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Home My WebLink About2003-03-31 City Council (10)City of Palo Alto TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: SUBJECT: MARCH 31, 2003 CMR:209:03 APPROVAL OF SUBORDINATION OF DEED OF TRUST OF EMERGENCY HOUSING CONSORTIUM PROPERTY AT 2011 LITTLE ORCHARD STREET, SAN JOSE, TO FACILITATE EXPANSION OF HOUSING FOR THE HOMELESS RECOMMENDATION Staff recommends that the City Council approve subordination of the Deed of Trust of 2011 Little Orchard Street, San Jose, owned by the Emergency Housing Consortium, Inc., to a new construction loan in the amount of $1,045,500 in order to facilitate construction of affordable housing units on the property and authorize the City Manager to execute the necessary documents. BACKGROUND On May 16, 1994, the City Council allocated $50,000 of Community Development Block Grant (CDBG) funds to Emergency Housing Consortium Inc. (EHC) for the acquisition of a building in San Jose, to be renovated to serve as the Boccardo Regional Reception Center for the homeless. On April 7, 1997, the City Council approved an agreement (Attachment A - CMR: 191:97) which secured the $50,000 CDBG funding for acquisition of a property at 2011 Little Orchard Street, San Jose, with a Promissory Note and Deed of Trust in effect for thirty years. The cities of San Jose, Santa Clara, Mountain View, Sunnyvale and Santa Clara County also provided funding for the project and encumbered the property with similar grants. One of the conditions of the Promissory Note between the City and EHC states that the "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 without the prior written consent of City." CMR:209:03 Page 1 of 3 DISCUSSION In January 2003, Emergency Housing Consortium contacted the City concerning their proposal to build ten studio apartments for transitional housing on the property in a new two-story building located in the parking lot adjacent to the reception center. In order to secure a $1,045,500 construction loan for the project, EHC has requested the permission of the six cities, including Palo Alto, to subordinate their 1997 grants for the reception center. In order to facilitate timely funding of the construction loan, it is paramount that the six cities with legal encumbrances on the property subordinate their individual pant funding as soon as possible. All of the other cities are in the process of preparing the necessary subordination paperwork and require either City Council or City Manager approval of the subordination of the Deed of Trust. The proposed development of the ten housing units is not anticipated to inte~Yere with the ongoing operation of the reception center. During the construction period, the Boccardo Regional Reception Center would remain open and continue to offer services unchanged to homeless individuals, couples and families from the region, including Palo Alto, as it has done for many years. RESOURCE IMPACT There is no financial impact to the City. the same. The terms of the original $50,000 grant remain POLICY IMPLICATION This amendment to the Deed of Trust supports one of the Council’s top five priorities, the provision of affordable housing. NEXT STEPS Once the amendment to the Deed of Trust has been authorized by the City Council, EHC will inform lending sources that the City of Palo Alto has approved the subordination, which should enable the loan documents to be processed. The legal documents for the subordination of the Deed of Trust can then be prepared, executed by the City Manager, and recorded. ATTACHMENTS Attachment A: CMR: 191:97, dated 4/7/97 PREPARED BY: e Planning Manager C~’R:209:03 Page 2 of 3 DEPARTMENT HEAD REVIEW: Director of Planning and Community Environment CITY MANAGER APPROVAL: HARRISON Assistant City Manager CMR:209:03 Page 3 of 3 TO: C ty HONORABLE CITY COUNCIL 3 FROM:CITY MANAGER DEPARTMENT: Planning and Community Environment DATE: SUBJECT.: APRIL 7, 1997 CMR:191:97 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 REQUEST 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. RECOMMENDATIONS Staff‘recommends that the City Council: Approve the attached Agreement (with its attached form of promissory note and deed of trust) 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 tow income and homeless persons in Santa Clara County. 2)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. Page 1 of 3CMK: 191:97 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 !997. However, nei~borhood 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 Cit%r Council reprogrammed the 1994-95 CDBG funds from the Timothy Drive site to the new site at 2011 Little Orchard S~reet 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 beg~in 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 i~om federal funds througA 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. The report 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 Remc~val 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 KENNETH R. SCHREIBER Director of Planning and Community E~)~nment CITY MANAGER APPROVAL: ~3~ FLEM~ ( / ~ Manager .\/ CC:Barry Del Buono, Emergency Housing Consortium CDBG Citizens Advisory Committee C!vlR: 191:97 Page 3 of 3 AGRE~ NO. BETWEEN THE CITY OF ~PALO ALTO AND EMERGENCY HOUSING CONSORTIUM, INC. FOR THE PROVISION oF 1994-1995 COM3KINITY DEVELOPIqENT BLOCK GP~ANT FUITDS 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 ~Fac!l!ty ) ; andOrchard Street in San Jose (the ’ " " 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 970~22c~CDBG with Federal Regulations; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions set forth in this Agreement, the parties agree: !. PROJECT DESCRIPTION a. This project includes acquisition and rehabilitation of a shelter site at 20!1 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 (!25) 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. PROVISION OF FUIZiDS 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 architectura! and engineering costs, demolition work, roof replacement, and other interior and exterior rehabilitation work, as more fully described in "Exhibit "B", "Budget" 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 shal! make funds available to BORROWER on the following basis: ’ (!) CITY has reviewed and approved the bidding process and t~e 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 shal! 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. ~SE3_~. TERMS OF LOAN AND CIIRT~Y 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 shal! 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 i, 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 parties expressly 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 nul! and void, and the note shall be canceled without further act by any party hereto, and the Deed of Trust shal! be deemed null and void and City shall record a full reconveyance on.the property. 970322ceCDBG 3 c. This shal! be a simple interest, noncompounding !oan 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 shal! be deferred until July !, 2027, as long as BORROWER continues to comply with al! terms and conditions of this Agreement. Both principa! and accrued interest shall be forgiven by the CITY after thirty (30) years (July !, 2027) if BORROWER has satisfactorily complied with al! 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 al! accrued interest and any other costs or amounts due prorated, annua!ly. d. In the event that BORROWER agrees to, and actually does sel!, 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 al! 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. ~ RE~AB!LITATZON OF pROJECT PROPERTy 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 wil! 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 approva!. 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 RESmRTCTIONS 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 Paio Alto. b. The use of the facility Wil! be in accord with al! applicable City of San Jose regulations and ordinances and the eligible activity provisions of the Acts, and a!! regulations issued pursuant thereof. BORROWER shal! provide certification of eligibility on an annua! basis unless more frequently requested by CITY and shal! maintain documentation as required by CITY. c. BORROWER shal! use the Facility as a regional shelter for homeless persons and shal! 