HomeMy WebLinkAbout1997-06-23 City Council (39)BUDGET 1997-98
City Palo
C ty Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:
AGENDA DATE:
CITY MANAGER
June 23, 1997
DEPARTMENT: Planning and
Community Environment
CMR:281:97
SUBJECT:CONTRACT WITH PALO ALTO HOUSING CORPORATION
FOR ADMINISTRATIVE AND CONSULTING SERVICES FOR
THE BELOW MARKET RATE PROGRAM
REQUEST
This is a request for approval of a contract with the Palo Alto Housing Corporation (PAHC)
in the amount of $40,000 for administrative and consulting services for the Below Market
Rate (BMR) program for fiscal year 1997-1998.
RECOMMENDATIONS
1. Approve and authorize the Mayor to execute the attached contract with the Palo Alto
Housing Corporation in the amount of $40,000 for administrative and consulting
services for the Below Market Rate Program; and
2) Direct the City Manager to administer the provisions of the agreement.
POLICY IMPLICATIONS
This agreement does not represent any change to existing policies,
EXECUTIVE SUMMARY
PAHC has administered the City’s Below Market Rate (BMR) program, and has provided
consulting services to the City related to the program, since its inception over twenty years
ago. PAHC’s role involves both administrative and consulting functions. The administrative
services provided by PAHC include providing information to interested persons about the
program; maintaining and annually updating the waiting list for ownership units;
administering the initial sale and resales of the City’s 144 BMR program ownership units;
and administering the resale of the 19 deed-restricted units at the Birch Court complex.
PAHC also maintains a comprehensive data base of historical records of all BMR ownership
CMR:281:97 Page 1 of 3
units, including statistics about the households served and copies of the deed restrictions for
each unit. PAHC works closely with City staff in problem resolution in order to preserve the
BMR units in the program. PAHC handles the initial enforcement of the City’s deed
restrictions and cooperates with the City Attorney’s Office should legal action be necessary
to enforce the deed restrictions. In the BMR rental program, which currently includes 33
units within three developments, PAHC certifies the BMR tenants’ income and resolves
questions and problems with the apartment management staff and with tenants.
The consulting services provided by PAHC under this contract include review and advice to
staff on below market program proposals offered by housing developers. Consulting advice,
as independent housing experts, from both PAHC staff and members of their Board of
Directors, has been very helpful to City staff in the process of negotiating BMR program
agreements. With the increasing number of proposals from developers, of off-site BMR
contributions, PAHC’s experience with rehabilitation and property management, ability to
obtain private lender financing and general real estate knowledge has been crucial in staff
being able to negotiate creative BMR agreements with developers.
For the 1997-1998 fiscal year, PAHC has also agreed to assume a lead role in completing
certain tasks within the scope of the BMR program evaluation and revision activity,
identified as a priority item in the Planning Division’s current work program. This should
result in greater progress on this work program item, as staff will have insufficient time
available. Tasks which have been identified as appropriate for PAHC to assume are:
drafting a rental program procedures manual, preparing revisions to the existing ownership
program procedures manual and assisting staff in revising the BMR Rental Guidelines.
PAHC’s work will be coordinated by staffand submitted to Council for review and approval,
as appropriate.
The City has contracted with PAHC to administer the BMR program since its inception in
1974. Due to PAHC’s extensive knowledge of the program and administrative experience,
the City has not utilized a competitive process for the award of this contract in the past. Staff
believes that it would not be appropriate or fruitful to undertake a competitive process at this
time. PAHC is the only nonprofit agency operating in this area with the expertise and
interest in administering this type of program. Other alternatives for BMR administration
would be either complete or partial in-house administration, both of which would require
additional City staff. The County Housing Authority administers certain aspects of the City
of Sunnyvale’s program; however, at this time City staff does not believe that Housing
Authority staff can provide the quality of service and the convenience that the City has
obtained from PAHC’s services. Previously, staff considered the possibility of utilizing a for-
profit real estate firm to handle the sales transactions for the BMR ownership units; however,
discussions with a few real estate firms have indicated that the minimal commissions that
could be generated by these transactions would not provide a sufficient incentive to attract
CMR:281:97 Page 2 of 3
such a firm. In addition, City staff resources or contract funding for the other services and
consultant expertise currently provided by PAHC would still be necessary.
