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HomeMy WebLinkAboutRESO 4865, • RESOLUTION NO • .-4;u§~6"""5 __ _ RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO OF INTENTION TO ENTER INTO COOPERATION AGREEMENT WITH HOU.~~NG AUTHORITY c.:: THE COUNTY OF SANTA CLARA WHEREAS, the Board of Commissioners of the Housing Authority of the County of Santa Clara has proposed a Cooperation Agreement between the Housing Authority of the County of Santa Clara and the City of Palo Alto whereby the Housing Authority will lease housing units within the City of Palo Alto pursuant to the federal Section 23 leased housing program, using federal fund3 and funds provided ry the City of Palo Alto; and WHEREAS, the Council of the City of Palo Alto finds that such Cooperation Agreement would be in the best interests of the City, and would serve a public purpose; NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Palo Alto intends to enter into a Cooperati.1n Agreement with the Housing Authority of the County of Santa Clara relating to the federal Section 23 leased housing program; and BE IT FURTHER RESOL,'JED 1 that the Council of the City of Palo Alto will hold a public hearing on Monday, the 11th day of February, 1974, at 7:30 p.m. or as soon thereafter as the matter may be heard at its regular weekly meeting on such date for the purpose of giving interested persons an opportunity to be heard as to whether such Cooperation Agreement should be entered into, said hearing to be held at the Chambers of the Council of the City of Palo Alto, Civic Center, 250 Hamilton Avenue, Palo Alto, California1 and BE IT FURTHER RESOLVED that the Clerk of the City of Palo Alto is directed to publish notice of this resolution as required by Section 34518 of the Health and Safety Code and to maintain at least three copies of the proposed Cooperation Agreement -1- I . • available in the Office of the City Clerk for inapection by interested persons prior to the public hearing. INTRODUCED AND PASSED: January 28, 1974 AYES: Beahrs, Berwald, Clay, Comstock., Henderaon, Norton, Pearson, Rosenbaum, Sher NOES: None ABSENT: None ATTEST: APPROVED: city Clerk () APPROVED AS TO CONTENT; Ch\~L-~~-~ ASst. Director of P~g -2- Mayor rw ll • ~"-"" . COOPERATION AGREEMENT Between 'rhe CITY OF PALO ALTO and the HOUSING AUTHORITY OF THE COUNTY OF SANTA CLARA THIS AGREEMENT, made· and entP.red into this day of , 1974, pursuant to the Housing Cooperation Law, ~5-y~an__,a....,.b-e~t~w-e_e_n __ """'the CITY OF PALO ALTO, a municipal corporation of California, herei;na£ter referred to as "City,"· and the HOUSING AUTHORITY OF THE COUNTY OF SANTA CLARA, a public corporation created· pursuant to Housing Authorities' Law, with offices at 770 Kiely Boulevard, Santa Clara,· California 95051, hereinafter referred to as "Housing Authority"; W I T N E S S E T H: ----------- WHEREAS, the Housing Authority, established for the purpose of providing low income housing i.n Santa Clara County, has been unable to lease many units for such purposes· in Palo Alto under the federal Section 23 program due to the high rents extant in the Palo Alto· housing market; and WHEREAS,· the City recognizes the need for additional housing for low income persons and wishes to increase the number of housing units leased for· low income persons by the· Housing Authority within· the· city· limits~ and WHEREAS, by Ordinance· No .• 2761 the Council of the City of Palo Alto transferred funds to· be used to· supplement Housing Authority funds provided as part of· the Section 23 program to lease more·housinq units for low· income persons· in Palo Alto; and WHEREAS, the Housing Authority intends· to· apply such funds to increase· rents· payable to owners of units leased and stands ready to assume any custotnary· administrative· costs· it' might incur in carrying· out· the terms of this agreement: NOW, THEREPORE., in consideration of their· mu:tua1· covenants, the parties· hereto agree· as· follows: 1. COOPEAA.T~OR AGREEMENT COORD.INATION. A. City. The City Manager shall be representative of City for all purposes· under this agreement. The Assistant Director of Planning is hereby designated as Cooperation Agreement Manager and he shall supervise the progress and· execution of this agreement. . .. B. Rousing;· Au.thori ty. · · The Executive Director of the Housing Authority Is designated Cooperation Agreement· Director for Housing Authority· and shall be· assigned and sha11 have responsibility for the progress and· execution of· this agreement. -. l - 2. DUTIES OF .. HOUSING. AUTHORITY. A. Housing Authority shall lease housing units for low income persons within the municipal boundaries of the City of Palo Alto with funds provided under and pursuant· to· the federal Section 23 leased housing program or any· subsequent and similar federal or state program· and funds· provided by· City under J)aragraph -3 of