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 sha!l be immediately due and payable to CITY: (Z) 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. NO_b-RELIGIOUS ACTIVZTY 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 Deve!opment 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 institution or organization; and b.Agrees that, in connection with such services: (!) It wil! not discriminate against any emp!oyee or applicant %or employment on the basis or religion and will not limit employment or give preference in employment to persons on the basis of religion; (2) It wil! 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 wil! 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. 7. REPORTS a. 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 al! 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 !ow and very low income persons as defined by the HUD Section 8 income limits issued by the Secretary of Housing and Urban Development (HI!D) for purposes of the CDBG Program. For purposes of this Agreement, all homeless persons are eligible clients. BORROWER shal! 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 participants. Unduplicated participants shal! be defined as clients who are housed at the shelter and are ~ounted only once for the fiscal year. Intake sheets shal! be maintained on file for each unduplicated participant. Project shall submit annual client reports to CITY during the term of this Agreement, which contain information from intake sheets. These reports shal! be submitted within thirty (30) days of the end of the fisca! 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 written permission of the applicant, such information shal! be divulged only as necessary for purposes related to the performance or evaluation of the services and work-to be provided pursuant to this Agreement, and then only to persons having responsibilities under the Agreement, including those furnishing services under the project through subcontracts. COMPLIANCE WITH FEDER/LL REOUZREMENTS BORROWER agrees to comply with the following Federal laws, regulations, and procedures: a. Uniform Administrative Requirements for Nonprofit Organizations (OMB Circular A-f10), 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-!22) . 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 nationa! origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federa! financia! assistance. d. Title VIII ofthe Civil Rights Act 0f. 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, co!or, nationa! 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 that 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 Federa! financia! assistance. h. Section 3 of the Housing and Urban Development Act of 1968, which requires that t0 the greatest extent feasible, opportunities for training and employment be given to !ower-income persons within the unit of loca! government 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 !1063-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 residentia! 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, nationa! origin, handicap or familia! status. S70322ceCDBG k. Conflict of interest regulations as contained in 24 CFR570.6i!, which require, among other thi.ngs, that except for approved eligible administrative or personne! costs, no person who is an employee, agent, consultant, or officer of the BORROWER may obtain a pqrsona! or financia! 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 24CFR570.61i (d),that such as exception wil! serve to further the purposes of Title I of the Housing and Community Development Act of 1974, as amended. !. Executive Order 1!246, 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 shal! be discriminated against on the basis of race, co!or, religion, sex, or national origin in al! 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 shal! 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 wo.rk and services herein specified, BORROWER shall not discriminate against any employee or applicant for employment because of race, co!or, religion, sex or nationa! origin. BORROWER shal! take affirmative action to ensure that applicants for emp!oyment are employed, and that employees are treated during emp!oyment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: emp!oyment, 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 shal! post in conspicuous places, 970322ceCDBG available to employee and applicants for emp!oyment, notices to be provided by the Federa! government or the CITY setting forth the provisions of this nondiscrimination clause. BOP~ROWER shal! state that al! qualified applicants wil! receive consideration for emp!oyment without regard to race, color, religion, sex or national origin. BORROWER shal! incorporate the foregoing re.quirements of the paragraph in al! of its contracts for program work, and wil! require all of its contractors for such work to incorporate such requirements and al! subcontracts for program work. o. The requirements relating te smal!, minority and women’s business ente_~prises 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. !2432 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 Re_ocauion Assistance and Rea! 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 provis.ions 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 Of !974, as amended, relating to conflicts of interest (codified at California Government code Section 87000, et seq.). BORROWER wil! promptly advise CITY of the facts and circumstances concerning any disc!osure made to it or any information obtained by it relating to conflicts of interest. u. Partisan Activity Prohibited. No funds provided in 970322ceCDBG i0 the Ag_e~m_nt shal! be used for any partisan mo!itical activity or to further the election or defeat of any uandidate for public office; nor shall they be used to provide Services, or for the employment or assignment of personnei ~in a manner supporting or resulting in the identification of programs conducted pursuant to this Agreement with the fol!owing: (!) any partisan or nonpartisan politica! 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 e_ec~ion; or (3) any voterassistance in connection with any such 7 ~ registration activity. Participants emp!oyed in the administration of the CITY’s Community Development B!ock Grant Plan and /or program, and participants whose principal emp!oyment is in connection with an activity financed by the Community Development Block Grant Program or its proceeds are subject to limitation on political activities under the Hatch Act (5 U.S.C. !502(a), !SU.S.C. 595). Al! participants may take part in nonpartisan activities outside working hours. v.Lobbying Prohibited. (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 gmployee of a member of congress in connection with the awarding of any Federal contractor, the making of any Federa! grant, the making of any Federa! 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 Federa! 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 .emp!oyee of Congress, or an emp!oyee of a Member of congress in connection with this Federal contract, grant, loan, or cooperative agreement, the BORROWER shall complete and submit Standard Form ---LLL, "Disclosure Form to report Lobbying," in accordance with its instructions.. 