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HomeMy WebLinkAboutResolution - 4077 - Funding Agreement - GESC - Services, HOPE 3 Homeownership Program - 02_11_1993Resolution No. 4077 February 11, 1993 Item #27 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Funding Agree- ment with Guadalupe Economic Services Corporation for services under the HOPE 3 Homeownership Program. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this ATTEST: S_aTFy___5t_­TTl 6bbe, Acting City Secretary APPROVED AS TO CONTENT: o— San y g e ee, mmunity eve opment Administr t r APPROVED AS TO FORM: Linda L. Chamales, Assistant City Attorney LLC:js/FA-HOPE3.RES Di-AGENDA/February 2, 1993 Resolution No. 4077 February 11, 1993 Item #27 FUNDING AGREEMENT BETWEEN THE CITY OF LUBBOCK AND GUADALUPE ECONOMIC SERVICES CORPORATION THE STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement is entered into between the City of Lubbock, Texas, a home rule municipal corporation, hereinafter called "City" and Guadalupe Economic Services, a nonprofit corporation incorporated under the laws of the State of Texas, hereinafter called "Corporation". WITNESSETH: WHEREAS, the City is obligated to do and perform certain services in its undertaking of the HOPE 3 Homeownership Program; and WHEREAS, the Corporation is a nonprofit corporation offering services to families throughout Lubbock; and WHEREAS, the Corporation and the services it provides have been found to meet the criteria for funding under provisions of OMB Circular Nos. A-110 and A-122 for Nonprofit Recipients; and WHEREAS, the rehabilitation and conversion of single-family houses for low and moderate income families is fundable by the Department of Housing and Urban Development; and WHEREAS, the provision of affordable housing to low and moderate income families is the predominant purpose of the transaction; continuing supervision by the City together with statutory and contractual requirements provide sufficient assurance that this purpose will be accomplished; and an audit provides sufficient protection of the handling of public money; NOW THEREFORE, the City and Corporation do hereby mutually agree as follows: SECTION 1. AGREEMENT PERIOD This agreement shall commence on October 6, 1992, and shall terminate immediately after selection of the second pool of HOPE 3 purchasers under this program. SECTION 2. MUTUAL OBLIGATIONS A. Corporation shall conduct pre -purchase counseling and training for potential HOPE 3 homeowners. Corporation shall perform all activities in accordance with the terms of the Revised Memorandum of Understanding, hereinafter referred to as Exhibit A; the Budget, hereinafter referred to as Exhibit B; the Applicable Laws and Regulations, hereinafter referred to as Exhibit C; the assurances, certifications, and all other statements made by Corporation in its application for the project funded under this agreement; and with all other terms, provisions, and requirements set forth in this agreement. B. In consideration of full and satisfactory performance of the activities referred to in paragraph A of this section, City shall pay to the Corporation Five Thousand Dollars ($5,000.00) at the close of the first phase of the Hope 3 program as defined in Exhibit A, and an additional Five Thousand Dollars ($5,000.00) at the close of the second phase of the Hope 3 program as defined in Exhibit A, for a total of Ten Thousand Dollars ($10,000.00). C. Corporation shall be responsible for payment of all costs incurred by Corporation in performance of this agreement, and the total of all payments and other obligations incurred by City under this agreement shall not exceed the sum of Ten Thousand and No/100 Dollars ($10,000.00). SECTION 3. UNIFORM ADMINISTRATIVE REQUIREMENTS AND COST PRINCIPLES A. Corporation shall comply with Office of Management and Budget (OMB) Circulars Nos. A-110 and A-122. SECTION 4. RETENTION AND ACCESSIBILITY OF RECORDS A. Corporation shall comply with the retention and custodial requirements for records specified in Attachment C of OMB Circular No. A-110. B. Corporation shall give the United Housing and Urban Development, the Inspecto Comptroller General of the United States, a their duly authorized representatives, acce examine all books, accounts, records, repor papers, things or property belonging to or pertaining to this agreement for funding un program. Such right shall continue as long retained by Corporation. States Department of r General, the nd City, or any of ss to and the right to ts, files, and other in use by Corporation der the HOPE 3 as the records are GUADALUPE ECONOMIC SERVICES - Page 2 SECTION 5. REPORTING REQUIREMENTS A. Corporation shall submit to City such reports on the operation and performance of this agreement as may be required by City including, but not limited to, the reports specified in this section. B. Corporation shall submit to City an annual performance report. Such report shall be in a format prescribed by City. The initial annual performance report is required for the period ending December 31 