof shall, at the option of the Note Holder, and without notice, become at once due and payable and shall accrue interest at the default rate of twelve percent (12%) per annum thereafter until paid in full, and no failure by the Note Holder to exercise such option shall be deemed or construed as a waiver of the right to exercise the same in the event of any subsequent default or breach: 1. Any default in the payment when due, or any part of the principal or interest hereunder. 2. Any breach or failure of the Borrower to perform within the allotted time any term or condition of the Agreement, the Deed of Trust, or any other instrument securing to the Note Holder payment or performance of any obligation of the Borrower. 3. If the Borrower shall be involved in financial difficulties as evidenced: (i) by an admission in writing of the Borrower's inability to pay its debts generally as they become due; (ii) by filing a petition in bankruptcy or for the adoption of an arrangement under the federal Bankruptcy Code (as now or in the future amended) or an admission seeking the relief therein provided; (iii) by making an assignment for the benefit of creditors; (iv) by consenting to the appointment of a receiver or trustee for all or a substantial part of the Borrower's assets or to the filing of a petition against the Borrower under said Bankruptcy Code; (v) by being adjudicated as bankrupt; (vi) by the entry of a court order appointing a receiver or trustee for all or a substantial part of the assets of the Borrower or approving as filed in good faith a petition filed against the Borrower under said Bankruptcy Code; (vii) by the assumption of custody or sequestration by a court of competent jurisdiction of all or substantially all of the assets of the Borrower; (viii) by an attachment for an amount in excess of $25,000 on any substantial part of the assets of the Borrower which shall not be discharged within thirty (30) days from the making thereof; or (ix) by a judgment or decree for the payment of money in excess of $25,000 being entered against the Borrower, or if an attachment, execution or levy is made upon any of the Borrower's assets and the judgment, execution or levy, as the case may be, is not discharged or stayed within thirty (30) days from the date of the judgment, attachment, execution or levy as the case may be. 4. If the Borrower shall have made any misrepresentation or a material nature in its application for the grant, or in any document furnished by it to the Note Holder relative to the Project. 5. If there is pending or threatened litigation with respect to the grant or the performance by the Borrower of any of its duties or obligations hereunder. 6. If the Project cannot proceed because of inability to continue land option or secure zoning or due to any action by any branch of government which impairs use of the Property herein described for proposed Project purposes. 7. If the Note Holder in its sole and absolute discretion determines that the Borrower has abandoned or discontinued the acquisition, construction, rehabilitation, or completion of the Project. The Borrower, and any and all endorsers, sureties, guarantors and assumers hereof, hereby jointly and severally waive presentment, protest, notices of dishonor and of protest, and all defenses 2 whatsoever on the ground of any extension(s) of the time of payment or of the due dates of this Note, in whole or in part, before or after maturity, with or without notice, it being further agreed by the Borrower and all such parties that they will pay all collection expense, court costs, and reasonable attorneys' fees which may be incurred in the collection or enforcement of this Note or any part hereof. Each subsequent holder of this Note shall be deemed, by virtue of such holder's acquisition of the Note, to have agreed to perform and observe all of the terms, covenants and conditions to be performed or observed by the Agreement or Deed of Trust. This instrument shall be governed by the laws of the State of Colorado and any dispute regarding its terms and conditions shall be resolved in the District Courts of the State of Colorado. Executed and delivered this ________ day of ___________________, 2019. Pueblo Rescue Mission a Colorado nonprofit corporation By: Name: Title: 3