970322ceCDBG !! (3) The BORROWER shal! require that the language of this certification be included in the award documents of al! subawards at all tiers (including subcontracts, subgrants and contracts under grants, !oans and cooperative agreements) and that al! subrecipSents shall certify and disclose accordingly. This certification is a materiai, 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 !352, 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 ($!00,000) for each such failure. w. Flood Disaster Protection. Not withstanding any other provision of the Agreement, BORROWER shal! comply with the F!ood Disaster Protection Act of 1973, 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 shal! be used for acquisition or construction purposes as defined under Section 3(~)of said Act for use in an area identified by the Secretary of HUD as having specia! f!ood hazards which is located in an area not in compliance with the requirements for participation in the Nationa! Flood Insurance Program pursuant to Section 20!(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 shal! 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 residentia! 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 shal! comply iwith 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 required under such regulations are imposed by State or local law, -nothing hereunder is intended to 970~Z2ceCDBG 12 relieve BORROWER of its Obligation, if any, to require payment of the higher rates. BORROWER shal! cause or require to be inserted in full in al! such contracts subject to such regulations, provisions meeting the re.quirements 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 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 residentia! 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. Compliance 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 fol!ows: (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 Environ~enta! 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. !957c-8), and Section 308 of the Federal Water Pollution Contro! Act, as amended (33 U.S.C. 1318), relating to inspection, monitoring , entry, reports and information, as well as al! other requirements specified in said Section 114 and Section 308, and al! regulations and guidelines issued thereunder. S703Z2ceCDBG 13 (3) B0~ROWER 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 !.!0 will be included in every nonexempt subcontract and BORROWER shal! 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 6ise 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. !0. INDEPENDENT CONTRACTOR BORROWER and 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. !!.HOLD H~_RMLESS 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 persona! 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 counse!, reasonable acceptable to the City Attorney. 970322ceCDBG 14 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 ~ ’ ! misrepresentation of any nature with respect to made any ma~er!a any information or data furnished to CITY in connection with the project. b. If there is pending litigation with respect to theperformance by BORROWER of any of its duties or obligations under this Agreement which may materially jeopardize or adversely affect ~’n the.carrying out of the project.the un~ertakl g of or - 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 ~omp!y 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 shal! give BORROWER fourteen (14) days’ written notice of its intention to withhold, suspend or terminate payment under this paragraph. Such notice sha!l specify the actions, if any, which must be taken by BORROWER before payments wil! be resumed. 13.TERMINATION OF AGREEMENT CITY may terminate this Agreement immediately (by giving written notice to BORROWER of the effective termination date stated 970322ceCDBG 15 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 al! required records pertaining to the project for three (3) years after the end of the term of this Agreement and al! other pending matters are closed. BORROWER shall provide ~JD and/or 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 norma! 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 shal! have access to and the right to examine its work site, offices and facilities engaged in the performance of this Agreement, as wel! as the right to interview emp!oyees engaged in activities under this Agreement for the purpose of verifying compliance with applicable Federal regulations. 15____~. 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") shal! be reported by BORROWER to CITY on a quarterly basis. Al! Program Income shall: (!) 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, shal! 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 shal! be used by BORROWER solely to further project activities. b. Rents or other income collected which remains 970322ceCDBG 16 unspent at the end of the term of this Agreement shal! be used by BORROWER solely to further project activities or shal! be reimbursed to CITY. c. Rents .or other income received after the term of this Agreement shal! 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 nationa! 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. 17____~. D!S~OWED 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 opportunity to respond to any adverse findings which may lead to disallowed costs. The City’s Program Manager shall make the fina! determination of disallowed costs, subject to the provision of OMB Circular A-87, Cost Principles for State and Loca! governments; OMB Circular A-II0, Grants and Agreements with Institutions of Higher Education, Hospitals and Other Nonprofit Organizations; OMB Circular A-!22, Cost Principles for Nonprofit Organizations; and applicable HUD regulations. !8____~ AUDZT, S, BORROWER shall submit annual audit reports, which conform with the requirements of OMB Circular A-!33 for Nonprofit Institutions. In addition to the provisions of OMB Circular A-133, .the audit shal! identify in a Schedule of Federal Assistance the revenue as received and disbursed in accordance with the provision 97032ZceCDBG 17 of this Agreement. BORROWER shal!, 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 a!! insurance requirements or require additional insurance to that detailed in Exhibit "C". 20.PROGraM EV~UAT!O~ 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 annua! program evaluation report summarizing the information obtained through the program evaluation system. 21. TP~ANSFER OF RIGHTS, This Agreement shal! not be assigned without the exp_ress prior written consent of the CITY and any attempt to do so may be, at the sole d!screulo 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 shal! expire July i, 2027 and al! obligations of BORROWER shall continue during the term of this Agreement. 23.PROJECT COORDINATION a.CITY: City Manager, 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 sha!I be under the overall direction of the City Manager. 970322ceCDBG 18 b. BORROWER: BORROWER shal! assign a single Project Director who shal! 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. {ORROWER’s Project Director will cooperate with CITY’s Program Manager relating to the project, areas of concern and the impact of project on residents of CITY. c. NOTICES: Al! notices or other correspondence required or contemplated by this Agreement shal! be sent to the parties at the following addresses: CITY: Copy to: City Manager City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Director of Planning Environment City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 and Community BORROWER: Executive Director Emergency Housing Consortium, Inc. P.O. Box 2346 san Jose, CA 95109 970322ceCDBG 19 IN WITNESS WHEREOF, this Agreement is executed 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 EMERGENCY HOUSING CONSORTIUM, INC. Director of Planning & Community Environment ATTACHMENTS: EXHIBIT A Service Management Plan EXHIBIT B Budget EXHIBIT C Insurance Requirements EXHIBIT D Promissory Note EXHIBIT E Deed of Trust 2O CERTIFICATE OF ACKNOWLEDGMENT civi! Code§ 1189) in and for said County and State, personallya Notary ,~ub!ic or proved’ 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 officia! seal. Signature of Notary Public Exhibit A Service Management Plan EMERGENCY HOUSING CONSORTIUM THE RECEPTION CENTE’R SERVICE M_ANAGEMENT PLAN I.INTRODUCI~ON ¯The Reception Center is envisioned as a replacement for the Cold Weather Shelter currently located at the San ]os~ National Guard Armor), and operated by Emer- ’ ~ .....the City