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HomeMy WebLinkAbout0330.091- June to, 1991 HONORABLE CITV COUNCIL falo Alto, C.lifornia £Ale AlTO HOUSING CORPORATIQH CONTRACT fOR 199j·1992 Members of the Ccu~cil: Report in Brief This report and Ittichme~ts transmit to the C~un'11 the 1991-1992 contract between the City of Palo Alto and the Palo Alto Housing Corporation (PAHC). BackgrcHJnd On May 20, 1991, the City Council approved funding for the 1991·1991 Community Development Block Grant (CDBG) Pro gran. Included in the (OBG funding was 5101,200 which was to be allocated for housing services. 'he 5107,200 .as the amount reQue,ted by PAHC for 1991·1992 funding. However, due to issues raised in an April., 1991 Monitoring Report from the Department of Housing and Urban Oevelopment, staff advised the CQuncil that we WOUld return with the specific allocation to PAHC at the time the contract returned. !ne HUD Monitoring Report specifically called into question the City~s use of PAHC as l consultant witho~t ~tilizing HOD procUfement procedures, which require a proceS$ for submittfng proposa1s to provide such ser~ices from as ~any resources as possible. In pre~ious yeaTS, the City has used PAHe to provide consu1tant~type ser~lces on evaluation and updating of the Housing £1ement, evaluition of other dev!1opers' proposals for affordable housing, ad~ice en cnangin9 tQndit~ens in the community that could affect housing policies, and eval~ation of changes and proposals in housing legislation and funding s~ur(es. After several conversations with HUD representatives, City staff officially responded to the HUD Monitoring Report on June 3, 1991 (letter attached). The attached contract reflects the changes suggested by HUD and City staff to bring the City into compljance with tne fed~ril regulations. Rt~ised (ontra;t The primary changes to the ~e~ised contract are as follows: CHR:330:91 ~L • .. .:: L COIttUNIH DEVELOFMEHT BLOCK GRANT ACTIVITIES A. Cpnsultlng services: $20,000 is a.llocated for (ompleti{)M: of ongoing consultant ser'tl1e:es being prowided bj PAHC under the 1990- 19;] contract. These services are related to retention of affordable housing and preparition of the federally required Comprehensive Housing Afford.billt) Strotegy (CHAS). Staff is requesting that HUD allow PAHC to specific,lly provfde these services to t~e City during the 19~1-1992 contract year. These and all other consultant services will be deltted from the 1992- 1993 contract. 8. Prgiert Management: S43 ,OOO is 111GCited for management su~erVi$10n and direct .anagement of PAHt-contr~l'ed low-and moderite-iT1come units. In consideration of adding 45 units at Cal Park Apartme~ts and 31 units at Oak Ma~or, project ~anagement costs for PAHC have 1ncreasad considerably over t~e approximate1y $20,000 budgeted for 1990-1991_ Staff has .1so requested PAHC to modffy their bookkeeping proced~res to provide I direct per-unit .anagement cost. Tbis .fll allow for a better evolu,tlon and revised contract figure for t~e 1992-1993 contra~t. C_ BMR Sales lnd Rent,)s: S12,ODO fs allccated for processing of BMR sales and rental bousing units for CDBG-eligible applicants_ Staff bas also requested P~~C to modify their bookkeeplng procedures to provide a direct per-unit BMR sales or rental cost. This will allow for a better evaluation and revised contract figure for the 1992-1993 contract. HOUSING IH-LIEU FUND ACTIVITIES BMR Sales and R,ntals: 520,000 is allocated from Housing I~-lieu fl.Jnds (also known IS the Housing Reserve Fund) for processing of BKR sales and rent.l housIng units for non-CDBG-eligibl, appl ieants_ In 1990-i991 tnes, costs were included in the PAHC contract, but _ere not budgeted_ PROJECT DEVELOPMi~7 AND PRE-DEVELOPMENT Project development and pre-development line items ~ave been deleted fro~ the contract. These costs ire eligibl~ CDBG expenses .~en assocl.ted wfth • specific project. R£NTAL HOUSING ACQUISITION PROGRAM Cl!R:330:9! Tne guidelines and operation reqUirements for the City's ~ental H~us1ng Acquisit;~n PrDgram (RHAP) ~ave been removed from the PAHC contract. The RHAP Guidelines will be revised and incorporated into a compan'on doc~ment to the Housi~g Res!rve Guidelines. The re.!s,d documont combining tne RHAP Guidelines and tne Housing p: \cmr\cmrp.hcc 6/20/91 Page 2 L I , , [ .~ , • ".:- \ -\" ~ . i i 1 I '-': . , : I I - Reserve Guidelines will return to the Coun~il at I future date for review and adoption. In the inter 1o, stiff will apply the application procedures as outlfned '" the previous PAHC contract. O(F(~SE AND INDEMNITY CLAUSE The maximum 199re;at'! cost pet-occurrence f<lr legal defe-nse provided by the City has been lncre.sed from 1100,000 to 12~O,OOO. Two subsfdiary corporit1ons of PAHC. PAHC Apartments, lnc. and PAHC California Park Corporation, ire .1s~ added is protected under the Defense and Indemnfty Clause, with th~ requirement that the subsidiar~ cGrporations ' b<lards of directors are identical to the board of the PAHC. HQdificatjons to Funding The above modifications will r.sult in , 1991-199, contr.ct budget with PAHC in the amount of $~S,OOO: $75,000 from COBG fonds and $,0,000 in Housing In-lieu funds. Tne S20,OOO in Housing !n-11eu funds was included in the Budget Adoption Ordinance .nd is iv.llable 1n the 1,91·1991 budget. The overall reduction in funding to PAHC is attributable to the red~ction in consulting services, project deyelopment costs and pre-development costs. Considering the City's request for I reduction in services, staff do~s not believe th.t funding In the full amount requested by PAHC can be justified. After .llocatlon of the 575,000 in CDBG funding, 132,200 in COBG fund. (i.e., the crigir,al Sl07 t 2CO allocated to housing services minus the actual $75,000 approprfat;cn) will be available for site-specific, housing-related projects Dr for consulting services related to housing, provided that an RFP process is used_ Recorrmend3t i on Staff recommends that the City Council approve and authorize the Mayor to execute the attached Agreement bet«een the City of Palo A1to and the PaTo Alto Housing (orporation, including Exhibft ·A-entitled ·1~~1-1991 Scope of Services· and Exhibit -8-entitled ·1§~I-1992 C~ntract Budget-. CMR:330:91 p:\CI!r\'IDrpahcc -t#/":t7A ;(~Jdta4.