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HomeMy WebLinkAbout1997-04-08 City CouncilTO: City City of Palo Alto Manager’s Report HONORABLE CITY COUNCIL 3 FROM:CITY MANAGER DEPARTMENT: Planning and Community Environment DATE:APRIL 7, 1997 CMR:191:97 SUBJECT,:Approval of Agreement with Emergency Housing Consortium, Inc. for the Provision of Community Development Block Grant Funds for the Rehabilitation of a Homeless Shelter in San Jose REOUEST Council action is requested to approve the attached agreement with Emergency Housing Consortium (EHC), Inc. for the provision of $50,000 in 1994-95 Community Development Block Grant (CDBG) funds for the rehabilitation of an existing building to be used as a regional emergency shelter. The emergency shelter is expected to serve the County’s homeless population and is located at 2011 Little Orchard Street in San Jose. RECO E S Staff recommends that the City Council: 2) Approve the attached Agreement (with its attached form of promissory note and deed oftrus0 with the’Emergency Housing Consortium, in order to rehabilitate a regional homeless shelter at 2011 Little Orchard Street, San Jose, for the purpose of providing shelter and services to low income and homeless persons in Santa Clara County. Authorize the Mayor to execute the agreement in substantially similar form; and 3)Authorize the City Manager to execute any other documents necessary to permit the parties to close the transaction rehabilitating the shelter at 2011 Little Orchard Street. in San Jose, and direct the City Manager to administer the provisions of the agreement. CMR: 191:97 Page 1 of 3 BACKGROUND On May 16, 1994, the City Council approved funding resolution number 7306 approving the use of CDBG funds for fiscal year 1994-95. The resolution included an allocation to EHC in the amount of $50,000 for the acquisition and rehabilitation of a 250-bed shelter/reception center to be located at 1020 Timothy Drive in San Jose. The reception center was intended to replace beds which would .be lost when the National Guard Armories closed in the winter of 1997. However, neighborhood and community opposition to the Timothy Drive site prompted the City of San Jose to develop criteria for the siting of emergency shelters within the City. EHC identified a new site for the shelter which fit the criteria established by the City of San Jose. On May 6, 1996, the Palo Alto City Council reprogrammed the 1994-95 CDBG funds from the Timothy Drive site to the new site at 2011 Little Orchard Street in San Jose, DISCUSSION The process of securing a site has been lengthy and difficult. EHC has had to redesign a number of features of the project in order to accommodate community and neighborhood concerns. Shelter capacity has been limited to 125 beds with the option to increase the number to 250 during the winter months, or as deemed necessary by the City of San Jose. A more expensive site, time delays, and an extended Conditional Use Permit process have all contributed to increased costs. Accordingly, the rehabilitation portion of the project has been divided into phases to assure feasibility of the project and allow work to begin while additional fundraising efforts continue. EHC has applied to the City for $10,000 in additional CDBG funding in the 1997/98 fiscal year. POLICY IMPLICATIONS The attached agreement does not represent any changes to existing City policy, FISCAL IMPACT Expenditures under the CDBG Program will be reimbursed from federal funds through the U.S. Department of Housing and Urban Development. ENVIRONMENTAL ASSESSMENT The City of San Jose is the lead agency for this project. Under the provisions of the California Environmental Quality Act (CEQA), a negative declaration was certified by the decision maker, the San Jose Planning Commission, on March 13, 1996. For purposes of the National Environmental Policy Act (NEPA), a Format III Environmental Assessment was completed on January 25, 1996 with a finding of no significant impact. Therep0rt was prepared by David J. Powers and Associates for the City of San Jose and reviewed and accepted by the City of Palo Alto on May 21, 1996. A Notice of Removal of Grant Conditions and Release of Funds was received by the U.S. Department of Housing and Urban Development on August 1, 1996. CMR: 191:97 Page 2 of 3 ATTACHMENTS 1. Agreement with Emergency Housing Consortium, Inc. for the Provision of 1994-95 Community Development Block Grant Funds 2. Resolution 7306 PREPARED BY: Suzanne Bayley, CDBG Coordinator DEPARTMENT HEAD REVIEW: CITY MANAGER APPROVAL: KENNETH R. SCHREIBER Director of Planning and Community E)rCiro~ment Manager ¯ CC:Barry Del Buono, Emergency Housing Consortium CDBG Citizens Advisory Committee CMR: 191:97 Page 3 of 3 AGREEMENT NO. BETWEEN THE CITY OF PALOALTO AND EMERGENCY HOUSING CONSORTIUM, INC. FOR THE PROVISION OF 1994-1995 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS This AGREEMENT~No.is entered into , 1997 by and between the CITY OF PALO ALTO, a chartered city and a municipal corporation of the State of California (~CITY"), and EMERGENCY HOUSING CONSORTIUM, INC., a corporation duly organized and existing under the Nonprofit Corporation Law of the State of California (BORROWER"). RECITALS: WHEREAS, the CITY has applied for and received Community Development Block Grant (CDBG) funds (~Funds") from the Government of the United States under Title i of the Housing. and Community Development Act of 1974, as amended; and WHEREAS, BORROWER has requested funds for the rehabilitation of a regional homeless shelter site at 2011 Little Orchard Street in San Jose (the ~Facility"); and WHEREAS, BORROWER is a private-nonprofit organization which operates emergency shelters for homeless persons in various locations in Santa Clara County; and WHEREAS, CITY has approved and authorized the provision of up to Fifty Thousand dollars ($50,000) drawn from fiscal year 1994-1995 CDBG funds, to BORROWER for the purposes and under the terms contained herein; and WHEREAS, CITY is assisting in the funding of this project, along with the City of San Jose and other local jurisdictions, with the City of San Jose acting as the lead agency on this project; and WHEREAS, CITY neither warrants nor makes any representations as to the quality,.method or adequacy of the work products and or services to be provided by BORROWER under the terms and conditions of this Agreement, except with respect to compliance 970322ceCDBG 1 with Federal Regulations; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions set forth in this Agreement, the parties agree: I. PROJECT DESCRIPTION a. This project includes acquisition and rehabilitation of a shelter site at 2011 Little Orchard Street San Jose. The ~purpose of the shelter or ~Reception Center" will be to house and provide supportive services for up to one hundred twenty-five (125) homeless persons per day year-round, with the option to increase capacity to two hundred fifty (250). persons to meet increased demand during the winter months. The property is 2.44 acres, and the building, which is single-story, is 35,220 square feet in size. BORROWER will provide services~and management of the Facility as more fully described in Exhibit ~A", ~Service Management Plan" which is incorporated herein by reference and made a part of this agreement. b. Rehabilitation work will include, but may not be limited to, the building shell, structural work, roofing, insulation, ceilings, toilets, showers,- flooring, doors, kitchen and dining areas, glass,, windows and painting. Mechanical and fire protection work will be done including plumbing, electrical work and heating. Site improvements will include concrete walks, waiting areas, landscaping and privacy fencing. 2.~PROVISION OF FUNDS a.The CITY will loan BORROWER the sum of money not to exceed .Fifty Thousand Dollars ($50,000) drawn from its CDBG funds for Phase I and Phase II of this project which consists of predevelopment expenses such as architectural and engineering costs, demolition work, roof replacement, and other interior and exterior rehabilitation work, as more fully described in ~Exhibit ~B", ~Budge~" which is incorporated herein.by reference and made a part of this agreement. b. Payments ~shall be made to BORROWER only for costs incurred on or after the effective date of this Agreement. 970322ceCDBG 2 c. CITY shall make funds available to BORROWER on the following basis: ’ (i) CITY has rew[ewed and approved the bidding process and the executed contractor contract for the rehabilitation work; and (2) BORROWER shall provide CITY with a copy of the actual invoice(s) for the work product; and (3) Invoices shall be for work which has been completed and accepted by the City of San Jose in its capacity as lead agency for~this project; and (4) Project is in compliance ~egulations (Section 8 of this Agreement); and with Federal (5) Payment to BORROWER shall be made within thirty (30) days of ~receipt by CITY of all required statements and supporting documents. 3. TERMS OF LOAN AND SECURITY a. Security. BORROWER shall execute a promissory note in .a form acceptable to CITY for the amount of Fifty Thousand Dollars ($50,000). The note shall be secured by a Deed of Trust in a form acceptabie to CITY on the~property located at 2011 Little Orchard Street, san Jose. Said Deed of Trust shall be recorded by CITY on or after the date of this Agreement. The note shall become due and payable: (a) upon sale.of the Facility by Borrower prior to July I, 2027; (b) upon a change in use of the Facility by Borrower prior to July 1, .2027 to a use which is not an ~eligible activity" under the Acts and Regulations issued by HUD pursuant thereto; or (c) upon a default under the Deed of Trust. b. The partiesexpressly agree that no sum shall be due and payable under the note if on July i, 2027, the contingencies set ~forth as a, b and c in Paragraph a above have not occurred. On July I, 2027, the note and any liabilities or obligations, or both, arising therefrom, whether expressed or implied, shall be deemed null and void, and the note shall be canceled without further act by any party hereto, and the Deed of Trust shall be deemed null and void and City shall record a full reconveyance on.the property. 970322ceCDBG 3 c. This shall be a simple interest, noncompounding loan with interest at 6 percent (6%) per annum: It is agreed and understood that the loan shall be nonamortizing, and all payments of interest and principal shall be deferred until July i, 2027, as long as BORROWER continues to comply with.all terms and conditions of this Agreement. Both principal and accrued interest shall be forgiven by the CITY after thirty (30) years (July i, 2027) if BORROWER has satisfactorily complied with all terms and conditions of this Agreement. In the event that any of the above conditions are not met, CITY shall have the right to demand repayment of the Fifty Thousand Dollars ($50,000) loan, plus all accrued interest and any other costs or amounts due prorated, annually. d. In the event that BORROWER agrees to, and actually does sell, convey, alienate, transfer, dispose of, encumber, assign or lease the property described herein or any interest of said property without first obtaining the written consent of CITY, then all obligations secured by said note and Agreement may be declared due and payable at the option of the CITY in the sum of up to Fifty Thousand ($50,000), plus all accrued interest prorated annually. ~ ~Y~ON OF PROJECT PROP~ a. BORROWER shall procure all subcontractors, including an architect, consistent with Federal procurement requirements. All bid documents must be reviewed and approved by CITY or its designee beforebeing made available to the public. BORROWER shall have final choice of subcontractor(s), selected from a~ list of bidders deemed qualified by CITY or its designee. BORROWER will sign a written agreement(s) with the selected subcontractor(s). b. In conjunction with creation of a bid packet, BORROWER shall develop a work description describing all construction activities to be undertaken and submit same to CITY or is designee for review and approval. Work items added or changed after that approval must be approved by CITY or its designee before CITY will reimburse BORROWER for those expenses. c. BORROWER shall direct, manage and reimburse all project subcontractors. 970322ceCDBG pROPERTY RESTRICTIONS As expressed conditions of acceptance of said sum from CITY, BORROWER agrees as follows: a. BORROWER shall use the facility as a regional shelter for homeless persons, including homeless persons from Palo Alto. b. The use of the facility will be in accord with all applicable City .of San Jose regulations and ordinances and the eligible activity provisions of the Acts, and all regulations issued pursuant thereof.’ BORROWER shall provide certification of eligibility on an annual basis unless more frequently requested by CITY and shall maintain documentation as required by CITY. c. BORROWER shall use the Facility as. a regional shelter for homeless persons and shall provide support and related services in furtherance of that use in accordance with.its charter and Articles of Incorporation. d. Upon the occurrence of any of the following conditions,, the sum as indicated on the note shall be immediately due and payable to CITY:. (i) Any attempt by BORROWER to sell the Facility within thetime period as stated in Section 3.b. without the prior written permission of the CITY; or (2) Any use of the Facility other than as specified in Section 5 above. 6.A V Y In addition to, and not in substitution for, other provisions of this Agreement regarding the provision of services with funds, pursuant to Title I of the Housing and Community Development Act Of 1974, as amended, the BORROWER: a. Represents that it is"not, or.may not be deemed to be , a religious or denominational institution or organization or an organization operated for religious purposes which is supervised or controlled by or in connection with a religious or denomination 970322ceCDBG 5 institution or organization; and bo Agrees that, in connection with such services: (i) It will not discriminate against any employee or applicant ~or employment on the basis or religion and will not limitemployment or give preference in employment to persons on the basis of religion; (2) It will not discriminate against any person applying for housing on the basis of religion and will not limit such services .or give preference to persons on the basis of religion; (3) It will provide no religious instruction or counseling~, conduct no religious worship or services, engage in no religious proselytizing and exert no other religious influence on or in the project property; and (4) The common portion of the project property shall contain no sectarian or religious symbols or decorations. ao BORROWER shall be responsible for filing periodic reports, including~ but not limited to, monthly activity reports and weekly certified wage payment reports which evaluate the manner in which the project is achieving its objectives and goals according to standards established by CITY. Each report shall be made on forms approved by CITY and shall contain all the data, information, analysis and conclusions required by CITY.. The report shall be filed within five (5) days of the request by the CITY. b. Eligible clients under this Agreement shall be low and very low income persons as defined by the HUD Section 8 income limits issued by the Secretary of Housing and Urban Development (HUD) for purposes of the CDBG Program. For purposes of this Agreement, all homeless persons are eligible clients. BORROWER shall document client eligibility on intake .sheets, including residency (or last significant address), gender, ethnicity, status as head of household, number of family members and family income. C ¯BORROWER shall record the number of unduplicated 970322ceCDBG 6 participants. Unduplicated participants shall be defined as clients who are housed at the shelter, and are ~ounted only once for the fiscal year. Intake sheets shall be maintained on file for each unduplicated participant. Project shall submit annual client reports to C~TY during the term of this Agreement, which contain information from intake sheets. These ~reports shall be submitted within thirty (30) days of the end of the fiscal .year on a form prescribed by CITY. d. To the extent ~allowed by law, CITY agrees to maintain the confidentiality of any information regarding tenants .or applicants for tenancy under this project,, or their immediate families, pursuant to this Agreement, which may be obtained through application forms, interviews, tests, reports, form public agencies or counselors, or any other source. Without the writtenlpermission of the applicant, such information shall be divulged only as necessary for purposes relatedto the performance or evaluation of the services and work tobe provided pursuant to this Agreement, and then only to persons having responsibilities under the Agreement, including those furnishing services under the project through subcontracts. 9~ ~OMPLIANCE WITH FEDERAL REOU~REMENT~ BORROWER agrees to comply with the following Federal laws, regulations, and procedures: ao Uniform Administrative Requirements for Nonprofit Organizations (OMB Circular A-If0), Attachments A, B, C, F, H, N and O, as applicable, and as modified by 24 CFR 570.502(b) and Cost Principles for Nonprofit Organizations (OMB circular A-122). b. Cost Principles for Nonprofit Organizations (OMB Circular A-122). ~ c. Title VI of the Civil Rights Act of 1964, which states that no person in the United States shall on the ground of race, color or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. d. Title VIII of ~the Civil Rights Act bf. 1968 (Fair Housing) which provides for fair housing throughout the United 970322ceCDBG 7 States. e. Section 109 of Title I of the Housing~and Community Development Act of 1974, which states that no person in the United States shall on the ground of race, color, national origin, sex, or religion be excluded form participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part under this Title. f. Section 504 of the Rehabilitation Act Of 1975, as amended, which states thatJ no otherwise qualified handicapped individual in the United States shall solely by reason of his/her handicap be excluded from participation, in, be denied the benefits of, or be discriminated against under any program or activity receiving Federal financial assistance. g. Age Discrimination Act of 1975, as amended, which states that no persons in the United States shall, on the basis of age, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving .Federal financial assistance. h. Section 3 of the Housing and Urban Development Act of 1968, which requires that tO the greatest extent feasible, opportunities for training and employment be given to lower-income persons within the unit of local go[ernment or the metropolitan area in which the project is located, and that contracts for work in connection with the project be awarded to eligible business concerns which are located in, or owned in substantial part by, persons residing in the same metropolitan area as the project. BORROWER shall comply with CITY’s procedures for implementation of Section 3. i. Executive Order l1063-Equal Opportunity and Housing, as amended by Executive Order 12259 which prohibits discrimination because of race, color, religion (creed), sex or national origin in the sale, leasing, rental or other, disposition of residential property and.related facilities. j. Fair Housing Act of 1989 (42 USC 3601-20) which .prohibit discriminatory housing practices based on race, color, religion, sex, national origin, handicap or familial status. 970322ceCDBG 8 k. Conflict of interest r~gulations as contained in 24 CFR570.611, which require, among other things, . that except for approved eligible administrative or personnel costs, no person who isan employee, agent, consultant, or officer of the BORROWER may obtain a p~rsonal or financial interest in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. Upon written request of the BORROWER, the CITY may request the U.S. Department~ of Housingand Urban Development to grant an exception to the foregoing requirement on a case-by-case basis when. it can be determined, on the basis of information provided in accordance with 24CFR570.611 (d),that such as exception will serve to further the purposes of Title I of the Housing and Community Development Act of 1974, as amended. i. ExecuZive Order 1124"6, entitled, ~Equal Employment opportunity," as amended ~by Executive Orders 11375 and 12086, and the regulations issued pursuant thereto (41 CFR Chapter 60), which provide that no person shall be discriminated against on the basis of race, color, religion, sex, or national origin in all phases of employment during the performance of Federal or Federally assisted contracts. m. The Housing and community Development Acts of 1974 and 1977~ as amended, which provide that no person in the United States shall be excluded from participation in, be denied the ~benefits of,’ or be subjected to discrimination under any program or activity funded in whole or in part with funds made available pursuant to said acts; n. Equal Employment Opportunity. In providing the work and services, herein specified, BORROWER shall not discriminate against any employee or applicant for employment because of race, color, religion,- sex or national origin. BORROWER shall take affirmative action to ensure that applicants for employment are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. BORROWER shall post in conspicuous places, 9703~2ceCDBG available to employee and applicants for employment, notices to be provided by the Federal government or the CITY setting forth the provisions of this nondiscrimination clause. BORROWER shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. BORROWER shall incorporate the foregoing requirements of the paragraph in all of its contracts forprogram work, and will require all of its contractors for such work to incorporate such requirements and all subcontracts for program work. o. The requirements relating to small, minority and women’s business enterprises set forth in Executive Order No. 11625 of October 13, 1971, 36 Fed. Reg. 19967, as amended by Executive Order No. 12007 of August 22, 1977, 42 Fed. Reg. 42839; and Executive Order No. 12432 of July 14, 1983, 48 Reg. 32551; and Executive Order No. 12138 of May 18, 1979, 44 Fed. Reg. 29637. p. The relocation requirements of Title II and the~ acquisition requirements of Title III of~the Uniform Relocation Assistance and Real property Acquisition Policies Act of 1970, and the implementing regulations at 24 CFR Part 42. q. The uniform Federal Accessibility Standards set forth in 24 CFR, Part 40, Appendix A. r. The provisions of 24 CFR, Part 570, relating to compliance with applicable uniform administrative requirements, as described in Section 570.502 s. The provisions of 24 CFR.570, Subpart K, describing other program reqUirements, and the provision of 24 CAR. 85, relating to the uniform administrative requirements in the acceptance and use ofFederal funds. t. Political Reform Act. BORROWER shall comply with the applicable provision of the Political Reform Act ~f 1974, as amended, relating to conflicts of interest (codified at. California Government code Section 87000, et seqo). BORROWER will promptly advise CITY of the facts and circumstances, concerning any disclosure made to it or any information obtained by it relating to conflicts of interest. 970322ceCDBG Partisan Activity Prohibited. i0 No funds provided in the Agreement shall be used for any partisan political activity or to further the election or defeat of any ~andidate for public office; nor shall, they be used to provide Services, or for the employment or assignment of personnel in a manner supporting or resulting in the identification of programs conducted pursuant to this Agreement with the following: (i) any partisan or nonpartisan political activity or any other political activity associated with a candidate, or contending faction or group, in an election for public or party office; (2) any activity to provide voters ~or prospective voters with transportation to the polls or similar assistance in connection with any such election; or (3) any voter registration activity. Participants employed in the administration of the CITY’s Community Development Block Grant Plan and /or program, and participants whose principal employment is in connection with an activity financed bythe Community Development Block Grant Program or its proceeds are subject to limitation on political activities under the Hatch Act (5 U.S.C. 1502(a), 18U.S.C. 595). All participants may take part in nonpartisan activities outside working hours. v.Lobbying P~ohibited. (I) No Federal appropriated funds have been paid or will be paid, by or on behalf of the BORROWER, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of congress, or and ~mployee of a member of congress in connection wi~h the awarding of any Federal contractor, the making of any Federal grant, Zhe making of any Federal loan, the entering into of ¯ any cooperative agreement, and the extension, continuation, renewal, amendment , or modification of any Federal contract, grant, loan or cooperative agreement. (2) If any funds other then Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or .employee of Congress, or an employee of a Member of congress in connection with this F~deral contract, grant, loan, or cooperative agreement, the BORROWER shall complete and submit Standard Form ---LLL, ~Disclosure Form to reportLobbying," in accordance with its instructions.. 