of ’ ’gency Housing Consortium, in cmhborauon w~m San joe% ana tne County of S~nta Clara. The Reception Center, which wil! be ownea an~ op_, =. ~ Emergency Housfng Consocfium, wil! be open yea>round and offer shelter, bask needs assistance and support services to homeless people. The center wil! be st~fed 24-hours per day, 7-days per week. The purpose of this service management plan is to set forth a strategy whereby the center wi!! meet the needs of homeless cEents with the objective of transitioning them either directly to stable housing or to service agencies which can address their !onger 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 pro~ams, 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 p~ple. This includes beds for em_ro-ncy shelter and beds for transitiona! living. The center will offer an initial period of emergent, shelter for up to 14 days with the op~on to enroll in a service-enriched Trans[fion~l Living Program which provides shelter and case m~gement-based sup?oft services for up ~o 90 d~ys, 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 addiffonal 125 seasonal shelter beds. The number w~.ll depend .on the level of need, the availability of resources, and ad- herence to all local permit requirements. ~ 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 suppo~and education services that wil! help them find and maintain housing, income and stability in the commmnity. Reception Center Emergency Service Management Plan 1 - Housing Consortium ¯connmu[u ~rThe center will function as a vita!co~,LmonenL-- ~ in this C~e which combines emergency shelter and othe~ emergency assistance, trams[- tional, housing, affordable permanent housing, support services, education and job trining, easy access to social services, and collaboration with the local commun[U< III. TARGET POPULATION AND LENGTH OF STAY A. Adults: This center wi!l serve homeless adults and a small number of homeless families. Every person who requests shelter will be initially allocated a shelter bed for a i4-day period. If, during this period, a person does not sho>; up at the center by 9 p.m., (except by prior arrangement), the bed wil! be given to another person and the !- week stay agreement wil! be canceled. Following this initia! 2-week period, an indi- vidua! may enroll in the Transitiona! 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 to jointly assess their needs, set goals and design a strategy’ to achieve these goals. During the first two weeks an Advisor wilt work with each moav~o.ual to assess their needs for service and their readiness to participate in the Transitional Living Progr~. This assessment is likely to result in one of the following scenarios’ 1. if the client can benefit from t’ansitionaI housing or other specialized se~,ices outside the Reception Center, he/she is willing to go, and space is available, then he/she is enrolled in that program immediately. 2. If the person can benefit from another program, is willing to go, but space is tem- porarily, not available, the Reception Center ",,viii 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. if the person does’not require spedalized services or long-term housing assis- tance, and he/she is willing ~o 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 wil! thenenroll in the Reception Center’s Transitional Living Program. Participants in the Transitional Living Program may stay for up to 30 days, rene~vable on the discretion of the Advisor, up to a maximum stay of 90 days. During their stay they witl work with ~n Advisor to develop and low their individual service plan. They w[!! also be required to pm-ticipate fully in program activities and workshops. Finally, it is estimated that the number o~ clients in the Transitiona! Living Program will increase during the period from April through October. Reception Center Service Management Plan Emergency Housing Consortium ’~ IX the person is not willing to work on personal goals or shows no signs of progress towards these goals, a multi-disciplinary team, in~nuamg th~ Advisor, client and other appropriate outside agency staff, wilt review this person s history a~nd recommend a strategy for assistance. This review may merely include a sv,-ategy on how to.protect this person when he/she returns to the street. 5. There a~-e individua!s who on!y seek shelter as a "Safe !-Iaven" aurmg inclement weather or who, because of mental illness or substance abuse, ~re unwff!ing or un- able to follow ~n [nd[viduA service pMn or other prozr~mrules- These people will be ~ble to ~ccess temporary shelter at the Center, or they will bs referred to ~e H~ven program opsratea by InnVision, or to o&~r shelter programs in the ~re~. Shelter Advisor wil! work with them throughout their stay to help ensure their transition to ~nother shelter/or place of residence. After ~ two-week "S~fe H~ven" period, the Shelter Advisor wii! refer these incnv~au~!~ to the multbdisd~lin~ry. te~m, at whose discretion the stay may be extended. At no ffme shall "S~fe H~ven" stays represent more th~n 25% of the tot~l number o~ guests. However, in ~!! Haven" cases, the assigned Advisor w[!l offer whatever protectl0n the person requests upon his/her transltfon to a new shelter or return to the streets. 13. Fame.lies: A separate space wil! 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 mdepenaent sleepmo, bathroom, and dining facilities that may be made available for homeless families. The Reception C-enter will provide safeshelter for homeless famllles who ~re w~t[ng for a vacancy at a f~mily shelter or translt[on~i housing pro~am. The assigned Advisor wffl p[ovide ~dvocacy to assist them in locating a shelter pro~m or living situation to-suit their needs. . C. Adult Addicts: A separate space will be provided for those whose objective is to seek a recovery from an addicffve drug. The period of time, which will be designated as ~ "respffs stay" at the Reception Center, w[i1 be 5 to 7 days, after which individuals wffl be tr~sferred to ~ outside recovery program. If, at ~y t[me during this respite stay, the assi~ed Shelter Advisor assesses--v[a a breathal[zer exam--~at the person requires detoxlficatlon~ he/she wlll take the necessary steps to refer th~ guest detoxlffcation progr~. Also, thfs Shelter Advisor wffl work with these uals, to estab![sh clear goals and objecffves and to ensure that they are ~ble to ~ccess those Services. appropriate to their needs. This respite service w-ill reauire that participating recosery agendes commit a cer- tain number of recovery be*de for those "on hold" in a respite bed at the Recepffon Center. EHC staff "will collaborate with. these agencies to ensure this vita! service link is maintained. The participating recovery agency will continue to cas+man~ge these individuals ~.ntil the transfer to their program is accomplished. This compon- Reception Center Service Management Plan -3- Emergency Housing Consortium ent of the program wl!! provide a safe, sober lh, ing environment for indlvldua!s who wish to enro!l in a recovery program but are waiting for a vacancy. D. Homeless Youth: The ilece,~tion Center Advisors wil! identify homeless, runaway and victimized youth who are under 18 years and make an ~mmemate referrals to the appropriate youth procaine alnd homeless youth shelters. IV.SER\qCE DESCRIPTION " A.Shelter Accommodations: Lndividua!s will be provided with shared cubicle accommodations with bui!t-in storage faci!fties. Accommodations are divided into separate m-eas for men, women, and families. Transitional L~.ving Program accommodations will feature a greater leve! of privacy and more facilities including storage and rna~.l boxes. On-Site Services: !25 yem--round shelter beds in shared cubicles with seDarate quarters for families, persons with substance abuse probl’~ms,and for ~nd~’$iduals in the "Transitional Living Program; Up to 125 winter shelter beds; Showers; Breakfast, lunch and evening meals; Laundry service; Assessments related to housing, socia!, physical, psycho-social and work needs -- development of individual service plans with