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HomeMy WebLinkAboutPACKET OCT 31 2006 City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS OCTOBER 31, 2006 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments A) Approve Change Order No. 1 for the Roof and Wall Sheeting Replacement Project at the Fleet Maintenance Facility B) Authorize the granting of a License to Encroach to the Beaumont Community Housing Development Organization(present owner of property)for a house encroaching into the City's general utility easement and storm sewer easement A ..N. cilty of Beaumont �• Council A � Benda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: October 31, 2006 AGENDA MEMO DATE: October 24.2006 REQUESTED ACTION: Council approve Change Order No. 1 for the Roof and Wall Sheeting Replacement Project at the Fleet Maintenance Facility, RECOMMENDATION Administration recommends approval of Change Order No. 1 in the amount of$37,220 to Cleveco Construction for the replacement of metal jambs and headers at fifteen(15)overhead door openings. BACKGROUND In August, a contract was awarded to Cleveco Construction for replacing the roof and wall panels on the Fleet Maintenance Facility. The building suffered extensive damage from Hurricane Rita. Upon removal of wall panels, it was discovered that the metal door jambs and headers surrounding the fifteen (15) overhead doors are deteriorated and need to be replaced. The work will be completed as Cleveco replaces the wall panels surrounding the door jambs. BUDGETARY IMPACT Funds are budgeted in the Capital Reserve Fund for this additional work as it is not hurricane related repairs. Amount of this change order equates to 17%. PREVIOUS ACTION Resolution No. 06-252 awarding the contract to Cleveco Construction in the amount of$222,170. SUBSEQUENT ACTION None, RECOMMENDED BY City Manager and Director of Public Works. RESOLUTION NO. WHEREAS, on August 29th, 2006, the City Council of the City of Beaumont, Texas, passed Resolution No. 06-252 awarding a contract in the amount of$222,170 to Cleveco Construction, Lumberton,Texas, to furnish all labor, supplies, materials and equipment for replacement of the roof and wall panels at the Fleet Maintenance facility damaged by Hurricane Rita; and, WHEREAS, Change Order No. 1 is required to replace the metal door jambs and headers surrounding the fifteen (15) overhead doors which are deteriorated increasing the contract amount by $37,220, thereby increasing the contract amount to $259,390; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized ed to execute Change Order No. 1 to Cleveco Construction, Lumberton, Texas, to replace the metal doorjambs and headers surrounding the fifteen(15)overhead doors which are deteriorated, increasing the contract amount by $37,220, thereby increasing the contract amount to $259,390. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 31st day of October, 2006. - Mayor Guy N. Goodson - VOW B City of Beaumont 0 Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Public Works Director MEETING DATE: October 31, 2006 AGENDA MEMO DATE: October 25, 2006 REQUESTED ACTION: Council consider a resolution authorizing the granting of a License to Encroach to the Beaumont Community Housing Development Organization (present owner of property) for a house encroaching into the City's five foot (5) general utility easement and ten foot (10) storm sewer easement at 3655 Bowen Drive. RECOMMENDATION A wood frame/brick sided house is encroaching into the City's five foot(5)general utility easement and ten foot (10) storm sewer easement, 4.68 feet for a distance of 34.6 feet. The easements are located across the west line of property at 3655 Bowen Drive, described in deed to the Beaumont Community Housing Development Organization as being out of Lot 32, Block 8, Home to Bowenville Addition. Administration recommends authorization to execute the License to Encroach. BACKGROUND The License to Encroach protects the City from liability and provides a thirty(3 0)day cancellation clause. BUDGETARYIMPACT There is a one time fee of$500 for the License to Encroach. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY: City Manager and Public Works Director. engbchdo-ib.wpd 25 October 2006 RESOLUTION NO. WHEREAS, the Beaumont Community Housing Development Organization has requested that the City of Beaumont grant a License to Encroach into the City's five(5)foot general utility easement and ten (10) foot storm sewer easement, 4.68 feet for a distance of 34.6 feet, located at 3655 Bowen Drive, which is described as being out of Lot 32, Block 8, Home to Bowenville Addition as shown in Exhibit "A" attached hereto and made a part hereof for all purposes; and, WHEREAS, City staff has expended considerable time and effort in investigating the effect of such encroachment upon the City and utilities serving the same; and, WHEREAS, it appears that it would be equitable to allow such encroachment at this time; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a License to Encroach into the City's five (5) foot general utility easement and ten (10) foot storm sewer easement, 4.68 feet for a distance of 34.6 feet, located at 3655 Bowen Drive, which is described as being out of Lot 32, Block 8, Home to Bowenville Addition as shown in Exhibit "A" attached hereto and made a part hereof for all purposes for a one-time fee of Five Hundred Dollars ($500.00) for each License to Encroach. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 31 st of October, 2006. - Mayor Guy uy N. Goodson - ���• II. LUUb IU :41AM SE TX TITLE - N0. 2388 P. 2 _ SURVEY LEGEND Sr9 CONCRETE SURFACE AIR coNDJTr0NJN0 UNIT PIPELRVE - a.e. =a o - COVB72BD AREA = WOOD FENCE ��7'��T- Trl•2'I'IIONE LINE` �-s-- a P.P. POWER POLE '�` ROCK OR GRAVEL CHAIN LJNK FENCE OX y XHANOLB . CLIENT': X— BARBED WrRE FENCE CF#- 7SET575> 7 C LOT 21 Al (CALLED s es-08.00- w LOT ,22 $ FOUND �//,Z' 60.00•) SCALE. ,a J0. MON ROD S 67'48'OS" jr. 60.7 0� FOUND 1�2• Af H. IRON PIPE 7:6' UTJLITY SASEAlENT - - 3' GENERAL UTILITY EASEACTNT AS BR VOL. 7eZ,Z. PR fOT. DRJC LQI' 32 AS PSRB VOL. B a Psc°ez arc �o �N h CO M"D ~ CONCRETE N V. 40.70 4 c LOT 3 3. f4 SfNGLB STORY o ROOD BRICK SIDED FR I w LOT 3 7 s 'g oa � h O ZO RESIDENcw ON b - CONCRdT6 ...w ~� O 6.00; N y Vj N :h_ COYERBD CONCRETE I 25' BVILDlNG SETBAC$LINE ZO.ad, � CONCx-nRL'T8.• `• I POUND J N 6B•f 9'03" E 60.22' IRON 1tOD (CALLED N 88'08'00° E 60.001) FOUND J/S' ON PIPE 3655 BO FFEN D.RrVZ 001 DESCRIPTION OF SERVICES: LOC*ArZ CO SVRY$rOR'S CERTIFICATION: HOIY IMP pP.Af S 7b T$Q•LlSNJTOLOERS AND Tff6 OWNER3 OI^ AND deN 4ndersignad done bare TtJI /RGXISES SURVEYED 0O7 TL'Ct d hereon and is 007-reC rta7syd Eh at th''° sur-LeV was dN da THS CyJCA00 TITLE INSU APAN oonfltiets; en•croaeh7nents, over-La there t/Lis 3/ made on the ro RANGE CD Y that said pptinq of irn are no dfsar*panc{es, 0 9 and o1 the Troperty has access'to and pTOUe'menEs, saae7nents or �+ftictr' shortages fin. area,Oboundagg�tinv The above tract rom a dadioated roadwa rights-of-WaV except t ry being Located at 5 Y• Dated ep as aFown heraon, and this the y f p Vsber, 20o&. {IbSONT TFXd C '?77 da o Se to as recorded in Volu7ne and beinr desoribsd as with the Flood Ina•7arcrrc Rate Page �Z vl the tract Lies in the flood Zone p f the Federal Emer Records of- ✓F.FFII o c n.r 'Iless rag-ssted FAUST 'T noted' Looation on Trio g n Manage7nont A en CO771� Penns- In accord nee of-said 7n.ap. •n•pinee7ing and S7ary P as date fined b -cola cY, map reference shovm, the SabjacE lying, I doe not w Actual fie 02006 J-AU STfinlndd „u nt nor bs be On not determined, .49n*hAT m,._rd —jr Y Sin. ,.,r hr, O the cotru cy or scale "6 SMCAY y CLlAo rrj FOR THIS TRnN4n011 VN ONLY Atip L NOT «Sn:TNeL6 TO•�)TTIONAL INSR7'UTMI•Lt OF TIM RIR Mr FOR nNY OTI e'R P0R1`OS9 Oft DY M�NIeQVAY My0WNMLX 0A: Tl�mowvnc�c�NDmDtaaDrssla+llxarn MYVICUNOTR89A]NLWRTRIIT Ric RD F. FADS vTRFt{POR M7Y Lg15 R&{UL'" REGISTERED 'PROFESSIONAL Date:$epta7nb'sr 26 zoos ENCxonc�zMENT NOTES 6JRVXy0R NO' 4782 1. CONCRETE DRNE OVER I APS 7_6' BALDING SETBACK I.LNE CQTL8-.o 7traC t: 7 Qom? FEMA FLood .Zona: � (?F�- CO7'T7TfuTOitY Pa7aei NO.: C. :�G\S.TF BSa57- pd7ueL D¢te: 05 AU ST R�FAUST P eld Book No.. 000 9 4792 B LIVGINEL"R �q -ao 'serving tha cetaa7.DTsVRvEY7NG, INC. Pro ect rda�gto ,gar to yea7:• Q,S�1 . f No. 06152F asas caedor st„ese BvaumoiLt, Texae 7770E (4OD) 6s$-1sf0 Fan (408) 079-3404 COMMENTS FROM DEPARTMENTS AND/OR UTILITY COMPANIES FOR LICENSE TO ENCROACH APPLICATION PROPERTY DESCRIPTION: Existing wood frame/brick sided house encroaching into the City's five foot(5)general utility easement and ten foot(10') storm sewer easement, 4.68 feet for a distance of 34.6 feet.. [3655 Bowen Drive] APPLICANT: Beaumont Community Housing Development Organization DATE OF DISTRIBUTION: October 12, 2006 DUE: October 20, 2006 1) Joris P. Colbert, City Engineer Date Received: 10-16-2006 Acceptance and Approval. 2) Jim Terry, Streets &Drainage Superintendent Date Received: 10-12-2006 Objection. There is a drainage line in the drainage easement despite what their applicant says. They may have built the house on top of the line. 3) Jack Maddox, Fire Marshall Date Received: 10-13-2006 Acceptance and Approval. 4) Hani Tohme, Water Utilities Date Received: 10-17-2006 Acceptance and Approval. The City does not have facilities crossing within the encroachment. Enclosed are a set of maps for existing water and sanitary sewer facilities within the vicinity of this property. According to the water maps,we have a six(6)inch water line on the north side of Bowen Drive. According to the sanitary sewer maps,we have a six (6) inch sanitary sewer main in the 15' utility easement located between Bowen Drive and Robinson Street. 5) Stephen Richardson, Planning Manager Date Received: 10-13-2006 Acceptance and Approval. 6) Mark Horelica, Transportation Manager Date Received: 10-16-2006 Acceptance and Approval. 7) Patrick Sam, CenterPoint Energy Entex Date Received: N/A 8) James Bryant, Entergy Date Received: 10-20-2006 Acceptance and Approval. 9) Cliff Moore, AT&T Date Received: N/A 10) Richard Le Blanc, D.D.#6 Date Received: N/A 11) Tyrone Cooper, Legal Department Date Received: 10-24-2006 comments_summary-bchdo w9j2jCITY OF BEAUMONT PUBLIC WORKS Date: October 12, 2006 A � c PROPERTY DESCRIPTION: Existing wood frame/brick sided house encroaching into the City's five foot(5) general utility easement and ten foot(10) storm sewer easement, 4.68 feet for a distance of 34.6 feet. [3655 Bowen Drive] ACCEPTANCE AND APPROVAL OBJECTIONS COMMENTS —T yro Coo City to" me V Ronnie L. Pullin Ilona N. Baker Engineering Division City of Beaumont P.O.Box 3827 Beaumont,TX 77704 (Phone) 880-3725 (Fax) 880-3732 A~, O CITY OF BEAUMONT "p- ,���„ PUBLIC WORKS Date: PROPERTY DESCRIPTION: Existing wood frame/brick sided house encroaching into the City's five foot(5') general utility easement and ten foot(10') storm sewer easement, 4.68 feet for a distance of 34.6 feet. [3655 Bowen Drive] ACCEPTANCE AND APPROVAL OBJECTIONS COMMENTS o is P. Colbert C ty Engineer Date Ronnie L.Pullin Ilona N.Baker Engineering Division City of Beaumont P.O.Box 3827 Beaumont,TX 77704 (Phone) 880-3725 (Fax)880-3732 OCT,12_06 03 : 16 PM STREETSiDRAINAGE 409 838 6153 P. 02 CITY OF BEAU-NION T u did PUBLIC WORKS IMArM M. Mm Date: October 1.2, 2006 X. PROPERTY DESCRITUON: Existing wood frame!bOck sided;souse en:roa.hijig im„talc C'ty's five foot(S)general utility casement and tcn storm sewer cascinent,4,68 feet for a distance of 1.4.6 feet [3655 Bowen Drfvcj ----___ ACCEPTkNCE AND APPROVAI-. ORIECTiON9 C0NIAlEI\TS 0,L1 A yq v q'4-4- �jL{ LL s� M1-- e;ry eels and D/rainape Datc Rowniq L.Pullin Ilona?ti,I3Aker of PCaumant P.Q,13pY 3$l? BoautixML TX !�70,y inccring Diti*lion fPhor.e)38J-3;25 (fex)4�1,)_i?;7 10-13-206 1 :47PM FROM BEAUMONT FIRE/RESCUE 4098883931 P. 2 10fi2/2006 t3:38 409-880-3732 CITY BE'AU.MONT PW PAGE 05/05 CITY OF BEAUIVICpNT •..�... PUBLIC WORKS Date-- October 12,2006 PROPERTY DESCRIPTION: Existing w00d fr4mc/brick sided house cnctoaching into tho GitY's five foot(5')general utility easement and ten foot(10) stOnn sewer eascanent 4,68 feet for a distance of 34.6 feet. [3655 Bowcz Drive] ACCEPTANCE AND APPROVAL OBJECTIONS Jack,MaddoX Fire Marihali Date_. liannio L,Pullia Ila=N.Baker, Cits of Beaimooat ,F,0.Box 3827 Beawront P is�c i7ivision 777/}4 Ct'hfine}880-3725 (Fax)880-3732 O CITY OF BEAUMONT ....•. PUBLIC WORKS Date: October 16, 2006 PROPERTY DESCRIPTION: Existing wood frame/brick sided house encroaching into the City's five foot (5) general utility easement and ten foot (w) storm sewer easement, 4.68 feet for a distance of 34.6 feet. [3655 Bowen Drive] ✓ ACCEPTANCE AND APPROVAL OBJECTIONS COMMENTS The City does not have facilities crossing within the encroachment. Enclosed are a set of maps for existing water and sanitary sewer facilities within the vicinity of this property. According to the water maps, we have a six(6) inch water line on the north side of Bowen Drive. According to the sanitary sewer maps, we have a six (6) inch sanitary sewer main in the 15'utility easement located between Bowen Drive and Robinson Street. Hani Tohme, P.E. r Director of Water Utilities Date /h9 o OCT 17 RECD Ronnie L.Pullin Ilona N.Baker En ineerin Division City of Beaumont P.O.Box 3827 Beaumont,TX 77704 Phone ( )880-3725 (Fax)880-3732 \ 1g0 50 46 2 � 3 \9 6'� \i9 \5 d co CD— U, 36'5.5 3625 2C 2 (D i g \961' / r. V13 2 ao � / '. t-519..' •8 • � \9 6\O �" u� O • • • // � W 39 F00 jam: 2 \ \A // \ tp 0 3? 3 6 \6 \I \8 Q -6 8 \1 \8 � 2 a C 2� 3653 PG '�95 3 32 33 3 4 955 3135 30 'lp� ml -5 ro 6 •fl 22 20 3g 393p39`° � N O � e 0 3 710 3670) G 395 21/41 \i96 3g\59 � . 311 PERTH PL. 38:55 LO 3735 69 3655 \ 10 II 15 16 17 18 4 i\ c> N' 2� Vii.,•:: s . 5590 SS8® SS - a Z3_ �. 1 A Ell � �, 3 6 7 fo- 13` 14 15 Q° 6" -_ a 2 \ 1 4 10 o 9 6�.a 3630 ;3620 IQ 36 a r m 20 0\ e 9 ® 3655 364 63 \gM o \ 1 2 3 5 6 367 °m .� N C. c Z . G 5'73© _ 6 5 1 \6 4 6 co z 39\� � - 5 � s a• \Z ��' e• ,s 45 0 3 3 - 2V Z � 2p. - J 43 \g o � - o •m \o 36 . s 2 40\ 0 3 f \9 3 t9 .` ,36� e d a"coNc . 9 \ 9 Q o 0 3;\ e. ` 2 N ' , \\ 9 Am- 'S,3-Id` 6.: �9\5 30 5 :. 365`i 33 3 a 6 2g 6, 3 2� 21 3g y5 a 26 20 w 6 - 3959 2 37fS.. 9 365 19 av A 14 17 18 CITY OF BEAUMONT 1:-2 PUBLIC WORKS Date: October 12, 2006 .� OL PROPERTY DESCRIPTION: Existing wood frame/brick sided house encroaching into the City's five foot(5) general utility easement and ten foot(10) storm sewer easement, 4.68 feet for a distance of 34.6 feet. / [3655 Bowen Drive] ACCEPTANCE AND APPROVAL OBJECTIONS COMMENTS Stephen Richardson Planning Manager Date Ronnie L.Pullin Ilona N.Baker — Engineering Division City of Beaumont P.O.Box 3827 Beaumont,TX 77704 (Phone) 880-3725 (Fax) 880-3732 10/16/2006 07:43_ 409-833-8024 TRANSPORTATION PAGE 01 10/12/2006 13;44 409-880-3732 CITY BEALMONT PW PAGE 05/05 CITY OF BEAUMONT ••�•.. PUBLIC WORKS _ Bates October 12, 2006 PROPER'T'Y DESCRIPTION: Existing wood frameNiok sided house encroaching into the City's flve foot(5)general utility casertler-t and ten foot(]01) storm sewer easement,4.68 feet far a distance of 34,6 feet. 13655 l3owen'lhiya) ACC$pT'ANCE AND APPROVAL - OBaCTIONS CQmMFLYIS Vk orclio Transportation Manager Date .�O Rnttaio L.Furt]itt I]one N. Dakar City of j�4A itilol1t T'.Q,$ox 3827 I aerunont, j7{ 77784 lue Division (Phone)S80-3725 (Fax $$0.3732 Cot . 