this· agreement· to· supplenient· such·federal or other funds. · (1) Housing Authority shall lease· housinq-·units pursuant to Section 2. (n)·of this agreement in accordance with the following requirements: (a) Housing Authority· shall seek maximum term · leas es , but not to exceed three years • (b) Housing Authority shall maximize the number of· units leased each year· under this agreement. (c) Housing Authority shall lease, as far as practicable, units which are in· scattered locations throughout Palo· Alto and shall avoid leasing units in areas where· the· City ha~ approved· or planned, prior to and after-execution· Of this agreement, low or moderate income· housing, whether-provided by means of private-, federal or state subsidy or assist- ance,· or by other means. (d) Housing Authority shall minimize the subsidy per uriit to be provided by City. (e) Housing Authority, within the eligibility criteria required by the federal or state government, shall give preference to applicants for· tenancy to persons who at the time of.application reside in Palo Alto and secondarily to· those applicants who work in Palo Alto but be~ause of· high rental costs are· compelled to live elsewhere. Cf) Housing Authority shall maintain·, as far as economically practicable, an equal.· balan~e between tenancies provided to families and-to· elderly.persons of low income. B. Housing Authority shall, during the first· six months of this agreement, enter as many· leases for three•year terms as possible, pursuant to-se·ction 2.A. of this agreement,· consistent with the requirements thereunder. However, the Housing Authority shall not enter so many leases on such· terms that·· more than Fifteen Thousand· Dollars ($15,000) of funds provided by City hereunder would be committed for the period of any· one year com- mencing on the day following six months from the date of execution of this agreement·. In no event· shall the· Housing· Authority enter so many leases on such terms that the total amount of funds required to be provided by City under this agreement· could exceed Forty-five Thousand Dollars· ($45,000) from the date of execution to the date of termination of this agreement. c. The Housing Authority shall not use funds provided by City hereunder for :leases in other federally assisted·~· or city assisted housing units or· projects without the prior approval of the City Council. -2 - • D. The Housing Authority shall require owners of units to which City funds are provided hereunder to agree that upon termi- nation of the lease the tenant in possession during the term of the lease shall have the option of remaining the tenant of such owner on such terms as the owner and the tenant may agree. E. (1) The Housing Authority shall provide City, six (6) months after the execution of this agreement and every ninety (90) days thereafter, a progress and financial report containing the following information: (a) The number of units leased. (b) The number of months for which such units are leased. (c) The location of such units. (d) The dollar amount of federal and City funds provided for, and the ~ent charged tenants for each unit leased. (e) Such other information, including adminis- trative costs, tenant profiles, and turnover, which may assist City in evaluating the effect of this agreement. (2) The Housing Authority shall cooperate with City in evaluating the information to be provided under Paragraph 2.E. of this agreement and shall hold open its accounts, files, records, and other data relating to this agreement, except tenant applications, for City audit and review, and shall allow City to copy such documents at City's expense. F. The Housing Authority shall est3blish and maintain such accounting system as may be required by City. 3. DUTIES OF CITY. A. City shall provide the Housing Authority up to Four Thousand Five Hundred Dollars· ($4,500) six (6) months after the execution of this agreement and annually thereafter as an advance on the amount of Fifteen Thousand Dollars ($15,000) which City shall provide the Housing Authority as may be required by the number of units leased, to supplement federal or other Housing Authority funds to lease housing hereunder each year. B. City shall reimburse the Housing Authority, after the annual advance under Paragraph 3.~., in such amounts a& may be required for leases entered hereunder which aggregate up to Fifteen Thousand Dollars ($15,000) annually, inclusive of the annual advance, and up to Forty-five Thousand Dollars ($45,000) over the term hereof, calculated from the date of the first advance to the date of termination of this agreement. Reim- bursement of the Housing Authority, following the initial annual advance, shall be made upon submission to City of the progress and financial report required under Paragraph 2.E. (1) for units leased herew1der. c. City shall hold and provide Five Thousand Dollars ($5,000) to the Housing Authority upon termination of this agreement to be used to phase out leases entered hereunder which extend beyond the date of termination or for such other obligations incurred by the Housing Authority, provided that City has approved -3 - such other obligations in advance and in writing. If City determines that the performance of the Housing Authority has been well executed, based upon the progress and financial reports submitted under Paragraph 2.E.