following the execution of this agreement, and is due no later than 10 days after December 31. Corporation must continue to submit this report annually until all HOPE 3 servicing funds set aside for Corporation under the total grant budget are expended. C. In addition to the limitations on liability otherwise specified in this agreement, it is expressly understood and agreed by the parties hereto that if Corporation fails to submit to City in a timely and satisfactory manner any report required by this agreement, City may, at its sole option and in its sole discretion, withhold any or all payments otherwise due or requested by Corporation hereunder. If City withholds such payments, it shall notify Corporation in writing of its decision and the reasons therefor. Payments withheld pursuant to this paragraph may be held by City until such time as the delinquent obligations for which funds are withheld are fulfilled by Corporation. SECTION 6. City reserves the right to monitor Corporation's compliance with the terms and conditions of this agreement. City shall provide Corporation with a written report of the monitor's findings and include a requirement for correction of such deficiencies within a reasonable time period. SECTION 7. INDEPENDENT CONTRACTOR It is expressly understood and agreed by the parties hereto that City is contracting with Corporation as an Independent Contractor, and that Corporation, as such, agrees to hold City harmless and to indemnify City from and against any and all claims, demands, and causes of action of every kind and character which may be asserted by any third party occurring or in any way incident to, arising out of, or in connection with the services to be performed by Corporation under this agreement, or by the negligence of its agents or employees. Corporation shall give to City prompt and timely written notice of any claim instituted which in any way, directly or indirectly, contingently or otherwise, affects or might affect City, and City shall have the right to compromise and defend same to the extent of its own interests. GUADALUPE ECONOMIC SERVICES - Page 3 The Corporation shall not at any time or in any manner represent that it or any of its agents or employees are in any manner agents or employees of the City. SECTION 8. CONFLICT OF INTEREST In addition to the requirements of OMB Circular No. A-110 and 24 CFR Part 85, Corporation shall ensure that no person who is an employee, agent, consultant, officer, or elected or appointed official of City or Corporation, who exercises or has exercised any functions or responsibilities with respect to activities performed pursuant to this agreement, or who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect to the activity or the proceeds of any contract, subcontract, agreement related to the activity, either for himself or herself or those with whom he or she has family or business ties, during his or her tenure or for one year thereafter. SECTION 9. LEGAL AUTHORITY A. Corporation assures and guarantees that Corporation possesses the legal authority to enter into this agreement to receive funds authorized by this agreement, and to perform the services Corporation has obligated itself to perform hereunder. B. The person or persons signing and executing this agreement on behalf of Corporation, or representing themselves as signing and executing this agreement on behalf of Corporation, do hereby warrant and guarantee that he, she or they have been duly authorized by Corporation to execute this agreement on behalf of Corporation and to validly and legally bind Corporation to all terms, performances, and provisions herein set forth. C. City shall have the right to suspend or terminate this agreement if there is a dispute as to the legal authority of either Corporation or the person signing this agreement to enter into this agreement or to render performances hereunder. Corporation is liable to City for any money it has received from City for performance of the provisions of this agreement if City has suspended or terminated this agreement for reasons enumerated in this Section. GUADALUPE ECONOMIC SERVICES - Page 4 SECTION 10. LITIGATION AND CLAIMS Corporation shall give City immediate notice in writing of 1) any action, including any proceeding before an administrative agency, filed against Corporation arising out of the performance of any subcontract hereunder; and 2) any claim against Corporation, the cost and expense of which Corporation may be entitled to have reimbursed by City. Except as otherwise directed by City, Corporation shall furnish immediately to City copies of all pertinent papers received by Corporation with respect to such actions or claims. SECTION 11. SECTARIAN ACTIVITY None of the performances rendered by Corporation under this agreement shall involve and no portion of the funds received by Corporation under this agreement shall be used in support of any sectarian or religious activity. SECTION 12. CHANGES AND AMENDMENTS A. Except as specifically provided otherwise in this agreement, any