- KENNETH R. SCHREIBER /? Directcr of Planning and (omun; t;-Environment 6/,0/91 Page 3 , , t , _. - Attlchments: ·.,....4 •• * u Agreement between tho Cfty .f Pile ~lt •• nd the Pilo Alto Housing Corporotlon for Hoosfng Serylce. for Flsc.l Ye.r 1991·1992 June 3, 1991 letter to ~arty Mitchell, Oep.rt~~nt of Housing and Urban DeYelopment cc: SylYi, Sem.n, Polo Alt. Housing Corpor.lfon CMR:330:91 p: \c.r\cmrp.hcc 6/20/91 Page 4 i4 ,.1 " - . ' BBTnD !'J[I! CITY or PALO AI,'l'0 AHD !'J[I! PALO ALTO BooetRG CORPO~TIO. FOR BOD8tRa 8BRVICZB FI8CAL YK~ 1"1-1"2 THIS AGREEKENT is made and entered into this ___ day of ::::=:->7lr::::-;---;:;' 1991, by and between the CIT't OF PALO ALTO, a municipal corporation of california, bereinafter referred to as ·CITY,· and the PALO ALTO HOUSING CORPORATION, a nonprofit corpo­ ration ~~der the laws of the State of c~lifornia, with oftices at 5~O cowper street, Suite G, Palo Alto, California 94301, herein­ after referred to as ·CONTRACTOR"; • I ,. R II 8 8 I!LLJ[;. WHEREAS, CITY desires to retain services related to providing housing in CITY for persons and families of 10., moderate and middle income levels; and WHEREAS, CITY desires to engage CONTRACTOR to provide these services by reason ot its qualifications and experience for perforllinq such services, and CONTRACI'OR has. offer-ed to provide the required services on the terms and in the manner set forth herei~; NOW, THEREFORE, in consideration of their mut\J'.al cove­ nants, the parties hereto agree as follovs; 1 , DJI'IIIITIOllS , (a) The ~ord -City· as used in this Agreemer.t shall mean and include all the territory lying within the municipal boun­ daries of the city of Palo Alto, California, as presently existing, plus all territory which may be added thereto during the term of this Agreement b~ annexation or otherwise. (b) The term "City Council" shall mean the duly elected or appointed members of the Council of the city of Palo Alto, California, acting pursuant to the provisions of the Palo Alto K~icip21 Code {-PAMe") and the charter of the city of Palo Alto. (c) The term "'city Manager-shall mean the duly appointed city Xanager of the City of Palo Alto, California, or his ~esignated representative. appointed City his desiqnated L (d) The term Mcity Attorneya shall mean the duly Attorney of the City of Palo Alto, California, or represent~tive. 1 I ! I l [ , - (e) The term "city Clerk-shall mean the duly appointed city Clerk of the City of Palo Alto. California, or her 4esiqnated representative~ (f) The term "city Risk Manager" shall 1Il.ean the duly appointed Risk Manager of the City of Palo Alto, California, or his designated representative. (q) The term "'City Dir·!'ctor of Finance" shall mean the d~ly appointed Director of finance of the City of Pdlo Alto, California, or her designated representative. (h) The term "'city Auditor-shall mean the duly &ppointed City Auditor of the City 01 Palo Alto, California. or his designated representative. 2. PROJECT CQQRDD1ATIOR. (a) ~. The City Manager shall be representative of CIT¥ fer all purposes under this Agr~ement. The Director of Planning and Community Environment is designated as the PROJECT MANAGER for the City Hanager~ and he shall supervise the progress and execution of this Agreement, including the establishment of work priorities in collaboration yith CONTRACTOR. (bJ contractor. CONTRACTOP shall assign a sinqle PROJE~~ DIRECTOR to hav~ overall responsibility for the progress and execution of this Agreement for CONTRACTOR. The President of CONTRACTOR corporation hereby is designated as the PRc.JECT OIRECTOR for CONTPACTOR 4 (c} Access. CONTRACTOR shall provide the PRVJECT ~~AGER and others specifica11y requested by the PROJECT MANAGE~ with free and easy access to all facilities and activities of the proqrams hereinafter described. The PROJECT MANAGER and others specifically requested by t.he PP.OJECT MANAGER shall ccordinate such access with CONTRACTOR4 3. DOTIIS or CQNTMCTQR~ Under this Agreement CONTRACTOR shall provide the services set forth in the document entitled -Program Ye-ar Scope of services,· attached hereto as Exhi­ bit -A-and incorporated herein by this reference. (a) Board Members. CONTRACTOR shall ~ake its best efforts to have at least one (1) ~ember of its board be a resident of a public subsidized low/moderate income housing project located in CIT¥ and at least one (1) additional member of the board to be a CITY residential tenant. (b) Intfrested Persons. Net more than tventy-five {25J percent of the persons serving on the governing board of CONTRACI'OR may be Interested Persons. An -Interested Per-son" means any person currently ~eing compensated by CONTRACTOR for services 2 '~i ~\ . ...,.., '. ;;<: - . ,. , . rendered to it whether as a full or part-time employee, independent consultant, or otherwise, but excluding any reasonable compensation paid to a director as director. 5. rIsCAL U'PQ.ffIBJLXr:r!B« RECORDS, R.ZPQ..R~..AJm "up·ts . ca) Fispal Responsibilities~ {i} Fiscal Agent. CONTRACTOR shall appoint a fiscal agent who shall be responsible for the financial and accounting activities of CONTRACTOR, including the receipt or disburse~ent of CONTRACTOR funds. (ii) treasurer .. CONTRACTOR shall appoint trom its board a treasurer who no less than monthly shall review and by signature approve all receipts, disbursements and bank account balances o£ CONTRACTOR. (iii) System pf Acco:..:nts. CON'I'RACTOR and its fiscal agent shall establish and maintain a system ~f accounts that sha~l confor. with generally accepted principles of accounting and with all federal Community Development Block Grant ("CDBG") fundinq requirements for budgeted funds. Separate accounts for identifyinq receipts and expenditures shall be maintained for all CDBG funds received under this Ag:reement~ All such records and accounts shall be available .for e::.:amination by CITY and staff from t.he federal Housing and Urban Development Department ("HUD") during CON'T'P..AC':L'OR'S regular wOrlCill9 hours.. Such system of accol~nt& shall be subject to the revieW' and approval of the CITY Director of Finance and/or City Auditor. (iv) program IncQme~ CONTRACTOR must accurately account for any program income generated from the use of CDOO f'.lnds under this Agree-ment and report the income to CIT'! and HUD in accordance with 24 Code of Federal Requlation5 Part 57Q$ the ·CDBG Final Rules·. Such program income may be retained by CON'TlU.CTOR ana subsequently disbursed for other CtBG-el igible activities, but only with the prior written approval of CITY. (b) Records. CONTRACTOR sball maintain adequate and accurate records, in accordance with generally accepted accounting principles and ell CDBG funding requitements$ including but not limited to bcoks, financial records, supportinq documents~ statistieal records, personnel, real and personal property, and all other pertinent records sufficient to reflect properly (i) all direct and indirect cost of whatever nature claimed to have been incurred and anticip.at-ed to. perfor1tl this Agre.e:ment, (ii) all transactions under this Agreement, and riiiJ all other JJlatters covered b~' this Aqreement~ CONTRACTOR shall preserve and maJce available such records until the expiration of three {l} years from the date ot final pal~ent under this Aqreement~ 3 L , . ... 'i:. .~, • .~ 1 I ; - (c) Beports~ CONTRACTOR shall provide CITY semi­ annual activity reports on the fifteenth (15th) day after the clcse of each six-1Dc,nth period., covering the preceding half-year and such other information as tha PROJECT MANAGER may request. The final &eai-annual report shall cover not only the preceding six ~onths but also the entire year. CONTRACTOR shall also provide CIT¥ other reports from time to time a~ directed by CITY's PROJ£CT MANAGER setting t,,,rth CONTRACTOR'S findings and conclusions. Minutes of CONTRACTORts board meetings shall be distributed to all members of the CITY COL~CIL throuqh the CIT~ CLEP~. {d) Audit. CONTRACTOR shall provide for an inde­ pendent audit of its transactions~ records~ and financial report. The audit shall be completed at least every tvo (2) years, starting August 31, 1991~ The audit shall be conducted by a certified public accountant (the ~CPA·J in conformance with generally accepted accounting principles. Audit reports shall be submitted by the CPA to both parties. The cost of such audits shall be borne by the CONTRACTOR. 