spedfic 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 wi!! be ~rovided by a team of Et--IC Advisors in addition to representatives from service providers whose clients are receiving temporary shelter services. Case-conferences will be provided by teams, with members representing on-site and off-site services; Information and referral services wil! include comprehensive listing[ of social, education and support services in addition to a streamlined referral service to help Reception Center clients access the long-term housing ~nd supportive ser- vices they may need. . . Primary and preventative health care services including general medical, podia- try, and possibly dental and optical; A full program of workshops wi!l be provided for all center clients. Workshops wlll be provided by EHC st~fff, communffy volunteers, corporations, non-profit organizations, and public agencies. The Community Resource Developer is r~ sponsible for organizlng, recruiffng, and scheduling workshops at the center. Reception Cente r Service Management Plan -4- Emergency Housing Consortium Topics are likely to include housing search, land!ord and tenant law, budgeting, shopping and ~utridon education, )oh search, interviewing sk!lls, risum4 v,v[t- ing, sd~= <=-~t~m~. building, substance abuse education, ~aren~mg,, and children’s activities. Substance ~buse education ~nd .counseling wil! be provided in ~dd[tion ~o m~[n- ~a[n[ng a sobqr living environment w[~h referral access to recovery programs. Transportation to other shelters and service providers w[!! be made av~lable e~mer through bus passes and/or a van de![very service. C. Hours of Operation: The Reception Center wi!l be sLa~r~d and services wil! be prov~aea on a 24-hour basis, l-he majority of clients wil! be away from the premises during the d~y -- either working or in the pursuit of housing or employment opportunities. C~se management and other on,on-one meetings, workshops and educmdon services will be provided during the day and in the evening to ~ccommod~te clients ~,,’i~ ferent schedules. Clients m~y remain on-site during the d~y to attend these acffvi- ties or use the community resource materiais. D. Off-Site Services: The majority of clients using the Reception Center will access additional services from outside agencies. Service Agreements will be developed which spell out the resr)onsibi!ldes of both parties, related to how off-site agencies will network wi~ the ReCeption Center (and EHC). These ~greements w~ll ~dentffy any ~ddttional costs assodated wiin the networking efforts and, where appropriate, establish con~actuM relat[onsh[p~ 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, disabilityissues, 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 wilt be responsible for: o Conducting assessments on every person who enters the Reception Center ~nd carrying Out m-ty 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 Service Management Plan -5- Emergency Housing Consortium D.~dom.n= individua! service plans for those who are enrolled in the Transitional Living Program. The Advisor will work with their client to identify needs, establish personl goals and design ~ strategy to Progress toward these goals will be monitored ove~ throe. Meetfng with the Multl-D[sdplinary Team to deter~ne the disposition o[ those not willing to develop an individual service plan, or are not m!<ing any pro~ess relmt~ to an existing individu~ service ~orking with o~h~r admini5~ative staff 1o ensure that the gue~<~ ~e sa~e and secure. it is estimated that there wi!l~ be a need for 7 year-round Advisors who would have a case load of no more than 20 (approximately 7 emergency shelter clients and 13 transitional living clients). During the winter months, ~n addition~[ 5 Advisors wi!! each provide assessments .and c~se management services for approximately 25 clients. Al! Advisors will complete intake ~nd needs assessments with incoming clients in addition to providing case management services. C. Other Admi.nistrat[ve Staff: in addition to the Management staff and Advisors, Ei-tC wil! provide the services of the following personnel: a Community Resource Deve!oper,.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 progr~s; a lobs Developer, responsible for helplng the guests find and-mafntin employment; a ~ood Service ~anager, responsible for planning, purchasing sup- plies and supervising meal servke; Cooks, responsible for preparfng ~d serving meals for all populations served on site; Laundry workeri, responsible for clewing the linens used by the guests on a dally basis; Day Care staff, responsible for wor~ng with the children of the father belng sheltered; and Maintenance and Janitorial workers, responsible for the physical upkeep of the fadHties. D. Contracted Agency Staff: There are staff who wil! be supported under the Reception Center budget and who may provide some on-ske 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 wil! serve as members of the multi-disciplinary teams. Examples of such agendes may include other shelter/transitiona! housing providers and a private securi~ firmto patrol the neighborhood area surrounding the Center. E Non-Contracted Outside Agency Staff: These will be st~f who are not in the Reception Center budge.[ but who will be in- vited on-site to assist in the trans[tioning of persons to of[-slte programs or as part the indfvidual’s service pith. Examples of such agendes m~y include Fatty Heith Foundation of Alviso, RotaCare Clinks, the Department of Veteran’s ~fairs, etc. Reception Center Emergency Housing Consortium Service Management Plan -6- F. \r oltunteers: Volunteers from the local community will be involved in man)." aspects of the p~e)en~mo workshops, and prepS_ring arid serving meals.program operations, from - -~; ~ VI. OpEIIA.TI O_.N S ADI-’iou.rs of Operation:"’" "" 24 per 7 days per week thoughTl~e program will be open ~nd s~ar~ed hours d~y, majority of ~c~[vi~les wilt be provided between 5:00 p.m. ~nd 9:00 a.m. to allow clients [o work or pursue housing or employmen[ oppor~nlfies ~; "~ have the ~omblned effect of providing flex[blli[y ~o bet[er mee~ [he needs of homeless and reducing the numbers ~ravellng ~o or from the ~entar at one dme, while maintaining affordablli[y be<ause .of [he reduced need for supervisory daring [he day. B. Space Plan: The Reception Center site will have a walled courtyard at the entrance to provide waiting area for center clients. There wil! be separate reception areas for individuals and families to complete [n[ake assessments and check-in. A Receptionist will be available to answer telephone requests for assistance. This area wi!l ~iso provide information for volunteers and outside agency staff about the center’s s~andar~ operating procedures and emergency services. There wi!l be sembprlvate sleeping areas with built-in storage units .for 125 clients with space and fadllties 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 Programs. And within both of those programs men and women will sleep in separate areas. Also, families with children will have ~’ =" o~.m distinct area for intake, sleeping, dinkng and day care services. Fin~dly, the sl~pmo areas will be ~vmed 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 st~f. There will be an adequate supply of meedng rooms for intake and screening processes for both individuals and families, case management, counseling, and small group meetings. There will be dassrooms for workshops and conference rooms for large group meetings or recreational activities. There will be space for a small clinic that wil! allow the guests, to be seen by doctors, dentists, podiatrists and opthamologlsts. There will be a commercial -l,d[chen and t¢¢o cafeteria-style dining rooms, a larger one for individu~-ls and a smaller one for families. There will be separate wash- rooms and showers for men and women, and a separate shower/toilet fadllties for families. Reception Center Service Management Plan -7- Emergency Housing Consortium There will be space for a small store that wii! allow the guests to obtain supplies and ~’ =~- living situations.toiletries the}; need as they move on to There will be adequate storage areas to store supp!ies for the kit¢hen, shelter, pro- merry management and a~mm~st~aaon. This space will include a workshop needed to centralize site repairs and maintenance. C. Organhational Structure: 1. Policy Board Emergency Housing Consortium is controlled by a volunteer, po!lcy-makJ.ng board comprised of representatives from the community with expertise in social services, ’ " hou~.:.