20 06 10: 46a Entergy Design East (408) 785-2343 10/12/2006 13:51 409-880-3732 CITY BEAUMONT PW PAGE 05/05 CITY OF BEALTMONT rr■■rr PUBLIC WORKS Date: October 12, 2006 PROPERTY DESCRXIP'X'XON: Existing wood frame/brick sided housc encroaching into the City's-Ove ,foot(5)general utility easement and tcn foot(101) storm sewer easement,4.68 foot for a distance of 34.6 feet. [3655 Bowen.Drive] ACCEPTANCE AND APPROVAL _ OBJECTIONS COMMFIVTS Y1 ames}3.ryant Entergy bate —9 �Q • Ronnie L. 1?WIin Ilona X Baker 1_n xrneerin Division City of Beaumont P.O.Box 3827 Bcawmoat,TX 77704 (pllone)880-3725 (Fax)880-3732 City of Beaumont REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS OCTOBER 31,2006 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-7/Consent Agenda * Consent Agenda GENERAL BUSINESS I. Consider approving a resolution authorizing publication of notice of intention to issue $30 million in Certificates of Obligation for authorized street, drainage and general improvement projects 2. Consider authorizing the City Manager to execute an agreement with the State of Texas Office of Rural Community Affairs for funding under the Texas Community Development Block Grant (TxCDBG)Disaster Recovery Grant Program 3. Consider approving a contract for the construction of Martin Luther King, Jr. Park 4. Consider authorizing the City Manager to execute a Lease Agreement with Goodwill Industries 5. Consider approving a bid for purchasing five (5) standby generator power systems for installation at various fire stations • WORKSESSION * Discuss the issuance of Refunding Bonds, Series 2006 * Review and i d scuss a proposed contract with the Southeast Texas Regional Planning Commission for the administration of disaster recovery funds and discuss proposed gu idelin es related ated to a Disaster Recovery Program 6. Consider authorizing the City Manager to execute a contract with the Southeast Texas Regional Planning Commission for the administration of disaster recovery funds 7. Consider adopting proposed housing program guidelines related to a Disaster Recovery Program COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment (Persons are limited to 3 minutes) EXECUTIVE SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: The City of Beaumont vs International Association of Firefighters, Local Union No. 399 City of Beaumont v C& I Oil Company, Inc. * Consider matters related to employment, evaluation and duties of a public officer or employee in accordance with Section 551.074 of the Government Code: City Manager City Attorney Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Lenny Caballero at 880-3716 three days prior to the meeting. � 1 October 31, 2006 Consider approving a resolution authorizing publication of notice of intention to issue $30 million in Certificates of Obligation for authorized street, drainage and general improvement projects % City of Beaumont •�• Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Max S. Duplant, Chief Financial Officer MEETING DATE: October 31, 20Q6 AGENDA MEMO DATE: October 27, 2006 REQUESTED ACTION: Council consider a resolution authorizing publication of notice of intention to issue$30 million in Certificates of Obligation. RECOMMENDATION The Administration requests approval of a resolution authorizing publication of notice of intention to issue $30 million in Certificates of Obligation. BACKGROUND The $30 million in Certificates of Obligation will be issued to finance various street, drainage and general improvements.Concurrently, $20 million in Waterworks and Sewer System Revenue Bonds will be issued to provide funds for the expansion,repair,renovation and related improvements to the waterworks and sewer system. A notice of intent to issue revenue bonds is not required so no action is requested on these bonds at this time. Issuance of the Bonds and Certificates is scheduled for December 5, 2006 with delivery and receipt of the proceeds by the City on December 28, 2006. BUDGETARY IMPACT All debt and other expenses related to the Certificates of Obligation shall be incurred by the Debt Service Fund which is supported by property taxes. All debt and expenses related to the Revenue Bonds shall be incurred by the Water fund which is supported by revenues of the waterworks and sewer system. Water and Sewer rates approved through June 2007 are sufficient to meet debt service requirements on the Revenue Bonds. PREVIOUS ACTION None. SUBSEQUENT ACTION Subsequent Council action will be requested to approve the issuance of $30 million in Certificates of Obligation and $20 million in Waterworks and Sewer System Revenue Bonds on December 5, 2006. RECOMMENDED BY City Manager and Chief Financial Officer. CITY OF BEAUMONT,TEXAS $20,000,000" Waterworks and Sewer System Revenue Bonds,Series 2006A Tentative Schedule of Events Emm S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 6 7 1 2 3 4 1 2 8 9 10 11 12 13 14 5 6 7 8 9 10 11 3 4 5 6 7 8 9 15 16 17 18 19 20 21 12 13 14 15 16 17 18 10 11 12 13 14 15 16 22 23 24 25 26 27 28 19 20 21 22 23 24 25 17 18 19 20 21 22 23 29 30 31 26 27 28 29 30 24 25 26 27 28 29 30 31 Day/Date Action Participants Friday,October 6 First Draft of Notice of Sale(N.O.S.)and Preliminary RBC Official Statement(P.O.S.) Friday,October 13 Second Draft of N.O.S.and P.O.S.(Forward to Bond Counsel&City) RBC,City,OBT Friday,October 27 Third Draft of N.O.S.and P.O.S.(Forward to all Participants) R13C,City,OBT Tuesday,October 31 City Council Reviews Schedule of Events RBC,OBT,City Presentation of Finance Plan Wednesday,November 1 Due Diligence Conference Call(Review N.O.S.and P.O.S.) RBC,City,OBT Friday,November 3 Final Draft of N.O.S.and P.O.S. RBC,City,OBT (Forward to Rating Agencies and Bond Insurers) Thursday,November 9 Final Comments Due on N.O.S.and P.O.S. RBC,City,OBT Monday,November 13 Print and Distribute N.O.S.and P.O.S. RBC Tuesday,December 5 City Council Adopts Order Authorizing the Issuance of the Bonds RBC,City,OBT (Regular Council Meeting) Thursday,December 7 Review Final Official Statement RBC,City,OBT Tuesday,December 12 Print Final Official Statement RBC Thursday,December 28 Delivery of Bonds RBC,City,OBT PARTICIPANTS City—City of Beaumont RBC—RBC Capital Markets OBT—Orgain Bell&Tucker L.L.P. * Preliminary,subject to change. RESOLUTION AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION THE STATE OF TEXAS § COUNTY OF JEFFERSON § THE CITY OF BEAUMONT § WHEREAS,The City of Beaumont,Texas (herein referred to as the"City"), acting through its governing body (hereinafter referred to as the "City Council'), is authorized to issue certificates of obligation to pay contractual obligations to be incurred in connection with authorized street and drainage improvements, building improvements, renovations and repairs, park improvements and equipment purchases within the City (herein referred to as the"Project'), and for professional services rendered in connection therewith pursuant to Texas Local Government Code Sections 271.041 -271.064,as amended; and WHEREAS, the City Council of the City has determined that it is in the best interest of the City and otherwise is desirable to issue a series of certificates of obligation in a principal amount not to exceed$35,000,000 to be known as the "City of Beaumont, Texas, Certificates of Obligation, Series 2006"(hereinafter referred to as the "Certificates")to finance the Project and to pay for professional services rendered in connection therewith; and WHEREAS, in connection with the issuance of the Certificates, the City Council intends to publish notice of the intent of the City to issue the Certificates in accordance with the requirements of the Texas Local Government Code Section 271.049, as amended; and WHEREAS, the City Council has been presented with and has examined the proposed form of notice to be published and finds that the form and substance thereof are satisfactory and that the recitals and findings contained therein are true,correct and complete; TEXAS:NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT, Section 1. The facts and recitations contained in the preamble of this resolution are hereby found and declared to be true and correct. Section 2. The City Council hereby approves the form of the Notice of Intention to Issue Certificates of Obligation presented to the City Council in substantially the form attached hereto as Exhibit"A" and incorporated herein by reference(the "Notice"). The City Council hereby authorizes the Mayor or any other member of the City Council or any other official of the City to execute and deliver the Notice on behalf of the City, with such changes therein and additions thereto as the person executing same may approve, such approval to be conclusively evidenced by such execution thereof. The City Council hereby authorizes and directs the Mayor, the City Clerk or any other official of the City to cause the Notice to be published in the manner required by law in a newspaper of general circulation in the City. Section 3. The Notice set forth in Exhibit "A" attached hereto shall be published in both English and Spanish once a week for two (2) consecutive weeks in a newspaper which is of general circulation in the City, the date of the first publication to be not less than fourteen(14)days prior to the date tentatively set in the Notice for the passage of the ordinance authorizing the issuance of such Certificates of Obligation. Section 4. The Mayor, the City Clerk, and other officials of the City are hereby authorized and directed to do any and all things necessary or desirable to carry out the provisions of this resolution. Section 5. This resolution shall take effect immediately upon its passage. Section 6. It is officially found, determined and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by the Texas Government Code Chapter 551,as amended. PASSED AND APPROVED this 31st day of October,2006, Mayor THE CITY OF BEAUMONT,TEXAS ATTEST: City Clerk THE CITY OF BEAUMONT,TEXAS (SEAL) 0 EXHIBIT "A" NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION NOTICE IS HEREBY GIVEN that the City Council of The City of Beaumont, Texas (the "City"),will meet in the Beaumont City Hall, 801 Main Street, Beaumont,Texas, at 1:30 p.m., on the 5th day of December, 2006, which is the time and place tentatively set for the passage of an ordinance and to take such other action as may be deemed necessary to authorize the issuance of the City's Certificates of Obligation, Series 2005, in the maximum aggregate principal amount of$35,000,000, payable from the City ad valorem taxes and from a subordinate lien and limited pledge of certain net revenues of the City's water and sewer system, bearing interest at a rate or rates, not in excess of that prescribed by law, and maturing over a period of years not to exceed forty (40) years from the date thereof, for the purpose of evidencing the indebtedness of the City to finance all or any part of the cost of the following projects:(i) authorized street and drainage improvements; (ii) Alice Keith Park playground renovations and acquisition of new park equipment, (iii) renovations, repairs and construction of new restrooms, field lighting and other improvements at the Athletic Complex, (iv) renovations and improvements to City Hall, (v) replacement of rooftop air handler system at City Hall, (vi) renovations, repairs, replacement, construction and equipping of new community center facilities, including Central Park Community Center, Alice Keith Park Community Center, Rogers Park Community Center and North End Park Community Center, and replacement and construction of new restroom facilities at SprottPark, and replacement of park spray devices (vii) demolition of public and commercial facilities, (viii) construction of a hike and bike recreational trail and parking facilities at the Drainage District 6 flood detention facility, (ix) construction and equipping of a new Downtown Event Center to replace the Harvest Club which will include an Event Center and a new park, lake, restroom and parking facilities, (x) construction of a new EMS Medic Station, (xi) repairs, renovations and improvements to existing Fire Station 0 facilities, (xii) construction and equipping of a new Fire Fleet maintenance facility, (xiii) construction and equipping of a new Fire Fighting Administration Facility, (xiv) repairs and improvements o the Fleet parking lot, (xv) renovations, repairs and improvements to the JP Richardson Building, (xvi) repairs, renovations and improvements to Julie Rogers Theater, (xvii) replacement and construction and equipping of a surplus property storage facility, (xviii) replacement of carpet and furniture at the Main Library, (xix) construction of a new Martin Luther King, Jr. Park facility, (xx) renovations to the Municipal Court Building, (xxi) purchase of an existing building and renovations thereto and equipping thereof for use as a police department property and file storage building together, (xxii) construction of a new Public Health Department Building or purchase of an existing building and renovations thereto and equipping thereof for use as a Public Health Department Building, (xxiii) purchase of new public safety communications hardware and software, (xxiv)repairs,renovations and improvements to Riverfront Park, (xxv) repairs, renovations and improvements to Rogers Park, (xxvi) construction and equipping of a new Senior Center Facility), (xxvii) construction of an addition and improvements to the Tyrrell Historical Library, (xxviii) construction and equipping of a new Tyrell Park Community Building and (xxix) construction and equipping of a new visitor's center and office facility, and(xxx) the cost of professional services incurred in connection therewith. WITNESS MY HAND AND THE OFFICIAL SEAL OF THE CITY, this 31st day of October, 2006. /s/Guy Goodson Mayor THE CITY OF BEAUMONT,TEXAS ! 2 October 31, 2006 Consider approving the City Manager to execute an agreement with the State of Texas Office of Rural Community Affairs for funding under the Texas Community Development Block Grant (TxCDBG)Disaster Recovery Grant Program ...... City of Beaumont CM,MINT Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Public Works Director MEETING DATE: October 31, 2006 AGENDA MEMO DATE: October 19, 2006 REQUESTED ACTION: Council authorize the City Manager to execute an agreement with the State of Texas Office of Rural Community Affairs for funding under the Texas Community Development Block Grant(TxCDBG)Disaster RECOMMENDATION Grant Program. ON Administration recommends City Council authorize the City Manager to execute an agreement with the State of Texas Office of Rural Community Affairs for funding under the TxCDBG Disaster Recovery Grant Program. BACKGROUND The City recently received an award under the Texas Community Development Block Grant Program, administered by the Texas Office of Rural Community Affairs, in the amount of$1,950,000. The Disaster Recovery Grant Program was established by federal legislation to aid areas most impacted and distressed by Hurricane Rita. The funding provided to the City under this program will be utilized as a portion to the 25 percent match toward a Hazard Mitigation Grant Program (HMGP) award from the Federal Emergency Management Agency(FEMA)on behalf of Drainage District No. 6. The combined funds will be used to construct a drainage system on Calder Avenue from the Neches River to West Lucas Street. This project will address repetitive flooding problems in a significantly populated area of approximately 26,250 persons and will remove more than 900 homes on the National Flood Insurance Program (NFIP)repetitive loss listing. Additionally,this project will benefit 14,817 persons of low to moderate income. BUDGETARY IMPACT The total cost of the project is estimated at $47,150,000 with the City's share totaling ely approximat $21,534,820. Funds are available for the project in the Capital Program. PREVIOUS ACTION None. SUBSEQUENT ACTION The Drainage District No. 6 and City will have to enter into an Interlocal Agreement for the City to access the Hazard Mitigation Grant Program funding. RECOMMENDED BY City Manager, Public Works Director and City Engineer. ORCACDBGAg reement.wpd October 19,2006 RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an agreement with the State of Texas Office of Rural Community Affairs for funding in the amount of$1,950,000 underthe Texas Community Development Block Grant(TxCDBG)Disaster Recovery Grant Program. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 31 st of October, 2006. Mayor Guy N. Goodson - - ti OFFICE OF RURAL COMMUNITY AFFAIRS CONTRACT NO. DRS060004 FOR CDBG DISASTER RECOVERY GRANT PROGRAM STATE OF TEXAS ] COUNTY OF TRAVIS ] SECTION 1 PARTIES TO CONTRACT This contract and agreement is made and entered into b Affairs, an agency of the State of Texas, referred to y and between the Office of Rural referred to as the "Contractor". as the "Office" and the City of Beaumont The parties have severally and collectively agreed and b the execution are bound to the mutual obligations and to the. ertor described tasks. p mance and accomplishment of-the SECTION 2. CONTRACT PERIOD This contract and agreement shall commence on Au 2008, unless otherwise s ecificall gust 31, 2006, and shall terminate on August p y provided by the terms of this contract. SECTION 3. g t 30, CONTRACTOR PERFORMANCE e Contractor shall-conduct, it a satisfacto elopment program, referred to as Texas rY m nner as determined b HUD Disaster Recove G Disaster Recovery y the Office, a community Law 109-148,Disaster approved Grants under the De ry Grant and allocated under the pproved December e Department of Defense Appropriation Act of 2006 (Public Act of 1974, as amended ' 2005), and Title I of the Housing and Community Development (42 U.S.C. Sec. 5301 et se q.),all activities in accordance with the terms of the Pe Y hall q.), referred to as the Act. The Contractor shall Exhibit A; the Budget, referred to as Exhibit to the Project Exhibit C; the A rtormance Statement, referred to as pplicable Laws and Regulations; referred to as Exhibit D; the as Exhibit E; the assurances, certifications, and °sect Implementation Schedule, referred e as application for the project funded under this con all other statements made by the Certifications,Co act referred to requirements set forth in this contract. The Contra oons, . nd its tract; and with all other terms, provisions, and the activities described in Exhibit A, Performance State Contractor shall ensure that the persons to benefit from the a benefit from the use of the new or improved facilities be fulfilled and before submitting the Project Completion of this contract are receiving the service benefit from the activities described in Exhibit A and activities for the contract obligations to Contractor is liable iv repay pletot. Report toe s service Office. p y to the Office any associ ted d sallowed cService orlatbenefit Persons SECTION 4, costs. OFFICE OBLIGATIONS 4• Measure of Liability n consideration of full and satisfactory performance ontract, the Office shall be