970~22ceCDBG II (3) The BORROWER shall require that the language of this~ certification be included in the award documents of all subawards at all tiers (including subcontracts, subgrants and contracts under grants, loans and cooperative agreements) and that all subrecip!ents shall certify and disclose a~cordingly. This certification is a material~ representation of fact upon which reliance was placed when this transaction was made or entered into.¯ Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than Ten Thousand dollars ($i0,000) and not more than One Hundred Thousand dollars ($i00,000) for each such failure. w. Flood Disaster Protection. Not withstanding .any other provision of the Agreement, BORROWER shall comply with the Flood Disaster Protection Act of 11973, as amended. (P.L. 93-234), and the standards issued thereto. No portion of the moneys to be paid to GRANTEE pursuant to this Agreement shall be used for acquisition or construction purposes as defined under section 3(a’)of said Act for use in an area identified by the Secretary of HUD as having special flood hazards which is located in an area not in compliance ~with the requirements for¯ participation in the National Flood Insurance Progra~ pursuant to Section 20i(d) of said Act, and the use of any said moneys for .such acquisition or ~construction in such identified areas and communities then participation of the National Flood Insurance Program shall be. subject to the mandatary~purchase of flood insurance requirements of Section 102(a) of Said Act. x. Federal labor Standards Provisions. Except with respect to the rehabilitation of residential property designed for residential use for less than eight families, BORROWER and all contractors engaged under contracts in excess of Two thousand dollars ($2,000) for the construction, prosecution, completion or repair of any building or work financed in whole or in part with assistance provided under this Agreement shall comply ~with HUD requirement pertaining to such contracts and the applicable requirements of the regulations of the Department of Labor under 29 CFR, Parts 3, 5 and 5(a), governing the payment of wages and the ratio of apprentices and trainees to journeymen; provided that if wage rates higher than those requiredunder such regulations are imposed by State or local law, nothing hereunder is intended to 970322ceCDBG 12 relieve BORROWER of its Obligation, if any, to require payment of the higher rates. BORROWER shall cause or require to be inserted in full in all such contracts subject to such regulations, provisions meeting the requirements of 29 CFR 5.5 and for such contracts in ~excess of Twenty-Five thousand dollars ($25,000) 29 CFR 5a.3. BORROWER shall not .award any contract or subcontract which is otherwise in compliance with this Agreement to any person or~ subcontractor who is, at the time, ineligible under the provision of any applicable regulations of the Department of Labor to receive and award of such contract. y. Prohibition of an Elimination of Lead-Based Paint Hazard. Not withstanding any other provision, BORROWER agrees to comply with the regulations issued by the Secretary of HUD set forth in 24 CFR 135 and all applicable rules and orders issued. thereunder which- prohibit the use of lead-based paint in residential structures undergoing Federally assisted construction or rehabilitation and.require the elimination of lead-based paint hazards. Every contract or subcontract, including painting pursuant to which such Federally assisted construction or rehabilitation is performed, shall include appropriate provisions prohibiting the use of lead-based paint. z. ~ompliancg. With clean Air and Water Acts. This Agreement is subject to 42 U.S.C 1857, et seq., and 33 U.S.C. 1251, et seq. and the regulations issued thereto. Therefore, BORROWER agrees as follows: .(I). BORROWER stipulates that any facility to be utilized in the performance of any nonexempt contract or subcontract is not listed on the List of Violating Facilities issued by the Environmental Protection~Agency (EPA) pursuant to 40. CAR 15.20; (2) BORROWER agrees to comply with all the requirements of Section 114 of the clean Air Act, as amended (42 U.S.C. 1957c-8), and Section 308 of the Federal Water Pollution Control Act, as amended (33 UoS.C. 1318), relating to. inspection, monitoring , entry, reports and information, as well as all other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. 970322ceCDBG 13 (3) BORROWER stipulates that as a condition for the award of the contract, prompt notice will be given of any notification received from the Director Office of Federal Activities, EPA, indication that a facility utilized or to be utilized for the contract is under consideration to be listed in the EPA List of Violating Facilities; (4) BORROWER agrees that criteria .and requirements in subparagraphs (a) through (d) of this Section i.i0 will be included in every nonexempt subcontract and BORROWER shall take such action as the CITY or HUD requires as a means of enforcing such provisions. In no event shall any amount of the assistance provided under this. Agreement be utilized with respect to a facility which has given rise to a conviction under Section I13(c) (i) of the clean Air Act or Section 309(c) of the Federal Water. Pollution Control Act. 9. NO PARTNERSHIP The terms of this Agreement shall in no way be construed to create a partnership, joint venture or any other joint relationship between CITY and BORROWER. i0.INDEPENDENT CONTRACTOR BORROWERand its employees are not employees of CITY but rather are and shall always be considered independent~contractors. Furthermore, BORROWER and its employees shall at no time pretend to be or hold themselves out as employees, agents or other than independent contractor of the CITY. ii. HOLD HARMLESS BORROWER shall defend, indemnify and hold .CITY, its officers, employees and agents harmless from any liability for damage or claims.of same, including but not limited to a personal injury, property damage and death, which may arise from BORROWER’s or BORROWER’s contractors, subcontractors., agents~ or employees’ operations ~under this Agreement. CITY shall.cooperate reasonably in.the defense of any action and BORROWER shall employ competent counsel, reasonable acceptable to the City Attorney. 970322ceCDBG 14 2~.SUSPENSION,. TERMINATION OR WITHHOLDING OF PAYMENTS CITY may, at any time in its absolute discretion, elect to suspend or terminate payment to BORROWER in whole or in part, under this Agreement, or not to make any particular payments on this Agreement in the event of any of the following occurrences: a. If BORROWER (with or without knowledge) shall have made any material misrepresentation of any nature with respect to any information or data furnished to CITY in connection with the project. b. If there is pending litigation with respect to the performance~by BORROWER of any of its duties or obligations under this Agreement which may materially jeopardize or adversely affect the undertaking of or the carrying out of the project. c. If BORROWER shall have taken any action’pertaining to the project which requires CITY approval without having obtained such approval. d. If BORROWER is in default under any provision Of this~Agreement.¯ e. If BORROWER makes improper use of grant funds. f. .If BORROWER fails to ~omply with any of the terms and conditions of this Agreement in such a~manner as to constitute material breach thereof. g. If BORROWER submits to CITY any reports which are incorrect or incomplete in any material respect. cITY shall give BORROWER fourteen (14).days" written notice of its intention to withhold~ suspend or terminate payment under this paragraph. Such noticeshall specify the actions, if any, which must be taken by BORROWER before payments will be resumed. 3~ TERMINATION OF AGREF~ CITY may terminate this Agreement immediately (by giving written notice to BORROWER of the effective termination date stated in the notice) if BORROWER abandons its work under the Agreement or if for any reason the timely completion of such project is rendered improbable, unfeasible or illegal. RECORD ACCESS/RETENTION ~BORROWER shall maintain all required records pertaining to the project for three (3) years after the end of the term of this Agreement and all other pending matters are closed. BORROWER shall provide HOD and/0r CITY, and/or any of their duly authorized representatives access to any books, documents, papers and records of the project° for the purpose of making audits, examinations, excerpts and transcriptions. In addition, at any time during normal business hours and as often as.may be deemed necessary, BORROWER agrees that HUD and/or CITY, and/or any of their respective authorized representatives shall have access to and the right to examine its work site, offices and facilities engaged in the performance of this Agreement, as well as the right to interview employees engaged in activities under this Agreement for the ~purpose of verifying compliance with applicable Federal regulations. /~. PROGRAM INCOME Any income or earnings received by BORROWER which are directly generated from the use of Community Development Block Grant funds (hereinafter ~Program Income") shall be~ reported by BORROWER to CITY on a quarterly basis. All Program Income shall: (i) be used solely to offset the operating expenses of the activities funded under this Agreement; (2) be subject to all the provisions of this Agreement; and (3) be expended prior to submission of a Request for Reimbursement. Any Program Income on hand when this Agreement expires or terminates .or any Program Income received after this Agreement expires or terminates, shall be promptly paid to CITY. CITY may, at its option, require remittance of Program Income cash balances at the end of each fiscal year. a. All.rents or other payment collected from project tenants during the term of this Agreement shall be used by BORROWER solely .to further project activities. 970322ceCDBG Rents or other income collected which remains 16 ¯ unspent at the end of the term of this Agreement shall be used by BORROWER solely to further project activities or shall be reimbursed to CITY. c. Rents .or other income received after the term of this Agreement shall not be subject to this Agreement. 16. REVERSION OF ASSETS ~ Upon the expiration of this Agreement, BORROWER shall transfer to CITY any CDBG Funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG Funds, except as allowed under SeCtion 15, Program Income. Any real property under BORROWER’s control that was acquired or improved in whole Or.in part with CDBG Funds in excess of Twenty-Five thousand dollars ($25,000) must either be used to meet one of the national objectives in 570.208 for a period of five years or be disposed, of in ~a manner that results in the CITY being reimbursed in the amount of.the current fair market value of the p~operty less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. i_~ DISALLOWED COSTS BORROWER is liable for repayment of disallowed costs as determined by CITY and/or HUD. Disallowed costs may be identified throUgh audits, monitoring or other sources. BORROWER shall be afforded the opportunityto respond to any adverse findings which may lead to disallowed costs. The City’s Program Manager shall make the final determination of disallowed costs, subject to the provision of OMB Circular A-87, Cost Principles for State and Local governments; OMB Circular A-If0, Grants and Agreements with Institutions of Higher Education, Hospitals and Other Nonprofit Organizations; OMB Circular A-122, Cost Principles for Nonprofit Organizations; and applicable HUD regulations. BORROWER shall submit annual audit reports, which conform with the requirements of OMB Circular A-133 for Nonprofit Institutions. In addition to the provisions of OMB Circular A-133, .the audit shall identify in a Schedule of Federal Assistance the revenue as received and disbursed in accordance with the provision 970322ceCDBG 1 7. of this Agreement. ~ INSURANCE BORROWER shall, prior to implementation of the project, certify insurability subject to CITY approval as specified in Exhibit "C", "Insurance Requirements," which is incorporated herein by reference and made a part of this agreement. CITY’s Risk Manager may, at his or her discretion, waive any and all insurance requirements or require additional insurance to that detailed in Exhibit "C". 20., PROGRAM EVALUATION BORROWER must provide evidence of and utilize a program evaluation system in order to determine the quality of services provided and to ensure that the design of the program and program benefits target low- and moderate-income persons. BORROWER must prepare and submit to CITY an annual program evaluation report summarizing the information obtained through the program evaluation system. 