6. MUMI or uroRTS lJlD Ilg'ORKal'IOIl. MY reports, information, data, or other material given to, or prepared or assembled hy. CONTRAC"I'OR or its subcontractors, if any, under-this Agreelll.ent sball be tbe property of CITY and shall not be made available to any individual or organization by CONTRACTOR or its sUbcontractors, if any, without the prior written approval of the PROJECT MANAGER. In the event of termination, CONTRACTOR shall give to CITY illmledie:t-ely one (1.) copy of any and all studies, reports, sketches, drawings, computations, and any other-data, whether or not completed, prepared in connection with this Agreement, wbich shall be the permar.ent property of CITY. 7. PUTl!S OF CITY_ CITY shall furnish CONTRA~~R with all readily available background information and data relevant to CITI. 8~ BqDGZT: OOHPENSATro.~ Ca) Budget. CONTRACTOR'S contr.act budget for the tena. o~ this Agreement is attached he:ceto as Exhibit "8'" and incorporated herein by this reference. Expenditures by CONTRACTOR for services hereunaer-shall substantially conform to said budget unless the prior written approval of the PROJECT MANAGER is obtained. The budget must be developed and complied with in accordance with the schedules, processes and format established by CITY staff. (~) Compensation. CITY agrees to compensate CON­ TRACTOR for the full performance of its services under this Agree­ mertt in accordance wi~.h Exhibit -sa, in a total sum not to exceed Ninety Five Thousand Dollars t$9S,000.oO). Such sum is financed by Seventy Five Thousand Dollars ($75,OOO.OO) in CDBG funds and Twenty Thousand Pollars ($20,000.00) in CITY Housing Reser"e funds. Funds committed under the CDBG program are contingent upon CITY receiving 4 L • \ \ \ w.,. \: \ I ..J I I - ·.-; the intended appropriation fro'm the Fede-ral Department of HDusing and Orban De·.telopment. (cj Payments by CITY. On the billing fOrlfj provided by CITY. CONTRACTOR "hall sW:>lIlit a bill by the fifth (5th) working day of each .... onth tor services provided under this Aqreement during the preceding month. The bill shall specify actual expendit'.Jres directly related to this Agreement in accordance ~ith Exhibit -8.­ roNTRA.C1'OR shall also submit to CITY for its revie'IJ, with the .ontbly bill, an .accounting: of all CONTRACTOR'S CDBG-related activities under this Agreement during the preceding month, to the satisfaction of the Cit)" Director of Finance. CITY shall pay CONTRACTOR within fifteen (15) 'Working days of receipt of e.ach bill. 9~ M.U..u:uT tERM, URlU)fM'IOlr 01 8J:RYICl8. This Agree­ ment s"hall cover the services rendered by CONTRACTOR to CI'l'Y commencing July 1, 1991, and it shall expire on June JO, 1992, pro­ vided that CITY shall have the right to suspend or terminate any or ~ll of the services covere~ by this Aqreement for any reason by qiving ten (lO) days' written notice to CONTRACTOR (said ten (10) ~ay period shall commence upon the deposit of said notice in the United States mail with postage fully prepaid thereon and addressed to COlftRACTOR at the address mentioned above) end upon full payment for all services actually rendered by CONTRACTOR to the date of such suspension or termination. '10. BOWUII.GlU\l!JILITY. This Agreement is one for personal services and cannot be transferred or assigned in whole or in part by either party without the prior written consent of the other party. 11 • rIlfBRlS'f 01' CONTRACTOR. CONTRAcroR covenant!-tha. t it presently has no interest and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any ~anner or degree with the perfo~ance of the ~ervices hereunder a CONTRACTOR further coveo~nts that, in the performance of this AqreemQnt, no subcontractor or person having such interest shall be employed. CONTRACTOR certifies that no one who has or will have any financia~ interest under this Agreement is an officer or employee of CITY. CONTRACTOR further covenants that any conflict or interest regulations enacted by CITY in the future for the procedures and operations of CITY itself shall be binding in substance upon CONTRACTOR also and shall cover the procedures and operations of CONTRACTOR, altho~qh said regulations may not specifically refer to CONTRACTOR. It is expressly agreed that, in the performance of the services hereunder, CONTRACTOR shall at all times be deemed an independent CONTRACTOR and not an agent or employee at CITY. 12a »ORPJ8CBIXXKaTIOW. No discrimination shall be made in the employment of persons under this Aqreement because of the race, color, national oriqin, ancestry, reliqion or sex of such person~ Similarly, no person shall be subject to discrimination under any part of the services provided by CONTRACTOR under this 5 PI0lllP bck ~I! L I t I f . r , ,."~-..:. .,: -~: 0', . 1 , L Aqreement on the t.asla of the race., color,. national origin, ancestry, sex or religion of such person. If the value of this Aq~eement is, or may be, Five Thousand Dollars {$5,OOO) or ~ore, CONTRACTOR aqr'ees to meet all requirements of the PAKC pertaining to nondiscrimination in employment and to complete and submit the ·Compliance ~eport--Nondi5crimination Provisions of City of Palo Alto Contracts· on the form furnished by CITY. CONTR~CTOR agrees that each agreement for services from independent providers shall contain a provision substantially as. tollows: ·PROVIDER shall provide CONTRACTOR ~ith a cer­ tificate stating that he (or she) is currently in compli­ ance with all Federal and state of California la .. s cover­ ing nondiscrimination in employment; that he {or she) will pursue an affirmative course of action as required by the Affirmative Action Guidelines of the City of Palo Alto: and that he (or she) will not discriminate in the employment of any person under this contract because of race~ color, national origin~ ancestry, sex or ~eligion of such person.- I.f CONTRAC'l"OR is found in violation of the nondiscrimina­ tion provisions of the state of California Fair Employment Prac­ tices Act or similar provisions of federal law or executive order in the performance of this Aqreement~ it shall thereby be fo~~d in material breach of this Aqreem~nt. Thereupon, CITY shall have the power to cancel or suspend this Agreement, in whole or in part, or to deduct froUl the amount payable to CONTRACTOR the sum of Tw"enty­ Five Dollars ($25) for each person for each calendar day during which such person was discriminated against, as damages fo~ said breach of contract, or both. Only a finding of the State of California lair Employment Practices Co~ission or the equivalent federal agency or officer shall constitute evidence of a violation of contract under this paragraph. It CONTRACTOR is found in violation of the noncHs­ crimination provisions of this Agreement or the applicable affirm­ ative action guidelines pertaining to this Agreement, CONTRACTOR shall be found in material breach of this Agreement. Thereupon~ CITY shall have the poyer to cancel or 5uspend this Aqreement, in whole or in part, or to deduct from the amount payable to CONTRA­ CTOR the sum of TWo Hundred Fifty Dollars ($250) for each calendar day during which CONTRACTOR is found to have been in such noncom­ pliance as damages for said breach of conti act. or