alterations, additions, or deletions to the terms of this agreement shall be by amendment hereto in writing and executed by both parties to this agreement. B. Any alterations, additions, or deletions to the terms of this agreement which are required by changes in Federal law or regulations are automatically incorporated into this agreement without written amendment hereto, and shall become effective on the date designated by such law or regulation. SECTION 13. A. Notwithstanding the provisions of Texas Civil Statutes, Article 601f, in the event that Corporation fails to comply with any term of this agreement, City may, upon written notification to Corporation, suspend or terminate this agreement in whole or in part and withhold further payments to Corporation, and prohibit Corporation from incurring additional obligations of funds under this agreement. City will provide Corporation with an opportunity to respond before suspending or terminating this agreement. City shall not be liable for costs incurred after suspension or termination of this agreement, but shall be liable for costs incurred prior to termination. B. Either of the parties to this agreement shall have the right to terminate this agreement, in whole or in part, when both parties agree that the continuation of the activities funded under this agreement would not produce beneficial results commensurate with the further expenditure of funds; provided that both parties agree, in writing, upon the termination conditions, including the effective date of such termination; and in the case GUADALUPE ECONOMIC SERVICES - Page 5 of partial termination, the portion of the agreement to be terminated. SECTION 14. AUDIT A. City reserves the right to conduct a financial and compliance audit of funds received and performances rendered under this agreement. Corporation agrees to permit City, the U.S. Department of Housing and Urban Development, or their authorized representatives to audit Corporation's records relating to the funds received and performances rendered under this agreement for funding in the HOPE 3 program, and to obtain any documents, materials, or information necessary to facilitate such audit. B. Corporation shall take such action to facilitate the performance of such audit or audits conducted pursuant to this Section 18 as City or the U.S. Department of Housing and Urban Development may require of Corporation. SECTION 15. ORAL AND WRITTEN AGREEMENTS A. All oral and written agreements between the parties to this agreement relating to the subject matter of this agreement that were made prior to the execution of this agreement have been reduced to writing and are contained in this agreement. This agreement supersedes the Memorandum of Understanding in the Implementation Grant, Exhibit 2C (pages 34-35) and Exhibit 4 (page 45). B. The attachments enumerated and denominated below are hereby made a part of this agreement, and constitute promised performances by Corporation in accordance with Section 2 of this agreement. 1. Exhibit A, Revised Memorandum of Understanding, 1 page 2. Exhibit B, Budget, 1 page 3. Exhibit C, Applicable Laws and Regulations, 2 pages For purposes of determining venue and the law governing this agreement, activities under this agreement are performed in the City and County of Lubbock, State of Texas. This agreement contains the entire agreement of the parties; and no representations, inducements or other covenants between the parties not included herein shall be of any force or effect. GUADALUPE ECONOMIC SERVICES - Page 6 IN WITNESS WHEREOF, the City and the Corporation have execu d this Agreement as of the first day above written. CITY O LUBBOC GUADALUPE ECONOMIC SERVICES COR RATION ItVI D R. LAN TON, YOR HAIRPER N, BO OF DIRECTORS ATTEST: Sally Still Abbe, Acting City Secretary APPROVED AS TO CONTENT: Sandy Oqfjetr6b, Community Development Administrator APPROVED AS TO FORM: Linda L. Chamales, Assistant City Attorney LLC:dw/cont-agr/D4/Guad1upe.doc rev. February 2, 1993 ATTEST: Secretary i Execu i e Diiecto6r GUADALUPE ECONOMIC SERVICES - Page 7 EXHIBIT A HOPE HOMEOWNERSHIP PROGRAM CITY OF LUBBOCR/GUADALUPE ECONOMIC SERVICES, INC. REVISED MEMORANDUM OF UNDERSTANDING Organizational Structure: Community Development Administrator Sandy Ogletree Guadalupe Economic Services, Inc. Richard Lopez Responsibilities of the Guadalupe Economic Services. Inc.: Guadalupe Economic Services shall conduct a total of four (4) pre -purchase counseling and training sessions for homebuyers and homeowners under the HOPE 3 Homeownership Program. This will be two sessions per applicant pool prior to taking ownership of a HOPE property. Sessions may include subjects such as counseling and training related to financial management, home maintenance, home repair and general rights and responsibilities of a homeowner. Responsibilities include distribution of materials associated with HOPE 3 applications and providing referral applicants to the HOPE 3 Program. Responsibilities of the Community Development Department of the City of Lubbock: It shall be the responsibility of the Community Development Department to compensate the Guadalupe Economic Services, Inc. for its work under this Memorandum of Understanding at a rate not to exceed $10,000.00. It is understood that this compensation will come directly out of the City's HOPE 3 Grant and that $5,000.00 will be promptly paid to Guadalupe Economic Services after the completion of the pool of HOPE 3 Homeownership applicants for Phase I of the program. A second installment of $5,000.00 shall be promptly paid to Guadalupe Economic Services after the completion of the pool of applicants for Phase II of the HOPE 3 Program. Term of Agreement: This agreement shall be effective from October 6, 1992 (the date the City signed the HOPE 3 Grant Agreement) and shall terminate at such time as the second pool of HOPE 3 applicants is completed and Guadalupe Economic Services receives final payment. EXHIBIT B GUADALUPE ECONOMIC SERVICES CORPORATION BUDGET Category 1. Providing pre -purchase homeownership counseling to HOPE 3 applicants and homeowners. Contract Funds $10,000.00 EXHIBIT C APPLICABLE LAWS AND REGULATIONS Contractor shall comply with the Act specified in Section 2 of this agreement and with the rules and regulations promulgated thereunder at 24 C.F.R. Part 575 [52 Fed. Reg. 38864 (October 19, 1987)], and any revisions thereto; the OMB Circulars and the Management Standards specified in Section 5 of this contract; Treasury Circular 1075 (31 C.F.R. part 205); and with all other federal, state, and local laws and regulations applicable to the activities and performances rendered by Contractor under this contract including, but not limited to, the laws and the regulations promulgated thereunder and specified in Section A through E of this Exhibit C. A. Nondiscrimination and Equal Opportunity 1. The requirements of Title VIII of the Civil Rights Act of 1968, 42 U.S.C. 3601 through 3619, and implementing regulations; Executive Order 11063 and implementing regulations at 24 CFR Part 107; and Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2002d through 2000d-4) and implementing regulations issued at 24 CFR Part 1. 2. The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) and the prohibitions against discrimination against handicapped individuals under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794). 3. The requirements of Executive Order 11246 and the regulations issued under the Order at 41 CFR Chapter 60. 4. The requirements of Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701u. (see §570.607(b) of this chapter) 5. The requirements of Executive Orders 11625, 12432, and 12138. Consistent with HUD's responsibilities under these Orders, the Corporation must make efforts to encourage the use of minority and women's business enterprises in connection with activities funded under this agreement. 6. The requirement that the recipient or grantee make known that use of the facilities and services is available to all on a nondiscriminatory basis. Where the procedures that a recipient or grantee intends to use to make known the availability of the ESG services are unlikely to reach persons of any particular race, color, religion, sex or national origin who may qualify for such services, the recipient or grantee must establish additional procedures that will ensure that these persons are made aware of the facility and services. 7. The requirement of Executive Order 12372 and the regulations issued under the order at 24 CFR Part 52, to the extent provided by Federal Register notice in accordance with §52.3. B. Applicability of OMB Circulars The policies, guidelines and requirements of OMB Circular Nos. A-110 and A-112 as they relate to the acceptance and use of emergency shelter grant amounts by private nonprofit organizations. C. In addition to conflict of interest requirements in OMB Circular A-110, no person 1) who is an employee, agent, consultant, officer, or elected or appointed official of the City or nonprofit recipient (or any designated public agency) that receives HOPE 3 amounts and who exercises or has exercised any functions or responsibilities to assisted activities; or 2) who is in a position to participate in a decision making process or gain inside information with regard to such activities may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement thereto, or the proceeds thereunder, either for him or herself or those with whom he or she has family or business ties, during his or her tenure or for one year thereafter. (HUD may grant an exception to this exclusion as provided in 570.611(d) and (e).) D. Use of Debarred, Suspended, or Ineligible Contractors The provisions of 24 CFR Part 4 relating to the employment, engagement of services, awarding of contract, or funding of any contractors or subcontractors during any period of debarment, suspension, placement in ineligibility status. E. Audit Private nonprofit organizations are subject to the audit requirements of OMB Circular A-110 for funds specifically allocated for the HOPE 3 program. Exhibit C - Page 2