FISCAL IMPACT
PAHC has proposed funding BMR program services at a maximum of $40,000 for fiscal
1997-98. This is $10,000 less than the contract for the current year. The level of BMR
administrative activity varies greatly from year-to-year and is impossible to predict in
advance. However, based on sales in recent years and the limited number of new BMR units
which will become available, program administration costs are not expected to exceed
$40,000 for fiscal 1997-98. Payment is made.to PAHC based on their actual hours spent
conducting contract activities based on their time card records, overhead (based on their
HUD approved indirect cost rate) and actual direct expenditures for items such as printing,
postage and outside services. The funding source for this contract is the City’s Commercial
Housing In-Lieu Fund, which had an uncommitted balance of approximately $480,000 as
of April 30, 1997.
ENVIRONMENTAL ASSESSMENT
These services do not constitute a project for the purposes of the Califomia Environmental
Quality Act (CEQA) Guidelines.
ATTACHMENTS
1. Contract Between the City of Palo Alto and the Palo Alto Housing Corporation for
Below Market Rate Housing Program Administrative Services
2. Letter from Palo Alto Housing Corporation dated May 14, 1997
PREPARED BY: Catherine Siegel, Housing Coordinator
KENNETH R. SCHREIBER
Director of Planning and
Community Envir/o~ment
CITY MANAGER APPROVAL:
CC: Palo Alto Housing Corporation
CMR:281:97 Page 3 of 3
ATTACHMENT 1
CONTRACT NO.
BETWEEN THE CITY OF PALO ALTO AND
PALO ALTO HOUSING CORPORATION FOR
BELOW MARKET RATE HOUSING PROGRAM
ADMINISTRATIVE SERVICES
This Contract 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 PALO ALTO HOUSING CORPORATION ("PAHC"), a
California nonprofit corporation, located at 540 Cowper Street,
Suite 201, Palo Alto, CA 94301 ("CONTRACTOR").
RECITALS:
WHEREAS, CITY desires certain administrative and
consulting services ("Services"), in connection with the CITY’s
below market rate housing program as more fully described in
Exhibit "A"; and
WHEREAS, CITY desires to engage CONTRACTOR, including its
employees, if any, in providing the Services by reason of its
qualifications and experience in performing such Services, and
CONTRACTOR has offered to provide the Services on the terms and in
the manner set forth~herein;
NOW, THEREFORE, in consideration of the covenants, terms,
conditions, .and provisions of this Contract, the parties agree:
SECTION i. TERM
i.i This Contract will commence on July i, 1997 and
shall be for a term of one year. The obligation of CONTRACTOR to
perform the Services will commence in accordance with the time
schedule set forth in Exhibit "A". Time is of the essence of this
Contract. In the event that the Services are not completed within
the specified time schedule on account of CONTRACTOR’s default,
CITY’s city manager will have the option of extending the time
schedule for any period of time. This provision will not preclude
the recovery of damages for delay caused by CONTRACTOR.
SECTION 2..
CONTRACTOR
QUALIFICATIONS,STATUS,AND DUTIES OF
2.1 CONTRACTOR represents and warrants that it has the
expertise and professional qualifications to furnish or cause to be
furnished the Services. CONTRACTOR further represents and warrants
that the project director and every individual charged with the
performance of the Services under this Contract are duly licensed
970~97 ~\’. 0071217
1
or certified by the State of California, to the extent such
licensing or certification is required by law to perform the
Services.
2.2 In reliance on the representation and warranty set
forth in Section 2.1, CITY hires CONTRACTOR to perform, and
CONTRACTOR covenants and agrees that it will furnish or cause to be
furnished, the Services set forth in the document entitled "Below
Market Rate Housing Program, Fiscal Year 1997-1998, Scope of
Services" in Exhibit "A".
2.3 CONTRACTOR will assign MARLENE PRENDERGAST, its
Executive Director, as the project director to have supervisory
responsibility for the performance, progress, and execution of the
Services. If circumstances or conditions subsequent to the
execution of this Contract cause the substitution of the project
director for any reason, the appointment of a substitute project
director will be subject to the prior written approval of the
project manager.
2.3.1 Not more than forty-nine percent (49%) of the
persons serving on the governing board of CONTRACTOR may be
interested persons. The term "interested persons" is defined in
Section 5227(a) of the California Corporations Code.
