HomeMy WebLinkAbout1996-06-17 City Council (57)BrDGET 1996-98
City of Palo Alto
Manager’s Repor
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: Planning and
Community Environment
AGENDA DATE: June 17, 1996 CMR:310:96
SUBJECT:Contract with Palo Alto Housing Corporation for
Consulting Services for the Below Market Rate Program
Administrative and
REQUEST
This is a request for approval of a contract with the Palo Alto Housing Corporation (PAHC) in the
amount of $50,000 for administrative and consulting services for the Below Market Rate (BMR)
program for fiscal year 1996-1997.
RECOMMENDATIONS
1. Approve and authorize the Mayor to execute the attached contract with the Palo Alto
Housing Corporation in the amount of $50,000 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
Background: PAHC has administered the City’s Below Market Rate program and provided
consulting services to the City related to the program, since its inception over twenty years ago.
Since fiscal year 1991-1992, funding for BMR program services has been included as a separate
work item in the annual agreement between the City and PAHC for Community Development Block
Grant (CDBG) funded low income housing services activities. This is the first ye.ar that separate
funding agreements have been prepared. The reason for the change is to clarify the contractual
requirements that apply to BMR related services, which are funded with City monies, versus federal
requirements, which apply to CDBG funded activities. Utilizing separate contracts will also more
clearly identify the annual cost of the BMR program.
Description of Services: PAHC provides a variety of services necessary to the implementation of
the BMR program. Most of the activity relates to the BMR home ownership program. PAHC
CMR:310:96 Page 1 of 3
provides information to interested persons about the program; maintains, and annually updates, the
waiting list for ownership units; administers the initial sale and resales of the City’s 143 BMR
program ownership units; and administers the resale of the 19 deed restricted units at the Birch Court
complex. PAHC maintains a comprehensive data base of historical records of all BMR ownership
units, including statistics about the households served and copies of the deed restrictions for each
unit. 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. PAHC
works closely with City staff in problem resolution in order to preserve the BMR units in the
program.
In the BMR rental program, which involves 33 units in three developments, PAHC certifies the
BMR tenants’ incomes and resolves questions and problems with the apartment management staff
and with tenants. In BMR negotiations, PAHC provides advice and consultation to City staff. With
the increasing provision 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.
Selection Process: 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 does not believe that it would 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 altematives 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 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 indicated that the minimal
commissions that could be generated by these transactions would not provide a sufficient incentive
to attract such a firm. 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 $50,000 for fiscal 1996-97.
This is the same amount as the contract for the current year. Payment is made to PAHC based on
their actual hours spent administering BMR unit sales, certifying tenant incomes in the BMR rental
program and providing advice and participation in BMR negotiations with housing developers.
PAHC is reimbursed for actual staff hours spent on BMR activities (from time card records),
overhead (based on their HUD approved indirect cost rate) and actual direct expenditures for items
such as printing and postage. The level of BMR administrative activity varies greatly from year-to-
year and is impossible to predict in advance. The source of funding for PAHC’s services is the City’s
Commercial Housing In-Lieu Fund. The estimated uncommitted balance of the Fund, as of June 30,
1996 will be about $540,000.
CMR:310:96 Page 2 of 3
ENVIRONMENTAL ASSESSMENT
These services do not constitute a project for the purposes of the California Environmental Quality
Act (CEQA) Guidelines.
ATTACHMENTS
1. Comract Between the City of Palo Alto and the Palo Alto Housing Corporation for Below
Market Rate Housing Program Administrative and Consulting Services for Fiscal Year 1996-
1997
2.Letter from Palo Alto Housing Corporation, dated May 16, 1996
PREPARED BY: Catherine Siegel, Housing Coordinator
DEPARTMENT HEAD REVIEW:
KENNETH R. SCHREIBER
Director of Planning and
Community Environment
CITY MANAGER APPROVAL:
CC:Palo Alto Hous.ing Corporation
CMR:310:96 Page 3 of 3
CONTRACT NO.
