Loading...
HomeMy WebLinkAbout2001-06-25 City Council (5)City of Palo Alto C ty Manager’s Report TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE:JUNE 25, 2001 CMR:289:01 SUBJECT:APPROVAL OF AN AGREEMENT IN THE AMOUNT OF $75,000 WITH THE PALO ALTO HOUSING CORPORATION FOR ADMINISTRATION AND CONSULTING SERVICES FOR THE BELOW MARKET RATE HOUSING PROGRAM FOR FISCAL YEAR 2001 - 2002 RECOMMENDATION Staff recommends that the City Council: 1. Approve and authorize the Mayor to execute the attached agreement with the Palo Alto Housing Corporation (PAHC) for administration and consulting services for the Below Market Rate (BMR) housing program for fiscal year 2001 - 02; and 2.Authorize the City Manager, or his desi~maee, to administer the provisions of the agreement. BACKGROUND Under contract to the City, PAHC has administered the BMR housing program since its inception in the mid-1970s. The scope of services in the contract includes the sales of BMR owner units, monitoring of BMR rental units, advice and consultation to the City regarding negotiations of BMR agreements with developers and special issues related the program as a whole. PAHC performs most tasks associated with the ongoing operation of the BMR home ownership and rental components of the program. For the home ownership units, PAHC maintains, and annually updates, a waiting list of interested potential buyers. Typically, there are over 300 households on the waiting list to buy BMR units. PAHC also coordinates the sale of newly built BMR units and the resale of existing units. These CMR:289:01 Page 1 of 4 activities include the selection and qualification of the buyer, coordination of the transaction between the buyer, seller and lender, holding open houses and informing buyers of the requirements of the deed restrictions. PAHC maintains a database and files on all units and keeps statistics on the number and characteristics of the households served by the program. Periodically, PAHC conducts monitoring of the 151 owner units in the program. Typical monitoring activities include reviewing assessor’s records to detect transfers in title or ownership and letters to owners to confirm continued residency in theunit. PAHC offers advice and referral to credit counseling services to BMR owners in financial difficulties. The more complex enforcement matters are referred to the City Attorney. With the addition of the initial 63 BMR units at the Stanford West apartments, there will be 101 rental units in the BMR program, located in five different apartment projects. PAHC’s primary responsibility in the rental program is the determination of the eligibility of applicants and existing tenants for the program. The apartment managers prepare the certification documentation and then it is reviewed and approved by PAHC staff. PAHC also monitors each complex’s waiting list and tenant selection process. PAHC has been very involved with the rent-up of the BMR units at Stanford West, training the on-site property management personnel and reviewing tenant qualifications. PAHC also provides advice, consulting and special administrative services for the City on issues connected with the negotiation of BMR agreements or unusual problems related to the preservation of units in the BMR program. Within the last year, PAHC has assisted the City to establish more restrictive gift and asset limits for the BMR homeownership program; to begin development of a program to assist BMR owners facing substantial repair assessments at the Redwoods Condominiums, to evaluate-the affordable housing component of the 800 High Street mixed-use project, and to analyze the potential for housing within the proposed development of the Mayfield school property. PAHC will be continuing to work on the latter three issues in 2001-02. DISCUSSION The BMR program workload has been increasing over the last three years. One factor related to this increase has been the higher level of new housing construction, with eight new BMR owner units and the 68 new BMR rental units becoming available since mid- 1998. Information calls rose sharply as the public heard that new affordable housing would be constructed. There has also been a notable increase in resales of older BMR owner units during the last twelve months. It is not possible to predict if this is a trend. However, it is logical that as the program matures, resales will remain at a relatively high level. PAHC has also had to increase its salaries to retain experienced staff and to fill vacancies; this has pushed contract costs upward. During the 2001-02 fiscal year, staff anticipates utilizing PAHC’s services more extensively for consulting on special activities connected with the BMR program. These activities include the development of a work force housing program for teachers and emergency City workers; addressing the issue of repair assessments for BMR units, particularly the major assessment for the 12 BMR owners at the Redwoods CMR:289:01 Page 2 of 4 Condominiums; and the incorporation of housing into commercial and public facilities developments. To accommodate both PAHC’s current billing rates and the expected prc, :am workload, the budget