liable for actual and reasonable ce of the activities.referred to in Section 3 of this scon ract incurred by the Contractor Burin ons set forth in this Section 4. tract by the Contractor, subject to g ie contract period for performances rendered under this 1• It is expressly understood and agreed by the subject the Section expressly are contingent upon the actual receipt of adequate state or federal funds to meet Page 1 of 14 Office's liabilities under this contract. If adequate funds are not avail this contract, Office shall notify the Contractor in writing within a reasonable time determined. Office shall terminate this contract and will able to make payments under 0 to the Contractor under this contract. t not be liable for failure to make payments 2. The Office shall not be liable to the Contractor for an costs Portion thereof, which has been paid to the Contractor or is subject to payment to the Contracto , or has been reimbursed to the Contractor y incurred by the Contractor, or any source other than the Office or the Contractor. suptect to reimbursement to the Contractor by anry 3. The Office shall not be liable to the Contractor for any costs incurred are not allowable costs, as set forth in Section 6 (A) of this contract. by the Contractor which 4. The Office shalt not be liable to the Contractor for any costs incurred any performances rendered by the Contractor which are not strictly in accordance w' of this contract, including the terms of Exhibit A, Exhibit B by the Contractor or for this contract. with the terms Exhibit C, Exhibit D, and Exhibit E of 5. The Office shall not be liable to the Contractor for an cos performance of this contract which have not been billed to the Office b the Contractor (60) days following termination of this contract unless is incurred by the Contractor in the Expenditures referred to in on 8 (C)of this contract. hefwise provided for in the Certificate of 6. The Office shall not be liable for costs incurred or erfor mances rendered by the Contractor before commencement of this contract or after termination of this contract P specifically identified in Exhibit A, Performance Statement and (b) the costs incurred by the Exhibit B, Budget, unless (a) the costs are Contractor were for otherwise_allowxhib re- costs that-were incurred on or after September 24 2005, of this contract, and c p agreement program 0 the Office's requirements applicable e the Disaster Recovery 109-148, including requirements state and federal ( ) the Contractor complied under blic all Grants provided under Public Law applicable environmental, labor, civil rights and acquisition requirements, I all of this provisions procedures, contract, and all applicable TxCDBG policies and procedures. 7. The Office shall not be liable for costs incurred and reserved on the C if such costs are not billed to the Office within ninety days after the contract's exception will be made for the reserved funds for the final 5% Certificate of Expenditures programmatic closure. Audit funds reserved on the Certificate termination date. An reimbursement under the provisions of Section 19 o administrative drawdown for within twelve months after the end of the Contractor' t of Expenditures eligible for f this contract shall be billed to the Office of this contract. The Office shall deobligate all reserved funds not requested Contractor's fiscal year that follows the termination date subsection. q ted under this 8• The Office shall not be liable to the Contractor for a any performances rendered by the Contractor which are not strictly in accordance 109-148, the applicable CDBG regulations as amended,ny costs incurred by the Contractor or for Urban Development (HUD) requirements that govern the use of S. Department of Housing and Law funds. of these CDBG disaster recovery B. Excess Payments The Contractor shall refund to the Office any sum of money ffice, which the Office determines has resulted in overpayment e determines. Contractor strictly in accordance with the terms of this has not been spent by the Contra which has been paid to the Contractor by strictly to the Contractor, or which the contract. Such refund shall be made by the Contractor to after such refund is requested by the Office. the Office within thirty (30) working days Page 2 of 14 C. Limit of of Li�u Notwithstanding any other provision of this contract, the total incurred by the Office u o/100 rider this contract of all payments and other shall not exceed the suld Fifty Thousand and N Dollars ($1,950,000). m of One Million Nine Huundrre SECTION 5. METHOD OF PAYME i A. The Contractor shall submit to the Office at its offices in Travis County, completed Request for Payment form and State of Texas Purchase Voucher, Office, as often as actually needed. The Office shall deter Texas, a properly requested and shall not make disbursement of an asona n specified by the determine the reasonableness of each amount approved such Request.. y such payment until the Office has reviewed and B. The Contractor's requests for the advance of funds shall be limited needed for effective operation of programs under this contract, and t possible to be in accord with actual cash r nd sh shall the minimum amounts requirements. The Contractor lshall lestablish closely procedures to minimize the time elapsing between the transfer of funds from the Office to the Contractor and shall ensure that such funds are disbursed as soon as administrative) C. Notwithstanding the provisions of Section Possible. on 5 (A) of this contract, it is expressly understood and agreed by the parties that payments under this contract contingent are contin satisfactory performance of its obligations under this contract. t upon the Contractor's full and D. It is expressly understood and agreed by the parties that an Section 5 or in any other provision of this contract shall not Preclude right or remedy medy under-this contract or under any provision of law y Provided for i r this p__ lode the.exercise-of-any other-rigtrt or Sy right or remedy be deemed a waiver of any other rights or re , nor shall any action taken in the exercise of or remedy shall not constitute a waiver of the right to exercise that or an o time. remedies. Failure to exercise any right y other right or remedy at any E. The amount of funds paid by the Office to the Con Planning/Project Delive tractor for administration cost (which includes ry.Rita costs in the Budget, Exhibit B) may not exceed ten (10) contract award amount without prior a pproval from the Texas Department of Housing and Community Affairs (TDHCA) Governing Board. If the Contractor deems the amount percent of the activities, the Contractor may request that the Office petition an amount up to fifteen 15 P on the TDHCA Board for additional costs in ( ) percent of the grant. SECTION 6. UNIFORM ADMINISTRATIVE REQUIREMENTS PRINCIPLES AND PROGRAM COME COST A. Except as specifically modified by law or the provisions comply with the Regulations in Exhibit D and, for matters not addressed 85, "Administrative Requirements for Grants and of this contract, the Contractor shall F.ederall d therein, with 24 C.F.R. Part y Recognized Indian Tribal Governments" (referred to as the "Common State, Local and the rules promulgated by the Office of the Governor under the Uniform Management Act (TEX. GOVT. CODE ANN. Chapter 783; referred ule") as modified by this contract. The allowability of costs incurred for performances Grant and Contract accordance with Office of Of and Budget OM ed to r "U hall be e performing ces rendered shall be determined in and this contract. (OMB) Circular A-87, as supplemented by Page 3 of 14 B. The Contractor shall comply with the requirements set forth in 24 Regulations to account for program income related to activities es finan ed i R' Section n part 9( h of the provided under this contract. m whole or in part with funds. 1• The Contractor shall maintain records of the income in the same manner as required for all other funds cunder this d contract,tra t, n d all program shall provide reports of program income to the Office with each form submitted in accordance with Section 5 of this contract, and at the ter act, and the Contractor by the Contractor mination of this contract. 2. Any program income generated shall be returned to the Office as er waiver published in the Federal Register August 1, 2006. p 3. At least sixty (60) days prior to the termination of this contract, Plan to the Office for its approval which specifies the manner in which the C the Contractor shall submit a. use any unexpended program income earned under this contract t specified in this contract in the manner specified. An program Contractor proposes to from this contract, prior to the establishment and approval ° ° continue the performance Contractor must t, returned to the Office. In t r p gram income earned u the Contractor submitted by the Contractor, the Contractor t e f a Revolving Loan Fund plan by the he event the Office does not approve the plan thirty (30) working days after receipt of the Office's notification of disapproval. - all return such program income to the Office within SECTION 7. RETENTION AND ACCESSIBILITY OF RECORDS A. The Contractor shall maintain fiscal records and supporting funds made under this contract in a manner which conforms to OMB Circular 570.490 of the Regulations in Exhibit D, and this contract. Such for all expenditures of u include 24 C.F.R. Section racial, ethnic, and gender characteristics of persons Who are-applicants-far, of-the-funds provided under this contr - ch records must include data on the orieficiaries y supporting documental act. The Contractor ' Participants tn, or . ion, for the greater of three years from closeout of this contract or the and period required by other applicable laws and regulations as described in th B. The Contractor shall give the United States Department of e Regulations in Exhibit D. Inspector General, the General Accounting Office, the Auditor of the any of their duly authorized representatives, access ousing and Urban Development, the records, reports, files, and other papers, things, or roe State of Texas, and the Office, or ss to and the right to examine all books, accounts, pertaining to this contract. Such rights to access shall continue as Ion as property rty belonging to or in use by the Contractor the Contractor. The Contractor agrees to maintain such records in an provide citizens reasonable access to such records consistent w' g the records are retained by accessible location and to C. The Contractor shall include the substance of this with the Texas Public Information Act. is Section 7 Jn all subcontracts. SECTION 8. REPORTING REQUIREMENTS A• The Contractor shall submit to the Office such reports on th contract as may be required by the Office including but not limited to the e operation and performance of this Section 8, reports specified in this B. Each grantee must submit a quarterly Performance report no calendar quarter, beginning after the first full calendar quarter after grant a a days following each funds have been expended and all expenditures reported. Each quarterly information about the uses of funds during the applicable quarter grant award and continuing until all ct name, activity, location, and national objective, funds q ludin report will include q er including-(but not limited to) the onded; the funding source and total amount of any non-CDBG disaster ending dates of activities; and performance measure budgeted, obligated, drawn down, and persons or households benefiting- Page such as numbers of low- and moderatena come Page 4 of 14 C. The Contractor shall submit a Certificate of Expenditures to the O after the contract termination date or at the conclusion of all contract activities a Office. The Certificate of Expenditures shall be ' Office no later than sixty(60) days accompanied Certificate a final Project in a format prescribed b the s determined by the shall be 1 Completion Report of all activities performed under this dcontract. D. In addition to the limitations on liability otherwise specified in this understood and agreed by the parties that if the Contractor fails to submit t contract, it is expressly satisfactory manner.any report required by this contract, the Office may, it the Office in a timely and sole discretion, withhold any or all payments otherwise due or requested b the Office withholds such payments, it shall notify the Contractor` y� s sole option and in its therefore. Payments withheld pursuant to this paragraph may b y Contractor. If the the delinquent obligations for which funds are withheld in Writing of its decision and the reasons y e held by the Office until such time as eld are fulfilled by the Contractor. E. The Contractor is required to immediately report to the Office any incident of criminal misapplication of TxCDBG funds associated with this contract. " SECTION 9. MONITORING The Office reserves the right to perform periodic on-site'monitoring With the terms and conditions of this contract, assurance of non-duplication of beneficiaries adequacy and timeliness of the Contractor's oying of the Contractor's compliance tor's performances under this contract. After ea 6h monitoring visit, the Office shall provide the Contractor with a-written report of the monitor's monitoring reports note deficiencies in the Contractor's performances under the e the monitoring. report shall include requirements for the time) correction findings. If the Contractor. Failure by the Contractor to take action specified in the terms of this contract, for suspension or termination of this contract, as provided y monitoring to such deficiencies by the e monitoring report may be cause p ded in Sections 17.arvd 18_of this contract. OCTION 10. INDEPENDENT CONTRACTOR It is expressly understood and agreed by the parties that th as an Independent Contractor, and that the Contractor, as such, agrees to the to hold the Office harmless and to indemnify e Office is contracting with the Contractor and causes of action of every kind and character which may be asserted xtent allowed by law fy he Office from and against any and all claims, demands, or in any way incident to, arising out.of, or in connection with the services to rted by any third party occurring be performed by the Contractor under this contract. SECTION 11. SUBCONTRACTS A. Except for subcontracts to which the federal labor stands may subcontract for performances described in this contract without obtaining he ids requirements.apply, the Contractor approval. The Contractor shall only subcontract for performances described in this the federal labor standards requirements apply after the Contractor g Office's prior written .Eligibility form, as specified by the Office, for each such proposed subcontract, is contract to which obtained the Office's prior written a has submitted a e Contractor approval, based on the information submitted, of theeContractor's has intent to enter into such proposed subcontract. The Contractor, in subcontracting performances described in this contract, expressly understands that in contra subcontracts, the Office is in no way liable to the Contractor's subcontractor(s). contracting for any into such B. In no event shall any provision of this Section 11, specifically the re Oeobtain the Office's prior written approval of a subcontractor's eligibilit be red actor of the"responsibility for ensuring that the erfor quirement that.the Contractor r as to comply with all of the terms of this performances y' construed l s relieving the P m t, as i rendered under all subcontracts are rendered by the Contractor. The Office's a Tact, as if such performances rendered were ratification, or acceptance of the Contractor's or subcontractor's 11 do s n pproval under Section 11 does not constitute adoption, Performance. The Office maintains Page 5 of 14 the right to insist upon the Contractor's full compliance with the terms of this contract, and by the act of approval under Section 11, the Office does not waive any right ht of action which may exist or which p may subsequently accrue to the Office under this contract. C. The Contractor shall comp) with Y 24 CFR Section 85.36, this contract and all applicable federal, state and local laws, regulations, and ordinances.for making procurements D. The Contractor shall maintain a retainage in the amount p under this contract. or rehabilitation subcontract entered into by the Contractor aunt until five percent determines of each construction labor standards requirements applicable to each such subcontract have been satisfied. CONFLICT OF INTEREST A.' The Contractor shall ensure that no employee, officer, or in the selection, or in the award or administration of a subcontra agent of the Contractor shall participate conflict of interest, real or apparent, would be involved: Such cant supported by funds provided if a The employee, officer, or agent; 2 any member of his or her immediate family- 3) his or her ah nerl) or, 4) any organization which employs, or is about to employ an of interest in the firm or person selected to perform the subcontract. Chapter 171, Texas Local Government Code and 24 the above, has a financial or other ct The Contractor shall comply