both. 13. :IIfSPRAlfCE; XO@ llARXLESS. CONTRACTOR hereby agrees to indemnify, defend and hold harmless CITY, its officers, agents and employees, from any and all demands, liability, damage~ loss, claims, or actions, including costs and attorneys· fees, ariSing out of this Agreement except that which results from the sole negligence of CITY,. its officers, agents, or employees. CONTRACTOR, at its sale cost and expense, shall obtain and maintain, in full force and effect throughout the entire term of 6 I ! , . -, ........... . ·1 I - this Aqreelllent, the insurance coveraqe described in EXhibit ·e", attached her~to ana incurporated herein by this reference, insuring not only CONTRACTOR and its subcontractors, if any, but also, wit~ the exception of 'Work.ersl coapensation and employe.r's liability insurance, CITY, its officers, aqents and employees, and each of the'z with respect to activities and services perforned by CONTRACTOR for or on behalf of CITY under the provisions of this Aqreement. Certificates of such insurance, preferably on the forms provided by CITY, shall be filed 'With ClTY concurrently with the execution of this Agreement. Said certificates shall be sub­ ject to the approval of the CITY Risk Manager and shall contain an endorseDlent stating that said insurance is primary coverage and will not be cancelled or altered by the insurer except after filing with the CITY C~AK thirty (30) days' written notice of such can­ cellation or alteration, and that tbe City of Pal~ Alto i& named as .an additional insured. Current certificates of such insurance shall be kept on tile at all ti1tles during the term of t.his Agree­ ment with the CITV CLERK. '14.~ .lQJUyl COXPElfBATJOX. CONTRACTOR, by executinq this Agreement, 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 wor:kers' con::pensation ot" to undertake salf-insuranc3 in accordance with the provisions of that Code, and certifies that it will comply with such provisions before comaencing the performance of the work of this Aqree~ent. 15. DEFENSE AND IND~!fY. Notwithstanding any other provision of this Agreement, in the event that one or more ~embers of the board of directors or of the officers or staff of CONTRACTOR, PARe Apartments, Inc. or PARe California Park Corporation, are named in any suit or other legal proceeding arising out of their activities, or the activities of CONTRACTOR, with respect to the low/moderate income housing projects developed by CONTRACtoR, erTYls -BeloW' Market Fate-Program, or CITY's Rental Housing Acquisition program, but not otherwise~ except ~here CITY is plaintiff, and defense is not provided by an insurance carrier or carri.rs, or otherwise, of CONTRACTOR, CITY, or any other party, CITY aqrees to conduct or provide. such defense up to a maximWl'l aggregate cost of 'Ivo Hundred Thousand Dollars ($200,000) per occurrence, including expenses for attorneys, consultants, expert ~itnes5es, court costs, court reporters, and other items related to said defense~ In the event that a final judg1llent is rendered against anyone or more of said directors, officers, or staff of any of said entities, CITY agrees to indemnify said directors, officers, or staff up to said Two Hundred Thousand Dollars ($200,000) in the agqregate per occurrence, less s.uch costs of defense as lIIay have been incurred. The obligations of CITY hereunder are applicable only to the extent that defense and/or indemnity are not provided by an insurance carrier or carriers, 'Whether of CONTRACTOR, PARe Apartments, Inc~, PAKe California Park Corporation or CITY, and are limited to be those in excess of the defense or indemnity obligations of said carriers, and not 7 L • , ~.: ,~>" \ ....... .-.J - otherwise. CIl''i''s. obligati-o.ns hereunder do not extend to a.ny c~iminal prosecutions or allegations based upon any other theory or cause of action for which CITY would not be obligated to, and would not customarily, defend and/or-ind.emnify if the de,tendant or defendants were regular CITY employees. Nothing herein shall be deeme~ to limit tha right of CIT¥ to proceed against OONTRACTOR 1 its directors, officers, agents, or employees, or against any other p3rty or entity on any theory, except that CITY shall not have the right to proceed agairlst CONTRACTOR 1 its dire.ctors l officers, agents or BlDployees, 'With respect to negligence, malpractice, errcrs, and omissions. CITY'S obligations hereunder shall not, under any circumstances, exc~ed the aggregate sum of Two Hundred Thousand Dollars ($200,000) per occurrence, regardless of the number of claills, suits, leqal proceedinqs, or number of directors, officers, aqents, or employees involved. CITY may settle or compromise any claim, suit or legal proceeding within the limits of CITY's obligations hereunder, on behalf of any defendant or defendants to which CITY's obligations apply. The defense and indemnity obligations of CITY hereunder extend to any occurrence during the period this section is in force, regardless of when claims or suits relating to such. occurrence or occurrences are filed. CONTRACTOR shall notify CITY immediately upon receipt of information which leads it to believe that a claim, suit, or otber proceeding under this section may exist. Notwithstandinq the foregoing paraqraph, CITY's obligations set forth therein concerninq PAH~ Apartments, Inc. and PARe California Park Corporation shall be in effect only so long as the boards of directors of such entities remain identical to that of CONTRACTOR. 16. w.!!I to II OBBlItYlD. CONTRACTOR shall: {a) Procure all permits and licenses, pay all charqes and tees, and give all notices which may he necessary and incident to the due and lavful prosecution of the services to he performed by CONTRACTOR under this Agreement; (b) Keep itse~f fully intormed of all existing and future feder-aI, state and local laws, ordinances, requlations l orders, and decrees which may affect those engaged or employed under this Agreement l any zaterials used in CONTRACTOR's perfor­ mance under this Agreement, or the conduct of the services under this Aqree.ment; ee) At all times observe and comply with, and cause all of its subcontractors and employees, if any, to observe and comply withl all of said 1aws, ordinances I regulations, orders and decrees mentioned above: (d) Immediately report to the PROJECT MANAGER in writing any discrepancy or inconsistency it discovers in said laws, ordinances, requlations l orders, and decrees mentioned above in relation to any plans, drawings, specifications, or provisions of this A9reement; B 910619!.:k OOlmla \ ' , -, .... .~, ' .