2.4 CONTRACTOR represents and warrants that it will:
2.4.1 Procure all permits and licenses, pay all
charges and fees, and give all notices which may be necessary and
incident.to the due.and lawful prosecution of the Services;
2.4.2 Keep ~tself fully informed of all existing and
futurel Federal, Sta%e of California, and local laws, ordinances,
regulations, orders, and decrees which may affect those engaged or
employed under this Contract, any materials used in CONTRACTOR’s
performance under this Contract, or the performance of the
Services;
2.4.3 At all times observe .and comply with, and cause
its employees and contractors (and consultants),, if any, who are
assigned to the performance of this .Contract to observe and comply
with, the laws, ordinances, regulations, orders and decrees
mentioned above; and
2.4.4 Will report immediately to the project manager,
in writing, any discrepancy or inconsistency it discovers in the
laws, ordinances, regulations, orders, and decrees mentioned above
in relation to any plans, drawings, specifications or provisions of
this Contract.
2.5 Any reports, information, data or other material
given to, or prepared or assembled by, CONTRACTOR or its
contractors, if any, under this Contract will become the property
970522 syn 0071217
2
of¯ CITY and will not be made available to any individual or
organization by CONTRACTOR or its contractors, if any, without the
prior written approval of the city manager.
2.6 CONTRACTOR will provide CITY with quarterly reports.
With each quarterly billing, CONTRACTOR shall submit a summary
chart of statistics about sales and resales of BMR ownership units,
in a form approved by CITY, together with information about
occupancy of BMR rental units. CONTRACTOR shall also submit a
report, describing in narrative form, other activities undertaken
during the report period.
2.7 If CITY requests additional copies of reports,
drawings, specifications or any other material which CONTRACTOR is
required to furnish in limited quantities in the performance of
the Services, CONTRACTOR will provide such additional copies and
CITY.will compensate CONTRACTOR for its duplication costs.~
2.8 CONTRACTOR will be responsible for employing or
engaging all persons necessary to perform the Services. All
contractors of CONTRACTOR will be deemed to-be directly controlled
and supervised by CONTRACTOR, which will be responsible for their
performance. If any employee or contractor of CONTRACTOR fails or
refuses to carry out the provisions of this Contract or appears to
be incompetent or toact in a disorderly or improper manner, the
employee or contractor will be discharged immediately from further
performance under this Contract on demand of the project manager.
2.9 CONTRACTOR shall provide the project manager and
others specifically .requested by the project manager with free and
easy access to all facilities and activities .of the programs
hereinafter described. The project manager and others specifically
~requested by the p~oject manager shall coordinate such access withCONTRACTOR.
SECTION 3.DUTIES OF CITY
3.1- CITY will furnish or cause to be furnished the
specified, services set forth in Exhibit "~’ and such other
information regarding its requirements as may be reasonably
requested by CONTRACTOR.
3.2 The city manager will represent CITY for all
purposes under this Contract. JIM GILLILAND, Assistant Planning
Official, is designated as the project manager for the city
manager. The project manager will supervise the performance,
progress, and execution of the Services°
3.3 If CITY observes or otherwise becomes aware of any
default in the performance of CONTRACTOR, CITY will use reasonable
efforts to give written notice thereof to CONTRACTOR in a timely
manner°
970522 syn 0071217
SECTION 4 COMPENSATION
4.1 In consideration of the full performance of the
Services by CONTRACTOR, CITY will pay CONTRACTOR a total sum not
to exceed Forty Thousand Dollars ($40,000), payable within thirty
(30) days of submission by CONTRACTOR of its itemized billings. On
the billing form provided by CITY, CONTRACTOR shall submit a bill
by the fifth (Sth) working day of each quarter for services
provided under this Contract ~during the preceding quarter. The
bill shall specify actual expenditures directly related to this
Contract in accordance with Exhibit "B".
SECTION 5. AUDITS
5.1 CONTRACTOR will permit CITY to audit, at any
reasonable time during the term of this Contract and for three (3)
years thereafter, CONTRACTOR’s records pertaining to matters
covered by this Contract. CONTRACTOR further agrees to maintain
and retain such records for at least three (3) years after the
expiration or earlier termination of this Contract.