with B• In all cases not governed by Subsection C.F.R.R 570.489(h) of the federal regulations. of this Section who exercise or have exercised any functions(A) of this Section, re persons specified in subsection (C) activities assisted under this contract or any other CDBG contract o or responsibilities with respect to the Participate in a d-ecision making process or gain inside information w' . . obtain a financial interest or benefit from the activity, or have r who are in a position to have any interest in any contract, subcontract or agreement with regard to such activities, may *ure r_eunder; either--forthem-selves or those with Who an interest or benefit from the activity, or _ -_ t with respect thereto,-or the proceeds or for one year thereafter. m they have family or business ties during their C. The conflict of interest provisions of Subsection (B)Ppointed a I to an agent, consultant, officer, or elected official or a pp y of the Contractor. official of the personwho is Contractor or a spulbcontractor D. The Contractor shall include the substance of this section in all subcontracts. SECTION 13. NONDISCRIMINATION RELIGIOUS A ORG,�NIZATIONS CTIVITY AND FAITH-BASED A. The Contractor shall ensure that no person shall on the religion, sex, age, or handicap be excluded from subjected to discrimination under excluded denied access ground of race, color, national origin, participation in, be denied the benefits of, or be part with funds made available under this contract. to any program or activity funded in whole or in B. Organizations that are religious or faith-based organization, to participate in this program and activities funded under receiving funds under this contract shall not discriminate are eligible, on the same basis as any other organizations' religious character or affiliation. None the this contract..The Contractor Noe of t against an organization on the basis t the under this contract shall involve, nor shall an this contract, be used to engage in inherently religious performances received rendered by the Contractor Y portion of the funds received by the Contractor under contract may not be used for the acquisition, construction, or re ha s activities. Funds made available under this hose structures are used for inherently religious activities *act may be used for the acquisition, construction habilitation of structures to the extent that those structures are used for conducting eligible s' Funds made available under this eligible and inherently religious activities, funds ' of rehabilitation of structures only to the extent 9 activities. Where i structure is used for both made available under this contract may not exceed Page 6 of 14 the cost of those portions of the acquisition co nstruction, or rehabilitation that are attributable to q eligible activities in accordance with the cost accounting requirements- under this contract. The Contractor shall comply with the regulations Department of Housing C Urban Development faith-based applicable to funds provided based a t v ties_ at 24 C F.R Sec. 70.200 SECTION 14. LEGAL AUTHORITY U)• A. The.Contractor assures and guarantees that the C into this contract, receive funds authorized by this contract, possesses the legal authority to enter has obligated itself to perform. tract, and to perform the services the Contractor B. The person or persons signing and executing this contract or representing themselves as signing and executing this con warrant and guarantee that he, she or they have be on behalf of the Contractor, , this contract on behalf of the Contractor and toe been duly authorized by the on behalf th the Contractor,e Contractor to execute hereby Performances, and provisions set forth, al+dly and legally bind the Contractor to all terms, C. The Office shall have the right to suspend or terminate this legal authority of either the Contractor or the person i signing to render performances. The Contractor ' his contract if-there is a dispute as to the 9 g this contract to enter into this contract or Office for performance of the provisions of this contract; if th is liable to the Office for any money it has received from the contract for reasons enumerated in this Section 14. e Office has suspended or terminated this SECTION 15. LITIGATION AND CLAIMS The Contractor shall give the Office immediate notice proceeding before an administrative agency, filed a�_ainst the Co in writing of 1) any action, including any any subcontract;and 2)-ariy claim against the Contractor, t ntractor may be entitled to be reimbursed b ntractor arising out the performance Office, the Contractor shall furnish immediate) to he cost and expense e which the y the Office. Except as otherwise directed by the the Contractor with respect to such action or claim. the Office copies of all pertinent papers received b SECTION 16. Y CHANGES AND AMENDMENTS A• Except as specifically provided otherwise in this contract, any alterations, additions or the terms a this contract shall be b contract, as Y amendment in writing and executed by both parties to this tions to Per the Memorandum of Understanding between the Office and T , amendments e excess of five 5 ) percent of the amount of the contract must receive pdor contract ov from the TDHCA Governing Board or in accordance with Contractor by the Office. alternative requirements as provided to the B. It is understood and agreed by the in accordance with the Act, the Regulations oftthe Performances, assurances under this contract must be rendered Office by the Contractor, and the assurances and certifications and certifications made to of Housing and Urban Development atrons made to the United States. Department pment by the State of Texas with regard to the operation of the Texas ant Community Development Block Grant Program. Based on the ensure the legal and effective se considerations, and in order to � that the Performance of this contract by both parties, it is agreed b the parties that le performances under this contract are amended by the provision Man mentation Manual and any amendments thereto and may fu y p s Policmanner. The Office may from time to time during the period s of the TXCDBG Project �y directives which serve to establish, interpret, e Y doer be amended in the following ct. Such policy directives shall be promulgated of performance of this contract issue BG issuances, shall have the effect r ulg clarify performance requirements under this g by the Directors the act and in the form in of apon the Contractor, as if written herein qualifying the terms of this contract and shall be binding _ amendments to the TxCDBG Project Im lamentation Manual provided however that the policy directives and any g shall not alter the terms of this contract Page 7 of 14 so as to release the Office of any obligation specified in Section incurred by the Contractor prior to the effective date of the on 4 of this contract to reimburse costs C. Any alterations, additions, or deletions to the terms of amendments or policy directives. in Federal or State law or regulations are amendment, and shall become effective on the date his contract which are required by changes automatically incorporated into this contract without written D. Notwithstanding Subsection A of this to designated by such law or regulation. «� a between or among budget categories of Exhibit B, Budget, Section 1 S, the Contractor may contract, or otherwise requiring the Office's prior written approval y make transfers of funds without requiring an amendment to this 1. The cumulative dollar amount of all transfers among P I Provided that: less than five percent (5%) of the total amount of this direct budget categories is equal to or is contract as specified in Section 4 (C); 2• The transfer will not change the scope or objective cti 1 ve of the projects funded under this contract; 3. The Contractor submits a budget revision re port to the Office, on a form specified by the Office simultaneously with the submission of the Contractor's first request for payment following any such transfers made in accordance with this Subsection D. SECTION 17. SUSPENSION Notwithstanding the provisions of TEX. GOVT. COD Contractor fails to comply E ANN. Chapter 2251, in the event the Contractor, suspend this witractyn whole or ncont t, the Office ma and prohibit the Contractor from incurring add_itiori y' Upon written notification to the P and withhold further payments to the Contractor, al obligations of funds-under this-con-tract: CTION 18 TERMINATION A. The Office shall have the right to terminate this date of completion specified in Section 2 of this contract. contract, in whole or in part, at any time before the Contractor has failed to comply with any term of this contract.whenever the Office determines that the 9 prior to the thirtieth (30th) day ct. The Office shall notify the Contractor in reasons for such termination; the effective date of such termination;y preceding the date of termination of such determination; the termination, the portion of the contract to be terminated. tion; and in the case of partial B. Either of the parties to this contract shall have Part, when both parties agree that the continuation of the right to terminate this contract, in whole or in not produce beneficial results commensurate with the further the activities funded under this contract would Parties agree, in writing, upon the termination conditions, Incl expenditure of funds; provided th at both termination; and in the case of partial termination, the uding the effective date of such Portion of the contract to be terminated. C. Upon termination or receipt of notice to terminate; whichever cancel, withdraw, or otherwise terminate any outstanding irae, orders Performance withdraw, of this contractor the part of this co rs occurs first, the Contractor shall costs thereunder. The Office shall not be liable to the ers or subcontracts related to the contract to be terminated, and shall cease to incur costs incurred after termination of this contract. e Contractor or to the Contractor's creditors for �). Notwithstanding any exercise by the Office of its right. :ontract, or of early termination pursuant to this Section 18 th i 9 of suspension under Section 17 of this to the Office for damages due to the Office by virtue of ctor. e Contractor shall not be relieved of any The Office may withhold payments to the Contractor until breach of this contract by the time as the 'f amages due to the Office from the Contractor is a reed d upon or is otherwise determened xact amount Page 8 of 14 SECTION 19. AUDIT A. The Contractor shall arrange for the performance Of an annual financial and compliance audit of funds received and performances rendered under this contract limitations: 0 subject to the following conditions-and 1• (a)Audit Required-Federal Awards. Contractors expending financial assistance for any fiscal year, beginning with fiscal e after, shall have a single audit conducted in accordance nding $500,000 or more in Federal 1996, 31 U.S.C. 7501, and OMB Circular No. A_13 - years ending January m 31, dm and dance with the Single Audit Act Amendments of States, Local Governments, and Non-Profit Organizations." 3 Revised as of June 27, 2003, "Audits of Program specific audit for certain situations and when the Single Audit Purposes of this Section 19, "Federal financial ass' Alternatively, Office may require a entities receive or administer in the form of grants, loans g �t Act does not apply, For assistance"l means assistance that non-Federal donated surplus property), cooperative agreements, interest subsidies, insurance,e commodities, direct a � property rty (including ppropriations, and other assistance, but does of include amounts receive as reimbursement for services rendered to individuals as described i §_.205 (h) and §_205 n OMB Circular A-133 d () The term includes awards of Federal financial assistance received directly from Federal agencies, or indirectly through other units (b) Audit Required-State.Awards. Contractors that of State and local government. Awards for any fiscal year, beginning with fiscal ears have a single or program specific audit con expended $500,000 or more in State Y ending January 31, 2004 and after, shall the State of Texas Single Audit Circular and the Uniform Grant ducted for that Year in accordance with provisions of For purposes of this Section 19 „ Y `State Award means an award of state financial assistance*,Standards including cooperative agreements, in the form of money, financial assistance paid or furnished by the state or_federal_ y property in lieu of money, or other carry-out-a-progrart in-accordance with rules, regulations and agency. The term does not include technical assistance government to an-eligible grantee to money or other assistance in the form of revenue sharing, guidance provided by the grantor of which provides services instead t subsidies, insurance, or direct a nng, loans, loan guarantees, interest appropriations. Also, the term does not include assistance such as fellowship.or lump sum award, for which the grantee is not re do not include federal awards as defined by OMB Circular to account. State awards also 2• Notwithstanding Section 4, the Contractor cular A-133. pay for that portion of the cost of such audit services properly shall utilize funds budgeted under this contract to the Office under this contract, provided however that the office cost of such audit services until the Office has received hat P y allocable to the activities funded by determined by the Office, from the Contractor; the invoice a shall not make payment for the a satisfactory audit report and invoice, as clearly show the percentage of cost relative to the totals single muted for reimbursement should 3• The Contractor shall submit one 1 co g audit cost of the audit services. ( ) copy of the report of such audit to the Office within thirty 30) days after the completion of the audit, but no later than ' Contractor's audit period. The Contractor shah ensure nine 9 Public inspection within thirty that the audit report Is after the end of made available for y (30) days after completion of the audit. Audits performed under or Subsection A of this Section 19 are subject to review and re representative. The Contractor shall ensure the Audit Report sub re r part ti the cover letter, auditor and contractor contact to the Office or its authorized mailing address, telephone, fax number and contractor mail adnta mated include either in the report Audit Report submitted also includes the submission d e- ddtact information, including contact person, Management Letter was issued to the Contractor b i address. The Contractor shall ensure the Management a completed single audit package Contractor de of the CPA Management Letter if a oe date could affect funding for all existing contracts y t s CPA firm. Failure by the Contractor to scribed in the audit requirements by the required Community Development Block Grant Program heligibility to a — awards' issuance of new contracts for funding Page 9 of 14 4• Notwithstanding the requirements after paragraphs "A-1 through 3" of this Section 19, the Contractor shall submit within 60 days after its fiscal year end an 9 a similar statement. The ACF or statement will include information or has not met the $500,000 expenditure-threshold that Audit Certification Form (ACF) or accordance with the Uniform Grant Management Standard n indicating if the Contractor has Requirements. -Failure by the Contractor to sub will require a Single Audit Report in subm't a completed single audit package as submit described s, Subpart C-Post Award mrt an ACF or a similar statement or failure to due date could affect funding for all existing contracts, eligibility Community Development Block Grant Pro Program, in the audit requirements by the required awards. g y to apply under the. Texas g m, and the issuance of new contracts for funding 5• Pursuant to the Texas Administrative Code 5 Code, requires that all subrecipients of federal § .167(c), "Chapter 2105, Texas Government block grants Uniform Grant and Contract of Standards." be included under the provisions of the " The Uniform Grant and Contract Management Standards (UGMS (D) sec. .400 requires "Recipients who are required to have a single audit and receive state or federal awards for more than o single audit coordinating agency- one state agency shall have a state y The governor's office shall designate a state single audit coordinating agency based upon the state awarding agency that rov' amount of direct funding to a recipient and other factors, as appropriate, manageable workloads." Further, it is the Co p ides the predominant governor's office pursuant to the Texas Administrative Cod o to ensure equitable and Contractor's responsibility ) make this request to the audit coordinating agency designated a recipient must submit a written Budget and Planning Office, P.O. §5.167(c)(2), "To have a state single O Box lance Austin, Texas 78711 Th s request mu Governor's state agencies providing financial assistance with the grant amou indicate that the governing body must list the g 9 y has authorized the initiation of thetsif or the y t,r to be audited and encesNotwithstanding-SiJbSecfion A of