-1" - ee) With respect to OCNTRACTOR'S use of COSG funds un~er this Aqreement~ as federal assurances: {l) Comply 'With the nondiscrimination provision of public law 88-352 (Title VI of the Civil Rights Act ot 1964), and the fair housing provision of public law 90-284 (title VII: of t~e Civil Rights Act of 196e} and EXecutive Orde~ ~l063 as amended ~y Exeoutive Order 12259 with respect to sale, lease or transfer of land acquire~, cleared or improved ~it~ grant as.s.istance. (2} Comply with the provisions of Section 109 of the Act which prohibit discrimination~ (3) Comply with the Da'Vis-Bacon Feder-al Labor Standards provision with respect to all construction contracts in excess of TWo Thousand Dollars ($2,OOQ)~ (4) Comply with the requirement of the Flood Disaster Protection Act of 1973 and the National Flood Insurance Act of 1968 applicable to acquisition or construction projects. (5) Comply wit.."l the relocation and displace­ .ent requirements of the Uniform Relocation Assistance and Rea~ Property Acquisition Policies Act of 1970. (6) Comply with provisions of Executive Oraer 11246 as. aw.e.nded by Executive Order 12086 on equal employment opportunities and affirmative action relative to employees and applicants and nonexempt contracts ana subcontracts. (7) Comply vith 24 Code of Federal Regulations ("en-) Part 35 ot the HUD requlations prohibitinq the use of lead­ based pairlt in the construction or rehabilitation of residential str\lctures. {S) Comply with the provisions of 24 CFR 24 which prohibit the utilization of debarred, suspended, or ineligi­ ble contractors or subrecipients. (51) Comply 'With the uniform administrative requirements and cost principles of 24 CFR Part 85 and OKS circulars A-87, A-1IO. A-122 and A-128 as they relate to the acceptance and use of federal funds by nonprofit organiz3tions. (to) Comply ~ith the requirements of 24 en. 85.36 and OHa Circular A-110 with respect to conflict of inter-est. Act which activ1ties~ Ill) Comply with the provisions of the Hatch prohibit the use of federal funds for lobbyinq (12) Comply with section n9 of public law 101- 121, the Department of the Interior Appropriation Act (the -Act-], which generally prohibits recipients of federal contracts, grants 9 tl H1619 bIfo; OOXXJ 11 L i \ -~i "~,,: ."., , :...:......;..:.-------.~.~ • .>~".;.,-~. - and loans from usinq appropriated funds for lobbying the executive or the leqislative b.!'anches of the federal government in connect.ion with a specific cont~act~ grant or loan. In compli~nce with the Act .. COtlTRA<'-"TOR certifies, to the best. of its knowledge and belief, tllat: {A) No federally appropriate~ fu~s have been paid or will be paid, by or on behalf of CONTRACTOR, to any person for influencing or attem.pting to. influence an officer or employee of any aqen(..'Y, a Kember of Conqress, an officer or employee of Congress, or an employee of is, Member of Congress in connection with the awarding of any federal cont~act, the making of any laderal grant, the making ot any federal loan, the entering into of any cooperative agreement~ or the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or coope~ative aqreement: and {E} If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee ot any aqency, a Kember of Congress, an officer or e!l1ployee ot Congress, or an elllployee of a Kember of Congress in connection with this federal contract, q~ant, loan or cooperative agreement, CONTRACTOR shall complete a.nd submit. St.:tndard Form.-LLL, -Disclosure Form to Report Lobbying,· in accordance with its instructions. (f) Remain an eligible subrecipient of CDac funds under Section 570.204(c) of Title 24 of the CFR (the regulations qoverning the CDBG proqram) and carry cut activitigs Which CITY determines are necessery or appropriate to Achieve its co~unity developme:r1t objectives~ 17. WAIYBRB. The waiver by either party of any breach or violation of any term, covenant, or condition of this Agreement or of any provision, ordinance, or lav shall not be deemeu to be a wa.iver of any other term, coyenant, condition, ordinance, or laW" cr of any subsequent breach or violation of the same or of any other terD, covenant, condition, ordinance, or law~ The subsequent acceptance by either party of any fee or other-money which may become due hereunder shall not be deemed to be a ~aiver of any pre­ cedinq breach or violation by the other party of any term, cove­ nant, or condition of this Agreement or of any applicable lav or ordinance. 18. COSTS AMP ATTORNEYS-FIBS. The prevailing party in any action brought to enforce the terms of this Agreement or arising out of this Aqreement may recover its reasonable costs and attorneys' fees expenoed in connection ~ith such an action from the other party ~ 10 'L06L9 bdr; 0010311 I 1 , I ! "'!;: o'<fI<, . .-1 1 I '1 ! 1 I 19~ »tQATIOI II AGBJ!iJl!KJWT. This document conta:ins all the terms and conditions of the agreement between the parties. Any alterations or variations of the terms of this Agreement shall be invalid unless made in writing and signed by the parties hersto~ The~e ~re no other ~~derstandinqs, representations# or Agreements, ~ritten or oral, ~t incorporated herein. All provisions of this Agr.ement expressly are made conditions. This Agreement shall supersede contract No. 00005846 between the parties, as amended. This Agreement shall be governed by the li!lw5 ot the State ot California. 20. MUJUVl'IUrDIJ!Ci. The tents, covenants.. and condi­ tions of this Agreement shall apply to. and shall bind, the heirs, &ucces&ors, executors, administ~ators, ~ssiqns and subcontractors of bot.h parties ~ IN W.ITNESS WHEREOF, the parties hereto have executed this Aqreement tbe day and year first above written4 AT'rB8T. city Clerk unovm> All TO FORM, Assistant City Attorney Assistant city Manager Director of Finance Risk Manager APPROVED AS TO CONTENT, Director of Planning and Community Environment 91061'11 We 00lQ:)11 CU'Y OF PAIIO ALTO Mayor- PALO ALTO ROUSI~G CORPORATIO~ ~:-------------------- Its: ______________________ _ 11 . --.---~-----'L - , " ... ; ~ -<-:...f' ... ir·· - EXHIBIT 'A' PALO ALTO HOUSING CORPORATIOM 1991-199Z PROGRAM YEAR SCOPE Of SE~VICES CONTRACTOR sholl foster ond develop decent, •• fe .nd affordable housing benefitting low and hOderate income families, senf~rs, and tne disab1fd in Palo Alto. T. fulfill such objectives, CONTRACTOR sh.ll perform the following services under tnfs agreement: I. COMMUNITY DEVELOPMENT BLOCK GRANT ACTl~ITIE$ CONTRACTGR sh.ll provide the follOWing services in conformance ~ith the objectives Jnd req~irements of the Depa~tment of Housing a~d Urb.n Development under the Community Development Block Gr.nt (CDSG) Program and reimbursement for such expenditures shall be from COSG funds: A. CONSULTING SERVICES: The follo~;ng are on-going service: that the CQh-TRACTGR has provided to City in past contract years .nd, due to CONTRACTOR'S knowledge of the projects and the t~~liness required for satisfactory cGmpletion, CONTRACTOR shall continue to provide t~e$e services under this contract is COSG-funded services. CONTRACTOR s~_ll provide City with lS$istance 1n tf)e form of written material S I background l~formltion, status reports, ~erbal consult.ticn and others as de!med appropriate by City; and general expertise 1n the following on-go1ng programs: s_ J. Preparation of the federally required Comprehensive Housing Affordability Strategy (CHAS) plan. 2. [yaluatlng and adviSing tne city en ramiffcations~ possible uses, application reqUirements and strategies pertaining to the Federal Housing Act of 1990 limed at prDviding additional housing opportunities to low income families and individuals. TOTAL 1991-1992 CONSULTING SERVICE FEES: $10,000 PROJECT MANAGEMENT: 1. Continue management SUperY1Sl0n and referral of 220 units of low and moderate income housing at Colarida Park Apartments, Webster Wood Apartments and Terman Apartments. Z. Contin~e direct ~anagement of 82 existing Renta' Housing Acquisition Program (RHAP) ".its. JE \199 t \A \10 t9lell L 1 , - I I , I I 1 , ,~ .. -.. - C. 3. Continue direct ~.n.gement of t~e 45 unft C.liforni. Park f.