SECTION 6.INDEMNITY
6.1 CONTRACTOR agrees to protect, indemnify, defend and
hold harmless CITY, its Council members, officers, employees and
agents from any and all demands, claims, or liability of any
nature, including death or injury to any person, property damage or
any other loss, caused by or arising out of CONTRACTOR’s, its
officers’,, agents’,, subcontractors’ or employees’ negligent acts,
errors, or omissions, or willful misconduct, or conduct for which
applicable law may impose strict liability on CONTRACTOR in the
performance of or f~ilure to perform its obligations under this
Contract.
SECTION 7.WAIVERS
7.1 The waiver by either party of any breach or
violation of any covenant, term, condition or provision of this
Contract, or of the provisions of any ordinance or law, will not be
deemed to be a waiver of any other term, covenant, condition,
provisions, ordinance or law, or .of any subsequent breach or
violation of the same or of any other term, covenant, condition,
provision, ordinance or law. The subsequent acceptance by either
party of any fee or other money which may become due hereunder will
not be deemed to be a waiver of any preceding breach or violation
by the other party of any term, covenant, condition or provision of
this Contract or of any applicable law or ordinance.
7.2 No payment, partial payment,, acceptance, or~partial
acceptance by CITY will operate as a waiver on the part of CITY of
any of its rights under this Contract.
970522 syn 0071217
4
SECTION 8.INSURANCE
8.1 CONTRACTOR, at its sole cost and expense, will
obtain and maintain, in full force and effect during the term of
this Contract, the insurance coverage described in Exhibit "C",
insuring not-only CONTRACTOR and its contractors, if any, but also,
with the exception of workers’ compensation, employer’s liability,
and professional liability insurance, naming CITY as an additional
insured concerning CONTRACTOR’s performance under this Contract.
8.2 All insurance coverage required hereunder will be
provided through carriers with Best’s Key Rating Guide ratings of
A:X or higher which are admitted to transact insurance business in
the State of California. Any and all contractors of CONTRACTOR
retained to perform Services under this Contract will obtain and
maintain, in full force and effect, during~ the term of this
Contract, identical insurance coverage, naming CITY as an
additional insured under such policies as required above.
8.3 Certificates of such insurance, preferably on the
forms provided by CITY, will be filed with CITY concurrently with
the execution of this Contract. The certificates will be subject
to the approval of CITY’s risk~ manager and will contain an
endorsement stating that the insurance is primary coverage and will
not be canceled or altered by the insurer except after filing with
CITY’s city clerk thirty (30) days’ prior written notice of such
cancellation or alteration, and that the City of Palo Alto is named
as an additional insured except in policies of workers’
compensation, employer’s liability, and professional liability
insurance. Current.certificates of such insurance will be kept on
file at all times during the term of this Contract with the city
clerk.
8.4 Thi procuring of such required policy or policies of
insurance will not be construed to limit CONTRACTOR’s liability
hereunder nor to fulfill the indemnification provisions of this
Contract. Notwithstanding the policy or policies of insurance,
CONTRACTOR will be obligated for the full and total amount of any
damage, injury, or loss~caused by or directly arising as a result
of the Services performed under this Contract, including such
damage, injury, or loss arising after the Contract is terminated or
the term has expired.
SECTION 9.WORKERS’ COMPENSATION
9.1 CONTRACTOR, by executing this Contract, certifies
that it is aware of the provisions of the Labor Code of the state
of California which require every employer to be insured against
liability for workers’ dompensation or to undertake self-insurance
in accordance with the provisions of that Code, and certifies that
it will comply with such provisions, as applicable, before
commencing the performance of the Services.
970522 syn 0071217
5
SECTION i0.
SERVICES .
TERMINATION OR SUSPENSION OF CONTRACT OR
10.1 The city manager may suspend the performance of the
Services, in whole or in part, or terminate this Contract, with or
without cause, by giving thirty (30) days’ prior written notice
thereof to CONTRACTOR. Upon receipt of such notice, CONTRACTOR
will immediately discontinue its performance of the Services.
10.2 CONTRACTOR may terminate this Contract or suspend
its performance of the Services by giving thirty (30) days’ prior
written notice thereof to CITY, but only in the event of a
substantial failure of performance by CITY or in the event CITY
indefinitely withholds or withdraws its request for the initiation
or continuation of the Services to be performed.