allocation for this contract was increased to $75,000 for 200 i-02, from the $60,000 level that will be expended in the current fiscal year. RESOURCE IMPACT The $751000 cost of the agreement will be funded from the Residential Housing In-lieu Fund (Residential Fund). PAHC’s services are billed on a time and material basis. The volume of the workload, particularly the sales of BMR owner units, .is difficult to predict. If the full amount of the contract is not expended, the remaining funds are returned to the Residential Fund. This fund has an approximate balance of $1,894,000 ~s of June 1,2001. The Residential Fund is composed primarily of fees received from housing developers, in- lieu of the provision of units, pursuant to Program H-20 of the Comprehensive Plan (the authority for the BMR program). BMR program contract services have been funded from housing fee revenues for the last nine years. Previously, the services were funded, as part of other PAHC activities for the City, with federal Community Development Block Grant (CDBG) funds. However, the HUD requirement that contract costs be allocated by the income level of the households served, and the need to use CDBG funds for other types of housing related services, led to the decision to switch the funding source to local housing funds. POLICY IMPLICATIONS The recommendation in this staff report does not represent any change to City policies. ENVIRONMENTAL REVIEW The approval of an agreement for administrative and consulting services is not an action subject to environmental review under the California Environmental Quality Act. ATTACHMENTS A. Agreement Between the City of Palo Alto and the Palo Alto Housing Corporation For Below Market Rate Housing Program Administrative Services B.Chart Titled: Below Market Rate (BMR) Program Contract Costs, Services and Accomplishments PREPARED BY: Catherine Siegel, Housing Coor~nator CMR:289:01 Page 3 of 4 DEPARTMENT HEAD REVIEW: G. EDWARD GAWF ~’~ Director of Planning and~mmunity Environment CITY MANAGER APPROVAL: EMILY~HARRISON Assistant to the City Manager CC:Palo Alto Housing Corporation CMR:289:01 Page 4 of 4 ATTACHMENT A CONTRACT NO .. BETWEEN THE CITY OF PALO ALTO AND PALO ALTO HOUSING CORPORATION FOR BELOW MARKET RATE HOUSING PROGRAM ADMINISTRATIVE SERVICES This Contract No. is entered into , 2001, by and between the CITY OF PALO ALTO, a chartered city and a municipal corporation of the State of California ("CITY"), and PALO ALTO HOUSING CORPORATION ("PAHC"), a California nonprofit corporation, located at 725 Alma Street, Pa!o Alto, CA 94301 ("CONTRACTOR"). RECITALS: WHEREAS, CITY desires certain .administrative and consulting services ("Services"), in connection with the City’s below market rate housing program as more fully described in Exhibit "A"; and WHEREAS, CITY desires to engage CONTRACTOR, including its emp!oyees, if any, in providing the Services by reason of its qualifications and experience in performing such Services, and CONTRACTOR has offered to provide the Services on the terms and in the manner set forth herein; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Contract, the parties agree: SECTION i. TERM i.i This Contract will commence on July I, ~2001 and shall be for a term of one year. The obligation of CONTRACTOR to perform the Services wil! commence in accordance with the time schedule set forth in Exhibit "A". Time is of the essence of this Contract. In the event that the Services are not completed within the specified time schedule on account of Contractor’s default, CITY’s city manager will have the option of extending the time schedule for any period of <ime. This provision wil! not preclude the recovery of damages for delay caused by CONTRACTOR. SECTION 2. CONTRACTOR QUALIFICATIONS,STATUS,AND DUTIES OF 2.1 CONTRACTOR represents and warrants that it has the expertise and professional qualifications to furnish or cause to be furnished the Services. CONTRACTOR further represents and warrants that the project director and every individual charged with the i 010614 syn 0090832 performance of the Services under this Contract are duly licensed or certified by the State of California, to the extent such licensing or certification is required by law to perform the Services. 2.2 In reliance on the representation and warranty set forth~ in Section 2.1, CITY hires CONTRACTOR to perform, and CONTRACTOR covenants and agrees that it will furnish or cause to be furnished, the Services set forth in the document entitled "Below Market Rate Housing Program, Fiscal Year 2001-2002, Scope of Services" in Exhibit "A". 2.3 CONTRACTOR will assign MARLENE PRENDERGAST, its Executive Director, as the project director to ha9e supervisory responsibility for the performance, progress, and execution of the Services. if circumstances or conditions subsequent to the execution of this Contract cause the substitution of the project director for any reason, the appointment of a substitute project director will be subject to the prior written approval of the project manager. 