~ily housing project. TOTAL 1191-1992 PROJECT MAR~GE~EHT FEES: $43,000 During the 1991-1992 contract ye.r, under these Project ~anagement services, CONTRACTOR 5~all ,'so detenoine and provide to City its CQst per unit to administer such units as an aid 1~ preparing City's budget C05t for the 1992·1993 ccntr.ct year. BAA SALES AND RENTALS: For 8elo .. Market Rate (aMP) sales or r.nt,l units for COBG-eligible recipients, CON1RACTOR ,hall administer such sal,s or renta1s as vacancies dictate in compliance with City', aMR progr.m. T01AL 1991-1992 aMR SALES AND RENTAL FEES: SI2,OOO During the 1991·j99Z contract year, under tnese BMR services, CONTRACTOR shall .lso detenoine and provide to City its cost per unit to administer such units is an a1d in preparing City's budget cost for the 199t-1993 contract year_ TOTAL 1991-1992 FEES FOR COBG-ELIGIBLE SERVICES: S75,OOO II. HOUSING RESERVE FUND ACTIVITIES CONTRACTOR shall provide the f.l10wlng services 1n conformance with the objectives and requir ... nts of the City of Pal. Alto Housing Reserye Guidelines ind reimbursement for such expenditures sha11 be fra. the City', Housing Reserye funds: BHR SALES AND RENTALS: For BHR sales or rent.l units for non-CDBG eligibl. recipients, CONTRACTOR s~.ll .dminister •• ch •• 1es or rentils is vacancies dictate, in compliance witn City's BMR program. TOTAL 1991-1992 HOUSING RESERVE FUND FEES: $20,000 During the contract year, CONTRACTOR shall develop, cost per unit tc administer these units as an aid in preparing budget co,t for the 1992-1993 contract year. TOTAL 1991-1992 CONTRACT BUDGET: $95,000 JG\1!i91 \A\1C!I19l!"JI P't\le 2 ~ r ~ , t1 i ~ n I I I EXHIBIT 'B' PALO ALTO HOUSING CORPO~TION 1;91-1992 Contract Budget COMMUNITY DEVELQPMENT BLOCK "RAMT ACTIVITIES ~_ Consulting Services B. ProJect M.nagement C. BMR S.le •• nd Rent.,. (CDBG eligible) TOTAL fEES FOR COBG FUNDS HOUSING RESERVE FUND ACTiVITIES BMR Sale. and Rent,l$ IOTAl HOUSING RESERVE FUNDS TOTAL CQHTBACT BUDGE! JG\1991 \AVCIS201 , , 520,090 43,000 .;:0 12,000 ,. $75,000 .. t2Q,POu 120.000 S95,OOO Page J I I I :---' . . ~ .. .. " ...... -. -..... ,:;.-- WLi City of Jhlo jilto ~. O .• 0)( 10. ~o ~""1..0 '&'I.."TC, e.a. ."30.3 June 3. 1991 Mr. Marty Mitchell Program Manager, Tea~ B Office of Communftl Planning and Development U.S. Department of Hou.!ng and Urban Develop.ent 450 Golden Gate Avenue San Francisco, CA 94l02-3448 Dear Mr. Mitch,;l1: . Sobject: Monitoring R.~ort Community Development Block Grant Pros ram (CDSG) .·print H~mber: B-SO-MC-06-002C This letter is the City of Palo Alto's response to the Department of Housing -and Urban D~velDpment's (HUe) Munitori~g Report dated April 4, 1591, regarding the City of ralo Alto Community Development Block Grant (CDBG) Progra.. Tne focus of the Monitoring Re~'rt and the ~ajority of the finding. reI at. to the 'City's contractual re1ationship with the Palo Alto Housing Corporation {PAHCj, the .xtent to which PAHC I. being •• nitored, and the ~elay In expending (DSG landbank funds. We app~eciate y~ur t~ents on the COBG Program, is ~ell as this opportunity to respond. [n addition, we appreciate the extension of time allowed for preparation of this response. Since we are turrently in the process of .llocating the 1991·1992 COSG fund. and preparing new contracts for COBG sub­ reCipients for the 199J-1;92 year, the timing of your tetter permitted us to begin ~aking correcti~ns. However, it must be noted that sa~ modif1cat1ons will require lddltional time. We have noted tho$: items that yill carryover to the 1991·1992 COBG contract year and will be resolved prior to 1992·1993 COlitracts~ This letter responds to the findings and concerns by area in the saroe order as presented In your April 4, 1991 lett.r. I -NATIONAL OBJECTIVES/ELIGIBILITY N. finding. or concerns In thIs Irel. '-, ,.~---,....-~ _._-----_._- L - , -" ~ ,"­ ,,<,~ . r II -PBOiBAH INCpME' fINDING 11-4; Insuffielent Monitoring of Frogr •• Income In re.sponse to HU£)'s (ind1ngsJ the CHy h.u rec:uested PAHC assemble documentation and financial records of CDBb-rund~d aCQu1s1tions and tmproveoents l so ,th.at an appl fcab1e rite of progr.al'll income per property Cin be detenRfn~. Program incGme subsequently disbursed for eligible activities will also be 1dentifi!d. GT~nt receipts and expenditures >MIl b. accounted for .ep.r.tely froo non-CD8G activities within PAHC'. .ccountlng systoc_ Thl. process ho. been .tarted ano City staff will prDyid~ H~D with documentation is it beco~s available. for future r~imbursem~nts, PAHC s~bmitt~l requirfments to tne City are being revised in c~nformance with HUD requfrements. PAH( ~i11 submit an iccountfng of COBG actfvities for the reporting periods and the City will cQnsolldat! this information on the annual GrGntee Performanc! Repo rt to HUO. The City's Ffnance Department has now deveToped an audit ind m~n;toring program to assure t~at sub-reCipients' financial ~anagement systems Ire kept hi" accordance with applica~le fed!ril requirements. !II -SUBRECIPIEN"TS FINpiNG II 1-1 ~ Jncoijsishncy in rehtions~ip between c.ity and PAHC:~ This finding is alsD discussed further in Section VII Procorement .. The Cfty af P~lD Alto 1s concerned with the findings with regard to the relationship between the Pila Alto Housing Corporation and the Cit). including tne ~jtte" form of the current contract. However, we note tf'lat the Scop-e of Services a.nd the dtsignation of PAHC activities as activities of I special sub-recipient were suggested by HUD personnel during their 1989 monitoring .l.lt. The contr.ct and Scope of Services were amended at that time to include ·ccns.uiting serwic.es· "mde"1" the Planning Administr;atfon category. Although ... e are !lOW chclnging t"he focus of the contract in response to the concerns raised in your April 4, 1991 letter, we fe21 that Wf nave been in com~liinca in tnese areas. Since the inception of PAHC in 1959. the City has relied on PAHC as 0 resource to provide the City .ith e%pertfs~ on federal and state housing legislation, knowledge on 10c"a1 housing issues, ability to prepare pre­ development and develo~ment proposals for affordabTe housing. and is a resource for reviewing various housing proposals fa the City. The PAHC Board and staff offer a unique crDss~sect1on of 1ndfviduals ~1th varied Ireas of expert~se~ Because of their expertise In the P.lo Alto community and their long st.ndlng performance record. the City has used PAHC os • 'consultant' to prgvlde knowledge and guidanc. on housing ls,ues. This Input became e.en more essential after City budget cuts reduced the number of .... , I ! I . r ! f I \ . --~.- • '~""".r :~~ .--.l - · .