10.3 Upon such suspension or termination by CITY,
CONTRACTOR will be paid for the Services actually rendered to CITY
on or before the effective date of suspension or termination;
provided, however, if this Contract is suspended or terminated on
account of a default by CONTRACTOR, CITY will be obligated .to
compensate CONTRACTOR only for that portion of the Services which
are of direct and immediate benefit to CITY, as such determination
may be made by the city manager acting in the reasonable exercise
of her discretion.
10.4 Upon such suspension or termination, CONTRACTOR will
deliver to the city manager immediately, any and all copies of
studies, sketches, drawings, computations,, and other data, whether
or not completed, prepared by CONTRACTOR or its contractors, if
~any, or given to CONTRACTOR or its contractors, if any, in
connection with this Contract. Such materials will become~ the
property of CITY. o
10.5 The failure of CITY to agree with CONTRACTOR’s
independent findings, conclusions, or recommendations, if the same
are called for under this Contract, on the basis of differences in
matters of judgment, will not be construed as a failure on the part
of CONTRACTOR~to fulfill its obligations under this Contract.
SECTION ii. ASSIGNMENT
ii.i This Contract is for the personal services of
CONTRACTOR, therefore, CONTRACTOR will not assign, transfer,
convey, or otherwise dispose of this Contract or any right, t±tle
or interest in or to the same or any part thereof without the prior
written consent of CITY. A consent to one assignment will not be
deemed to be a consent to any subsequent assignment. Any
assignment made without the approval of the city manager will be
void and, at the option of the city manage~, this Contract may be
terminated. This Contract will not be assignable by operation of
law.
970522 syn 0071217
SECTION 12.NOTICES
12.1 All notices hereunder will be given in writing and
mailed, postage prepaid, by certified mail, addressed as follows:
To. CITY:Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a
copy to:Director, Dept. of Planning
and Community Environment
City of Palo Alto
P.O. Box 10250
Palo Alto, CA 94303
To CONTRACTOR: Attention of the project director
at the address of CONTRACTOR recited above
SECTION 13.CONFLICT OF INTEREST
13.1 In accepting this Contract, CONTRACTOR covenants
that it presently has no interest, and will not acquire any
interest, direct or indirect, financial or otherwise, which would
conflict in any manner or degree with the performance .of the
Services.
13.2 CONTRACTOR further covenants that, in the
performance of this Contract, it will not employ any contractor or
person having such oan interest. CONTRACTOR certifies that no
person who has o£ will have any financial interest under this
Contract is an officer or employee of CITY; this provision will be
interpreted in accordance with the applicable provisions of the
Palo Alto Municipal Code and the Government Code of the State of
California.
SECTION 14. NONDISCRIMINATION
14.1 As set forth in the Palo Alto Municipal Code, no
discrimination will be made in the employment of any person under
this Contract because of the age, race, color, national origin,
ancestry, religion, disability, sexual preference or gender of that
person. If the value of this Contract is, or may be, five thousand
dollars ($5,000) or more, CONTRACTOR agrees to meet all
requirements of the Palo Alto Municipal Code pertaining to
nondiscrimination in employment, including completing the requisite
form furnished by CITY and set forth in Exhibit "D"
970522 syn 00712~7
7
14.2 CONTRACTOR agrees that each contract for services
with an independent provider will contain a provision substantially
as follows:
"[Name of Provider] will provide CONTRACTOR
wi~h a certificate stating that [Name of
Provider] is currently in compliance with all
Federal and State of California laws covering
nondiscrimination in employment; that [Name of
Provider] will pursue an affirmative course of
action as required by the Affirmative Action
Guidelines of the City of Palo Alto; and that
[Name of Provider] will not discriminate in
the employment of any person under this
contract because of the age, race, color,
national origin, ancestry, religion,
disability, sexual preference or gender of
such person."
14.3 If CONTRACTOR is found in violation of the
nondiscrimination provisions of the State of California Fair
Employment Practices Act or similar provisions of Federal law or
executive order in the performance of thfs Contract, it will be in
default of this Contract. Thereupon, CITY will have the power to
cancel or suspend this Contract, in. whole or in part, or to deduct
the sum of twenty-five dollars ($25) for each person for each
calendar day during which such person was subjected to acts of
discrimination, as damages for breach of contract, or both. Only
a finding of the State of California Fair Employment Practices
Commission or the, equivalent federal agency or officer will
constitute evidence of a breach of this Contract.