(l), any monies remaining after the phase-out as described in this· paragraph shall be made available to the Housing A~thority for further· leases in its normal program in Palo Alto. 4. TERM. This agreement shall commence on the date of execution and shall terminate three years and six ~onths following such date. 5. BXTENSION OF TERM. City shall have the option to extend the term of this agreement to cover extended leases, any variation in individual lease periods and the period of phase-out or for any period to which City and the Housing Authority may agree, but not to exceed one year fr•::>m the date of termination unless this agreement is amended in writing. 6. RIGHT TO SUSPEND OR TERMINATE. City shall have the right to susp~nd or terminate this agreement if the· Housing Authority fails to carry out its duties hereunder or· is· incapable of performing to the date of termination, or if the City considers the agreement unfavorable in meeting original· objectives; based on progress and financial report(s) submitted under Paragraph 2.E. (1). If City· terminates this agreement, the Housing Authority, upon receipt of notice of such termination, shall not· enter any new leases hereunder but shall continue to administer such leases which have been entered up to that date and shall furnish City a final progress and financial report containing all the information required under Paragraph· 2.E.(l). In such case, City shall provide e.e Housing Authority with funds to supplement feder~i and other Housing Authority funds only for leases entered up to the date of termination. · 7. DUTY TO DEFEND, INDID:NIFY AND HOLD HARMLESS. Housing Authority hereby agrees to indemnify and save harmless City, its officers, agents, and employees from: A. Any and .all claims and demands which may· be made against City, its officers,_ agents, or employees by reason of any injury to or death of any person or damage suffered or sustained by any person or corporation caused by, or a~leged to have been caused by, any act or omission, negligent or otherwise, of Housing Authority or any subcontractor under this agreement or of Housing Authority's or any subcontractor's employees or agents. B. Any and all damage to or destruction of the property of City, its officers, agents, or employees occupied or used by or in the care, custody, or control of Housing Authority, · caused by any act or omission1 negligent o~ otherwise, of Housing Authority or any subcontractor under this agreement or of Housing Authority's or any subcontractor's employees or agents. c. Any and all claims and demands which may be made against City, its officers, agents, or employees by reason of any injury to or death of or damage suffered or sustained.by ~y employee or agent of Housing Authority or any subcontractor under this agree1~1ent, however caused, excepting, however, any· such claims ~d demands which are the result of the sole negligence or will- ful miscondcct of City, its officers, agents, or employees. -4 - D. Any and all penalties imposed or damages sought on account of the violation of any law or regulation or of any term or condition of any permit. E. Any and all claims and demands which may be made against City, its officers, agents, or employees in connection with any lease or rental agreement entered hereunder for any damages to or destruction of property or damage to, injury to, or death of _ any person, or arising out of any claims or demands with respect- to the condition of or tenantability or habitability of an~ premises. In the event that any rent is withheld or deducted on the claim that premises leased or rented hereunder are untenantable or uninhabitable, Housing Authority shall defend, indemnify and hold City harmless therefrom as.provided.herein. Housi~,g Authority, at its own cost, expense, and risk, shall defend any and all s~its, actions, or other legal proceedings that may be brought or instituted by third persons against City, its officers, agents, or employees on any such claim or demand of such third persons, or to enforce any such penalty, and pay and satisfy any judgment or decree that may be rendered against City, it~ officers, agents, or employees in any such suit, action, or other legal proceeding. a. WORKMEN'S COMPENSATION. Housing Authority certifies that it is aware of the provisions of the Labor Code of the State of California, which require every employer to be insured against liability for workmen's compensation or to undertake self-insurance in accordance with the provisions of that code, and it certifies that it will comply with such provisions before conunencing the performance of this agreement. 