2.3.1 Not more than forty-nine percent (49%) of the persons serving on the governing board of CONTRACTOR may be interested persons. The term "interested persons" is defined in Section 5227(a) of the California Corporations Code. 2.4 CONTRACTOR represents and warrants that it will: 2.4.1 Procure all permits and licenses, pay all charges and fees, and give al! notices which may be necessary and incident to the due and lawful prosecution of the Services; 2.4.2 Keep itself fully informed of all existing and future Federa!, State of California, and loca! laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this Contract, any materials used in CONTRACTOR’s performance under this Contract, or the performance of the Services; 2.4.3 At all times observe and comply with, and cause its emp!oyees and contractors (and consultants), if any, who are assigned to the performance of this Contract to observe and comply with, the laws, ordinances, regulations, orders and decrees mentioned above; and 2.4.4 Will report immediately to the project manager, in writing, any discrepancy or inconsistency it discovers in the laws, ordinances, regulations, orders, and decrees mentioned above in relation to any plans, drawings, specifications or provisions of this Contract. 010614 syn 0090832 . 2.5 Any reports, information, data or other materia! given to, or prepared or assembled by, CONTRACTOR or its contractors, if any, under this Contract will become the property of CITY and will not be made available to any individua! or organization by CONTRACTOR or its contractors, if any, without the prior written approval of the city manager. 2.6 CONTRACTOR will provide CITY with quarterly reports. With each quarterly billing, CONTRACTOR shall submit a summary chart of statistics about sales and resales of BMR ownership units, in a form approved by CITY, together with information about occupancy of BMR rental units. CONTRACTOR shal! also submit a report, describing in narrative form, other activities undertaken during the report period. 2.7 If CITY requests additional copies of reports, drawings, specifications or any other material which CONTRACTORis required to furnish in limited quantities in the performance of the Services, CONTRACTOR will provide such additional copies and CITY will compensate CONTRACTOR for its duplication costs. 2.8 CONTRACTOR will-be responsible for employing or engaging all persons necessary to perform the Services. Al! contractors of CONTRACTOR wil! be deemed to be directly controlled and supervised by CONTRACTOR, which wil! be responsible for their performance. If any emp!oyee or contractor of CONTRACTOR fails or refuses to carry out the provisions of this Contract or appears to be incompetent or to act in a disorderly or improper manner, the employee or contractor will be discharged immediately from further performance under this Contract on demand of the project manager. 2.9 CONTRACTOR shall provide the project manager and others specifically requested by the project manager with free and easy access to all facilities and activities of the programs hereinafter described. The project manager and others specifically requested by the project manager shall coordinate such access with CONTRACTOR. SECTION 3. DUTIES OF CITY 3.1 CITY will furnish or cause to be furnished the specified services set forth in Exhibit "A" and such other information regarding its requirements as may be reasonably requested by CONTRACTOR. 3.2 The city manager will represent CITY for all purposes under this Contract. The Advance Planning Manager is designated as the project manager for the city manager. The project manager wil! supervise the performance, progress, and execution of the Services. 010614 syn 0090832 3.3 If CITY observes or otherwise becomes aware of any default in the performance of CONTRACTOR, CITY will use reasonable efforts to give writt-en notice thereof to CONTRACTOR in a timely manner. SECTION 4 -COMPENSATION 4.1 In consideration of the full performance of the Services by CONTRACTOR, CITY will pay CONTRACTOR a total sum not to exceed Seventy-Five Thousand Dollars ($75,000), payable within thirty (30) days of submission by CONTRACTOR of its itemized billings. On the billing form provided by CITY, CONTRACTOR shall submit a bill by the fifth (Sth) working day of each quarter for services provided under this Contract during the preceding quarter. The bill shal! specify actual expenditures directly related to this Contract in accordance with Exhibit "B". SECTION 5. AUDITS 5.1 CONTRACTOR will permit CITY to audit, at any reasonable time during the term of this Contract and for three (3) years thereafter, CONTRACTOR’s records pertaining to matters covered by this Contract. CONTRACTOR further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Contract. SECTION 6. INDEMNITY 6.1 CONTRACTOR agrees to protect, indemnify, defend and hold harmless CITY, its Counci! members, officers, employees and agents from .any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, caused by or arising out of CONTRACTOR’s, its officers’, agents’, subcontractors’ or employees’ negligent acts, errors, or omissions, or willful misconduct, or conduct for which applicable law may impose strict liability on CONTRACTOR in the performance of or failure to perform its obligations under this Contract. SECTION 7.WAIVERS 7.1 The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Contract, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder will not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, condition or provision of this Contract or of any applicable law or ordinance. 