this Section 19, the Office r ncial and compliance review of funds received and performs eeves the right to conduct tr annual The Contractor agrees to permit the Office or its authorized r rendered under this contract. records and to obtain any documents, materials, or infor representative to audit the Contractor's C. The Contractor understands and agrees that i oration necessary to facilitate such review. Pursuant to financial and compliance audit(s) of funds received t shall be liable to the Office for any costs disallowed further understands and agrees that reimbursement to the Off' paid by the Contractor from funds which were n ffi under this contract. The Contractor ice of such disallowed costs shall be Contractor under this contract. of provided or otherwise made available to the D• The Contractor shall take such action to facilitate the conducted pursuant to this Section 19 as the Office may re uire of the not release any funds for any costs incurred b t performance of such audit h audits received a copy of any audit report required by this Sectracgtor under th se otntract u til thOeffOffice hll Section tractor as E. The Contractor shall-procure audit services through an o every four years. The auditor shall retain workin after the date of issuance of the auditor's report to the a pen' competitive process at least once g papers and reports for a minimum of three years available upon request to the Office at the completion of the resolve audit findings, or to carry out t the ht responsibilities Audit working papers shall be made audit, is a part of a quality review, i Part. Access to working g g esponsibilities consistent with the purposes of this. and necessary. g includes the right to obtain copies of working papers, as is reasonable F ntractor understands that acceptance of funds under a�rity of the State Auditor's r ' unds. s Office, or any successor age to conduct an audit or investigation ig the 'onnecfion with those funds. Contractor further agrees to cooper Dffice or its successor in the conduct of the auditor investigation, strgation in ate fully with the State Auditor's gation, including providing all records Page 10 of 14 requested.. Contractor will ensure that this clause co indirectly by subcontractors through Contractor and theerning the authority to audit funds rece' subcontract it awards. equirement to cooperate is included in ann SECTION 20. Y ENVIRONMENTAL CLEARANCE REQUIREMENTS on ractor understands and agrees that by the execution of this .assume the responsibilities for environmental review decision otherwise apply to the Office under Section 5304(f) of the contract the Contractor shall cision making, and other action which would specified in 24 C.F.R. Part 58. In accordance with Section 58. Contractor further understands and agrees that it e Act, in accordance with and t, the extent from persons and agencies seeking redress in relatio 77(b) of such regulations, the. e Contractor shall.handle inquiries and.complaints certifications. n to environmental reviews covered by approved B. Funds provided under this contract may be obligated pp this Section occur only for the following eligible activ gated and expended before the actions specified in 1. The Payment ties: Of reasonable planning and administrative costs related 2• Environmental studies, including environmental clear to the project; and ance activities required b this Y Section; 3• The payment or reimbursement of reasonable project for this project. J engineering and design costs incurred C. The Contractor shall prepare a written Environmental With 24 C.F.R. Part 58, Subpart E, and the.TCDP Project Impl�menta-tion Manual.- _T st-then follow the steps specified in this subse Assessment of its activities in accordance vironmental Policy Act coon to ens he-Contractor (NEPA). When the Environmental Assessment secom feted,National C must follow one of the following two 2 ( ) procedures. The first is a Finding of Signpificatlt impact,contractor which the Request for Release of Funds for the project is a quality of the human environment. If this is the case, the Co p t, m Environmental Impact If in accordance with Subpart n action which may significantly affect the The second and more.common procedure must with followed Contractor must then prepare C.F.R. Environmental Impact Statement. The Contractor F al Subpart n ofeq C.F. Ifowed for all projects not requiring Part 58. prescribed in 24 C.F; ontractor in this instance must publish, in the man Findin R• Sections 58.43 and 58.45, a combined legal notice in a g of No Significant Impact (FONSI), and a Notice of Intent to manner (NOI/RROF). In the first part of this notice, the Contractor ingle publication: A Environmental Assessment, the project is not an action Request Release of Funds quality of the human environment. The contractor a for certifies that, as a result of the (15) calendar days n. comment on this combined which may or will significantly affect the for shall then provide the public with at least fifteen exceptional circumstances exist as specified in 24 ed notice following its publication date, unless occur, the Contractor must then concurrently submit to the O C.F.R. Section 58.46.' if no unresolved problems Office the following documents_ 1• Transmittal Letter 2. RROF/FONSI Certification Form 3. Published FONSI/NOI/RROF 4. Publisher's Affidavit Project Site Description npti• on Page 1 1 of 14 Upon receipt of such documents, the Office must-all Period to expire before it can formally release an y project funds which are subject to the environmental o`^� a fifteen (15) calendar day comment review regulations. The Contractor must comply with all other a pplicable environmental requirements as specified in Exhibit D of this contract. The Contractor shall document requirements in its environmental review file. The environmental review file and source documentation must be maintained as part of the environmental review record. its compliance with such other SECTION 21. CITIZEN PAFt T ICIPAT(ON WAIVER A. Citizen participation waiver and alternative ER AND ALTERNATIVE REQUIREMENTS (3), 42 U.S.C. 12707, 24 CFR 570.486, and 24rCFRement. Provisions of 42 U.S.C. 5304 a 2 and requirements are waived and replaced by the requirements below. ( i ( ) 91.115 (b) with respect to citizen participation not mandate public hearings at either the state or local government I reasonable Opportunity The streamlined requirements do pportunit for citizen comment and ongoing citizen access to information a Of grant funds. level, but do require providing a bout the B. If use any substantial changes are being requested concernin the public shall be informed and given an o g pportunity to comment on Ithe proposeddChanh'es.contract, C• Notwithstanding the provisions of Section 7 of this contract t g documentation of citizen outreach and input, comments made a Records shall be retained for a period of three 3 a he Contractor shall retain Contractor shall make such records available to the and the notice provided to citizens. ( ) years after the termination of this contract. The ANN. Chapter 552. public in accordance with TEX. GOVT. CODE D. Complaint Procedures. The Contractor shall maintain written Oprovide a timely written response to complaints and grievances. Suc h procedures shalF comply with e Office's requirements. The C e that its ontractor shall ensure citizen complaint procedures that urs at which they may obtain a co citizens are aware of the location and py of the for submitting complaints, written procedures and the address and phone number SECTION 22. SPECIAL CONDITIONS A. As provided for in Public Law 109-148, the contract funds may not used for activities reimbursable by or for which funds are made available by Feder (FEMA) or the Army Corps of Engineers (Corps).- al Emergency Management Agency The Contractor shall ensure that any request for payment submitted to the 'Office under this contract does not include activities reimbursable by or for which funds are made available b a fund request for costs for B. The Office shall not release any funds for any costs i y FEMA or the Corps. until the Office has received a co incurred by the Contractor under this contract py of the Contractor's previous fiscal year audit report or certification from the Contractor that its fiscal control and fund accounting roced Proper disbursal of and accounting for funds provided under thfi is P ures are adequate to assure the content and form of such certification. contract. The Office shalt specify the C. The Office shall not be liable to the Contractor contract until the Office receives a properly completed Deposito for any costs incurred by the Contractor under this specified by the Office, from the Contractor. /Au ry thorized Signators Form, as D. The Contractor shall not advertise or solicit bids for co nstruc or rehabilitation of a project con assisted with funds provided under this contract until the Contract iling wage rates from the Office. or has received the applicable Page 12 of 14 E. In accordance with Section 18 of this contract, this contract commencement date specified in Section 2 unless activities s Section 22 funded under this contract shall terminate six 6 specified in Section 0 or listed under the have begun by such date. F. The Office shall not be obligated t under this contract until the Contractor has provided to the Office an o release any funds for any costs incurred by the Contractor the project described in Exhibit A that the Office determines the feriae or any additional information to otherwise satisfy an Y additional information related to m y a is necessary r .complete the application Recovery Grant Action Plan requirement. rY Y CDBG Program or Texas Disaster G. The Contractor shall ensure that any request for-pa ment submitted to the Office under this contract does not include a request for funds for costs that have been Y H. The Contractor shall, to the fullest extent necessary, eimbursed from other sources. ry pursue resolution of all compliance findings, collect identified disallowed costs, submit timely banker tc documentation; attend administrative hearings the Texas Attorney General for further collection p Y filings, provide any required , provide court testimony, and submit documentation to applicable HUD regulations for any actions that HUD may take to ad efforts and participate in the process provided under actions associated with funding provided under this contract. dress corrective and remedial I. Public buildings, facilities, centers, constructed with Office of Community Development Block Grant ( Rural assistance s prominent visible public area with the wording Provided Rural Community Affairs (O aced at local discretion to best fit the architectural design ali have permanent signage placed ill a P ed below. The formatting of such signage will be from at least three feet distance. gn of the facility constructed but should be legible Other construction projects, e. ousi.n g , water transmission lines,_sewer collection ernes-, dr-ainage-,.ro-a-dways, g rehabilitation, etc, utilizing ORGA CDBG funding shall have temporary minent location at the construction project site or along a erected by the owner; P ry signage erected in a 9 major thoroughfare within the locality as Pro"ect Sign Wording: "This project is funded by the Office of Rural Commune provide for disaster relief, long-term recovery and restoration impacted b tY Affairs of the State of Texas, to y Hurricane Rita funds allocated by the United Stat sl Department of r communities Urban Development through the Community Development Block and J. The Contractor shall provide documentation to the Office k Grant Program." funding commitment of Twenty-three Million Six Hundred Sixty-five that indicates it has secured ed approved eight and No/100 Dollars ty five Thousand One Hundred Seventy- eight Agen 65,178) for Flood and Drainage Improvements from the Federal Emergency Management Agency (FEMA), prior to the Office's release of project activities. p sect funds for such K. The Contractor shall submit to the Office documentati commitment of Six Million Three Hundred Sixty-three Thousand No/100 Dollars ($6,363,392) for com letio °n (i.e., a resolution) of its local funding Office's release of project funds for such n je the project funded uhnder this Ninety-two and project. contract prior to the SECTION 23. DEBARMENT con Irning this contract, the Contractor certifies that it will not award an act to any party which is debarred, suspended or otherwise ex from or ineligible for °articipation in federal assistance programs under Executive eluded Or y funds provided under this der 12549 and 24 CFR Part 24_ The Page 13 of 14 ' Contractor shall receive.the certification provided by the Office from each proposed subcontractor under this contract and its principals. �SECTION 24. POLITICAL AID AND LEGISLATIVE IN A• None of the funds provided under this contracts FLUENCE PROHIBITED election, or the passage or defeat of any legislative measures This r prohibition cing the outcome of any to prevent any official or employee of the Contractor from furnishing body upon request, or to any other local or state official or employee shall not be construed the hands of the employee or official not r state to any member of its governing action taken against an employee or.official for supplying pto ee or fi any citizen information in considered under law to be confidential information. Any initiating the action to immediate dismissal from employment h information shall subject the`person B. No funds provided under this contract may be used direct) or indirectly any other way fund or support candidates for the legislative executive, or j d hire employees or in government of the Contractor, the State of Texas, or the government of cutive, orjudicial branches of the United States. SECTION 25. ORAL AND WRITTEN AGREEMENTS A. All oral and written agreements between the parties to this contrac t relating to the subject matter of this contract that were made prior to the execution of this contract have been reduced to writing and are contained in this contract. B. The attachments enumerated and denominated below are h ereby made a part of this contract, and constitute promised performances by the Contractor in accordance with Section 1.. Exhibit A, Performance Statement, 1 Page 3 of this contract: 2. - Exhibit-B,-Budget, em 3 Pages 3. Exhibit C, Project Im l 4• Exhibit D, pplic Applicable p entation Schedule, 1 Page able Laws and Regulations, 3 Pages 5. Exhibit E, Certifications, 2 Pages SECTION 26. VENUE For purposes of litigation pursuant to this contract, venue s August hall lie in Travis County, Texas: WITNESS OUR HANDS EFFECTIVE Au 31 9 , 2006. Mr. Kyle Hayes, City Manager City of Beaumont Approved and accepted on behalf of the Office of Rural Community Affairs. Charles S. (Charlie) Stone, Executiv Director Office of Rural Community Affairs This contract is not effective unless signed by the Exec _ Affairs or by the Executive Director's authorized designee. Executive Director of the Office of Rural Cornrnunity Page 14 of 14 EXHIBIT A CONTRACT NUMBER DRS060004 PERFORMANCE STATEMENT City of Beaumont Contractor shall carry out the following activities in the target area identified in it Disaster Recovery Grant application to aid areas most impacted and distressed b Hur i 2006 Texas e persons to benefit from the activities described in this Performance Statement must riccei Rita. The a benefit from the use of the new or improved facilities and activities for the contract obligations fulfilled. The Contractor shall ensure that the amount of funds ex ust be receiving service or not exceed the amount specified for such activity in Exhibit B, Budgeded for each activity described does During Hurricane Rita, the central portion of Beaumont (populated b 26 2 homes and businesses because the drainage system failed to function, y 47 Persons) flooded Flood and Drainage Facilities Contractor shall utilize contract funds as a portion of the twenty-five percent Hazard Mitigation Grant Program (HMGP) award from the Federal Emergency Management p (25%) match toward a (FEMA) on behalf of Drainage District #6. The combined funds shall be utilized to excavate four hundred sixty-eight thousand one hundred fifty cubic yards 468 y Agency forty three thousand three hundred twenty-five linear feet (43,325 I.f. ofd avate approximately thousand eight hundred eighty hundred t yards twenty-five ( .150 CY) of existing material; construct drainage structure; utilize sixty-six t - _ _ _ _ _ ..