14.4 If COW, TRACTOR is in default of the nondiscrimination
provisions of thi~ Contract or the Affirmative Action Guidelines
pertaining to this Contract, CONTRACTOR will be found in material
breach of this Contract. Thereupon, CITY will have the power to
cancel or suspend this Contract, in whole or in.part, or to deduct
from the amount payable to CONTRACTOR the sum of two hundred fifty
dollars.($250) for each calendar day during which CONTRACTOR is not
in compliance with this provision as damages for breach of
contract, or both.
SECTION 15.MISCELLANEOUS PROVISIONS
15.1 CONTRACTOR represents and warrants that it has
knowledge of the requirements of the Americans with Disabilities
Act. of 1990, and the Government Code and the Health and Safety Code
of the State of California, relating to access to public buildings
and accommodations for disabled persons, and relating to facilities
for disabled persons. CONTRACTOR will comply withor ensure by its
advice that compliance with such provisions will be effected in the
performance of this Contract.
970522 syn 0071217 ¯
15.2 This Contract will be governed by the laws of the
State of California, excluding its conflicts of law.
15.3 In the event that an action is brought, the parties
agree that triai of such action will be vested exclusively in the
state courts° of California or in th@ United States District Court
for the Northern District of California in the County of Santa
Clara, State of California.
15.4 The prevailing party in any action brought to
enforce the provisions of this Contract may recover its reasonable
costs and attorneys’ fees expended in connection with that action.
15.5 This document represents the entire and integrated
agreement between the parties and supersedes all prior negotia-
tions, representations, and contracts, either written or oral.
This document may be amended only by a written instrument, which is
signed by the parties.
15.6 All provisions of this Contract, whether covenants
or conditions, will be deemed to be both covenants and conditions.
15.7 The covenants, terms, conditions and provisions of
this Contract will apply to, and wil! bind, the heirs, successors,
executors, administrators, assignees, and contractors, as the case
may be, of the parties.
15.8 If a court of competent jurisdiction finds or rules
that any provision of this Contract or any amendment thereto is
void or unenforceable,the unaffected provisions of this Contract
and any amendments thereto will remain in full force and effect.
15.9 All 9xhibits referred to in this Contract and any
addenda, appendicls, attachments, and schedules which, from time
to time, may be referred to in any duly executed amendment hereto
are by such reference incorporated in this Contract and will be
deemed to. be a part of this Contract.
15.10 This Contract may be executed in any number of
counterparts, each of which will be an original,.but all of which
together will constitute one and the same instrument.
15.11 This Contract is subject to the fiscal provisions
of the Charter of the City of Palo Alto and the Palo Alto Municipal
Code. This Contract will terminate without any penalty (a) at the
end of any fiscal year in the event that funds are not appropriated
for the following fiscal year, or (b) at any time within a fiscal
year in the event that funds are only appropriated for a portion of
the fiscal year and funds for this Contract are no longer
available. This Section 15.11 shall take precedence in the event
of a conflict with any other covenant, term, condition, or
provision of this Contract.
970522 syn 0071217
IN WITNESS WHEREOF, the parties hereto have by their duly
authorized representatives executed this Contract on the date first
above written.
ATTEST:CITY OF PALO ALTO
City Clerk
APPROVED AS TO FORM:
Mayor
Senior Asst. City Attorney
APPROVED:
City Manager
Director of Planning and
Community Environment Taxpayer’s I.D. No. 94-2262125
Acting Director of
Administrative Services
Risk Manager
Attachments:
EXHIBIT "A" :
EXHIBIT "B" :
EXHIBIT "C" :
EXHIBIT "D" :
SCOPE OF SERVICES
BUDGET
INSURANCE
NONDISCRIMINATION COMPLIANCE FORM
i0
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code S 1189)
STATE OF C =~,~--~_ )
) ss.
COUNTY OF __~=~,_ C_\=.~__ )
On q~--~.~_ k~ ,1997, before me, the undersigned, a
Notary Public in and for said County and State, personally appeared
personally knowh to me (or~roved to me 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.