2~. TRANSFER 0F..RIGHTS This Agreement shall not be assigned without the express prior written consent of the CITY and any attempt to do so may be, at the sole discretion of the CITY, a default of the terms of this Agreement and note. 22. TERM OF AGREEMENT The term of this Agreement shall be for thirty (30) years and shall expire July I, 2027 and all obligations of BORROWER shall continue during the term of this Agreement. PROJECT COORDINATION a. CITY: CityManager, or his/her designee, shall be the Program Manager for CITY and shall render overall supervision of the progress and performance of this Agreement by CITY. All services agreed to be performed by CITY shalI be under the overall direction of the City Manager. "970322ceCDBG 1 8 b. BORROWER: BORROWER shall assign a single Project Director who shall have overall responsibilit~ for the progress and execution of this Agreement. Should circumstances or conditions subsequent to the execution of this Agreement require a substitute Project Director, BORROWER shall notify CITY immediately of such occurrence. BORROWER’s Project Director will cooperate with CITY’s Program Manager relating to the project, areas of concern and the impactof project on residents of CITY. c. NOTICES: All notices or Other correspondence required or contemplated by this Agreement shall be sent to the parties at the following addresses: CITY:City Manager City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Copy to:Director of Planning and Environment City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 BORROWER: Executive DirectOr Emergency Housing Consortium, P.O. Box 2346 San Jose, CA 95109 Community Inc. 9.70322ceCDBG 19 IN WITNESS WHEREOF, this Agreement is execu£ed by the CITY OF PALO ALTO and by EMERGENCY HOUSING C@NSORTIUM, INC.on the date first above stated. ATTEST:CITY OF PALO ALTO City Clerk APPROVED AS TO FORM: Mayor Senior Asst. City Attorney APPROVED: City Manager Director of Planning & Community Environment EMERGENCY HOUSING CONSORTIUM, INC. ATTACHMENTS: EXHIBIT A Service Management Plan EXHIBIT B Budget EXHIBIT C Insurance Requirements EXHIBIT D Promissory Note EXHIBIT E Deed of Trust 20 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code,§ 1189) STATE OF [ fq I~ On aO , ~, before me,. I~ ~I~LIC( 1"] , a Notary~Publi~ in and for said County and State, personally appeared’J%~,L[~’~ ~ I [~ ~OU~ , personally known to me or proved’ to m~ on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, .executed the instrument. WITNESS my hand and official seal. Signature of Notary Public Exhibit A Service Management Plan EMERGENCY HOUSING CONSORTIUM Tt-It RECEPTION CENTE’R SERVICE MANAGEMENT PLAN I. INTRODUC~ON ¯The Reception Center is envisioned as a replacement for the Cold Weather Shelter currently located at the San Jos~ National Guard Armory and operated by Emer- gency Housing Consortium, in collaboration with the City of San Jos~ and the County of Santa Clara. The Reception Center, which will be owned and operated by Emergency Housing Consortium, will be open year-round and offer shelter, basic needs assistance and support services to homeless people. The center wil! be staffed 24-hours per day, 7-days per week. The purpose of this service management plan is to set forth a strategy whereby the center will meet the needs of homeless clients with the objective of transitioning them either directly to stable housing or to service agencies which can address their longer term needs on.a more comprehensive basis. This plan, while setting forth an array of on-site services, also addresses the need to network with other day programs, recovery, programs, long-term shelters~ transi- tional housing and service-enriched permanent, housing. The Reception Center will provide 125 year[round shelter beds for homeless people. This includes beds for’ emergency shelter and beds for transitional living. The center will offer an initial period of emergency shelter for up to 14 days with the option to enroll in a service-enriched Transitional Living Program which provides shelter and case managemenf-based support services for up to 90 days. The services offered are delineated in the "Staffing" section beginning on page 5. During the cold weather months of November through March, the Reception’ Center will have the capacity to expand up to an additional 125 seasonal shelter beds. The number will depend .on the level of need, the availability of resources, and ad- herence to all local permit requirements. ": II. PRIMARY INTENT The primary intent of the center is to provide both a safe shelter for homeless per- sons and a gateway to a comprehensive array of supportand’.education services that will help them find and maintain housing, income and stability in the community. Reception Center Service Management Plan -1 Emergency Housing Consortium The centei- will function as a vital component in this community’s Continuum of .Care which combines emergency shelter and other" emergency assistance, transi- tional, housing, affordable permanent housing, support services, education and job training, easy access to social services, and collaboration with the local community. II:I. TARGET POPULATION AND LENGTH OF STAY A. Adults: This center will serve homeless adults and a small number of homeless families. Every person who requests shelter will be initially allocated a shelter bed for a 14-day period. If~ during this period, a person does not show up at the center by 9 p.m., (except by prior arrangement), the bed will be given to another person and the 1- week stay agreement will be canceled. Following this initial 2-week period, an indi- vidual may enroll in the Transitional Living Program which provides shelter for up to 90 days with case management-based support and education services. Participants in the Transitional Living Program will work closely with an Advisor tojointly assess their needs, set goals and design a strategy to achieve these goals. During the first two weeks an Advisor wilt work with each individual to assess their needs for service and their readiness to participate in the Transitional Living Program. This assessment is likely to result in one of the following scenarios: 1. If the client can benefit from transitional housing or other specialized services outside the Reception Center, he/she is.willing to go, and space is available, then he/she is enrolled in that pro~am immediately. 2. If the person can benefit from another program, is willing to go, but space is tem- porarily not available, the Reception Center wil! provide shelter and support services for that person in the interim. Whenever possible, a case management re- lationship will be established with the recipient service provider and the client im- mediately. 3. K the person does not require specialized services or long-term housing assis- tance, and he/she is willing to work on personal goals, the person’s Advisor will enable him/her to develop an individual service plan. At the judgment.of the per- son’s Advisor, the length of stay at the Reception Center may be extended, beyond the 2-week period and the person will then’enroll in the Reception Centei"s. Transitional Living Program. Participants in the Transitional Living Program may stay for up to 30 days, renewable on the discretion of the Advisor, up to a maximum stay of 90 days. During their stay they will work with an Advisor to develop and fol- low their individual ser-,iice plan. They wil! also. be required to participate fully in program activities and workshops. Finally, it is estimated that the number of clients in the Transitional Living Program will increase during the period fr.om April through October. " Reception Center Service Management Plan -2- Emergency Housing Consortium 4. If the person is not willing to work on personal goals or shows no signs~of progress towards these ~oals, a multi-disciplinary team, including the Advisor, the client and other appropriate outside agency staff, will review this person’s history and recommend a strategy for assistance. This review may merely include a strategy . on how to.protect this person when he/she returns to the street. 5. There are individuals who only seek shelter as a "Safe Haven" during inclement weather or who, because of mental illness or substance abuse, are unwilling or un- able to follow an individual service plan or other programrules. These people will be able to access temporary shelter at the Center, or they will be referred to the Safe Haven program operated by InnVision, or to other shelter programs in the area. A SMiter Advisor will work with them throughout their stay to help ensure their transition to another sheller/or place of residence. After a two-week "Safe Haven" p.eriod, the Shelter Advisor wiI1 refer these individuals to the multi-disciplinary. team, at whose discretion the stay may be extended¯ At no time shall "Safe Haven" stays represent more than 25% of the total number of guests. However, in all "Safe Haven" cases, the assigned Advisor wilt offer whatever protection the person requests upon his/her transition to a new shelter or return to the s~reets. B. Families: A separate space will be provided to serve homeless families on an emergency-basis only, as a "shelter of last resort," and only after all other family resources have been exhausted. The center will feature a separate unit with independentsleeping, bathroom, and dining facilities that may be made available for homeless families. The Reception Center will provide safe’shelter for homeless families who are waiting for a vacancy at a family shelter or transitional housing program. The assigned Advisor will pr.ovide advocacy to assist them in locating a shelter program or living situation tosuit their needs. C. Adult Addicts: A separate space will be provided for those whose objective is to seek a recovery from an addictive drug. The period of time, which will be designated as a "respite stay" at the Reception Center, will be 5 to 7 days, after which individuals will be transferred to an outside recovery program. If, at any time during this respite stay, the assigned Shelter Advisor assesses--via a breathalizer exam--that the person requires detoxification~ he/she will take the necessary steps to refer th~ guest to a detoxification program. Also, this Shelter Advisor will work with these individ- uals, to establish dear goals and objectives and to ensure that they are able to access those Services. appropriate to their needs. This respite service will require that participating recovery ~gencies commit a cer- tain number of recovery beds for those "on hold" in a respite bed at the Reception Center. EHC staff will collaborate with these agencies to ensure this vital service link is maintained. The participating recovery agency will continue to case-manage .these individuals ~ntil the transfer to their program is accomplished. This compon- Reception center service Management Plan Emergency Housing Consortium ent of the prog-ram will provide a safe, sober living environment for individuals who wish to enroll in a recovery program but are waiting for a vacancy.’ D. Homeless Youth: The Reception Center Advisors will identify homeless, runaway and victimized. youth who are under 18 years and make an immediate referrals to the appropriate youth pro~ams rind homeless youth shelters. IV. SERVICE DESCRIPTION ’ A.Shelter Accommodations: Lndividuals will be provided with shared cubicle accommodations with built-in storage facilities. Accommodations are divided into separate areas for men, women, and families. Transitional Living Program accommodations will feature a greater level of privacy and more facilities including storage and mailboxes. mJ On:Site Services: 125 year-round shelter beds in shared cubicles with separate quarters for families, persons with substance abuse problems, and for individuals in the Transitional Living Program; Up to 125 winter shelter beds;. Showers; - Breakfast, lunch and evening meals; Laundry service; Assessments related to housing, social, physical, psycho-social and work needs -- development of individual service plans with specific outcomes and criteria for success;. Computer-based individual client record-keeping system will .track each person’s needs assessment in order to provide targeted services and make appropriate referrals. Case management will be provided by a team of EHC Advisors in addition to representatives from service providers whose clients are receiving temporary shelter services. Case-conferences will be provided by teams, with members representir~g on-site and off-site services; . . Information and referral services will include comprehensivelisting½ of social, education and support services in addition to a streamlined referral service to help R.eception Center clients access the long-term housing and supportive seri vices they may need. Primary and preventative health care services i’ncluding gene~’al medical, podia- try, and possibly dental and optical; A full program of workshops will be provided for all.center clients. Workshops will be provided by EHC staff, community volunteers, corporations, non-profit organizations, and public agencies. The Community Resource Developer is re- sponsible for .organizing, recruiting, and scheduling workshops at the center. Reception Center Service Management Plan Emergency Housing Consortium = 4 =. Topics are likely to include housing search, land!ord and tenant law, budgeting, shopping and nutrition education, job search, interviewing skills, r~surn~ writ- ing, self-esteem building, substance abuse education, parenting, and children’s activities. o " Substance abuse education and ~counseling will be provided in addition to main- taining a sober living environment with referral access to recovery programs. *Transportation to other shelters and service providers will be made available. either through bus passes and/or a van delivery service. C. Hours of Operation: The Reception Center will be staffed and services will be provided on a 24-hour basis. The maiority of clients will be away from the premises during the day -- either working or in the pursuit of housing or employment opportunities. Case management and other one-on-one meetings, workshops and education services will be provided during the day and in the evening to accommodate clients with dif- ferent schedules. Clients may remain on-site during the day to attend these activi- ties or use the community resource, materials. D. Off-Site Services: The maiority of clients using the Reception Center will access additional services from outside agencies. Service Agreements will be developed which spell out the responsibilities of both parties, related to how off-site agencies will network with the Reception Center (and EHC). These agreements.will identify any additional costs associated with the networking efforts and, where appropriate, establish contractual relationships with other service providers. Off-site services will provide spedalized services including transitional and perma- nent supported housing, mental and physical health care, substance abuse treat- ment, veteran’s issues, disability’issues, vocational training, and education services. V. STAFFING A. Management: The Reception Center Will be directed by a Manager, who will be supervised by the Emergency Shelter General Manager. An Assistant Manager will assume the re- sponsibilities of running the program when the Manager is not on site. The entire ¯ operation will fall under the ultimate supervision of EHC’s Director of Programs. B. Advisors:"-. Advisors will be responsible for: o Conducting assessments on every person who enters the Reception Center and carrying out any action required as a result of these assessments (e.g., arrange for a person to be transferred to a different housing/shelter program); Reception Center Emergency Service Management Plan -5- Housing Consortium Developing individual service plans for those~who are enrolled in Transitional Living Program. The Advisor will work with their client to identify needs, establish personal goals and design a strategy to a~hieve these goals. Progress toward these goals will be monitored over time. Meeting with the Multi-Disciplinary Team to determine the disposition of those not willing to develop an individual service plan, or are not making any progress relate~d to an existing individual service plan. Working with other administrative staff to ensure that the guests we safe and secure. ¯ It is estimated that there will be a need for 7 year-round Advisors who would have case load of no more than 20 (approximately 7 emergency shelter clients and 13 transitional !lying clients). During the winter months, an additional 5 Advisors will each provide assessments and case management services for approximately 25 clients. At1 Advisors will complete intake and needs assessments with incoming clients in addition to providing case management services. C. Other Administrative Staff: tn addition to the Management staff and Advisors, EHC will provide the services of the following personnel: a Community Resource Developer,-responsible for coordi- nating all the workshops for the guests; a Coordinator of Volunteers, responsible for coordinating the efforts of the many volunteers who will be working in the on-site programs; a Jobs Developer, responsible for helping the guests find and.maintain employment; a Food Service Manager, responsible for planning, purchasing sup- plies and supervising meal service; Cooks, responsible for preparing and serving meals for all populations served on site; Laundry worker~, responsible for cleaning the linens used by the guests on a daily basis; Day Care staff, responsible for working with the children of the families being sheltered; and Maintenance and Janitorial workers, responsible for the physical upkeep of the facilities. D. Contracted A.gency Staff: There are staff who will be supported under the Reception Center budget and who may provide some on-site services (e.g., primary medical care) and will assist in the transitioning of persons into their respective off-site programs. They will assist in the assessments and the development of individual service plans and wili serve as members of the multi-disciplinary teams. Examples of such agencies may include other shelter/transitional housing providers and a private security firmto patrol the. neighborhood area surrounding the Center. E. Non-Contracted Out~ide Agency Staff: These will be staff who are not in the Reception Centerbudge.t but who will be in- vited on-site to assist in the transitioning of persons to off-site programs or as part of the individual’s service plan. Examples of such agencies may include Family Health Foundation, of Alviso: RotaCare Clinics, the Department of Veteran’s Affairs, etc. Reception Center Service Management Plan Emergency Housing Consortium F. Volunteers: Volunteers from the local community will be involved in many aspects of the program operations, from presenting workshops, and prepS.ring af~d serving meals. VI. OPERATIO..NS A. Hours of Operation: The program will be open and staffed 24 hours per day, 7days per week although the majority of activities will be provided between 5:00 p.m. and 9:00 a.m. to allow clients to work or pursue housing or employment opportunities off-site. This will have the combined effect of providing flexibility to better meet the needs of the homeless and reducing the numbers traveling to or from the center at one time, while maintaining affordability because .of the reduced need for supervisory staff during the day. B. Space Plan: The Reception Center site will have a ,,vailed courtyard at the entrance to provide a waiting area for center clients. There will be separate reception areas for individuals and families to complete intake assessments and to check-in. A Receptionist will be available to answer telephone requests for assistance. This area will also provide information for volunteers and outside agency staff about the center’s facilities, standard operating procedures and emergency services. There will be semi-private sleeping areas with built-in storage units-for 125 clients with space and facilities to increase the beds available up to a maximum of 250 beds to meet the increased demand during the winter. Separate accommodations will be provided for those individuals participating in the Emergency Shelter and the Transitional Living Progn’ams. And within both of those programs men and ,,*,’omen will sleep in separate areas. Also, families with children will have their ow-n distinct, area for intake, sleeping, dining and day care services. Finally, the - sleeping areas ,,viii be divided in order to provide flexibility in the arrangement of sleeping accommodations. There will be offices for administrative and management staff, program staff, and property management staff. There will be an adequate supply of mee~ng rooms for intake and screening processes for both individuals and families, case management, counseling, and small group meetings. There will be classrooms for workshops and conference rooms for large group .meetings or recreational activities. There will be space for a small clinic that will allow the guests, to be seen by doctors, dentists, podiatrists and opthamologists. ’ : There will be a commercial kitchen and two cafeteria-style dining rooms, a larger one for individuals and a smaller one for families. There will be separate wash- rooms and.showers for men and women, and a separate shower/toilet fadlities for families. Reception Center Service Management Plan -7- Emergency Housing Consortium There will be space for a small store that will allow the guests to obtain Supplies and toiletries they need as they move on to other living situations. There will be adequate storage areas to store supplies for the kitchen, shelter, pro- perty management.and administration. This space will include a workshop area needed to centralize site repairs and maintenance. C, Organizational Structure: 1. Policy Board Emergency Housing Consortium is controlled by a volunteer, policy-making board comprised of representatives from the community with expertise in social services, real estate, finance, public housing, education, and business. 2. Management Structure EHC provides a continuum of services for the homeless that includes emergency shelter, transitional housing, and permanent housing. Programs include a compre- hensive support and education component,a strong case management base and fol- low-up support services. The Executive Director, Barry Del Bu.ono, has been the Chief Executive Officer of the Emergency Housing Consortium since its inception~ As an agency administrator and shelter provider for more than 15 years, he is a noted expert in programs for the homeless. He provides leadership of the agency, under the supervision of the Board of Directors. His functions include the supervision of the Deputy Executive Director, Rita Kemic who has been with the agency for more than.8 years. As the Deputy Executive Director, she will be directly supervising the Directors of Programs, Finance, Resource Development and Property .Management: The Director of Programs Will. directly supervise the Emergency Shelter General Manager, responsible for directing the operations of the Reception Center and EHC’s Cold Weather Shelter Programs. This General Manager will supervise the Recep- tion Center Manager, who will be responsible for day-to-day operations including program implementation, evaluation, and supervision of staff and volunteers. Recer~tion Center Staffing Director of Programs: . ~ The Director of Programs will directly supervise the Reception Cent6r General ,Manager and has responsibility for the design and evaluation of the program and the overall operationof the site. Emergency Shelter General Manager: ’. .. This General Manager will be responsible, for directing the operations of the Reception Center andEHC’s Cold Weather Shelter Programs. Reception Center Service Management Plan -8- Emergency Housing Consortium Reception Center Manager: This Manager will provide on-site supervision of operations. This responsibility~includes program implementation, evaluation, recruitment a~d supervision of Reception Cehter staff and volunteers. Assistant Marjager: . The Assistant Manager Will provide on-site supervision of operations and sup~ port to the Shelter Manager¯ Food Service Manager: The Food Service Manager wi!l plan and supervise the meal service. Advisors: A team of Advisors will complete, intake assessments for all clients, maintain a case load of clients, provide assistance to lients as needed, and ensure the safety and security of .the guests while they are at the center. Community Resource Developer: The Community Resource Developer will be responsible for bringing commu- nity resources to the center clients including workshops, support services, vol- unteers and in-kind donations. Coordinator of Volunteers: The Coordinator of Volunteers will be responsible for coordinating the efforts of the many volunteers who will be working in-the on-site programs. Jobs Developer:. The Jobs Developer will be responsible-for helping the guests find and maintain employment and developing a pool of employers who are willing to employ the homeless. Cooks: Cooks will prepare and serve .food to center clients and supervise community volunteers engaged in food service. Drivers: Drivers will provide passenger and/or equipment transport. Shelter Workers: A team of shelter workers will provide a broad range of services to ensure the smooth operation of