( _ ,880 CY) of stabilized base-material; and forty-nine nd four hundred ninety-six (49,496) tons of#57 stone. The location of this activity is east along er Street to Main Street, then north one block to Elizabeth Street and east along Elizabeth Street Neches River. This activity will address repetitive flooding he twenty-six thousand two hundred forty-seven (26,247) g Problems in a significantly populated area of hundred (900) homes on the National Flood Insurance Program (NFIP) repetitive loss ' ) persons in Beaumont and will remove more than nine P s listing. These activities shall benefit twenty six thousand two hundred forty-seven (26,247 ersons f vhich fourteen thousand eight hundred sevent ncome. een (14,817) or fifty-six percent 56% are ) P ( ) e of low to moderate Tannin / Project Delivery - Rita Contractor shall ensure that the amount of the Office funds expended for al Manning / project delivery" administration activities, including the required annual I eligible project-related scal audit does not exceed the amount specified for Planning / Project Delivery q ual program compliance and ry-- Rita in Exhibit B, Budget. Page 1 of 1 EXHIBIT B CONTRACT NUMBER DRS060004 BUDGET City of Beaumont LINE CATEGORIES CONTRACT OTHER _FUNDS FUNDS TOTAL 1a. ' Water Facilities 1b. Sewer Facilities 2. Solid Waste Disposal Facilities 3. Other Public Utilities (Gas) 4. Street Improvements 5• Flood and Drainage Facilities $ 1,825,000 $ 23,015,178' $ 30,903,570 5a. Flood and Drainage — Debris Removal $ 6,063,3922 6 $ $ Neighborhood Facilities/ Community Centers $ $ $ Senior Centers 8. C $ $ $ enters for the Handicapped/ Sheltered Workshops $ $ $ 9• Parks, Playgrounds, and Other Recreational Facilities $ $ $ 10. Fire Protections Facilities and Equipment $ $ $ 11. Parking Facilities 12. Ped $ $ $ estrian Malls and Walkways 13. Speci $ $ $ ally Authorized Assistance to Privately Owned Utilities $ $ $ 14. Specially Authorized Public Facilities and Improvements $ $ $ 5• Public Services (LIMITED TO 15% OF REQUEST) $ $ $ 6• Interim Assistance $ $ $ Page 1 of 3 L_ CATEGORIES CONTRACT OTHER FUNDS FUNDS TOTAL 07. Rehabilitation of Private Properties (Housing) $ $ $ 17a. Rehabilitation of Private Properties (Water Service) $ $ $ 17b. Rehabilitation of Private Properties (Sewer Service) $ $ 17c. Rehabilitation — Housing Reconstruction $ $ $ 17d• Rehabilitation — Emergency Repairs 18. Rehabilitation of Public Residential Structures $ $ $ 19. Public Housing Modernization 19a. Ho $ $ $ meownership Assistance 19b. Affordable New Housing Clearance Demolition Activities Historic Preservation 22. Removal of Architectural Barriers $ $ $ 23. Code Enforcement 24. Acquisition $ $ $ 25. Relocation Payments & Assistance 26: $ $ $ Economic Development Loan 27. Economic Devel. Interest Subsidy 28. Economic Devel. Loan Guarantee Special Activities by Local Devel Corporations, Etc. $ $ $ I01• Engineering/Architectural Serv. _ (Total for all construction accounts) $ - 0 $ 650,000' $ 650,000 1 Planning & Urban Env. Design (NOT TO EXCEED 16%) $ $ $ 1 COG Planning - Rita Page 2of3 LINE CATEGORIES CONTRACT OTHER FUNDS FU_ NDS COG Planning OTAL 9 - Rita $ 32. General Administration 32a, COG Administration- Rita $ $ $ 33. Planning / Project Delivery— Rita TOTALS $ 125,000 $ 300,0002 $ 425,000 $ 1,950,000 $ 30,028,570 $ 31,978,570 HMGP-FEMA Match total of:$23,665,178.00 2 City of Beaumont Match total of:$6,363,392.00 Page 3 of 3 tA ' ITC PROJECT IMPLEME TATION SCHEDULE CITY OF BEAUMONT Activity: Flood/Drainage 1 2 3 4 5 6 7 8 9 10 11 121.3 14 15 16 17 18 19 20 21 22 23 24 Procurement of Professional Services X Environmental Review X X Plans & Specifications . X X Clearance of Special Conditions X X X Wage Rate Request/Decision/10-Day Call X X Bid Advertisement/Contract Award X. Construction Interim & Final Inspections X X X X X X X X X X X X X X X X X X X X X X General Administration X X X X X X X X X X X X X X Audit& Close-out X X X X X X X X X X X X X X CONTRACT START DATE CONTRACT ENDING DATE August 31, 2006 August 30, 2008 Page 1 of 1 EXHIBIT D THE APPLICABLE LAWS AND REGULATIONS The Contractor shall comply with the Act and Regulations OMB Circular and federal regulations specified in Section 6 of this 9 ion specified in Section 3 of this contract and with the Act regulations (31 C.F.R. Part 205); and with all other federal state,s contract; Gash Management Improvement to the activities and performances rendered by the Contractor and a is contra laws and regulations- laws, and the regulations promulgated thereunder specified in Se er this contract including but not limited to the coon I through VII of this Exhibit D. CIVIL RIGHTS 'itle VI of the Civil Rights Act of 1964, (42 U.S.C. Section ,ederally Assisted Programs of the Department of Housing and seq.); ie Civil Rights Act of 1964"; 9 rbanDevelopment - Effectuation of Title lVI of itle VIII of the Civil Rights Act of 1968, mended; "The Fair Housing Act of 1968" (42 U.S.C. Sec 3601 et seq.), as xecutive Order 11063, as amended b x Equal Order 1.10 by Executive Order 12259, and 24 C. F.R. Part 107, "Nondiscrimination id E with the requirements n Housing Executive Order v1 Order 11063". The failure h refusal of the Contractor to 1063 or 24 C.F.R. Part 107 shall be a proper basis for the 'Position of sanctions specified in 24 C.F.R. 107.60; 1e Age Discrimination Act of 1975 (42 U.S.C. Sec. 6101 et se q.); O564 of the Rehabilitation Act of 1973 29 q )' erally-Assisted Programs and Activities of the Department of Housing U.S.C. Sec. 794.) and "Nondiscrimination Based on Handicap =.R. Part 8. By signing this contract, the Contractor understands and Urban Development'', 24 operated in accordance with 24 C.F.R. Part 8; and the Archite 51 et se ds and agrees that the activities funded shall q.), including the use of a telecommunications device for deaf persons ctural Barriers Act of 1968 (42 U.S.C. Sec. nmunication system. P ns (TDDs) or equally effective LABOR STANDARDS Davis-Bacon Act, as amended (40 U.S.C. Secs. 276 a - 276a-5); Contract Work Hours & Safety Standards Act (40 U.S.C. 327 et s Copeland "Anti-Kickback" Act (18 U.S.C. Sec. 874). eq ), EMPLOYMENT OPPORTUNITIES ion 3 of the Housing and Urban Development Act of 1968 12 ( U.S.C. Sec.1701 u). LEAD-BASED PAINT on 302 of the Lead-Based Paint Poisoning Prevention ,lished by the Office thereunder. Act (42 U.S.C. Sec. 4831(b)) and the p rocedures Page 1 of 3 V. ENVIRONMENTAL LAW AND AUTHORITIES ironmental Review Procedures for Recipients assuming HUD Environ 58, as amended. m entaI Responsibilities, 24 CFR In accordance with the provisions of law cited in 58.1 environmental responsibilities for projects under programs cited in §58.1(b , and i § (b}, the responsible entity must assume the the provisions of the National Environmental Policy Act of 1969, as Environmental Quality regulations contained in 40 CFR a ) n doing so must comply with for compliance with the applicable provisions and requirements amended and the Council on parts 1500 through 1508. This includes responsibility i §58.5 (below]. The responsible entity must certify that it has complied laws and authorities specified apply to HUD under these laws and authorities and must consider the criteria,regulations of these laws and authorities. p with the requirements that would standards, policies and a) Historic Properties (1) The National Historic Preservation Act of 1966 as amended sections 106 and 110 (16 U.S.C. 470 and 470h-2), except as provided �n70 et seq.),q•), particularly §58.17 for Section 17 (2) Executive Order 11593, Protection and Enhancement (36 FR 8921), 3 CFR 1971-1975 Comp., f the Cultural Environment, May 13, 1971 p. p. 559, particularly section 2(c). (3) Federal historic preservation regulations as follows: (i) 36 CFR part.800 with respect to HUD programs other than n Urban Development Action 36 CFR part 801 with respect to UDAG. (4) The Reservoir Salvage Act of 1960 as amended by the Archeolo Of 1974 (16 U.S.C. 469 et seq.), particularly section 3 (16 U.S.C. 469a Ind Historic Preservation Act I Flood lain mana ement and wetland rotection ) (1) Executive Order 11988, Floodplain Management Comp., p 117, as interpreted in HUD regulations at 24 CFR part755, artiu la6951), 3 CFR, 19he n order (For an explanation of the relationship between the decision-making process_ in 24 CFR part 55 and this part, see §55.10 of this subtitle A.) p rly section 2(a) of the , (2) Executive Order 11990, Protection of Wetlands, May 2 P• 121 particularly sections 2 and 5. Y 4,1977 (42 FR 269 61), 3 CFR, 1977 Comp., Coastal Zone Mana ement (1) The Coastal Zone Management Act of 1972 (16 sections 307(c) and (d) (16 U.S.C. 1456(c) and (d))U S.C. 1451 et seq.), as amended, particularly Sole source a uifers (1) The Safe Drinking Water Act of 1974 (42 U.S.C. 201, 300(f) of seq., and 21 U.S.C. 349) as amended; particularly section 1424(e)(42 U.S.C. 300h-3(e). (2) Sole Source Aquifers (Environmental Protection Agency-40 CFR a p rt 149.) Page 2 of 3 (e) Endangered species (1) The Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) as amen (16 U.S.C. 1536) amended, particularly section 7 (f) Wild and scenic rivers (1) The Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1271 et seq.) as amended 7(b) and (c) (16 U.S.C. 1278(b) and (c)). , particularly sections (9) Air quality (1) The Clean Air Act (42 U.S.C. 7401 et seq. ) as amended a U.S.C. 7506(c) and (d)). p ►ocularly sections 176(c) and (d) (42 (2) Determining Conformity of Federal Actions to State or (Environmental Protection Agency-40 CFR parts 6, 51, and 93) Federal Implementation Plans h) Farmland Protection (1) Farmland Protection Policy Act of 1981 (7 U.S.C. 4201 et seq.) particular)1541 (7 U.S.C. 4201(b) and 4202). Y sections 1540(b) and (2) Farmland Protection Policy (Department of Agriculture-7 CFR art P 658). i) HUD environmental standards 0) Applicable criteria and standards specified" 51)(other than the runway clear zone and I clear zone environmental notification (24 CFR part 51.303(x)(3) requirement in 24 CFR (2) HUD Notice 79-33, Policy Guidance to Address the Problems Posed b Radioactive Materials, September 10, 1979). y Toxic Chemicals and Environmental •ustice (1) Executive Order. 12898 of February 11, 1994 ---Justice in Minority Populations and Low-Income Populations, (59 FR 7629), dCFR Environmental 859 994 Comp. P• i Other re uirements See 24 CFR Part 58.6. ACQUISITION/RELOCATION Uniform Relocation Assistance and Real Property Acquisition Policies 1•)1 24 C.F.R. Part 42, and 24 C.F.R. Section 570.606: Act of 1970 (42 U.S.C. Sec. 4601 et FAITH-BASED ACTIVITIES Order 13279 of December 12, 2002 - Equal Protection of the Laws for Faith-Based and Community Page 3of3 EXHIBIT E CERTIFICATIONS WITH RESPECT TO THE EXPENDITURE of Bea OF FUNDS PROVIDED Beaumont, THAT; UNDER THIS CONTRACT BY THE City (1) IT WILL MINIMIZE DISPLACEMENT OF PERSONS A ASSISTED WITH SUCH FUNDS; S A RESULT OF ACTIVITIES (2) . THE PROGRAM WILL BE CONDUCTED AND ADMINISTERED THE CIVIL RIGHTS ACT OF 1964 (42 U.S.C. SEC. 2000a et seq.) AND THE FAIR H IN CONFORMITY WITH (42 U.S.C. SEC 3901 et seq.), AND THAT IT WILL AFFIRMATIVELY FURTHER FAIR' ACT AS SPECIFIED BY THE OFFICE; R HOUSING, (3) IT WILL PROVIDE FOR OPPORTUNITIES FOR CITIZEN PARTICIPATION, AND ACCESS TO INFORMATION WITH RESPECT TO ITS COMMUNITY DEVE EARINGT PROGRAMS, AS SPECIFIED BY THE OFFICE; LOPMEN (4) IT WILL NOT ATTEMPT TO RECOVER ANY CAPITAL MENTS ASSISTED IN WHOLE OR IN PART WITH SUCH FUNDS BY ASSESSING AN AGAINST PROPERTIES OWNED AND OCCUPIED OSTS OF PUBLIC IMPROVE- INCOME, INCLUDING ANY FEE CHARGED OR ASSESSMENT Y AMOUNT ED BY PERSONS OF LOW AND MODERATE OBTAINING ACCESS TO SUCH PUBLIC IMPROVEMENTS UNLESS A SUCH USED TO PAY.THE PROPORTION OF SUCH FEE MADE AS A CONDITION OF CAPITAL COSTS Of SUCH PROPORTION F SUCH IMPROVEMENTS ( ) FUNDS ARE OR ASSESSMENT THAT RELATED_TO THE SOURCES OTHER THAN SUCH FUNDS; OR (B) FOR PURPOSESNOFDASSES REVENUE AMOUNT AGAINST PROPERTIES OWNED AND OCCUPIED BY PERSONS EBBING ANY INCOME, THE CONTRACTOR CERTIFIES THAT IT LACKS SUFFICIENT FUNDS. MODERATE CONTRACT TO COMPLY WITH THE REQUIREMENTS OF CLAUSE (A). UNDER THIS (5) IN THE EVENT THAT DISPLACEMENT OF RE ( ) CONNECTION WITH A PROJECT ASSISTED WITH I xCD G NDSIT DWELLINGS ILL OCCUR IN RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE PLAN ILL FOLLOW A BY THE OFFICE. AS SPECIFIED (6) IT SHALL ADOPT AND ENFORCE A POLICY PROHIBITING THE USE FORCE BY LAW ENFORCEMENT AGENCIES WITHIN ITS JURISDICTION INDIVIDUAL ENGAGED IN NONVIOLENT CIVIL RIGHTS DEMONSTRATIONS OF EXCESSIVE ENFORCING APPLICABLE STATE AND LOCAL LAWS AGAINST EMONSTRATIONS AND A POLICY OF AGAINST ANY ENTRANCE TO OR EXIT FROM A FACILITY OR LOCATION WHICH S THE SUB ALLY BARRING NONVIOLENT CIVIL RIGHTS DEMONSTRATION WITHIN ITS JURISDICTION. JECT OF SUCH Page 1 of 2 CERTIFICATION REGARDING LOBBYING FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS City of Beaumont CERTIFIES, TO THE BEST OF ITS KNOWLEDGE AND BELIEF THAT: (1) NO FEDERAL APPROPRIATED FUNDS HAVE BEEN PAID OR WILL BE PAID, BY OR O BEHALF OF THE UNDERSIGNED, TO ANY PERSON FOR INFLUENCING OR ATTEMPTING TO INFLUENCE AN OFFICER OR EMPLOYEE OF AN AGENCY, A MEMBER OF CONGRESS, OFFICER OR EMPLOYEE OF CONGRESS, OR AN EMPLOYEE OF A MEMBER OF CONGRESS IN CONNECTION WITH THE AWARDING OF ANY FEDERAL CONTRACT, THE MAKING OF ANY FEDERAL GRANT,_ THE MAKING OF ANY FEDERAL LOAN, THE ENTERING INTO OF ANY COOPERATIVE AGREEMENT, AND THE EXTENSION, CONTINUATION, RENEWAL, AMENDMENT, OR MODIFICATION OF ANY FEDERAL CONTRACT, GRANT, LOAN, OR COOPERATIVE AGREEMENT. (2) IF ANY FUNDS OTHER THAN FEDERAL APPROPRIATED FUNDS HAVE BEEN PAI WILL BE PAID TO ANY PERSON FOR INFLUENCING OR ATTEMPTING TO INFLUENCE ON OFFICER OR EMPLOYEE OF ANY AGENCY; A MEMBER OF CONGRESS, AN OFFICER OR EMPLOYEE OF CONGRESS, OR AN EMPLOYEE OF A MEMBER OF CONGRESS CONNECTION WITH THIS FEDERAL CONTRACT, GRANT, LOAN, . OR COOPERATIVE AGREEMENT, THE UNDERSIGNED SHALL COMPLETE AND SUBMIT STANDARD FORM - LLL, "DISCLOSURE FORM TO REPORT LOBBYING", IN ACCORD_ ANCE WITH ITS INSTRUCTIONS. (3) THE UNDERSIGNED SHALL REQUIRE THAT THE LANGUAGE OF THIS CERTIFICATION BE INCLUDED IN THE AWARD DOCUMENTS FOR ALL SUBAWARDS AT ALL TIERS (INCLUDING SUBCONTRACTS, SUBGRANTS, AND CONTRACTS UNDER GRANTS L O AND COOPERATIVE AGREEMENTS) AND THAT ALL SUBRECIPIENTS SHALL CERTIFY AND DISCLOSE ACCORDINGLY. THIS CERTIFICATION IS A MATERIAL REPRESENTATION OF FACT WHICH RELIANCE WHEN THIS TRANSACTION WAS MADE OR ENTERED INTO. SUBMISSION OF THIS CERTIFICATION IS.A PREREQUISITE FOR MAKING OR ENTERING INTO THIS TRANSACTION IMPOSED BY SECTION 1352, TITLE 31, U.S. CODE. ANY PERSON WHO FAILS TO FILE THE REQUIRED CERTIFICATION SHALL BE SUBJECT TO A CIVIL PENALTY OF NOT LESS THAN $10,000 AND NOT MORE THAN $100,000 FOR EACH SUCH FAILURE. Page 2 of 2 * 3 October 31, 2006 Consider approving a contract for the construction of Martin Luther King, Jr. Park Cit y of Beaumont Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: October 31, 2006 AGENDA MEMO DATE: October 24.2006 REQUESTED ACTION: Council approve a contract for the construction of Martin Luther King, Jr. Park. RECOMMENDATION Administration recommends the award of a bid to N&T Construction Company, Inc.of Orange, TX in the amount of$648,000 for furnishing all labor, materials and equipment necessary to construct the Martin Luther King, Jr. Park. BACKGROUND In 2004, approximately 3.3 acres on the east side of M.L.K. Parkway between College and Wall Streets was designated to be the new park site through a multiple use agreement with TxDOT. A passive park has been designed to include a life size bronze figure of Dr. King, a series of interpretative cast stone wall panels, benches and landscaping that includes grass, trees and lush flowering beds. The cast stone wall panels will be engraved with quotations and selections from Dr. King's speeches. Three(3)bids were received Thursday, October 12, 2006. They are as follow: Contractor Price Completion Time N& T Construction Co., Inc. $648,000 180 days Orange, TX Momentum Contractors $679,268.75 Did not provide Houston, TX Norman Highway Construction $750,995 180 days Orange, TX Martin Luther King, Jr. Park October 24, 2006 Page 2 N & T Construction Co., Inc., the low bidder, is a City certified MBE. Construction should commence by late November. Ron Petitt, the artist designing the life-size bronze figure of Dr. King, has a separate contract with the City in the amount of$55,000. His contract includes delivery and assistance in placement of the statue. Additionally, memorial brick pavers that were previously purchased will be included in the park site. BUDGETARYIMPACT Funds are budgeted in the Capital Program Fund for this expenditure. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Director of Public Works. RESOLUTION NO. WHEREAS, bids were received for a contract to furnish all labor, materials and equipment necessary for the construction of Martin Luther King, Jr. Park; and, WHEREAS, N & T Construction Company, Inc., Orange, Texas, submitted a bid in the amount of $648,000; and, WHEREAS, City Council is of the opinion that the bid submitted by N & T Construction Company, Inc., Orange, Texas, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the bid submitted by N & T Construction Company, Inc., Orange, Texas, for a contract to furnish all labor, materials and equipment necessary for the construction of Martin Luther King, Jr. Park be accepted by the Ci ty of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 31st of October, 2006. - Mayor Guy N. Goodson - 4 October 31, 2006 Consider authorizing the City Manager to execute a Lease Agreement with Goodwill Industries 17E:9� City of Beaumont VV_ Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: October 31, 2006 AGENDA MEMO DATE: October 23, 2006 REQUESTED ACTION: Council consider authorizing the City Manager to execute a Lease Agreement with Goodwill Industries. RECOMMENDATION Administration recommends authorizing the City Manager to execute a six (6) month Lease Agreement with Goodwill Industries of SE Texas and SW Louisiana(Goodwill)for the use of City- owned property at 790 Orleans Street, Beaumont, Texas. BACKGROUND On October 10,2006 by Resolution No. 06-306,Council approved the City's acquisition of property known as 790 Orleans Street,from owner Goodwill. The building on that property is slated to serve as the Police Property Building. Goodwill indicated approximately six(6) months will be required for them to vacate the building. Goodwill currently uses the building for business offices and the resale shop of various items, such as clothing, household items, toys, etc. They will continue in that capacity as they work toward moving their business. During this period,the City proposes to lease the building to Goodwill for a rental fee of$4,000.00 per month for six(6)months. The City is responsible for maintenance of the building but Goodwill will be responsible for all janitorial services and utility costs associated with the building. Goodwill will provide the required insurance as detailed in the lease, with the City of Beaumont named as additional insured. The lease contains a provision for termination prior to six months should Goodwill secure another location. A copy of the lease in its substantial form is attached for your review. Lease Agreement— Goodwill October 23, 2006 Page 2 BUDGETARY IMPACT As consideration for the leased premises, Goodwill agrees to pay the City a monthly rental fee of $4,000 per month for six (6) months. Total revenue for the six-month lease is $24,000. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Director of Public Works. C:\Daumenu aM Sn2n[s\breMa\MY Da:umeiva\WPDOCS\Losn\GaoCwill IMuurin\Goodwill-]90 Orleaiu-PD Prop BIA[U[ertla ium-Ieau{.00Ewill-l90 OrMm Sr.-2006.wpd THE STATE OF TEXAS § COUNTY OF JEFFERSON § LEASE AGREEMENT This lease agreement is made and entered into by and between the CITY OF BEAUMONT (Landlord)and GOODWILL INDUSTRIES OF SE TEXAS AND SW LOUISIANA(Tenant). Landlord hereby leases to Tenant and Tenant hereby leases from Landlord that certain property with the improvements thereon, Southeast 80' of Lots 305, 306, 307, 308 and 309, Block 49, Beaumont Addition, as illustrated in Exhibit"A", containing approximately 24,000 square feet, known as 790 Orleans Street, in the City of Beaumont, Jefferson County, Texas, hereinafter called the "leased premises". The primary term of this lease shall be for a term not to exceed six(6) months commencing on the day of , 2006 and ending at 11:59 p.m. on the day of , 2007 upon the following terms, conditions and covenants: 1. TAXES. Landlord shall be responsible to pay all personal property taxes assessed on this property before they become delinquent. 2. UTILITIES. Tenant shall pay all charges for utility services to the leased premises including all connection and turn-on charges. 3. HOLDING OVER. Failure of Tenant to surrender the leased premises at the expiration of the lease or any extension thereof constitutes a holding overwhich shall be construed as a tenancy from month to month at the same rate per month. 4. RENT. Tenant agrees to and shall pay Landlord at City Hall, Cash Management Division, 801 Main Street,Suite 1.10 or by mailing to City of Beaumont,Cash Management Division,P.O. Box 3827, Beaumont, Texas 77704, or at such other place Landlord shall designate from time to time in writing, as rent for the leased premises, the sum of Four Thousand Dollars and No Cents ($4000.00) payable per month, in advance, on or before the 1St day of each month, commencing on ' 2006 and continuing thereafter until the term of the lease expires. Rent received after the first day of the month shall be deemed delinquent. If rent is not received by Landlord by the fifteenth (15th) day of each month, Tenant shall pay a late charge of One Hundred Dollars ($100.00) plus a penalty of Twenty-five Dollars ($25.00) per day until rent is received in full. Tenant shall pay Twenty-Five Dollars ($25.00) for each returned check. 5. USE. Tenant shall use the leased premises for the following purpose and no other: Business offices and resale shop of various items, such as: clothing, household items, toys, etc. 6. INSURANCE. Tenant shall pay for fire and extended coverage insurance on the buildings and other improvements on the leased premises in an amount not less than the full insurable value. Tenant shall provide public comprehensive general liability and property damage insurance including broad-form coverage, which policy shall cover the Landlord as well as the Tenant. Said Page 1 of 6 insurance policies required to be provided by Tenant herein shall name Landlord as an additional insured and shall be issued by an insurance company approved by Landlord. Tenant shall provide Landlord with certificates of insurance evidencing the coverage required herein. Tenant shall be solely responsible for fire and casualty insurance on Tenant's property on or about the leased premises. Tenant is required to give Landlord thirty(30)days notice of cancellation or nonrenewal of insurance. If Tenant does not maintain such insurance in full force and effect, Landlord may immediately terminate this lease. 7. CONDITION OF PREMISES. Tenant has examined and accepts the leased premises in its present as-is condition as suitable for the purposes for which the same are leased. 8. MAINTENANCE AND REPAIRS. Landlord shall keep the foundation, maintenance of the lawn and grounds, central cooling and heating system, the exterior walls (except glass, windows, doors, door closure devices, window and door frames, molding, locks and hardware, and interior painting or other treatment of exterior walls), and the roof of the leased premises in good repair except that Landlord shall not be required to make any repairs occasioned by the act or negligence of Tenant, its employees, subtenants, licensees and concessionaires. Tenant is responsible for all janitorial services and utility costs associated with the building. Tenant shall not paint the exterior or interior walls of the building except with the prior written consent of the Landlord. If Landlord is responsible for any such repair and maintenance, Tenant agrees to give Landlord written notice of needed repairs. Landlord shall make such repairs within a reasonable time. Tenant shall notify Landlord immediately of any emergency repairs. Tenant shall keep the leased premises in good, clean condition and shall at its sole cost and expense, make all needed repairs and replacements, including replacement of cracked or broken glass, except for repairs and replacements required to be made by Landlord under this section. If any repairs required to be made by Tenant hereunder are not made within ten (10) days after written notice delivered to Tenant by Landlord, Landlord may at its option make such repairs without liability to Tenant for any loss or damage which may result by reason of such repairs, and Tenant shall pay to Landlord upon demand as additional rent hereunder the cost of such repairs plus interest. At the termination of this lease, Tenant shall deliver the leased premises in good order and condition, normal wear and tear excepted. Normal wear and tear means deterioration which occurs without negligence, carelessness, accident or abuse. 9. ALTERATIONS. All alterations,additions and improvements,excepttrade fixtures,installed at expense of Tenant, shall become the property of Landlord and shall remain upon and be surrendered with the leased premises as a part thereof on the termination of this lease. Such alterations, additions and improvements may only be made with the prior written consent of Landlord, which consent shall not be unreasonably withheld. If consent is granted for the making of improvements or alterations to the leased premises,such improvements and alterations shall not commence until Tenant has furnished to Landlord a certificate of insurance showing coverage in an amount satisfactory to Landlord protecting Landlord from liability for injury to any person and damage to any personal property, on or off the leased premises, in connection with the making of such improvements or alterations. No cooling tower, equipment or structure of any kind shall be placed on the roof or elsewhere on the leased premises by Tenant without prior written permission of Landlord. If such permission is granted, such work or installation shall be done at Tenant's expense and in such a manner that the roof shall not be damaged thereby. If it becomes necessary to remove such cooling tower, equipment or structure temporarily so that repairs to the roof can be made. Tenant shall promptly remove and reinstall the cooling tower, equipment or structure at Tenant's expense and repair at Tenant's expense any damage resulting from such removal or Page 2 of 6 reinstallation. Upon termination of this lease, Tenant shall remove or cause to be removed from the roof any such cooling tower, equipment or structure if directed to do so by Landlord. Tenant shall promptly repair at its expense any damages resulting from such removal. At the termination of this lease, Tenant shall deliver the leased premises in good order and condition, natural deterioration and casualty loss not caused by Tenant only excepted. Any damage caused by the installation or removal of trade fixtures shall be repaired at Tenant's expense prior to the expiration of the lease term. All alterations, improvements, additions and repairs made by Tenant shall be made in a good and workmanlike manner. 10. COMPLIANCE WITH LAWS AND REGULATIONS. Tenant shall, at its own expense, comply with all laws,orders and requirements of all governmental entities with reference to the use and occupancy of the leased premises. Tenant and Tenant's agents,employees and invitees shall fully comply with any rules and regulations governing the use of the buildings or other improvements to the leased premises as required by Landlord. Landlord may make reasonable changes in such rules and regulations from time to time as deemed advisable for the safety, care and cleanliness of the leased premises,provided same are in writing and are not in conflict with this lease. 11. ASSIGNMENT AND SUBLETTING. Tenant shall not assign this lease nor sublet the leased premises or any interest therein without first obtaining the written consent of Landlord. An assignment or subletting without the written consent of Landlord shall be void and shall, at the option of Landlord, terminate this lease. 12. DESTRUCTION. In the event the leased premises is partially damaged or destroyed or rendered partially unfit for occupancy by fire or other casualty, Tenant shall give immediate notice to Landlord. Landlord may repair the damage and restore the leased premises to substantially the same condition as immediately prior to the occurrence of the casualty. Such repairs shall be made at Landlord's expense unless due to Tenant's negligence. Landlord shall allow Tenant a fair reduction of rent during the time the leased premises are partially unfit for occupancy. If the leased premises are totally destroyed or deemed by the Landlord to be rendered unfit for occupancy by fire or other casualty, or if Landlord shall decide not to repair or rebuild, this lease shall terminate and the rent shall be paid to the time of such casualty. Whether any fire or other casualty loss has been caused by Tenant shall be determined by Landlord. 13. TENANT DEFAULT AND REMOVAL OF ABANDONED PROPERTY. If Tenant abandons the premises or otherwise defaults in the performance of any obligations or covenants herein, Landlord may enforce the performance of this lease in any manner provided by law. This lease may be terminated at Landlord's discretion if such abandonment or default continues for a period of ten (10) days after Landlord notifies Tenant of such abandonment or default and of Landlord's intention to declare this lease terminated. ' Such notice shall be sent by Landlord to Tenant at Tenant's last known address by certified mail. If Tenant has not completely removed or cured default within the ten (10)day period, this lease shall terminate. Thereafter, Landlord or its agents shall have the right,without further notice or demand,to enter the leased premises and remove all property without being deemed guilty of trespass and without waiving any other remedies for arrears of rent or breach of covenant. Upon abandonment or default by the Tenant, the remaining unpaid portion of the rental from Paragraph 4 herein shall become due and payable. For purposes of this section, Tenant is presumed to have abandoned the premises if goods, equipment or other property, in an amount substantial enough to indicate a probable intent to abandon the premises, is being or has been removed from the premises and the removal is not within the normal course Page 3 of 6 of Tenant's business. Landlord shall have the right to store any property of Tenant that remains on premises that are abandoned; and, in addition to Landlord's other rights, Landlord may dispose of the stored property if Tenant does not claim the property within sixty(60)days after the date the property is stored, provided Landlord delivers by certified mail to Tenant at Tenant's last known address, a notice stating the Landlord may dispose of Tenant's property within sixty(60)days after the date the property is stored. 14. EXCLUSION OF TENANT. Landlord may not intentionally prevent Tenant from entering the leased premises except by Judicial process unless the exclusion results from (1) bona fide repairs, construction or an emergency; (b) removing the contents of premises abandoned by Tenant; or (c) changing the door locks of Tenant in the event Tenant is delinquent in paying the rent. If Landlord or Landlord's agent changes the door lock of Tenant, in the event Tenant is delinquent in paying rent, Landlord or Landlord's agent must place a written notice on Tenant's front door stating the name and the address or telephone number of the individual or company from which the new key may be obtained. The new key is required to be provided only during Tenant's regular business hours. 15. LIEN. Landlord is granted an express contractual lien, in addition to any lien provided by law, and a security interest in all property of Tenant found on the leased premises to secure the compliance by Tenant with all terms of this lease. 16. SUBORDINATION. Landlord is hereby irrevocably ested with full power and authority Y p Y to subordinate this lease to any mortgage, deed of trust, or other lien hereafter placed on the leased premises and Tenant agrees on demand to execute such further instruments subordinating this lease as Landlord may request, provided such subordination shall be on the express condition that this lease shall be recognized by the mortgagee, and the rights of Tenant shall remain in full force and effect during the term of this lease so long as Tenant shall continue to perform all of the covenants and conditions of this lease. 17. INDEMNITY. Landlord and its employees and agents shall not be liable to Tenant or to Tenant's employees, patrons, visitors, invitees or any other persons for any such injury to any such persons or for damage to personal property caused by an act, omission or neglect of Tenant or Tenant's agents or of any other tenant of the premises of which the leased premises is a part. Tenant agrees to indemnify and hold Landlord and its employees and agents harmless from any and all claims for such injury and damages,whether the injury occurs on or off the leased premises. This indemnity expressly includes allegations of negligence on the Part of Landlord, its agents, officers and employees. 18. SIGNS. Tenant shall not post or paint any signs at, on or about the leased premises except with the prior written consent of Landlord. Landlord shall have the right to remove any sign or signs in order to maintain the leased premises or to make any repairs or alterations thereto. 19. TENANT BANKRUPTCY. If Tenant becomes bankrupt or makes voluntary assignment for the benefit of creditors or if a receiver is appointed for Tenant, Landlord may terminate this lease by giving five (5) days written notice to Tenant of Landlord's intention to do so. 20. CONDEMNATION. If the whole or any substantial part of the leased premises is taken for any public or quasi-public use under any governmental law, ordinance or regulation or by right of eminent domain or should the leased premises be sold to a condemning authority under threat of Page 4 of 6 condemnation, this lease shall terminate and the rent shall be abated during the unexpired portion of the lease effective from the date of the physical taking of the leased premises. 21. NOTICES. Notices to Tenant shall be by certified mail or other delivery to the leased premises or to Tenant's last known address. Notices to Landlord shall be by certified mail to the place where rent is payable. 