~, education, and business.real estate, finance, puohc ,-i,~ !. Mana~_ement Structure EHC provides a continuum of servkes for the homeless that includes emergency" shelter, transitiona! housing, and permanent housing. Programs include a compre- hensive support and education component, a strong case management base and fob low-up support services. Cht~ E×ecufive Officer of theThe Executive Director, Barry Del Bu.ono, has b==n the "=t Emergency Piouslng 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 ~he agency, under the supervision of the Board of Dkectors. His functions include the supervision of the Deputy Executive Director, Rite Kemic who has been with the agency for more than.8 years. As the Deputy Executive Director, she vdll be directly supervising the Directors of Programs, Finance, Resource Development and Property Management~ The Director of Programs ,,,,’i!! direct!y 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 wil! supervise the Recep- tion Center Manager, who will be responsible for day-to-day operations induing program implementation, evaluation, and superv!sion of staff and volunteers. ReceDtion Center Staffing Director of Programs: The Director of Programs wil! directly supervise the Reception Center General Manager and has responsibility for tie design and eva!uation of the program and the overal! operation of the site. Emergency Shelter General Manager: - This General Manager will be responsib!e for directing the operations of the Reception Center and EHC’s Cold Weather Shelter Programs. Reception Center Service Management Plan -8- Emergency Housing Consortium Reception Center ~’,{anager: This ..Manager wil! provide on-she supervision of opera~tions. This responsibility includes program implementation, evaluation, recruitment a£d supervision of Reception Cen[er~’-~-=~L=~ and volunteers. The Assistant Manager wi!l provide on-site supervision of operations and sup- port to the Shelter Manager. o Food Service Manager: The Food Service Manager will plan and supervise the me~! service. Advisors: A team or .~v~sors will complete in~ake assessments for all clients, maintain a a~.s~ance to clients as needed, and ensure the sate[);case toad of clients, provide --" ~ and security of.the guests while they are at the center. Community Resource Developer: The Community Resource Developer will be responsible for bringing commu- nit), resourceJ 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 e~mrts of the many ~volunteers who will be working in the on-site programs. Jobs Developen The Jobs Developer will be responsible.for helping the guests find emd maintain employment and developing a pool of employers who are willing to employ the homeless. Coo~: Cooks wil! 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 safe~ of the clients. ’.. Parent Co-op: A cadre of adult volunteers wil! supervise the children of families being sheltered so th[t the parents will have the opportunity to pursue their other obligations. Reception Center Emergency Housing Consortium Service Management Plan -9- Secu.db- Staff: A sec~-ity staff will provide 24-hour security for the safety of the dien~s, staff, volunteers and community. EHC wil! contract "with a private secm-lty firm to patrol a one-mile radiusof the Cimino/tlttle Orchard area. This security st~f will patrol all those areas--within that one-mile radius-which naturally ateact people in transit to and from the Center. EHC staff wil! also commu~cate to the guests the travE! routes to and from the Center, those social!y, acceptable gathering sites in the i.rrumediate one-mile radius area, and any restrictions to their gathering or congregating within the same area. Maintenanc e/Custo dia! Staff: The Promerty _~{anagement DeparLTnent of the Agency will oversee ~nd carr,v out a!l maintenance and custodlal-related jobs that this center will require. VII, GOOD NEIGHBOR PLAN A. Advisory Council: EHC staff wi!! meet with interested neighbors to establish an Advisory Council, whose function will include: address questions and concerns; plan re!evan[ activities for the shelter guests; resolve any conflicts that may arise; identify, investigate, and resolve ~ny probtems before, or ~s soon as they occur, relating to sMety ~nd securi7 issues; ~nd advise staff and management of local and/or social concerns a~fec~mo 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 lit-ter along their routes to and from the Center. B. Courtyard: There will be Separate courtyards for individuals and families in order to ensure the b_s~ possmle approach to facilitate their movement toward and their being processed into the center. This area will help minimize any negative impact that the hom~ less population might .have on nearby businesses and homeowners. C. Security: To ensure the safety and security of the guests and the surrounding neighbors, the Reception Center -,viii be staffed at al! times by program staff who will also be responsible for security. Securib’ cameras--installed in appropriate places both inside and outside the building--will be monitored on an ongoing basis, hn adcmmn, EHC wil! contrac~ with a private securib’ firm to patrol, every., two hours behveen 6:00 p.m. and 7:00 a.m., a one-mile radius of the Cimino/Llttte Orchard area. This security st~ff will patrol all those areas--within that one-mile radius--which natura!- ly attract people {n transit to and from the Center. EHC staff wil! also communicate to th~ guests the t~avel routes to and from the Center, those, socially acceptable Reception Center Service Management Plan Ernergency Housing Consortium re~l~.tio~ to theirgathering sites in the immediate one-mile radius area, and an}’ -~-’~ "~- gathering or congregating within the same area. The secuAty patrolling will occur 365 days a ),ear and those involved will report any; suspidous activity to the San ]os~ Police Depar~h"nent and EHC. A nighdy report wi!! be produced by the firm for EHC to document suspidous ate this activib, ~$ith its volunteer patrols. Finally, the Adv[so<y Coundl wi!l serve as a collaborative body to help resolve any security issues that might arise. VIII. TRANSIT PLAN This Transit Plan addresses (!) the t-ranslt needs of homeless guests to access and leave the center in a s~fe and responsible manner; (2) an operations requirement of the shelter to provide a transit plan for guests to access omer aay service ageno.es; and (3) safety, issues of homeless people loitering in the area during the day. This ~lan is designed to provide transportation coverage to meet the needs of the home- less guest, the Reception Center Servke Management P!an, and the loca! business and. n,~ighborhood, community,. A. County Transportation: The proposed site will have 71 individual parking spaces, only 5%.°f the guests have access to their own private transportation. From 12_5 to 250 (during the cold weather months) individuals will arrive at the site. either by, foot or by public transit. To mitigate an), concerns over individuals transiting through the neighborhood and the light industrial area, and to provide for the safe~, of guests commuting to the shelter, public transportation will be promoted. o The Reception Center will ufflize 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 fatuities 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 partidpant at 55.00 per month. It requires that the shelter establish a plan and meet regularly< with transit pass participants and establish a file on each participant, ~duding a case management plan and other certifying information. To be certified to receive the S5.00 pass, shelter guests must meet with Center staff t6 set goals, objectives, end 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 fadlity by public transportation. EHC estimates 75-805o of the g-uests who access the shelter ~acility will utilize public transportation. Reception Center Emergency Housing Consortium Service Management Plan -11 The accompanying Transit Fio~" iX{a~ for-the I~eception Center inclica~.es the most cn~._~t transit routes to and from the Center. This details how homeless guests will be [~ormed ~o properly ac<ess [he Cen~er from bus-s~ops an on ~ogt [HC is work- ing .