the site and the safety of the clients. ".. Parent Co-op: A cadre of adult volunteers will supervise the children of families being sheltered so th~.t the parents will have the opportunity to pursue their other obligations. Reception Center Servic.e Management Plan Emergency Housing Consortium m Security Staff: . A security staff will provide 24-hour security for the safety of the clients, staff, volunteers and community. EHC will contract with a private security firm to patrol a one-mile radius’of the Cimino/Little Orchard area. This security staff will patrol all those areas-within that one-mile radius-which naturally attract people in transit to and from the Center. EHC staff will also communicate to the guests the travel routes to and from the Center, those socially, acceptable gathering sites in the immediate one-mile radius area, and any restrictions to their gathering or congregating within the same area. Makitenance/Custodial Staff: The Property Management Department of the Agency will oversee and carry out all maintenance and custodial-related )obs that this center will require. VII.GOOD NEIGHBOR PLAN A. Advisory Council: EHC staff ’*viii meet with interested neighbors to establish an Advisory Council, whose function ",viii include: address questions and concerns; plan relevant activities for the shelter guests; resolve any conflicts that may arise; identify, investigate, and resolve any problems before, or as soon as they occur, relating to safety and securi~ issues; and advise staff and management of local and/or social concerns affecting the client population. In addition, periodic meetings will be held with the guests to stress the importance of respecting neighborhood property and to encourage all to pick up litter along their routes to and from the Center. B. Courtyard:. There will be separate courtyards for individuals and families in order to ensure the best possible approach to facilitate their movement toward ’and their being processed into the center. This area will help minimize any negative impact that the home- less population might .haVe on nearby businesses and homeowners. ~ C. Security: :..... To ensure the safety and security of the guests and the surrounding neigl~bo.rs, the Reception Center will be staffed at all times by program staff who will also be responsible for security. Security cameras--installed in appropriate places both inside and outside the building--will be. monitored on an ongoing basis. In addition, EHC will contract with a private security firm to patrol,’.every, two hours between 6:00 p.m. and 7:00 a.m., a one-mile radius of the Cimino/Little Orchard area. This security stdff wil! patrol all those areas-withinthat one-mile radius--which natural- ly attTa¢t people in transit 1o and from the Center. EHC ~taff ’*vii1 also communicate to th.e guests the tdavel routes to and from the Center, those, socially acceptable Reception CenterService Management Plan -10- Emergency Housing Consortium gathering sites in the immediate one-mile radius .area, and any restrictions to their gathering or congregating within the same area. The security patrolling will occur 365 days a year and those involved will report any suspicious activity to the San Jos~ Police Department and EHC. A nightly report will be produced by th.e firm for EHC to document suspicious activity. EHC will coordin- ate this activity. ~7¢ith its ~rolunteer patrols. Finally, the Advisory Council wil! serve as a collaborative body to help resolve any security issues that might arise, VIII.TRANSIT PLAN This Transit Plan addresses (1) the transit needs of homeless guests to access and leave the center in a safe and responsible manner; (2) an operations requirement of the shelter to provide a transit plan for guests to access other day service agencies; and (3) safety issues of homeless people loitering in the area during the day. This plan is designed to provide transportation coverage to meet the needs of the home- less guest, the Reception Center Service Management Plan, and the local business and .neighborhood community. A. County Transportation: The proposed site will have 71 individual parking spaces, only 5% of the g.uests have access to their own private transportation. From 125 to 250 (during the cold weather months) individuals will arrive at the site. either by foot or by public transit. To mitigate any concerns over individuals transiting through the neighborhood and the light industrial area, and to provide for the safety of guests commuting to the shelter, public transportation will be promoted. ¯ The Reception Center will utilize County Transportation’s-Homeless Transit Pass Project.to provide guests with monthly unlimited use to access the shelter and other services. ¯ The Reception Center will promote .the transit project to those families and in- dividuals who use the shelter and yet do not utilize public transportation to reach the Center. The Homeless Transit Pass Project is economical for the homeless par’tidpant at $5.00 per month. It requires that the shelter establish a plan and meet regularly with transit pass participants and establish a file on each participant, including a case management plan and other certifying information. To be certified to receive the $5.00 pass, shelter guests must meet with Center staff t6 set goals, objectives, and tasks, or the "next steps" necessary to overcome barriers preventing stability, housing, and employment. Staff will orientate transit pass users how to best access the shelter facility by public transportation. EHC estimates 75-80% of the guests who access the shelter facility will utilize public transportation. Reception Center Service Management Plan 11- Emergency Housing Consortium The accompanying Transit Flow Map for the. Reception Center indicates: the most direct transit routes to and from the Center. This details how homeless guests will be informed to properly access the Center from bus-stops anfl on fo.ot. EHC is work- ing.with the Transit Authority and the City and Count), to obtain a bus stop on Little Orchard Street at Barnard Avenue, as is indicated on.the Transit Flow Map. This may include moving or deleting a nearby existing bus stop. B. Shuttle Service: EHC estimates that 55 to 75 homeless people who will not use private or public transportation will access the shelter in the late afternoon,, from 5:00 p.m. on up to 9:00 or 10:00 p.m. The number of these homeless average 15 to 20 people per hour walking various major routes to the facility. Numbers will decrease as the night grows late. In the morning, in order to discourage loitering, these guests will need a fast and reliable means of transportation from the shelter to the Downtown Transit. Mall. Most shelter guests will need to begin their daily journeys from the Downtown Transit Mall. From this origin station, patrons will be able to reach destinations throughout the County and Bay Area region, including access to the SCCTA bus lines and the light rail, which also connects with the main transit center on Santa Clara Street. Transportation ofthese individuals will probably need to take place during a one- or two-hour period, possibly 7:00 to 9:00 a.m., or 7:30 to 8:30 a.m., each morning, every day of the year. - EHC will contract with a private transportation carrier tO provide (365 days of the year) two one-way 80-passenger bus trips in the morning from Cimino/Little Orchard to the San.Jos~ Downtown Transit Mall and one one-way 80~padsenger bus trim in the afternoon from the Transit Mall to Cimino/Little Orchard. ¯ EHC owns a CalTrans 16 passenger van with a wheelchair lift that it will dedicate to the shelter to provide for transit needs required by the shelter. ’ ’ The purpose of the van is to provide24-hour coVerage for homeless people without transportation, who are required to immediately exit the shelter due to infraction of rules, or who try to access the facility for shelter services during off-hours and become stranded in the area. Drop-off locations are to be determined by need, i.e., another shelter, hospital, detox, day care services, etc. An estimated 5 homeless -persons will use the van services daily. Shelter and EHC administration staff will be trained to operate the vehicle to provide daily and nigh.tly shuttle coverage for the homeless. Depending upon the need, van shuttle stops may’includea-but will not be limited to--transit malls, hospitals and clinics, child and adult day care pr0gra.ms, other shelter facilities, schools and employment training centers, the employment office, and benefit~ centers. .. Reception Center Service Management Plan Emergency Housing Consortium Exhibit B Budget C \t,lAC ~’ILES\EHC03 x!s 10-Oct-95 EMERGENCY HOUSING COI’ISORTIUM SOURCES AHD USES OF FUHDS RECEPTION CENTER BI~DG SQ FT 35.200 SOURCES OF EUNDS AMOUNT City of San Jose. 20% Housing Fund 1,500.000 C~ly of San Jose, CDBG Funds 1,100.000 City of San Jose. HD Predev Loan 67,000 City of San Jose, Homeless fund 400,000 Dept. of Housing & Urban Developm 400,000 County of Santa Cla:a. CDBG 185,000 Los Gatos CDBG 10,000 ¯ Milpitas GDBC 10,000 Mountain View. CDBG 105,000 Palo Alto CDBG 50.000 Santa Clara CDBG 200,000 Saratoga. CDBG 35.000 Sunnyvale, CDBG 50,000 TOTAL SOURCES 4,113,000 USES OFFUNDS Land Acquisition "1,990,000 Closing Costs 8,525 Insurance 20,000 Legal 5,000 Property Taxes 25,000 Appraisal .2,500 Utilities & Maintenance 1B,000 Architect Schematics/HMC 12,500 Cost Estimator. BSB 22,000 Environmental Report 15,000 Public Relations Consultants 14,500 Alternative Site Analysis 2,500 Repay of City Predev loan/interest 67,134 Architect & consultants ¯ 163,000 Roofing Consultant 750 Civil Engineer 3,700 City Fees 67,600 School Fees 97,000 Utilities 5",000 Off-site construction 75,000 On-site Construction 424,500 Construction 1,623,121 Bidding/Construction.Contingency 105,284 Testing & Special Inspections 5,000 Staking 5,000 Soft Cost Contingency 3,000 Consultant (HACSC)125,000 TOTAL PROJECT COSTS 4,905,614 TOTAL PROJECT COSTS MINUS REPAY OF CITY PREDEV LOAN 4,838,480 Projected Shortfall’ Square loot c’ost of bu.ilding Square footage cost of all constructi¢ (not including contmg.ncy) 792,614 46.11 60.30 (..)z 0~o ’~(J ::co,o ILl O7 ’70. IJJO 0 0 wI-~...i o. D I--"Z0 0 0 ° ~< ~< z<<~ 0 0 0 0I- D F- z0 0 m 10-Oct-96 C:\MAC FILES\EHC03.xls EMERGENCY HOUSING CONSORTIUM RECEPTION CENTER IMPROVEMENTS REQUIRED BY CUP WITH COST IMPLICATIONS FOR TH.E PROJECT PROPERTY IMPROVEMENTS ON AND OFF SITE Security Camera System ’= ’= lighting (max lights)O, -s,~_20 Security Gate at Mobilhome park Office/Classroom space TOTAL City Stree! Lights andSidewalk to be provided by City COST 20,000 45,000 25,000 45,000 135,000 2 OPERATIONS IMPROVEMENTS ’ Schuttle & Bus Service Private Securi~ Patrol TOTAL 103,000 12,000 115,000 TOTAL ADDITIONAL COSTS $250,000 Page 1 Exhibit C Insurance. Requirements EXHIBIT "C" INSURANCE REQUIREMENTS FIRE AND EXTENDED COVERAGE insurance, to cover not less than One Hundred Percent (100%) of the replacement cost of all insurable improvements within or upon the Property, shall be obtained upon completion of the Project’s construction. Such policies shall include water damage and debris cleanup provisions The following policies of insurance maintained by Borrower shall provide the following limits and coverages: POLICY MINIMUM LIMITS OF LIABILITY Worker’s Compensation Comprehensive Automobile Liability (including owned, hired, and non-owned automobiles) Comprehensive General Liability (including products and completed operations, broad form contractual, and personal injury. Statutory $1,000,000 $1,000,000 $1,000,000 occurrence $1,000,000 $1,000,000 $1,oo0,ooo $1,0oo,ooo o~urrenc~ Bodily Injury ea. person Bodily Injury ea. occurrence Property Damage ea. Bodily Injury ca. person, Bodily Injury ca. occurrence Bodily Injury aggregate Property Damage ca. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City either: the insurer shall reduce or eliminate such deductibles or self- insured retentions as respects the City, its officers, officials; employees and volunteers; or the Borrower shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Insurance shall be in full force and effect commencing onthe first day of the term of this Agreement.. Each insurance policy required by this Agreement shall contain the following clauses: "This insurance shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days written notice has been given to the City by certified mail, return receipt requested." "All rights of subrogation are hereby waived against the City and the members of the City Council and elective or appointive officers or employees, when acting within the scope of their employment or appointment." 