010614 s.va 0090832 7.2 No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Contract. SECTION 8. -INSURANCE 8.1 CONTRACTOR, at its sole cost and expense, will obtain and maintain, in full force and effect during the term of this Contract, the insurance coverage described in Exhibit "C", insuring not only CONTRACTOR and its contractors, if any, but also, with the exception of workers’ compensation, employer’s liability, and professional liability insurance, naming CITY as an additional insured concerning CONTRACTOR’s performance under this Contract. 8.2 All insurance coverage required hereunder will be provided through carriers with Best’s Key Rating Guide ratings of A:VII or higher which are admitted to transact insurance business in the State of California. Any and all contractors of CONTRACTOR retained to perform Services under this Contract will. obtain and maintain, in full force and effect during the term of this Contract, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 8.3 Certificates of such insurance, preferably on the forms provided by CITY, will be filed with CITY concurrently with the execution of this Contract. The certificates will be subject to the approval of CITY’s risk manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled or altered by the insurer except after filing with CITY’s city.clerk thirty (30) days’ prior written notice of such cancellation or alteration, and that the City of Pa!o Alto is named as an additional insured except in policies of workers’ compensation, emp!oyer’s liability, and professiona! liability insurance. Current certificates of such insurance will be kept on file at all times during the term of this Contract with the city clerk. 8.4 The procuring of such required policy or policies of insurance wil! not be construed to limit CONTRACTOR’s liability hereunder nor to fulfill the indemnification provisions of this Contract. Notwithstanding the policy or policies of insurance, CONTRACTOR wil! be obligated for the full and tota! amount of any damage, injury, or !oss caused by or directly arising as a result of the Services performed under this Contract, including such damage, injury, or !oss arising after the Contract is terminated or the term has expired. SECTION 9. WORKERS’ COMPENSATION 010614 syn 0090832 5 9.1 CONTRACTOR, by executing this Contract, certifies that it is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, befo±e commencing the performance of the Services. SERVICES SECTION i0. TERMINATION OR SUSPENSION OF CONTRACT OR i0.! The city manager may suspend the performance of the Services, in whole or in part, or terminate this Contract, with or without cause, by giving thirty (30) days’ prior written notice thereof to CONTRACTOR. Upon receipt of such notice, CONTRACTOR wil! immediately discontinue its performance of the Services. 10.2 CONTRACTOR may terminate this Contract or suspend its performance of the Services by giving thirty (30) days’ prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY or in the event CITY indefinitely withholds or withdraws its request for the initiation or continuation of the Services to be performed. 10.3 Upon such suspension or termination by CITY, CONTRACTOR will be paid for the Services actually rendered to CITY. on or before the effective date of suspension or termination; provided, however, if this Contract is suspended or terminated on account of a default by CONTRACTOR, CITY wil! be obligated to compensate CONTRACTOR only for that portion of the Services which are of direct and immediate benefit to CITY, as such determination may be made by the city manager acting in the reasonable exercise of her discretion. 10.4 Upon such suspension or termination, CONTRACTOR will deliver to the city manager immediately any and al! copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONTRACTOR or its contractors, if any, or given to CONTRACTOR or its contractors, if any, in connection with this Contract. .Such materials wil! become the property of CITY. 10.5 The failure of CITY to agree with CONTRACTOR’s independent findings, conclusions, or recommendations, if the same are called for .under this Contract, on the basis of differences in matters of judgment, will not be construed as a failure on the part of CONTRACTOR to fulfill its obligations under this Contract. SECTION !i.ASSIGNMENT 010614 syn 0090832 ii.! This Contract is for the personal services of CONTRACTOR, therefore, CONTRACTOR wil! not assign, transfer, convey, or otherwise dispose of this Contract or any right, title or interest in or to the same or any part thereof without the prior written consent of CITY. A consent to one assignment will not be deemed to be a consent to any subsequent assignment. Ahy assignment made without the approval of the city manager will be void and, at the option of the city manager, this Contract may be terminated. This Contract will