BETWEEN~THE CITY OF PALO ALTO AND
PALOALTO HOUSING CORPORATION FOR
BELOW MARKET RATE HOUSING PROGRAM
ADMINISTRATIVE SERVICES
This Contract No.is entered into ,
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 "~’; 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, 1996 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 "~’. 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
or certified by the State of California, to the extent such
licensing or certification is required by law to perform the
Services.
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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.
2.3 CONTRACTOR will assign MARLENE PRENDERGAST 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 dause 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 CONTRACTOR shall make its best efforts to have at
least one (I) member of its governing board of directors be a
resident of a public subsidized low/moderate income housing project
located in CITY and at least one (i) additional member of the board
to be a CITY residential tenant.
2.3.2 Not more than twenty-five (25) percent of the
persons serving on the governing board of CONTRACTOR"~may be
"Interested Persons." An Interested Person means any person
currently being compensated by CONTRACTOR for services rendered to
it whether as a full or part-time employee, independent consultant,
or otherwise, but excluding any reasonable compensation paid to a
director as director.
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 itself fully informed of all existing and
future Federal, State 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
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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
charge 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 cont~olled
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 to act 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
o~hers 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 project manager shall coordinate such access with
CONTRACTOR.
SECTION 3.DUTIES OF CITY
3.1 ~cITY will furnish or cause to be furnished the
specified services set forth in Exhibit "A" and such other
information regarding its requirements as may be reasonably
requestedoby CONTRACTOR.
3.2 The city manager will represent CITY for all
purposes under this Contract. JIM GILLILAND, Assistant Planning
Official, 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.
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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 Fifty Thousand Dollars ($50,000), payable within thirty
(30) days of submission by CONTRACTOR of its itemized billings. On
the billing form provided by C~TY, CONTRACTOR shall submit a bill
by the fifth (5th) 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"o
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 failure 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 lawo 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.
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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 suuh policies as required above.
8.3 Certificates of such insurance, preferably on the
forms provided by CITY, will be filed with CITY concurrent’l~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 The 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’ .compensation 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.
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SECTION i0.
SERVICES
TERMINATION OR SUSPENSION OF CONTRACT OR
i0.i 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 per£ormance 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.
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, title
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 manager, this Contract may be
terminated. This Contract will not be assignable by operation of
law.
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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
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 an interest. CONTRACTOR certifies that no
person who has or 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".
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
with 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 Paio Alto; and that
[Name of Provider] will not discriminate in
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7
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 this 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. 0nly
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 CONTRACTOR is in default of the nondiscrimination
provisions of this 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 with or ensure by its
advice that compliance with such provisions will be effected in the
performance of this Contract.
-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 trial of such action will be vested exclusively in the
state courts of California or in the 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-
960611 syn 0071001
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 will 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 exhibits-referred to in this Contract and any
addenda, appendices, ~ttachments, and schedules which, from time
to time, may be referred to in any duly executed amendment hereto
are by such reference incorporated in thisContract 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 instr.umento
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.
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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:
Assistant City Manager
Director of Planning and
Community Environment
Deputy City Manager,
Administrative Services
¯ Risk Manager
Attachments:
EXHIBIT "A" :
EXHIBIT "B" :
EXHIBIT "C" :
EXHIBIT "D" :
SCOPE OF SERVICES
BUDGETINSUraNCE
NONDISCRIMINATION COMPLIANCE FORM
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i0
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § i189)
STATE OF ~)
COUNTY OF )
On
a Notary PublVic in an~d for said County and Sta~e,, personallyappeared
or p_roved Co me on the basi~ o~ satisfactory evidenc~ to be the
person~ whose name~)~s/a~e subscribed to the within instrument
and acknowledged to me that ~K/she/th~y executed the same in
h~/her/t~ir authorized capacity($~), and that by ~i~/her/th~r
signature(~) on the instrument the person O~, or the entity upon
behalf of which the person~ acted, executed the instrument.