-;. " '- i ~. I I oj' Plan.l"9 o.plrtoeftt Itafr obI. to perfono the,e tasks. I. particular, .fter • housing pl.nner position was ellm!nated, PAHC'. Input and Issfstlnce was deemed imperative. We take exception to the 1nfertnce that certain of these areas of Isslstance ere not In k.epln~ with housing actlvltle. for t~e community at 10rge. Utilization of the expertise and community-based \nowledge of PAHC for IS51stince in preparati~n of tne Housing EleQent , retention Df e.lstlng .fford,ble housing units In tn. tlty. Ind preparation of such HUG required docu ... nts as tne Housing Assistance Plan (HAP) and tn. Comprehensive Housing Afford.bllity Strategy (CHAS) are consistent with hou.lng activi"tles for the co",unlty at large. Although there .,y be other for·profit consultants in the Bay Arfl .tlo could provide some of these general consulting services, their knowledge ond e'pErtlse In the Palo Alto community would not be as 9reat, and their need for profit would not pro¥ide the optimal services for the funds available. Similarly, other non-profit organizations in the B~ Area do not have tne local cred1billty and e'pertlse that PAHC has obtained. T." 1991-1992 contract Is bein9 rewritten and actl,itles will be funded with both City and COBG funds. The revised contract will specify those Items to be performed by P~~C, such as adoinlstratio" and maoage .. nt of projects either owned Dr controlled by PAHC. project development costs, ;~d ~d~~"1stratiDn of BMR sales and rentals. including CDBG and non~COBG eligible units. In addition. it includes a reQuest to allow PAHC to complete some on-going consulting servf~es begun under the 1990-1991 - contract. FINDING ][1-2: Indirect Cost Allocitf~n Plin The C~ty is currently reviewing PAne's actual costs from its independently i~dited financial statements of prior years in order to develop an indirect cost rate. This process has already begun and is e'pected to be completed by October I, 1991. COSG funding provided by the City will also be reviewed to determine if past indirect costs charged have e.ceeded the developed rate. T~e appr"ed indirect cost rite will then be applied conSistently by PAHC and revised when necessary. Th. procedures followed In .valuating the 1n~;rect cost rate and results of the prlor year review will be documented and available with the Grantee Performance Report to HUO. IV -HOUSING ASSISTANCE PLAH{HBE ffndfng IV-1: Ses1-annual KBf report Tbls document hiS been submItted by thE tlty's Inspectlon.l ServIces DIvision. A copy is .nclosed. &it V9GJA/\. 'l'lIItf UI ..... ; L , " , - ! I - Y • PROGR!M P80GB£SS FindIng Y-I: laodbank funds I~ previous responses Jo HUO aonitorfng reports, the Cfty has outlfned the problems associ.ted with the 1andb.nk funds In a buI1t-o"t city such as Palo Alto, whe"e lind and housing c •• t. are hlgh_ Additlon,"y, there Ire Virtually no e.lstlng houslno pr.Jects with 51 porce"t low IncPO< resident •• Under these conditions It Is !mpo~aot that the City b< able to provIde affordable housing In order that low-Income people can live clase to work, family. friends aT Iyailable serv1ces. Howev!r, because of the cost, It Is more difficult to put together, workable re,' !State program that' will satisfy, goal of prOViding ,ffordable housing • The housing stock In Palo Alto Is ger.era11y ef very high Qija11tj and useable vacant land 1s almost nonexistent; consequentl,. the cost of existing housing .nd •• cant land Is "so yery hIgh. Some exampl •• loelude: I. Vacant S.OOO-square-fcot lots sellfng for I minimum of $300,000, when lyail.ble, 2. A low-end two-be~roo~ condominiu~ starts at $Z7~,OOO. ! 3. SIngle-family homes start .t 5300,000, and 4. Multiple-family projects start .t $80,000 per unit. Wlt~out landbanklng, we would be limited te projects re1,ted to development cf group homes or individual units. 90th cf these areas ~ave ltmlted u~es .nd fer the long teno do net preylde the best oppo~unit] to obt.fn the gre.test number of 'ffordable housing units. Since the CDBC landbank funds and City Rental Housing Acquisit;c~ Pro9ra~ {RHAP] funds are availablE for propos!d uses frc~ any non-profit OT for·profil group is individual projects betome ~iable. the tit1 ,1ways has sever;l projactl under considerition for use of both funds. Howeyer, due to the comple,ity of t~" projects requirIng such larg" funding, tl.iog run. lenger .,d is subject to dft1.1S and br.akdowns. For example, In Spring 1990 sIx projects had progressed far enough to .. rlt close attention for expenditure of the landbank fynds. final approval of anyone of the prejects would h.ve used .11 of the funds 10 the l'ndbank. Olher projects We"e being constde"ed, but due to lhe na.ture of real utate financing. were not publ ic knowledge~ .- .... , I , • -- .~ ... - .;.-"c:.,. . . _", - ... ..-~ '. , . I " i l TIle ,Ix propa .. " Included the f.llowll\ll: page Mill/Ash Streets: For sev!ril yeirs the City has been working tQwirds the purchise of a ~aeant parcel at Page Mill and Ash Streets fnlll Santa Chra County. In our .~ue response letter of 6/7/90, we fu,ly Expected that purchase of sltt ~ou1d occur within f~ur to fIve ~onths~ In December 1990, the Item was agendized fer City Council action; ~owever. because of the discovery of toxic contaminants on I nearby site, the item ~s withdrawn in order for furt~er environmental documentation to be prepared prior to Council action. The preparation of the environmental documentation had to be done by outside consultants. This has required an RFP process, contract preparation, and r~turn to City Council ~ith a contract. At i futUre date, the enviTo~~ntal documents and a recommen1ation on possible purchase will return to City Council. Currently, it is Int\c1pat~d that the enytror.~ntal documentat10n will be completed around August 1. 1991. and a de,ision on ~hether to purchase the propertJ could be made in Septel1lber 1991. lytton Gardens IV, Senior Housing! This Sl-unlt Senior Housing project ls spollsored by Co""unlty Houslng Incorporited (CHI). In Spring 1990, tn. project was not able to obtain requested Hue Section 202 funds. CHI has r.etYrnl!d this year vith i requ!'st te tne City for funding of , $950,000, whIch could Include CDBG landb.nk funds. The uncertainties and delays in obtaining new HUO regulatfons regarding tne 1990 Ho~sing Act has resulted in untertainty on tne timing and progress of this proje~t, although a req~est for City funding couid reach City Councfl in June. City approval would be contingent on obtaining lddit;~nal outside funding sources thro~9h e~ther fe1eral. state or private financing. At this time, a decision on the requested federal flnancing is anticipated to occur by October I, 1991. Qak Manor Apartments: This existing (2-unit family housing apartment complex was placed on the ~arket in summer 1990. In December 199n~ PAHC p'.lrchased t"'e project for approximately $3.2 lZIillicn_ S1.2 million of City RHAP funds were used. Streng consideration was given to ut11izin9 the COSG funds, but because the Page Mill/Ash acquisition appeared imminent, Cfty funds were substituted. 535 Ever~tt: T~is SI-unlt, fj~e story building WiS l1so under consideration fer purchase~ The project was eventUiil1ly rejected for City purchase because an appropriate financing package could ~ot be assembled to me~t the $9 million purchase price. The units were ilsc considered too lirge for SRO. but not suitable fer family housfng_ Sherid.n Apartment.: This feder.lly subsidized (Section 8) 57·unit co.pl.x Is built on lind fonnerly owned by the City. A deed restriction requires th.t t~e City have first option to repurchase the property If pl.ced cn the market. It Ilso cont.ins • d.ed restriction reqUiring • , I , • \ \ -" - • it I plrttclp.tlOft I. the s.ctlo' a progr •• through 1998. l~ls propert1 ••• placed on the market in summer 1990 and would have been rl1g'ble for CDBG l~ndbank funds. H~weyer, because a~ accept2b1e prfce could not be re.chod and because of the •• Istlng protectfon In pl.,e, tn. d.c;,lon ,..s .. de tb,t londb.nk f"nd ... ould b. better utilized on oth.r proje<t,. lie feel that It h I"'l'orhnt Lhat the City be able t. fund the .. type. of project!; in order to pro~fde low~ and ,,'eY'y lo!t'-1nccme hous-Ing in iI •• TY expensive housfng market. W. do not believe th.t the constT.fnts under whIch .e oper.te thfs program .re recognlz.d by HUO r.gul.tlons lnd benchmark requfrements and liIould encolJrage HUD to revfew the requirements in light of ~~etner or not the overall goal of obtaining ,ffordable housing Is being met. The City ~s aware of the nee~ to spend the COeG l!ndbank funds and tc the extent po:ss1ble has .. ade e .. 