~ith ~e Tr~sit Authority and the City mad County to obtin a bus stop on M~d~ Or~ard Street at Bernard Avenue, as is indicated on.the Transit Flow Map. This may include moving or ~ele~mg a he.by existing bus stop, B. Shuttle Sere’ice: HHC estimates that 55 to 75 homeless people who -wi!l not use private or public transportation will acces~ the shelter in the late afternoon, from 5:00 p.m. on up to 9:00 or I0:00 p.m. The number of these homeless average 15 to 20 people per ho,~ walking various maior routes 1o the fmdlity. Numbers will decrease as the--o--~=h~ fast and reliable means o[ transportation from the shelter to the Downtown Transit Ma!l. hfost shelter guests will need to begin their daily journeys from the Downtown Transit Mal!. From this origin station, patrons will be ab!e to reach destinations tlm-oughout the Coun~ and Bay Area region, including access to the 5CCTA bus lines and the light rai!, whkh also connects with the main transit center on 5ants Clara Street. Transportation of these individuals wi!l 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. o EHC wi!! contract with a private transportation carrier t0 provide (365 days of the year) two one-way 80-passenger bus trips in the morning from Cimino/LttJe Orchard to the San Josi Downtown Transit Mall and one one-way 80-passenger bus tri~ ~n the afternoon from the Transit Mall to Cimino/Ltttle Orchard. o 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 wffhout 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 wff! use the van services daily. Shelter and EHC administration stMf wil! be trained to operate the vehicle to provide daily and nigh.fly shuttle coverage for the homeless. Depending upon the need, van shuttle stops mayinclude-but wi!! not be limited to--transit malls, hospitals and clinics, child and ad~t day care pr0grmms, other shelter facilities, schools and employment training centers, the emplo]~nent office, and benefit~ centers. Reception Center Emergency Housing Consortium Service Management Plan -12- Exhibit B Budget EMERGENCY HOUSING CONSORTIUM SOURCES At,ID USES OF FUNDS RECEPTION CENTER BLDG SQ FT 35.200 SOURCES OF F.UNDS Ai~,~OUNT C~ty of San Jose. 20% Housing Fund 1,500,009 C~iy of San Jose, CDBG Funds 1,100,0~30 City c~ San Jose, HD Predev Loaf,67,000 C~ty o[ San Jose, Homeless lund 4O0,0O0 Dept, of Housing & Urban Deve!opm 400.090 Counbt of Santa Clara. CDBG 185,000 Los Getos CDBG 10.000 M~lpi~as GDBC Mountain V~ev,,. CDBG 105.000 Pa~o Alto CDBG 50.000 San~e Clara CDBG 200.000 Saratoga. CDBG 35,009 Sunayvate, CDBG 50,009 TOTAL sOU RCES 4,113,000 USES OF FUNDS Land Acquisition 1,990,000 Closing Costs 8,525 Insurance 20.000 Legal 5.000 PropeP~y Taxes 25.000 Appraisal 2,500 Utifities & Maint-=nance 18,000 Architect Schematics/HMC 12,500 Cost Estimator- BSB 22,000 Environmental Report 15,090 Public Relations Consultants 14,500 Alternative Site Analysis 2,500 Repay of Cib’ Predev loanfinterest 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 BiddinglConstrucfion Contingency 105,284 Testing & Special lnspaclions 5,000 Slaking 5.000 Soft Cost Contingency 3,000 Consullant (HACSC)125,000 TOTAL PROJECT COSTS 4,905,614 TOTAL PROJECT COSTS MINUS REPAY OF CITY PREDEV LOAN 4,838,4B0 Projected Shorlfall’ Square ioot cost of building Square lootage cost o! all constructk ’(not including contingency) 7£2,614 46.11 60.30 Page 1 (.9Z r~ 0 ,~" "r P-. I/3 00 O__~ 0V--- n i- ~E ~o © 0 r,"F-f.Z c~~0 o Z o <. 0 ~u © © g g g C :\M:’-.C FILES\EHC03.x!s EMERGENCY HOUSING CONSORTIUM RECEPTION CENTER IMPROV~k,",ENTS REQUIRED B"r’ CUP WITH COST IMPLICATIONS FOR THE PROJECT PROPERTY IMPROVEMENTS ON AND OFF SI-E Security Camera System Off-site lighting (max 20 Security Gate at Mobilh~me park Office/Classroom space TOTAL City Street Lights andSidewalk to be provided by City COST 20,000 45,009 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 EXttXBIT "C" INSURANCE REQUIREMEN~TS 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 Compl:ehensive 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 $1,000,000 $1,000,000 occurrence Bodily Injury ca. person Bodily Injury ca. occurrence Property Damage ca. Bodily Injury ca. person, Bodily Injury ca. occurrence Bodily Injury aggregate Property Damage ca. Any deductibles or self2insured 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 on the first day of the term of this Agreement. Each insurance policy required by this Agreement shall contain the following clauses: o "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." "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 Pit 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. ~ o "Any failure to comply with reporting 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 Be.~t’s 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. c:suz~insure.frm Exhibit D EXSKiB iT "D" PROMISSORY NOTE $50,000.00 Date: Pa!o 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 PAL0 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 CO.MMUNITY DEVELOPMENT BLOCK GRANT FLrNDS (~Agreement"). The Agreement provides that BORROWER is the recipient of certain ConurLunity Deve!opment 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 BORROWER of 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 1974 and 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 !, 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 al! payments made hereunder shal! be credited, first, on the interest then due and, the remainder, on the principal balance, and interest on the principal balance so credited shall thereupon cease. BORROWER,~ any endorser of th~s Note, and any others who may become liable for al! 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 affecting their 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 individua!, each person or individua! shal! 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 consent of 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 completion of any foreclosure and reinstate the Encumbrance; or (2) pay the total unpaid indebtedness secured by such Encumbrance, in which event, such Encumbrance shal! be r@!eased, 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, shal! bear interest at the maximum rate permitted by Article XV, Section 1(2) of the C~!ifornia Constitution, as may be amended from time to time, from the date such amounts were advanced by CITY until paid by BORROWER in ful!. 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 approva! 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 shal! constitute a default under this Note. If any default is made hereunder, BORROWER further promises 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 BORROWER 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 by and 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. Pato 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 ASSIGNMENT OF RENTS (WITH DUE ON SALE CLAUSE) THIS DEED OF TRUST is made on , 1997, between EMERGENCX 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 North First Street, San jose, California 95109, CITY OF PALO ALTO, COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM,("Trustee"), whose address is 250 Hamilton Avenue, Pa!o 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 TO TRUSTEE 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, HOh~VER, 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 ofTrustor set forth in the ~Agreement between the City of Palo Alto and Emergency Housing Consortium, Inc. for 1994-95 Community Deve!opment 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 OF TRUST, TRUSTOR AGREES: i. V~mt~t~ B~od of T~gt. 