not be assignable by operation of law. SECTION 12.NOTICES 12.1 All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY:Office of the City Clerk City of Palo Alto Post Office Box 10250 Paio Alto, CA 94303 With a copy to:Director, Dept. of Planning and Community Environment City of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 To CONTRACTOR: Attention of the project director at the address of CONTRACTOR recited above SECTION 13.CONFLICT OF INTEREST 13.1 In accepting this Contract, CONTRACTOR covenants that it presently has no interest, and will not acquire.any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 13.2 CONTRACTOR further covenants that, in the performance of this Contract, it will not employ any contractor or person having such an interest. CONTRACTOR certifies that no person who has or will have any financial interest under this Contract is an officer or employee of CITY; this provision wil! be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California. SECTION 14. NONDISCRIMINATION 010614 syn 0090832 14.1 As set forth in the Palo Alto Municipal Code, no discrimination wil! be made in the employment of any person under this Contract because of the age, race, color, national origin, ancestry, religion, disability, sexual preference or gender of that person. If the value of this Contract is, or may be, five thousand dollars ($5,000) or more, CONTRACTOR agrees to meet all requirements of the Palo Alto Municipal Code pertaining to nondiscrimination in employment, including completing the requisite form furnished by CITY and set forth in Exhibit "D". 14.2 CONTRACTOR agrees that each contract for services with an independent provider wil! contain a provision substantially as fol!ows: "[Name of Provider] will provide CONTRACTOR with a certificate stating that [Name of Provider] is currently in compliance with all Federa! and State of California laws covering nondiscrimination in employment; that [Name of Provider] will pursue an affirmative course of action as required by the Affirmative Action Guidelines of the City of Palo Alto; and that [Name of Provider] wil! not discriminate in the employment of any person under this contract because of the age, race, color, national origin, ancestry, religion, disability, sexual preference or gender of such person." 14.3 If CONTRACTOR is found in violation of the nondiscrimination provisions of the State of California Fair Employment Practices Act or similar provisions of Federal law or executive order in the performance of this Contract, it will be in default of this Contract. Thereupon, CITY will have the power to cancel or suspend this Contract, in whole or in part, or to deduct the sum of twenty-five dollars ($25) for each person for each calendar day during which such person was subjected to acts of discrimination, as damages for breach of contract, or both. Only a finding of the State of California Fair Emp!oyment Practices Commission or the equivalent federal agency or officer will constitute evidence of a breach of this Contract. 14.4 If CONTRACTOR is in default of the nondiscrimination provisions of this Contract or the Affirmative Action Guidelines pertaining to this Contract, CONTRACTOR wil! be found in materia! breach of this Contract. Thereupon, CITY will have the power to cancel or suspend this Contract, in whole or in part, or to deduct from the amount payable to CONTRACTOR the sum of two hundred fifty dollars ($250) for each calendar day during which CONTRACTOR is not in compliance with this provision as damages for breach of contract, or both. 010614 syn 0090832 8 SECTION 15.MISCELLANEOUS PROVISIONS 15.1 CONTRACTOR represents and warrants that it has knowledge of the requirements of the Americans with Disabilities Act of 1990, and the Government Code and the Health and Safety Code of the State of California, relating to access to public buildings and accommodations for disabled persons, and relating to facilities for disabled persons. CONTRACTOR wil! comply with or ensure by its advice that compliance with such provisions will be effected in the performance of this Contract. 15.2 This Contract will be governed by the laws of the State of California, excluding its conflicts of law. 15.3 In.the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California or in the United States District Court for the Northern District of California in the County of Santa Clara, State of California. 15.4 The prevailing party in any action brought to enforce the provisions of this Contract may recover its reasonable costs and attorneys’ fees expended in connection with that action. I~5.5 This document represents the entire and integrated agreement between the parties and supersedes al! prior negotia- tions, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 15.6 All provisions of this Contract, whether covenants or conditions, will be deemed to be both covenants and conditions. 15.7 The covenants, terms, conditions and provisions of this Contract will apply to, and wil! bind, the heirs, successors, executors, administrators, assignees, and contractors, as the case may be, of the parties. 