WITNESS my hand and official seal.
Signature of Notary Public
Comm. #1052881ARY PUBLIC CAL|FORNIA~SAI’4TA CLARA COUNTY
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ii
EXHIBIT A
BELOW MARKET RATE HOUSING PROGRAM
FISCAL YEAR 1996-1997
SCOPE OF SERVICES
Contracto~ 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:
i) Provide information and advice to interested persons and
housing seekers about the City’s BMR ownership and rental
programs
2) Maintain and update the BMR ownership waiting list, as
appropriate ...... ~
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) Work with City staff to achieve compliance with, and
enforcement of, the deed restrictions for the BMR ownership
units
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 situations involving the preservation of BMR
ownership’units.
6) Certify tenants’ income eligibility for occupancy in the
BMR ~ental units at Southwood Apartments, the Mayfield
Apartments and the ii00 Welch Road apartments
7) Provide advice and consultation to City staff regarding
negotiations of BMR agreements for new housing development
projects, including evaluation and negotiation related to
the acquisition of properties contributed in-lieu of on-site
units.
8) Assist City staff in completing a comprehensive
evaluation of the BMR program
Exhibit A
Page 2
9) 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 1996-1997
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 and direct expenses and materials up to a maximum of
$50,000. 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:
i. .Staff salaries for time spent on BMR activities at
approved hourly rates including direct salaries, payroll
taxes, benefits, workegs 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.,
to conduct the activities described in Exhibit A, such as:
Postage
Advertising
Conferences and Training
Office supplies
Outside Services
Printing/Duplicating
Other necessary direct expenses
EXHIBIT C
INSURANCE REQUIREMENTS
POLICY MINIMUM LIMITS OF LIABILITY
WORKERS’
COMPENSATION
COMPREHENSIVE
AUTOMOBILE
LIABILITY,
including owned,
hired, and nonowned
automobiles
Statutory
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 ......~. ea.
occurrence
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/Planning 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 00709SI
EXHIBIT D
CER TIFICA TiON OF NONDISCRIMINATION
Certification of Nondi8~;rimination: 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 To communicate this policy to all persons concerned, including all
employees, outside recruiting services, especially those serving ~...rg. inority
communities, and to the minority communities at large.
3.0 To take affirmative action steps to hire minority employees within the
organization.
4.0 To be knowledgeable of the local, state, and federal laws and regulations
concerning affirmative action policies and provide opportunities for
employees.
Firm:
Title of Officer Signing:,
Signature
Date
Please inclu~le any additional-information available regarding equal
employment programs now in effect within your company.
opportunity
(Please attach ~:lditlonel psge~ if necessary)
END OF SECTION
CITY of PALO ALTO: Non-discrimin’ation (5/931 SECTION 00410-1
Palo Alto Housing Corporation "
540 Cowper Street. Suite 201 ¯ Palo Alto, California 94301 ¯ (415) 321-9709 ¯ Fax (415)
Ken Schreiber, Director of Planning and Community Environment
City of Palo Alto
P.O. Box 10250
Palo Alto, CA 94303
Re: Contract to Administer Below Market Rate (BMR) Program
Dear Ken:
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 1996-97 for a maximum amount of
$50,000.
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 BM:R 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. We
are often approached by other cities about developing inclusionary zoning programs, and have
done some consulting with the Cities of Cupertino and Portola Valley.
The fees PAHC charges for these services are based on an hourly rate 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.
Historically, PAHC has been paid on a reimbursement basis for hours spent. It would provide
more security to PAHC if the contract was a fixed sum amount for services provided. However,
we are looking forward to continuing work with you and the City staff on this important City
program.
Sincerely,
PALO ALTO HOUSING CORPORATION
cc: Cathy Siegel, Housing Coordinator