3."The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: ~ liability arising out of activities performed by or on behalf of the Borrower; products and completed operations of the Borrower; premises owned, occupied or used by the Borrower; or automobiles owned, leased, hired or borrowed by the Borrower. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees, agents or volunteers." 4 St "It is agreed that any insurance maintained by the City of Palo Alto will apply in excess of, and not contribute to, insurance provided by the Borrower." "Any failure to comply withreporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers." "Insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability." All insurance coverage required under this Agreement shall be provided through carriers with a Best’s Key RatinE Guide rating of A:X or higher that are admitted to do business in the State of California. The certificate(s) of insuranceevideneing such coverage shall be completed and executed by an authorized representative of the Company providing insurance, and shall be filed with and approved by the City. c:suzkinsure.frm Exhibit D Promissory Note EXHIBITED" PROMISSORY NOTE $50,000.00 Date: Palo Alto, California FOR VALUE RECEIVED, EMERGENCY HOUSING CONSORTIUM, INC., a corporation duly organized and validly existing under the Nonprofit PUblic Benefit Corporation Law of the State of California ("BORROWER"), promises to pay to the order of the CITY OF PALO ALTO, a charter city and a California municipal corporation ("CITY"), the principal sum of Fifty Thousand Dollars ($50,000) at’ the office of Revenue Collections of the City of. Palo Alto, 250 Hamilton Avenue, P. O~ Box 10250, Palo Alto, CA 94303, or at such other place as CITY may from time to time designate, with interest from the date of this PROMISSORY NOTE ("Note"), until paid, at the rate of six percent (6%) per year on the unpaid principal balance. This Note is made in connection with a Contract entitled ~AGREEMENT BETWEEN THE CITY OF PALO ALTO AND EMERGENCY HOUSING CONSORTIUM, INC.¯ FOR 1994-1995 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS ("Agreement"). The Agreement provides that BORROWER is the recipient of certain Community Development Block Grant ("CDBG") funds designated for certain building renovation costs at 2011 Little Orchard Street, San Jose, California ("Facility"). Any amounts advanced under this Note shall, at the option of CITY, become immediately due and payable upon the occurrence of any of the following: (a) the failure by BORROWER to commence and complete the renovations to the Facility within a period of two (2) years after the date of the Agreement; (b) the sale, transfer, or other disposition by BORROWER~of the Facility without the prior written consent of CITY prior to the expiration of a period of thirty (30) .years after the date of the Note; (c) a use by BORROWERof the Facility, prior to the expiration of a period of thirty (30) years after the. date of the Note, which violates the applicable provisions of CITY’s Charter, ordinances, or regulations, or which is not an "eligible activity, under the CDBG Program of the Housing and Community Development Acts of 1974and 1977, as amended, and the regulations issued pursuant thereto by the United States Department of Housing and Urban Development, or successor agency; and (d) an uncured default under the Agreement, this Note, or the Deed of Trust. Subject to the terms of ~the Agreement, the entire principal balance shall be considered paid in full if, on July I, 2027, the contingencies set forth in subparagraphs (a), (b), (c) and (d) above have not occurred. BORROWER, any endorser of this Note, and any others who may become liable for all or any part of the obligations evidenced by this Note may prepay all or any portion of the principal sum of this Note, without penalty. Any and all payments made hereunder shall be credited, first, on the interest then due and, the remainder, on the principal balance, and interest on the principa! balance so credited shall thereupon cease. BORROWER,~ any endorser of thi’s Note, and any others who may become liable for all or any part of the obligations evidenced by this ¯Note or this Note, as amended, hereby individually waive demand, presentment for payment, demand and.protest, notice of protest~ demand, and of dishonor and non-payment, and consent to any number of extensions or renewals of time hereof. Any such extensions or renewals may be made without notice to any of the obligated parties and without affectingtheir liability. The pleading of any statute of limitations as a defense to any demand against BORROWER is expressed waived by BORROWER. If BORROWER consists of more than one person or individual, each person ~or individual shall be jointly and severally liable under this Note. BORROWER shall not further encumber, mortgage, or subject the Facility, or the real property on which it is located, or any interest therein,’ to a deed of trust, mortgage, indenture, or other document of legal encumbrance (individually, "Encumbrance" and jointly, "Encumbrances") without the prior written consentof CITY. Unless CITY shall expressly agree otherwise, in writing, any Encumbrance affecting the Facility shall provide that, in the event of any default or breach by BORROWER under any Encumbrance entitling any party thereunder to accelerate the indebtedness secured thereby and foreclose upon the Facility, (i) CITY shall have the. right, but not the obligation, to cure the default prior to the completionof any foreclosure and reinstate the Encumbrance; or (2) pay the total unpaid indebtedness secured by such Encumbrance, in which event, such Encumbrance shall be r@leased, cancelled, or otherwise reconveyed. Any amounts expended by CITY under the contingencies set forth in (i) or (2) of the preceding paragraph sh~ll be reimbursed by BORROWER upon ~demand of CITY therefor, and, in any event, shall bear interest at the maximum rate permitted by Article XV, Section 1(2) of the C~lifornia Constitution, as may be amended from time to time, from the date such amounts were advanced by CITY until paid by BORROWER in full. All such amounts, including interest and any penalty authorized under the Agreement, this Note, or the Deed of Trust, shall be added to the principal of this Note. The approval by BORROWER of any Encumbrance, and the~placing of a security interest therefor on the Facility, or any portion thereof, not containing the provisions of the preceding paragraph and this paragraph shall constitute a default under this Note. If any default is made hereunder, BORROWER furtherpromises to pay reasonable attorneys’ fees and costs and expenses incurred by CITY in connection with any such default or any other action or other proceeding brought to.enforce any of the provisions of this Note. CITY’s right to such fees shall not be limited to or by its representation by staff attorneys of CITY’s Office of the City Attorney, and such representation shall be valued at the customary and reasonable rates for private sector legal services. The relationship of CITY and BORROWERI evidenced by this Note shall be deemed to be one of creditor and debtor and not of partnership or joint venture. .~ This Note may not be modified or amended except by an instrument in writing which expresses such intention of the parties sought to be bound, thereby, and such writing shall be firmly attached to this Note and made a partthereof. Any failure of CITY or other holder to exercise any rights under this Note shall not constitute a waiver of such rights or of any other rights under this Note. This Note shall be governed byand construed in accordance with the laws of the State of California. To the extent assignment of this Note is permitted by CITY, the terms of this Note shall apply to, inure to the benefit of, and bind all of the parties thereto, their heirs, successors and assigns. EXECUTED BY BORROWER on the date first above written. EMERGENCY HOUSING CONSORTIUM, By: Name: Title: INC. Address:440 North First Street P.O. Box 2346 San Jose, CA 95109 Exhibit E Deed of Trust RECORDING REQUESTED BY AND WHEN RECORDED, MAIL TO: City of Palo Alto Office of City Attorney 250 Hamilton Avenue. Palo Alto, CA 94301 RECORDED WITHOUT CHARGE. GOVERNMENT CODE SECTIONS 6103, 27383 SPACE ABOVE THIS LINE FOR RECORDER’S USE SHORT FORM DEED OF TRUST AND ASSIGI~MENT OF RENTS (WITH DUE ON SALE CLAUSE) THIS DEED OF TRUST is made on , 1997, between EMERGENCY HOUSING CONSORTIUM, INC., a corporation duly organized and validly existing under the Nonprofit Public Benefit Corporation of the State of California ("Trustor"), whose address is 440 NorthFirst Street, San Jose, California 95109, CITY OF PALO ALTO, COMMUNITY DEVELOPMENT BLOCK GRANTPROGRAM,("Trustee"), whose address is 250 Hamilton Avenue, Palo Alto, California 94301, and the CITY OF PALO ALTO, a charter city and California municipal corporation ("Beneficiary"), whose address is 250 Hamilton Avenue, Palo Alto, California 94301; WITNESSETH: That TrUstor IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS’ TOTRUSTEE IN TRUST, WITH POWER OF SALE, that real property and improvements in the City of San Jose, County of~Santa Clara, State of California, located as 2011 Little O~chard Street, San Jose, APN 455-2~-078 and described in Exhibit "A", attached hereto and made a part hereof by’ reference ("Security", ~Project" or ~Property"), TOGETHER WITH the rents,’issues and profits thereof, SUBJECT, HOWEVER, to the right, power, and authority given to and conferred upon Beneficiary, by subdivision B of the fictitious deed Of trust recorded in the office of the Recorder of the County of Santa Clara, in Book 5336 of Official Records, at Page 341, adopted and incorporated herein by reference and made a part hereof as if fully set forth herein, to collect and apply such rents, issues and profits. FOR THE PURPOSE OF SECURING: i. Performance of each agreement oflTrustor set forth in the ~Agreement between the City of Palo Alto and Emergency Housing Consortium, Inc. for 1994-95 Community Development ~Block Grant Funds" (~Agreement"), incorporated herein by reference. 2. Payment of the indebtedness evidenced by that Promissory Note ("Note"), and any extensions or renewals thereof, in the principal amount of fifty thousand dollars ($50,000) executed by Trustor in favor of Beneficiary or order. TO PROTECT THE SECURITY OF THIS DEED 6F TRUST, TRUSTOR AGREES: I. P~ct~t~ou~ n~a of Tv1,~t. By the execution and delivery of this Deed of Trust and,the Note secured hereby, that the provisions of subdivisions A and B inclusive, of the fictitious deed of trust recorded in the office of the Recorder of the County of Santa Clara in Book 5336 of Official Re~ords, at Page 341, hereby are adopted and incorporated herein and made a part hereof as fully as though set forth herein at length; that it will observe and perform said provisions; and that the references to property, obligations, and parties in said provisions shall be construed to refer to the property, obligations, and parties set forth in this Deed of Trust. 2. Pr~h~h~t~ ~ran~f~R. Trustor shall not, voluntarily .or involuniarily or by operation of law, sell, transfer, lease, pledge, encumber, create a security interest in, or otherwise hypothecate or alienate all or any part of the Security, without Beneficiary’s prior written consent. The consent by Beneficiary to any sale, transfer, lease, pledge, encumbrance, creation of a security interest in, or other hypothecation of the Security shall not be deemed to constitute a novation or a consent to any further sale, transfer, lease, pledge, encumbrance, creation of a security interest in or other hypothecation. Beneficiary may, at its option, declare the indebtedness secured hereby immediately due and payable, without notice to Trustor or any other person or entity (except as provided herein), upon any such sale, transfer, lease, pledge, encumbrance, creation of a security interest in, or other hypothecation or alienation in violation hereof. Without the written consent of Beneficiary, no sale, transfer, lease, pledge, encumbrance, creation of a security interest in, or other hypothecation of the Security shall .relieve or release Trustor from primary liability under this Deed of Trust or the Note, as the case may be. As used in this Section 2, the term "transfer" includes, without limitation, the following transactions: a. Any total or partial sale, assignment or conveyance, or creation of any trust or power, or any transfer in any other mode or form with respect to the Security or any part hereof or any interest herein, or any contract or agreement to do.the same; b. The cumulative-transfer .of more than ten percent (10%) of the capital stock, partnership profit and loss interest, or other form of interest in Trustor; and c. Any merger, consolidation,, sale or lease of all or substantially all of the assets of Trustor, provided that this provision shall not be interpreted to prohibit.the leasing of the Property to tenants leasing the individual units comprising the Project, as such term is described in the Agreement, located upon the Property. 