15.8 If a court of competent jurisdiction finds or rules that any provision of this Contract or any amendment thereto is void or unenforceable, the unaffected provisions of this Contract a~d any amendments thereto will remain in full force and effect. 15.9 All exhibits referred to in this Contract and any addenda, appendices, attachments, and schedules which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Contract and wil! be deemed to be a part of this Contract. 15.10 This Contract may be executed in any number of counterparts, each of which wil! be an original, but all of which together will constitute one and the same instrument. 9 010614 s)~ 0090832 15.11 This Contract is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Pa!o Alto Municipal Code. This Contract will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fisc~l year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Contract are no longer available. This Section 15.11 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Contract. // // // // // // // // // // // // // // // // // 010614 s~ 0090832 !0 IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Contract on the date first above written. ATTEST:CITY OF PALO ALTO City Clerk APPROVED AS TO FOBM: Senior Asst. City Attorney APPROVED: Director of Planning and Community Environment Director of Administrative Services insurance Review Mayor PALO ALTO HOUSING CORPORATION Name: ~(6~ Title: Taxpayer Identification No. 94-2262125 (Compliance with Corp. Code § 313 is required if the entity on whose behalf this contract is signed is a corporation. In the alternative, a certified corporate resolution attesting to the signatory authority of the individuals signing in their respective capacities is acceptable) Attachments : EXHIBIT "A" : EXHIBIT "B": EXHIBIT "C" : EXHIBIT "D": SCOPE OF SERVICES BUDGET INSURANCE NONDISCRIMINATION COMPLIANCE FORM 010614 s)n 0090832 1i CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) ) SS. COUNTY OF ~_~o_ C\o~ ~-_) On -~--~.~---\ qo,--~o~\ , before me, the undersigned, a Notary Public in and for said County and State, personally appeared p@rsonaily known to me (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 official seal. ~- My ~om, ~m.._ =_xpi-e-~ Apt 24, 2002 Signa-~ure of Notary "P~b~ic 010614 syn 0090832 12 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) )SS. COUNTY OF .~--k-o_ ~_\~,~o~. ) On \%~ m__~\ , before me, the undersigned, a Notary Public in and .for said County and State, personally appeared personally known to me (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 official seal. Signature of Notary 010614 syn 0090832 13 EXHIBIT A BELOW MARKET RATE HOUSING PROGRAM FISCAL YEAR 2001 - 2002 SCOPE OF SERVICES Contractor shall administer the CitFs Below Market Rate (BMR) housing program in compliance with City policy, guidelines, the applicable deed restrictions and the BMR Program Procedures Manual and in a manner which increases affordable housing opportunities for low and moderate income households. Specific Activities: 1) Provide information and advice to interested persons and housing seekers about the City’s BMR ownership and rental programs. 2) Maintain and, at least annually, update the BMR ownership waiting list. 3) Send an information letter to BMR owners once each year to keep owners informed of their responsibilities under the deed restrictions. 4) Annually update the list of lenders willing to lend on BMR units; conduct outreach to lenders with branches in Palo Alto to encourage participation in the BMR program so that buyers have sufficient choice of lenders and loan products. 5) Administer the sales and resales of units in the BMR ownership program, and the "discount" units with City deed restrictions in the Birch Court project, in accordance with City policies, guidelines, the applicable deed restrictions and with the Procedures Manual prepared by the Palo Alto Housing Corporation, as accepted by the City. 6) Pursue, in cooperation with the City, preservation of the BMR units within the program and compliance and enforcement of the provisions of the recorded deed restrictions. 7) Provide assistance, mediation and counseling to BMR owners, in coordination with City staff, in the resolution of defaults, foreclosures, violations of deed restrictions or other similar situations involving the preservation of BMR ownership units. 8) BMR Rental Program Administration: a) Southwood Apartments, Mayfield Apartments, 1100 Welch Road Apartments and Montage Apartments at 4020 El Camino Real: 1) Certify tenants’ income eligibility for occupancy in the BMR rental units at as Exhibit A Page 2 required by the applicable agreements between the City and the project owners; 2) Monitor tenant selection, operation of waiting lists, and designation of units as necessary; 3) Provide information and training on the BMR Rental Program to resident managers. b) Stanford West Apartments BMR Units (for FY 2001- 02 and Ongoing Tasks): 1) Work with new project management staffto review BMR unit eligibility requirements and procedures and resolve misunderstandings or questions; 2) Monitor tenant selections, eligibility and income certifications for an appropriate portion of the BMR households to assure compliance with the BMR program; 3) Conduct an annual sample file audit and, if appropriate, make recommendations to City for more comprehensive monitoring. 