'ery effort to do 50. We will contfnuE! these ~fforts to spend the funds and will tee~ several projects under consideration. We wfl, also revise our outreach and review procedures to encourage other qua1ified groups to develop proposals for use of t~e CDBG landb.nk funds and to ;n~;te specific annual proposals for USe of COSG landbank funds. At this time the P.g. Mill/Ash Stre.t "t, .nd the l~ttco IV Senior Housi~g Project are still u~der consideration for funding and are , nearing complet~on of other required approvals. It is anticipated that f~nding of one or the other will occur prior t~ October j, ISS]. We feel that either of these projects is ; fitting and appropriate use of the funds.. -- The City is also conSidering an opportun1ty to create ~re Tow-income housIng through the "se of COBG landb.ok fund. to buy down the cost of units In the City's B.l0. Market Rate (BKRJ program. Ouring the 1991- 1992 COSG contract year, we .ill have is .any .s 11 unfts add.d to tn. program. COBG landb.nk fund. could be used to r.due. the puren.se price of these unit to prices affordable to low-and p~ss,b'y Yer~ l~w-income f •• ilies. The City could utIlIze apprc.im.tely $400,000 for tnis purpose. In addition, the Sheridan Apartments have recently been placed back on tn. Market, If neither the Page Mill/Ash Stre.t site nor lytton Gardens lY should be re.li.ed by October I, 1991, it is the tity's intent to pursue a b~y down of BHR Units coming !nto the prcgr.~ or purchase ~f the Sheridan Apartment •• VI . HOMELESS ACTIljlIES No findings or concerns were lfsted In thfs area; however the City Is aw.r. of the problems and •• tds of the ho=ele.s .nd ha. addressed these concern. I. our recent updat. of the flouslng Element. The Issue will be further addres.ed prior to January 1992. lbls assessment will ta\e / " .",- .... t· ....J ii' ,loee ~ • port of tho stat. noqulred ·~s.TY.tlon of Assisted Hooslng' to be .dded to t~. City's Kouslng {lement. The City vill .1,. be assessing and updating possible solutions to homeless proolems in p"parlng the CHAS. We apprecl.te the offer by HUO In ro.ie.lng .od prQvidfng inp~t on the prtpiritfo" of tntse dccurnents. 1 I 1:1 [ PROCUREKEMT I I ! 1----· - Finding Y11:l: Conflict bet ••• n 'Special Subreciplent' ta,ks and 'Cen,ultant' tasks of Pilo Alto Ho"Ing Corporation. As pre.lously stated, the City 1 •. r •• I,lng t~e contract with PAHC. The r.vised contract will specifically list tho ellgibl. sub-recipient categories to be u"d.ertaken by the PAHC, In 1992·1993, as In previous years, PAHC will prepare in applic.tlon for CDBG funds to provide the!e servic., throug~ the .nnual COBB applicatIon process. Th"e tasks will . Include: A. Project Management 1nc1uding manag~ment superYfsi~n of Co1orido P,rk (60 units), Webster Wood (6S units) and Terman (92 units), direct lAanagement of 82 'Units in the City's Rental HOIJsillg AcquiSitIon Program, and d1rect management of 4S units at [11 Hornia Pirk. ~ B. . Sale, and resal es of CDB& ellgible income units of the City's B,lQ~ Marlet Rate hous~n9 ~rogr~ sales. resales a~d re~tl1s. C·~ Should PAHC propose ind receive appro'ial for imp1eme:ntatfon of iI speclfic housing project, the development and pre-development costs of that project would be .1lo~abl. as i specific project cost and would be 1nclud~d in 1 separate contract. Tht City vill rerno~e frvm the ccntract cthe~ references tc Planning Administration costs related to assistance to City staff. Planning Commission and City Council in preparin9 City documents and providing gener.l consulting services that ~ight be funded by CDSG funds. Howeyer. since PAHC has ~een fnvotved in preparition of the previous HAP and in preparing the b.ckground •• terhl for the Impending (HAS preparation, is well 1$ ;ssisting the City in efforts to ~nitor ~nd retai. the stock of affordable housing units that are at risk of being lost is .ffordable hOUSing, we are requesting t~.t HUD Illo~ for I continuation of • portion of tbe consulting ser.lces for the 1991·1992 contract yeir. This will Illow for ~ smoother tr~nsitfon, since t~e 1991·1992 contract year is new beginning and continuation of the,. services is critical to efforts to maintain and improve affordable housing. Ourlng tho 1991-1992 contriet ye.r, the City will be •• plorlng other . opportunities for provldfng the services th.t would be considered IS consulting services. lb.s. po.slbl1ltles I.elude: .... 7 L I , J. - ;. -"~-J .'. - ~ A. B. "-,.--~-.. - -. I-,,' lbrouva I. RiP proco.s. tho Cie, will obtain In outside-eon.ult~nt t~ provide assistance to the City stiff, Pl,nnlng Ca=>lsslon and City Council In reviewing housing proposals, advising the City .f proposed leglslltlon and Its effects, Ind ev,lu,tlon .f e.lstlng ~nd proposed progrlm5 affecting housing. Procurement cf the~e contract servtces would be 1~ accord w1t~ the requirements cf 85.36 (Co~n Rule). Utilizltion of C~6G funds to blre I housing pl.nner within City H,ll to coordinate eligible housing controcts .nd portions of coas grants. and to advise on .11 housing programs. Tb1s person might also oversee an REP process or a proposal process subwitted through the .nnu.l COSS funding process. C. Through the sub-recipient propc"l. for 1992-1993 contract •• an allowance woul~ be constdered fer local Development Corporations for pre-development, project develo~nt .n~ Inltl.l .Ite lcquisit~on costs associated with lctlvities in support of the development of lo~-or ~oderite-tncome ~ousing. These proposals .. y er ~ay not b. site specific. OUt to their expertise and knowledge, the City will continue ,to uti liz! PARC for .d~lntstr.tion of tne Below Market R.te housing program for .11 units that are "~t COSG eligible r!cipients. These services will be charged te the City's Housing Rese,..10 Fund. • We apprEcilte HUD's cQoper~tion in reviewing and advising the City Qn the ""nlterlng Report findtngs .nd look forward to working with HUO representtl1ves fn a.king the necessary corrections. S~ould you have any questions or w1s~ to dlscuss"any 15pe~ts of the findir.gs, cur responses or rr~posed actiens. please contact Ji~ Gilliland at 329~2679 or Suz.nne Richards at 329-2428. f;~~ ~[AM ZAN£R City Manogor Enclo.sur.: October' J, 19~~ to March 31. 1991 HBE cc: Alan Sch.ckman EIIi ly H.rrl son . loul lbn tgen Ken Schre 1 ber ..,.,. -S}lzann. Richards ...4i. Gilliland -.. -~ ..... -- -. -< ~'~~t_t~~~~5j),~, ....or' • . ; L '. > • i • .' _____ ,.,_ca._ .----­-......,-.. =.:. -- -------_ .. _-----_ .. -.. - • .s.~'-_"'-'" ... _- .j • • . :; I , .