SANTA CLARA COUNTY
~ My Commission Expires April 24, 1998
Signature of Notary Publlc
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11
EXHIBIT A
BELOW MARKET RATE HOUSING PROGRAM
FISCAL YEAR 1997-1998
SCOPE OF SERVICES
Contractor shall administer the City’s Below Market Rate (BMR) housing program in
compliance with City policy, guidelines, the applicable deed restrictions and the BMR
Program Procedures Manual and in a manner which increases affordable housing opportunities
for low and moderate income households.
Specific Activities:
1) Provide information and advice to interested persons and housing seekers about the
City’s BMR ownership and rental programs;
2) Maintain and annually update the BMR ownership waiting list
3) Administer the sales and resales of units in the BMR ownership program, and
"discount" units with City deed restrictions in the Birch Court project, in accordance
with City policy, guidelines, the applicable deed restrictions and with the Procedures
Manual prepared by the Palo Alto Housing Corporation, as accepted by the City;
4) Pursue, in cooperation with the City, preservation of the BMR units within the
program and compliance and enforcement of the provisions of the recorded deed
restrictions;
5) Provide assistance, mediation and counseling to BMR owners, in coordination with
City staff, in the resolution of defaults, foreclosures, violations of deed restrictions or
other similar situations involving the preservation of BMR ownership units;
6) Certify tenants’ income eligibility for occupancy in the BMR rental units at
Southwood Apartments, Mayfield Apartments, 1100 Welch Road Apartments and the
proposed apartments at 4020 E1 Camino Real (if constructed);
7) Provide advice and consultation to City staff regarding negotiations of BMR
agreements for new housing development projects;
8) Coordinate the process of evaluation, negotiation and financing related to the
acquisition, and rehabilitation if necessary, of off-site units or properties contributed by
developers under the BMR program, in-lieu of providing on-site units;
9) Assist City staff in completing a comprehensive evaluation of the BMR program;
Exhibit A
Page 2
10) Maintain records and statistics as required by the City, specifically:
a) Annual statistics about the BMR ownership and rental units and the
households served,
b) A permanent record of all units placed in the program and statistics about all
households served over the life of the program, including retention of copies of
the actual recorded deed restrictions for the ownership units.
EXHIBIT B
BELOW MARKET RATE HOUSING PROGRAM
FISCAL YEAR 1997 -1998
BUDGET
I. PAHC shall provide the services described in Exhibit A - Scope of Services during the term
of this contract and City shall reimburse PAHC for the cost of said services based on actual
staff time, overhead and direct expenses and materials up to a maximum of $40,000. The
source of reimbursement to PAHC shall be from the City’s Commercial Housing In-Lieu
Fund.
II. PAHC may bill City for the following:
1. Staff salaries for time spent on BMR activities at approved hourly rates including
direct salaries, payroll taxes, benefits, workers compensation and an indirect cost rate
for overhead. Hourly rates for PAHC staff is to be billed based on PAHC’s most
recent indirect cost allocation plan in effect at the time of billing. If necessary, an
adjustment will be made with the billing for the last quarter of the fiscal year, if the
actual indirect cost rate for the year has been modified by a more recent audit.
2. Direct costs, as supported by receipts, invoices, etc., which are reasonable and
necessary to conduct the activities described in Exhibit A, such as:
¯Postage
¯Advertising
¯Conferences ~and Training
¯Office Supplies
¯ Outside Services and Consultants (except that any subcontracts for outside
services or consultant work exceeding $3,000.00 shall be authorized in advance
by City) ’
® Printing/Duplicating
o Other necessary direct expenses including expenses necessary to the
acquisition and / or rehabilitation of off-site units and properties provided by
developers under the BMR program in-lieu of on-site units
EXHIBIT C
INSURANCE REQUIREMENTS
POLICY MINIMTJM LIMITS OF LIABILITY
WORKERS’
COMPENSATION Statutory
COMPREHENSIVE
AUTOMOBILE
LIABILITY,
including owned,
hired, and nonowned
automobiles
Bodily Injury $i,000,000 ea. person
& $I,000,000 ea. occurrence
Property Damage $i,000,000 ea.
occurrence
COMMERCIAL
GENERAL
LIABILITY,
including
products and
completed operations,
broad form contractual,
and personal injury.