3. DI~ ~n Sa~. In the event of default by Trustor under this Deed of Trust, or if the Property or any part thereof or any interest therein is sold, agreed to be sold, conveyed, alienated or refinanced by Trustor, or by the operation of law or .otherwise, without the written consent of Beneficiary, all obligations secured by th~s instrument irrespective of the maturity dates expressed therein, at the option of Beneficiary hereof and without demand or notice shall immediately become due and payable. 4. ’ ’ . Beneficiary, for itself and its successors.and assigns, covenants and agrees that all of its rights and powers under this Deed of Trust, the Note, and the Agreement (collectively, hhe "City Documents") are subordinate and subject to the rights of.several parties under those certain deeds of trust set forth in Exhibit ~B", attached hereto and made a part hereof by reference ("Prior Recorded Deeds of Trust"). Beneficiary agrees to execute Whatever documentation is required to prove this subordination and Beneficiary agrees that it will not unreasonably withhold or delay approval of any documents’ or agreements, the review of which is necessary to effect subordination of this Deed of Trust and the Note. 5. ~ght~ t~ ~t~ cn11~t~. Beneficiary, for itself and its successor and assigns, furthe~ covenants and agrees that in the event of the appointment of a receiver or of the appointment of Beneficiary as mortgagee-in-possession, in any .action by Beneficiary, its successors and assigns, to foreclose the mortgage, no rents, revenue or other income of the Project collected by the receiver or by the mortgagee-in-possession shall be utilized for the payment of interest, principal, or any other charges due and payable under this Deed of Trust. 6. n~ ~ T.~I, ~£ w~v~c~suve. Beneficiary may cure a default under any of the Prior Recorded Deeds of Trust prior to a conveyance by a deed in lieu of foreclosure. The senior lenders under Prior Recorded Deeds. of Trust may give written notice to Beneficiary of a proposed tender of title in the event any of the senior lenders decides to accept a deed in lieu of foreclosure. The senior lenders will only give such written notice if, at the time of the placing of the subordinate lien against the Project, the senior lenders receive a copy of an endorsement to the title insurance policy of Trustor or Beneficiary which indicates that (i) this Deed of Trust has been recorded, and (2) the senior lenders are required to give notice of any proposed election to or tender a deed in lieu of foreclosure but without any duty or obligation to do so. Such notice shall be given at the address stated herein or such other address as may be subsequently, upon written notice to the senior lenders, designated byBeneficiary. Beneficiary shall have thirty (30) days to cure the default after the notice of intent to accept a deed in lieu of .foreclosure is mailed, or such longer period of time as may be reasonably necessary to cure the default subject to the approval of the senior lenders. . 7. ~t~v’~ N~t~ t~ R~ne£~avy.. Notwithstanding the above requirements, in the event that Trustor contemplates executing a deed in lieu of foreclosure, Trustor shall first give Beneficiary sixty (60) days’ prior-written notice; provided, however, that the failure of Trustor to give said notice shall have no effect on the right of the senior lenders to .accept a deed in lieu of foreclosure or render invalid the automatic termination of the lien of this Deed of Trust upon any of the senior lenders’ acquisition thereof. 8. N~ ~m~nam~nt~. NO amendments which have a substantive i~pact on the rights of senior lenders shall be made to ~his Deed of Trust, and in particular Section 4 through 8, inclusive, without the prior written approval of the lenders. 9. Remtv~ct4nn~. Recordation of this Deed of Trust provides constructive notice of certain occupancy and afforda~ility restrictions applicable to the Property, as required by Beneficiary. i0. w~mt ~v N~t~ ~9 ~n~t. The undersigned Trustor requests that a copy of any Notice of Default and of any Notice of Sale hereunder be mailed to its address and the address of CITY hereinbefore set forth. ATTACH NOTARY REQUEST FOR FULL RECONVEYANCE TO:CITY OF PALO ALTO The undersigned is the legal ~owner and holder of all indebtedness secured by the within Deed of Trust. All sums secured by this Deed of Trust have been fully paid and satisfied; and you are hereby requested and directed, on payment to you of any sums owing under the terms of this Deed of Trust, to cancel all evidences of indebtedness, .secured by this Deed of Trust, delivered to you herewith together with this Deed of Trust, and to reconvey, without warranty, to the parties designated by the terms of this Deed of Trust, the estate now held by you under the same. By: Title: CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT On "~"~.( (...t-~ ,.~ ~, , Date personally appeared Name and Title of Officer (e.g., "Jane Doe, Notary Public") Name(s) of Signer(s) personally known to me - OR - [] proved to me on the basis of satisfactory evidence to be the person(s) ~ ~7 -Sonta cloro County whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information be/ow is not required by law, it may prove va/uab/e to persons re/ying on the document and cou/d prevent fraudu/ent remora/and feattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date:Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer’s Name: [] Individual [] Corparate Officer Title(s): [] Partner n[] Limited [] General [] Attorney-in-Fact [] Trustee [] Guardian or Conservator [] Other: Signer Is Representing: Top of thumb here Signer’s Name: [] Individual [] Corporate Officer Title(s): [] Partner-- [] Limited [] General F7 Attorney-in-Fact. [] Trustee [] Guardian or Conservator [] Other: Signer Is Representing: Top of thumb here © 1995 National Notary Association ¯ 8236 Remmet Ave., P.O. Box 7184 ¯ Canoga Park, CA 91309-7184 Prod. No, 5907 Reorder: Call "roll-Free 1-800-876-6827 Exhibit A ~ ROPEP, TY DESCRIPTION portion of Lot ~2 of the W. H. Ston~ Suhdivi~ion, Pueblo Tract ~c. I", which Hap was fi~d for record ~n ~he O~ficc ~f the ~ecorder o~ the COunty o~ Santa Clara, ~ate of california on october ~8, 1976 in ~0ok 382 of M~p0, Page 31. ~x~e~t£ng therefrom that Forion thereat a~ conveyed to the city of S~n JO~e, A Municipal Corporation, by Deed recorded in Book FO95, Page 37~, Official ~ecord~, and beln~ mo=e particul~rly de0crlhed aa follows: Beginnin@ at a point in the center llne of Sten0 Avenue at the co~on Corner of Lots 9, 10, 11 and ~, a, said Avonub and Lena are ~houn ~n %hat cer~aln Hap entitled, "H~p of the subdivi~ion of .the property of W. H. Stone", which Hap fil~d for rmcord in the Office mf the Recorder of the Cous~y of Santa Clara, sta~e ef California, on s~ptem~er i, 1881 i.n Book A of Maps, at Page 48; along the Northwesterly line o~ ea~d L0~ 12, ~orth 4~" 17’ 00" East 30.O1 feet to a p~int in ~ llne which i~ par~lle~ withand 30.00 feet Northea~terly~ea0ured at ri@ht ang~e~ ~rom s~id center line o~ Stoma Avenue; thence a~on~ para~lel llne ~outh 39, I0" 00" ~a0t’lg8.46 fe~t; thence Easterly aloes a East 330.86 feet to the Trqe Point of Beginning; thence continuing |(orth 49" 30" East 510.12 feet; thence ~o:therly ~Iong a tangent curve to the ~eft with a radi~s o~’20.O~ Zeo~; throush a ~ntra~ angle o~ 8B* 0~’ 30", an ~r¢ length of. 50,77 feet to a point in a lin~ which is parallel with and &2.00 Southwes=~rly measured at right an@l~ from the center llne of Little Orchard Street, 84 ~eet wide; thence along ~aid p~rallel lin~ so~th 38’ 5~’ 0o" 49.38 ~eet; thence South 49~ l&’ 30" Neat 5~fl.52 feet; th~nc~ ttorth 4C".43’ 30" West 30.00 feet to the True Point o~ BegLnnlng, beln~ a portion of said Lot i~. 2011 Little Orchard Street San Jose, CA 95125 EXHIBIT B Beneficiary hereby agrees that this Deed of Trust and the Promissory Note shall be subordinate to the following encumbrances: Notice of Conditional Use Permit recorded April 25, 1996 in Book P303, Page 0640 of Official Records, Santa Clara County Declaration of Restrictions document recorded May 8, 1996 as Instrument No. 13288324 of Official Records, Santa Clara County Deed of Trust im favor of the City of ~San Jose, recorded May 8, 1996 as Instrument 13288325 of Official Records, Santa Clara County Notice of Conditional Use Permit recorded December 27, 1996 as Instrument No. 13563812 of Official Records, Santa Clara County Deed of Trust in favor of the City of Santa Clara, recording concurrently herewith in Official Records, Santa Clara County Deed of Trust in favor of the City of Mountain View, recording concurrently herewith in Official Records, Santa Clara County RESOLUTION NO. 7306 RESOLUTION OF THE COUNCIL OF THE CItY OF PALO ALTO APPROVING THE USE OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR FISCAL YEAR 1994-1995 WHEREAS, on December 13, 1993, the Palo Alto City Council approved and adopted the 1994-1995 Community Development Plan setting forth non-housing .community development needs and the objectives to meet those needs; and WHEREAS, on November 15, 1993, the City Council approved and adopted the Comprehensive Housing Affordability Strategy (the "CHAS"), setting forth the housing needs of the City of Palo Alto (the "City") and the objectives to meet those needs; and WHEREAS, the ~994-95 federal Community Development.Block Grant .("CDBG") funds allocated to the City are proposed to implement the following programs; and WHEREAS, potential uses of CDBG funds have been evaluated in light of the needs and objectives of the community as identified in the Community Development Plan and the CHAS, and as reflected in the recommendations and comments of the Citizens’ Advisory Committee and other interested citizens; and WHEREAS, the Finance Committee and the City, Council have held advertised public hearings on the proposed use of the CDBG funds for fiscal year 1’994-95; and WHEREAS, it is the intent of the CDBG program to give the highest possible priority to activities which will benefit persons with low and moderate incomes; NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION. I. The use of CDBG funds for the 1994-95 fiscal year is hereby approved and authorized for the following programs: Catholic Charities of Santa Clara County. Long Term Care Ombudsman Program. Complaint investigation and advocacy sez-vices to Palo. Alto’s elderly residents living in nursing and residential care facilities. Citywide.13,000 Emergency Housing Consortium. Temporary shelter and supportive services for homeless individuals and families. Countywide.10,500 940517 I.~ 0020857 1 ii.Emergency Housing Consortium. Acquisition of a building to be renovated t~ serve as a regional emergency shelter for the Santa Clara~ County’s homeless population. 1020 Timothy Drive, San Jose. 12.~ocial Advocates for Youth. Additional funds to complete rehabilitation project, originally approved in the 1992/93 fiscal year, at the agency’s "Casa SAY" runaway and homeless youth residential facility. 509 View Street, Mountain View. 50,000 10,000 13.City of Palo Alto. Department of Community Services. Accessibility improvements, including surfaces and playground equipment, in various City parks to make them usable by persons with disabilities. Citywide.45,000 14.Palo Alto Housing Corporation. Acquisition and rehabilitation of Arastradero Park Apartments in order to retain the 66-unit complex as affordable housing for lower income residents through the federal Low Income Housing Preservation and Resident Homeownership Program. 574 Arastradero ROad, Palo Alto.345,000 15.° City of Palo Alto. New Housing Development Account. Funding’for projects which would preserve or increase the numberof housing units in the City affordable to persons with low and very low incomes. Citywide.279,513 Total: $1,094,513 SECTION 2. The total amount set forth under Section 1 of this resolution hereby represents the proposed allocation from the federal Department of Housing and~Urban.Development ("HUD"), for fiscal ~year 1994-95, of $766,000 in CDBG funds, $i00,000 in anticipated program income for fiscal year 1994-95, $28,513 in reallocated~ funds from prior .program years, and $200,000 in unallocated program income from prior program years. SECTION 3. The City Manager is hereby authorized to expend the money in the $i0,000 CDBG emergency contingency adcount, created under Resolution No. 6897, on an emergency basis in her discretion for existing or. additional CDBGoeligible programs .or projects. The City Manager is further directed to report to the City Council following any such expenditures. 940517 lac 0020857