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 Officia! 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. Droh~h~te~ ~am~9~s. Tl-ustor shall not, voluntarily ~or involuntarily 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 Beneficiaz-y’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 shal! 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 br entity (except as provided herein), upon any such sale, transfer, lease, pledge, encumbrance, creation of a security interest in, or other hyp. othecation 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 Sec%ion 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 for~ 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 individua! units comprising the Project, as such term is described in the Agreement, located upon the Property. 3. D~ ~ N~]~. 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. s~bo~M~t~o~. 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 severa! 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. ~ht~ to ~nts c~]]~cted. Beneficiary, for itself and its successor and assigns, furtheq 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 shal! be utilized for the payment of interest, principa!, or any other charges due and payable under this Deed of Trust. 6. Deed @~ T.@~ o~ ~o~]o~]~e. Beneficiary may cure a default under any of the Prior Recorded Deeds of Trust prior to a conveyance by a deed in lieu of forec!osure. 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 shal! be given at the address stated herein or such other address as may be subsequently, upon written~ notice to the senior lenders, designated by Beneficiary. Beneficiary shal! 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~,~ Not~ee t~ B~e£~a~. Notwithstanding the above requirements, in the event that Trustor contemplates executing a deed in lieu of forec!osure, 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 !ieu 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.~ = . No amendments which have a substantive imPact 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. ~e~t~{ct~m~. Recordation of this Deed of Trust provides constructive notice of certain occupancy and afforda~ility restrictions applicable to the Property, as required by Beneficiary. 10. w~e~t f~r N~ti~ ~9 D~fa~:lt. 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 P~O 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 ind=-btedness, 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 State of ’ Dale ~ Name and ~tie 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 satisfacto~ evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that h~!she!they executed the same in his/hedtheir authorized capacity(ies), and that by ~ ~ ~ ~ ~ his/her/their signature(s)on the instrument the person(s),C~m~#n ~ 1~1~ ~ ~t~b~c--~~or the entity upon behalf of which the person(s) acted, ~~ ~y ~tu c~ ~[executed the instrument. WITNESS my hand and official seal. ~; Signature el No~a~ Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment 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:Signer’s Name: ~ Individual ~ Individual ~ Corporate Officer [] Corporate Officer Title(s): , , Title(s): ~ Partner w [] Limited ~ General [] Partner -- [] Limited ~ General ~ Attorney-in-Fact ~ Attorney-in-Fact " ~ Trustee ~[] Trustee ~ ~ Guardian or Conservator ~~ Guardian or Conservator ~.~ e’.~ Other:I Top of thumb here [] Other:I Top of thumb here ~Signer Is Representing:/Signer Is Representing:/ ~’ 1995 National Notary Association ¯ 8236 Remmet Ave.. P.O. Box 7184 ¯ Canoga Park. CA 91309-7184 Prod. No, 5907 Reorder: Call 3eIFFree 1-800-876-6827 portion of Lot "~ of the W. H, S~one Subdivision, Pusbko Tract ~c. i", ~hich Hap Nunic~pa~ CorForation, by Deed recorded In ~cok F09~, page 37~, Officia[ Lots ~, !0~ !i and ~, a~ said Avonub and Lo~ are =houn on ~ha~ cer£ain Hap state cf Californla, on sopus~er l, 18Sl in Book A of Eap~, ~t Page a p~int in ~ llne uhich i~ par~!leY ~ithand 30,00 foot ~iorthea&ter!y p&~a~el line Sou~h 39~ I0" O0" ~ast!?B,4% fe~t~ thence EaS~er!y along a ~an~cnt ~a~ 330.S6 feS~ tO the True Point Of Beginning; thence continuln~ )~or~h 49° !6’ radius e~’~O.OO ~eou; through a central angle o~ BB° 0~’ 30", an axe length of. 30.77 leer to a point in a ilnm which is parallel with and 4~.00 SouthuoS~riy ~easured a~ right angl~8 from the center !Lne of Little Orchard Wes~ 30.O0 Zeet to the True Point of Beginning, being ~ portion of said Let !~. 2011 Little Orchard Street Sa;~ Jose, CA 95125 EXHIBIT B Beneficiary hereby agrees that this Deed of Trust and the Promissory Note shal! be subordinate to the fol!owing encumbrances: Notice of’Conditiona! Use Permit recorded April 25, 1996 in Book P303, Page 0640 of Officia! Records, Santa Clara County Declaration of Restrictions document recorded May 8, 1996 as Instrument No. 13288324 of Officia! 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 Officia! Records, Santa Clara County Deed of Trust in favor of the City of Santa Clara, recording concurrently herewith in Officia! Records, Santa Clara County Deed of Trust in favor of the City of Mountain View, recording concurrently herewith in Officia! Records, Santa Clara County RESOLUTION NO. 7306 RESOLUTION OF THE COUNCIL OF THE CITY OF PL_LO ~.L.TO APPROVING THE USE OF COM94-~ITY DEVELOPMENT BLOCK GR~_NT FUNDS FOR FISCgiL YEA_~ !994-!995 9UHEP~EAS, on December 13, 1993, approved and adopted the 1994-1995 setting forth non-housing community objectives to meet those needs; and the Palo Alto City Counci! Community Development Plan development needs and the WI~EREAS, on November 15, 1993, the City Council approved and adopted the Comprehensive Housing Affordability Strategy (the "CP~S"), setting forth the housing needs of the City of Pa!o Alto (the "City") and the objectives to meet those needs; and Wq{EREAS, the !994-95 federal Community Development.Block Grant ("CDBG") funds allocated to the City are proposed to implement the following programs; and WHEREAS, potentia! 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 1994-95; and WHEREAS, it is the intent of the CDBG program to give the highest possible priority to activities which will benefit persons with !ow and moderate incomes; NOW, THEREFORE, the Council of the City of Pa!o Alto does RESOLVE as follows: SECTION !. 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 services to Palo. Alto’s elderly residents living in nursing and residential care facilities. Citym, ide.13,000 o Emergency Housing Consortium. Temporary shelter and supportive services for homeless individuals and _~am~_ 14_~s=. Countywide .10,500 940517 h.~ 0020~57 !!.Emergency Housing Consortium. Acquisition of a building to be renovated to’ serve as a regional emergency shelter for the Santa Clara County’s homeless population.!020 Timothy Drive, San jose.50,000 12.~ocia! Advocates for Youth. Additional funds to com~iete rehabilitation project, originally approved in the 1992/93 fiscal year, at the agency’s "Casa SAY" runaway and homeless youth residential facility. 509 View ~treet, Mountain View.10,000 13.City of Pa!o 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 i4.Pa!o Alto Housing Corporation. Acquisition and rehabilitation of Arastradero Park Apartments in order to retain the 66-unit com_mlex as affordable housing for !ower income residents through the federal Low Income Housing Preservation and Resident Homeownership Program. 574 Arastradero Road, Pa!o Alto.345,000 15.-City of Palo Alto. New Housing Development Account. Fundingfor projects which would preserve or increase the number of housing units in the City affordable to persons with !ow and very low incomes. Citywide.279,513 Total: $1,094,5!3 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 una!!ocated 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 CDBG-e!igible programs or projects. The City Manager is further directed to report to the City Counci! following any such expenditures. 940517 i~ 00~-0S57