9. INSURANCE. Housing A~thority, at its sole cost and ex- pense, shall obtain and maintain in full force and effect throughout the entire term of this agreement at least the following described insurance coverage, insuring not only Housing Authority and its subcontractors, if any, but· also, with the exception of workmen's compensation and employer's liability insurance, City, its officers, agents, and· employees, and each of them: Policy (a) Work.ID.en's Compensation Minimum Limits of Liability Statutory (b) Comprehensive Bodily Injury -$100,000 each person Automobile -$300,000 each occurrence Liability, in-Property Damage -$100,000 each occurrence eluding owned, (c) hired, and non- owned automobiles Comprehensive Bodily Injury General -$100,000 -$300,000 -$300,000 Property Damage -$100,000 -$100,000 Personal Injury -$100,000 -$300,000 Liability, including pro- tective, com- pleted opera- tions, broad form contractual, and personal injury. -s - each person each occurrence aggregate each occurrence aggregate each occurrence aggregate • • • 10. WAIVERS. The waiver by either party of any breach or violation of any term, covenant, or condition of this agreement or of any provision, ordinance, or law shall not be deemed to be a waiver of such tenn, covenant, condition, ordinance, or law or of any subsequent breach or violation of the same or of any other term, covenant, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this agreement or of any applicable law or ordinance. 11. COSTS AND ATTORNEYS' FEES. The prevailing party in any action brought to enforce the terms of this agreement or arising out of this agreement may recover its reasonable costs and attorneys' fees expended in connection with such an action frvm the other party. 12. NONDISCRIMINATION. No dis~rimination shall be made in the employment of persons under this agreement because of the race, color, national origin, ancestry, or religion of such person. If the value of this agreement is, or may be Five Thousand Dollars ($5,000) or more, Housing Authority agrees to meet all require- ments of the Palo Al to i-tunicipal Code pertaining to nondiscrimina- tion in employment and to complete and submit th~ Compliance R~port--Nondiscrimination Provisions of City of Palo Alto Contracts" on the form furnished by City. If Housing Authority is found in violation of the nondiscrimina- tion provisions of the State of California Fair Employment Practices Act or similar provisjons of federal law or executive order in the performance of this agreement, it shal.l thereby be found in material breach· of this agreement. Therettpon1 City shall have the power to cancel or suspend this agreement, in whole or in part, or to deduct from the amount payable to Housing Authority the sum of Twenty-five Dollars· {$25) for each person for each calesidar day during which such person was dis- criminated against, as· damages for said breach· of contract, or both. Only a finding of the· State of california·Fair Employment Practices Conunission or the equiva·lent federal agency or officer shall constitute evidence of a violation of contract under this paragraph. If Housing Authority is found in violation of the nondis- crimination provisions of this agreement or the applicable affirmative action guidelines pertaining to this· agreement, Housing Authority shall be found in material breach of this agreement. Thereupon, City shall have the power to cancel or suspend this agreement, in whole or in ?art, or to deduct from the ~-nount· payable to Housing Authority the sum of Two Hundred Fifty Dollars ($250) for each calendar day during which Housing Authority is found to have been in such noncompliance as damages for said breach of contract, or both. 13. AGREEMENT CONTAINS ALL UNDERSTAND.ING$. This document represents the entire and integrated agreement between City and Housing Authority and supersedes all prior negotiations, repre- sentations, or agreements, either written or oral. This document may be-amended only by written instrument, signed by both City and Housing Authority. All provisions of this agreement are -6 - . . • expressly made conditions. This agree~nent shall be governed by the laws of the State of California. IN WITNESS WHEREOF, City and Housing Authority have executed t.~is agreement the day and year first above written. CITY OF PALO ALTO ATTEST: city Clerk .APPROVED AS TO CONTENT: City Manager Assistant Director of Planning APPROVED AS TO FORM: Assistant City Attorney HOUSING AUTHORITY OF THE COUNTY OF SANTA CLARA BY ""f_o_r._,th._e__.B __ o_ar_d.,,.._o_f_C_o_mrru._'_s_s...,i.-o-ners of the Santa Clara County Housing Authority APPROVED AS TO FORM: -7 - John Burns, Executive Director, Santa Clara County Housing Authority