10) Provide advice, consultation and assistance to City staff in negotiations of BMR agreements for new housing development projects and in analyzing the issues involved in establishing a special preference program for certain development projects for recommendation to the City Council. 11) Coordinate the process of evaluation, negotiation and financing related to the acquisition, and rehabilitation if necessary, of off-site units or properties contributed under the BMR progam. 12) Assist City staffin ongoing evaluation, revisions and improvements to the BMR pro~am; 13) Maintain records and statistics as required by the City, specifically: a) Annual statistics about the BMR ownership and rental units and the households served, b) A permanent record of all units placed in the program and statistics about all households served over the life of the program, including retention of copies of the actual recorded deed restrictions for the ownership units. EXHIBIT B BELOW MARKET RATE HOUSING PROGRAM FISCAL YEAR 2001 - 2002 BUDGET I. PAHC shall provide the services described in Exhibit A - Scope of Services during the term of this contract and City shall reimburse PAHC for the cost of said services based on actual staff time, overhead and direct expenses and materials up to a maximum of $75,000. The source of reimbursement to PAHC shall be from the City’s Residential Housing In-Lieu Fund. II. PAHC may bill City for the following: 1. Staff salaries for time spent on BMR activities at hourly rates including direct salaries, payroll taxes, benefits, workers compensation and an indirect cost rate for overhead as shown in this Exhibit B. Adjustments in hourly billing rates shall be made during the term of the contract based on actual salaries paid, subject to approval by the City Manager. If necessary, an adjustment will be made with the billing for the last quarter of the fiscal year, if the actual indirect cost rate for the year has been modified by a more recent audit. 2. Direct costs, as supported by receipts, invoices, etc., which are reasonable and necessary to conduct the activities described in Exhibit A, such as: ¯Postage ¯Advertising ¯Conferences and Training ¯Office Supplies ¯ Outside Services, Consultants including Legal Fees (except that any such services or consultant work exceeding $3,000.00 shall be authorized in advance by City) ¯Printing!Duplicating ¯ Other necessary direct expenses including expenses necessary to the acquisition and / or rehabilitation of off-site units and properties provided by developers under the BMR program in-lieu of on-site units H : \DOC\B~YRCON0 !. WPD ©_J I.IJ Zl.-zu Z,Z’ oooo8~o° EXHIBIT B, Page 2 Hourly Billing Rates and Indirect Cost Rate FY 2001-02 EXHIBIT C INSURANCE REQUIREMENTS POLICY MINIMUM LIMITS OF LIABILITY WORKERS’ COMPENSATION Statutory COMPREHENSIVE AUTOMOBH,E LIABILITY, including owned hired, and nonowned automobiles Bodily Injury Property Damage $1,000,000 each person, $1,000,000 each occurrence; $1,000,000 each occurrence COMMERCIAL GENERAL LIABILITY, including products and completed operations, broad form contractual, and personal injury. Bodily Injury Property Damage $1,000,000 each person, $1,000,000 each oceurrence, $1,000,000 aggregate; $1,000,000 each occurrence Each insurance policy required by this Agreement shall contain the following clauses: "This insurance shall not be canceled, limited in scope of coverage or nonrenewed until after thirty (30) days written notice has been given to the: CITY OF PALO ALTO / Planning and Community Environment Department, P. O. Box 10250, Palo Alto, CA 94303. All rights of subrogation are hereby waived against the CITY OF PALO ALTO and the members of the City Council and elective or appointive officers or employees, when acting within the scope of their emploYment or appointment. The CITY OF PALO ALTO is added as an additional insured as respects operations of the named insured, but only as to work performed under this Agreement. k is ageed that any insurance maintained by the CITY OF PALO ALTO will apply in excess of, and not contribute to, insurance provided by this policy." All insurance coverage required shall be provided through carriers with a BEST KEY RATING GUI~E rating of A:VII 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 City’s risk manager. EXHIBIT D FORM 410 Certification of Nondiscrimination: As suppliers of goods or services to the City of Palo Alto, the firm and individuals listed below certify that they do not discriminate in employment with regards to age, race, color, religion, sex, national origin, ancestry, disability, or sexual preference; that they are in compliance with all Federal, State and local directives and executive orders regarding nondiscrimination in employment. Firm: Palo Alto Housing Corporation Date: Title of Officer Signing:Executive Vice President Signature: Marlene H. Prendergast H:\DOC\FORM410.WPD ATTACHMENT B 000 0 ~11 0 O~O0 O0 P’.-~’~"0~ 0 0 ~00~t"O ~~000~~ 0"~D’..-~O~0 0 0 O~ 0"~ O~ O~ O~ O~ O~ O~ 0