Bodily Injury $i,000,000 ea. person
& $i,000,000 ea. occurrence;
$i,000,000 aggregate
Property Damage $i,000,000
occurrence
ea.
Each insurance policy required by this Agreement shall contain the
following clauses:
"This insurance shall not be canceled, limited in scope
of coverage or nonrenewed until after thirty (30) days.
written notice has been given to the: CITY OF PALO
ALTO/Pla@ning and Community Environment Department, P. O.
Box 10250, Palo Alto, CA 94303."
"All rights of subrogation are hereby waived against the
CITY OF PALO ALTO and the members of the City Council and
~elective or appointive officers or employees, when acting
within the scope of their employment or appointment."
"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 this policy."
"The CITY OF PALO ALTO is added as an additional insured
as respects operations of the named insured, but only as
to work performed under this Agreement.
All insurance coverage required shall be provided through carriers
with a BEST KEY RATING GUIDE rating of A:X or higher that are
admitted to do business in the State of California. The
certificate(s) of insurance evidencing 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.
960604 syn 0070981
EXHIBIT D
CER TIFICA T/ON OF NONDISCRIMINATION
Certification 0f,Nondiscriminal;ion: As suppliers of goods or services to the City of
Palo Alto, the firm and individuals listed below certifies that they do not discriminate
in employment with regards to age, race, color, religion, national origin, ancestry,
disability, or sexual preference; that they are in compliance with all Federal, State and
local directives and executive orders regarding nondiscrimination in employment; and
that they agree to demonstrate positively and aggressively the principle of equal
opportunity in employment.
The Bidder/Proposer agrees specifically:
1.0 To establish or observe employment policies which affirmatively promote
opportunities for minority persons at all job levels.
2.0
3.0
To communicate this policy to all persons concerned, including all
employees, outside recruiting services~ especially those serving minority
communities, and to the mino.rity communities at large.
To take affirmative action steps to hire minority employees within the
organization.
4.0
Firm:
To be knowledgeable of the Iocal~ state, and federal laws and regulations
concerning affirmative action policies and provide opportunities for
employees
P~lo Alto Housing Corporation
Title of Officer Signing: Executive Director
Date ~ -~- ~
Please include any additional information available regarding
employment programs now in effect within your company¯
equal opportunity
(Plao~e attach additional paoo~ if nacassary)
END OF SECTION
CITY of PALO ALTO: Non-discrimination (5/93)SECTION 00410-1
~~ENT
540 Co~er Street o Suite 20~ . Paio Alto, CA 9430~ ¯(4~5) 32~-9709
~y 1~ 1~
June Fleming
City Manager
City of Palo Alto
P.O. Box 10250
Palo Alto, CA 94303
Re: Contract to Administer Below Market Rate (BMR) Program
¯ FaLX (415) 321-4541
Dear June:
The Palo Alto Housing Corporation (PAHC) proposes to contract with the City of Palo Alto to
administer the City’s BMR Program for the fiscal year 1997-98 for a maximum amount of
$40,000. We are proposing a reduction in the maximum contract amount due to the relative
dormancy of resales of BMR units. However, we do expect to spend time cooperating with City
staff in evaluating portions of the program in the upcoming fiscal year.
PAHC is unique in its ability to perform this service for the City. We were instrumental in
developing the program and have administered it since its inception in 1974. Over the years,
PAHC has conducted the sales and resales of BMR units, worked with the BMR Rental Housing
Program, and participated in the negotiation of many BMR agreements with developers. PAHC
has a good understanding of the BMR program goals, principles and precedents. To our
knowledge, there is no other nonprofit housing agency in the area that performs this service.
The fees PAHC charges for these services are based on an hourlyrate approved by the City
according to HUD methodology and include direct salaries, payroll taxes, benefits, workers
compensation and an indirect cost allocated to overhead. Our annual audited financial statements
justify the hourly rate based on fund accounting. PAHC is paid on a reimbursement basis.for
hours spent.
We look forward to continuing work with you and the City staff on this important City program.
Sincerely,
PALO ALTO HOUSING CORPORATION
Executive Director
cc:Ken Schreiber, Director of Planning and Community Environment
Cathy Siegel, Housing Coordinator