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