22. DEFAULT BY LANDLORD. In the event of breach by Landlord of any covenant,warranty, term or obligation of this lease, then Landlord's failure to cure same or commence a good faith effort to cure same within ten (10) days after written notice thereof by Tenant shall be considered a default and shall entitle Tenant to either terminate this lease or cure the default and make the necessary repairs,and any expenses incurred by Tenant shall be reimbursed by the Landlord after reasonable notice of the repairs and expenses incurred. 23. SIGNS. During the last thirty(30)days of this lease, a"For Sale" sign and/or a "For Lease" sign may be displayed on the leased premises and the leased premises may be shown at reasonable times to prospective purchasers or tenants. 24. RIGHT OF ENTRY. Landlord shall have the right during normal business hours to enter the leased premises (a)to inspect the general condition and state of repair thereof, (b)to make repairs required or permitted under this lease, or (c) any other reasonable purpose. 25. WAIVER OF BREACH. The waiver by Landlord of any breach of any provision of this lease shall not constitute a continuing waiver or a waiver of any subsequent breach of the same or a different provision of this lease. 26. TIME OF ESSENCE. Time is expressly declared to be of the essence in this lease. 27. BINDING OF HEIRS AND ASSIGNS. Subject to the provisions of this lease pertaining to assignment of the Tenant's interest, all provisions of this lease shall extend to and bind, or inure to the benefit not only of the parties to this lease but to each and every one of the heirs, executors, representatives, successors and assigns of Landlord or Tenant. 28. RIGHTS AND REMEDIES CUMULATIVE. The rights and remedies by this lease agreement are cumulative and the use of any one right or remedy by either party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. 29. TEXAS LAW TO APPLY. This agreement shall be construed under and in accordance with the laws of the State of Texas. 30. LEGAL CONSTRUCTION. In case any one or more of the provisions contained in this agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity,illegality or unenforceability shall not affect any other provision hereof and this agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 31. PRIOR AGREEMENTS SUPERSEDED. This agreement constitutes the sole and only agreement of the parties to this lease and supersedes any prior understandings or written or oral Page 5 of 6 agreements between the parties respecting the subject matter of this lease. 32. AMENDMENT. No amendment, modification or alteration of the terms hereof shall be binding unless it is in writing, dated subsequent to the date hereof, and duly executed by the parties. 33. ATTORNEYS' FEES. Any signatory to this lease agreement who is the prevailing party in any legal proceeding against any other signatory brought under or with relation to this lease agreement or the transaction shall be additionally entitled to recover court costs, reasonable attorney fees and all other out-of-pocket costs of litigation, including deposition,travel and witness costs, from the non-prevailing party. 34. TERMINATION. Tenant may terminate lease prior to expiration date by providing Landlord thirty (30) days written notice. EXECUTED this day of , 2006. TENANT: LANDLORD: GOODWILL INDUSTRIES CITY OF BEAUMONT OF SE TEXAS AND SW LOUISIANA (Printed Name) Kyle Hayes, City Manager (Printed Title) Address: Address: Goodwill Industries Executive Offices of SE Texas & SW Louisiana City of Beaumont P. O. Box 801 Main Street Beaumont, TX 77704 Beaumont, TX 77701 Telephone: Telephone: (409) (409) 880-3716 Page 6 of 6 42 F L�' �' • yd' �° "� F a � a 4\ •° p,4 as cr 6 a A ya etr° a tP`° \• • �` C,p ''o - °' •` ° Yom o tO btu s�` •o °. \,P ° .d •G�4/ . \ ` •tt o ` �^"" sS rot o 4ys , �G� e +p tF'4 "''� a o:. F5 �, • \ •\• 4° :^°q 9\ -� fl, tt h� �o e :'gyp '°ytC� . F O, e 10 �, -8 i �' h'f w°•o S' ScP \ •�� o \e° u'o �O a o° • �F a". es .� OOC F t • b° JO y°� `gF a by \`b \t �� ° 'O b D eo A !11.06 .. � c0 \b0 p' Sbt • p; '. AO bb ' �O ti $ 41S 4 s eo ry .e e° ••e1 ..b•,. .0 y1• \ e S . o i•� Q PLAT MAP F• ••y b° s � \ � et° c� v. vps 0.y �►° wwy � 1�\ hh Y 'moo EXHIBIT "A" ELiV R2 SAVE r.2 s R s i S T y t�- a 3�000 . SF s Ica, )(oyuoa 0 � y ,p�Ficts s 5 CC 79� 02LkfjrJS S77LE£i 13,e.4 u Tx 77701 Not' T'O SCft4:-' Fiytis� FcOaR RESOLUTION NO. 06-306 WHEREAS, an agreement has been negotiated for the acquisition of property at 790 Orleans Street for its appraised value for use by the Police Department; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the purchase of the following described property,as shown on Exhibit"A" attached hereto, in the amount of$480,000 be and the same is hereby approved: Southeast 80' of Lots 305, 306, 307, 308 and 309, Block 49, Beaumont Addition (790 Orleans Street) Appraiser: Bishop Real Estate Appraisers, Inc. Total Appraised Value: $480,000 Owner: Goodwill Industries of SE Texas and SW Louisiana PASSED BY THE CITY COUNCIL of the City of Beaumont this the 10th day of October, 2006. It - Mayor Guy N. Goodson - . � w fill 10 RESOLUTION NO. WHEREAS, City Council approved Resolution No. 06-306 on October 10, 2006 for the City of Beaumont to acquire the property at 790 Orleans Street from the owner, Goodwill Industries; and, WHEREAS, Goodwill Industries requires six (6) months to vacate the property: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager is hereby authorized to execute a six(6) months Lease Agreement with Goodwill Industries of SE Texas and SW Louisiana (Goodwill) for occupancy of the property located at 790 Orleans Street for a rental fee of$4,000 per month. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 31 st of October, 2006. - Mayor Guy N. Goodson - 5 October 31, 2006 Consider approving a bid for purchasing five (5) standby generator power systems for installation at various fire stations 0 Wftw City of Beaumont K Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Max Duplant, Chief Financial Officer MEETING DATE: October 31, 2006 AGENDA MEMO DATE: October 24, 2006 REQUESTED ACTION: Council consider award of a bid for purchasing five (5) standby generator power systems for installation at various fire stations. RECOMMENDATION Administration recommends awarding a bid for purchasing five (5) 35 kW standby generator power systems for installation at fire stations as noted herein to Emergency Power Services in the total amount of$53,395. BACKGROUND The generator sets specified in the bid will provide standby emergency generator power to Fire Station Numbers 2, 7, 8, 9 and 11. The stations currently have no permanent emergency power systems for occurrences of power outage. Each generator set will include a transfer switch which will allow the system to come on-line automatically when necessary, and upon restoration of utility power will automatically retransfer the electric load to normal operation and shut down the generator. Four (4) bids were received as reflected in the attached bid tabulation. Building Services personnel have reviewed the specifications for the equipment submitted by Emergency Power Service and have determined it to meet all performance requirements. The generator systems will be installed either by Building Services personnel or by private electrical contractor, dependent upon personnel availability and complexity of installation. BUDGETARY IMPACT Funds for the expenditure will be provided by a 2005 State Homeland Security Program (SHSP) grant, with no matching funds required. Purchase of Five (5) Standby Generator Power Systems October 23, 2006 Page 2 PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager and Chief Financial Officer. BID TABU: PURCHASE OF STANDBY GENERATOR POWER SYSTEMS BID OPEN THURSDAY,OCTOBER 12,2006 @ 2:00 PM BID NUMBER: RF0906-86 Vendor Emergency Power Service Power Field Services Austin Generator Service Austin Generator Service City/State Beaumont, TX Dickinson, TX Fax Number 409.892.5725 Austin, TX Austin, TX 281.337.7684 512.251.3315 512.251.3315 Five(5)Standby Generator Power System Unit Price E 5 Price ( Unit Price �Ext. Price Unit Price Ext. Price ��Unit Price Ext. Price Y $10,679.00 53,395.00 $15,715.00 $78,575.00 $19,107.60 $95,538.00 $23,265.20 $116,326.00 Manufacturer&Model Bid QT35& RTS N200 switc� ato Light Model SENL40 F Baldor IGLC35 w/ASCO 300 Baldor IGLC35 w/A Delivery Time: ( 14 to 30 days �L 115 dam_ 98 da s SCO 7000 — — y — �� 98 dames RESOLUTION NO. WHEREAS, bids were received for the purchase of five (5) 35 kW standby generator power systems for installation at Fire Station Numbers 2, 7, 8, 9 and 11; and, WHEREAS, Emergency Power Services submitted a bid in the amount of$53,395; and, WHEREAS, City Council is of the opinion that the bid submitted by Emergency Power Services should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the bid submitted by Emergency Power Services for the purchase of five 5 ( ) 35 kW standby generator power systems for installation at Fire Station Numbers 2, 7, 8, 9 and 11 in the amount of$53,395 95 be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 31 st of October 2006. ' - Mayor Guy N. Goodson - i 6 October 31, 2006 Consider authorizing the City Manager to execute a contract with the Southeast Texas Regional Planning Commission for the administration of disaster recovery funds 1171jj! tY Ci of Beaumont Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Public Works Director MEETING DATE: October 31, 2006 AGENDA MEMO DATE: October 26, 2006 REQUESTED ACTION: Council authorize the City Manager to execute a contract with the Southeast Texas Regional Planning Commission for the administration of disaster recovery funds. RECOMMENDATION The Administration recommends authorizing the City Manager to execute a contract with the Southeast Texas Regional Planning Commission to administer disaster recovery funds. BACKGROUND The City of Beaumont has been awarded a subrecipient allocation of Texas Department of Housing and Community Affairs CDBG Disaster Program funds in the amount of$5,145,000 from the Southeast Texas Regional Planning Commission.Recovery funding,including Emergency Repair($2,745,000),Home Owner Occupied Rehabilitation($1,15 5,000)and Single-Family Rental Rehabilitation($1,000,000)will assist eligible low to moderate income households with repairs resulting from Hurricane Rita. Assistance to rental property owners will be limited to properties leased, or will be leased, to low to moderate income families. Funds totaling$245,000 will also be used for Administrative costs. BUDGETARY IMPACT Programs and administration will be funded from the Texas Department of Housing&Community Affairs CDBG Disaster Program. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director, Development Services Manager CDBG Sub-Contractor agreement 10/27/2006 CONTRACT BETWEEN SOUTH EAST TEXAS REGIONAL PLANNING COMMISSION Contractor of the TDHCA CDBG Disaster Program AND THE CITY OF BEAUMONT,SUB-CONTRACTOR PARTIES TO THE AGREEMENT This Interlocal Agreement is made and entered into by and between South East Texas Regional Planning Commission(hereinafter called the"SETRPC")acting herein by its Executive Director duly authorized by Resolution of Contractor's executive committee,and The City of Beaumont,Jefferson County,Texas. The parties hereto agree,by the execution hereof that they are bound to the mutual obligations and to the performance and accomplishment of the tasks described herein. WITNESSETH THAT: WHEREAS,Chapter 791 of the Texas Government code,also known as the Interlocal Cooperation Act; authorizes all local governments to contract with each other to perform governmental functions or services,including administrative entity functions normally associated with the operation of government, such as administration and management of programs designed to assist its citizens;and WHEREAS,the SETRPC is the Contractor for the Texas Department of Housing and Community Affairs (TDHCA)for the Community Development Block Grant Hurricane Disaster Program that was legislated to assist low income individuals and families recover from the devastating effects of Hurricane Rita and to provide them with decent;safe and sanitary conditions;and WHEREAS,the City of Beaumont currently administers U.S.Department of Housing and Urban Development CDBG and HOME programs whose missions are to provide safe,affordable homes to low to moderate income residents;and WHEREAS,under the terms of the agreement between TDHCA and SETRPC,SETRPC must ensure that all applicable state and federal requirements are met concerning the disbursement of funds;and, WHEREAS,projects undertaken by the City of Beaumont pursuant to this contract must be of direct benefit to low and moderate income persons as has been determined by the parties and is established under the guidelines of the Housing and Community Development Act of 1974,as amended; WHEREAS the SETRPC and the City of Beaumont desire to enter into this Contract for the purpose of fulfilling and implementing their respective public and governmental purposes as agreed to by both parties; WHEREAS SETRPC is of the opinion that cooperation in the implementation of the programs and services to be provided by CDBG Disaster Recovery funds will be beneficial to the citizens and the governments located in the City of Beaumont through the efficiency and potential savings to be realized;and WHEREAS SETRPC certifies that it is the designated TDHCA Contractor of the CDBG Disaster Recovery as allocated by the Texas Department of Housing and Community Affairs;and, WHEREAS the Southeast Texas Regional Planning Commission certifies that it is independently authorized to inter into this Contract as a unit of local government as defined under State of Texas Local Government Code,Subtitle C.,Chapter 391; Page 1 of 14 CDBG Sub-Contractor agreement 10./27/2006 — NOW THEREFORE,the parties hereto,in consideration of the mutual covenants and conditions contained herein,promise and contract as follows: I. STATEMENT OF RESPONSIBILITIES–Administrative Enfity 1.1. As administrative entity,the South East Texas Regional Planning Commission(SETRPC)shall have certain legal and administrative entity responsibilities to the Texas Department of Housing and Community Affairs as defined by. 1.1.1. The National Affordable Housing Act of 1990,as amended 1.1.2. Notices of the Office of Community Planning and Development(CPD Notices) 1.2. As administrative entity,SETRPC shall receive CDBG funds designated for Disaster Assistance for Hurricane Rita. 1.3. As administrative entity,the following specific responsibilities are required and reserved to SETRPC: 1.3.1. Execution and approval of all TDHCA documents necessary to request and receive funds; 1.3.2. Receive and respond to citizen input regarding CDBG Program 1.3.3. Receive recommendations from CDBG Disaster Recovery Advisory Committee; 1.3.4. Review budgets; 1.3.5. Authorize vouchers and draw-downs for TDHCA reimbursement 1.3.6. Disbursement of funds to sub-contractors, 1.3.7. Execute and approve all TDHCA documents necessary to submit annual compliance and performance reports 1.3.8. Completion of all reports to TDHCA; 1.3.9. Provide fiscal accountability duties in compliance with federal regulations; 1.3.10. Respond to all TDHCA inquiries regarding CDBG Program; 1.3.11. Monitoring and evaluation of services and projects provided by any entity receiving CDBG Program funds; 1.3.12. Final approval of all contracts 1.4. SETRPC will provide financial administrative and management functions for the CDBG Disaster Recovery Program. These services will include,but are not limited to: 1.4.1. Preparation of vouchers and draw-downs for reimbursement of CDBG Program funds; 1.4.2. Completion of all strategic planning documents; 1.4.3. Preparation of annual project budgets•, 1.4.4. Accounting requirements in accordance with applicable OMB Circulars; Page 2 of 14 CDBG Sub-Contractor agreement 10/27/2006 1.4.5. Documenting Environmental Review and other compliance regulations, 1.4.6. Development of program guidelines; 1.4.7. Development of projects and activities; 1.4.8. Selection and implementation of activities; 1.4.9. Review of audits for other entities receiving CDBG Program funds; 1.4.10. Maintenance and provision of project and program file documentation in accordance with federal requirements; 1.4.11. Monitoring/Program Evaluation of contractors receiving CDBG Program funds; 1.4.12. Conducting of Public Hearings to obtain citizen input;and 1.4.13. Other administrative entity compliance requirements as needed to meet the CDBG Disaster Recovery Program regulations. 2. PERFORMANCE 2.1. Time of Performance: 2.1.1. Services of the City of Beaumont designated herein are to commence on the 28th day of July,2006,and end on the latter date of the 2"16 Day of July,2008,or the expiration of any extended period for the receipt of CDBG Disaster Recovery funds. 2.1.2. The term of this Contract and the provisions herein shall be extended to cover additional time periods to run concurrently,providing the City of Beaumont complies with this Contract and the Federal regulations governing the CDBG Program. 2.2. Performance Standards 2.2.1. The City of Beaumont will complete the tasks under Statement of Responsibilities—Sub- Contractor in a timely,efficient and professional manner. 2.2.2. The City of Beaumont will make monthly reports to SETRPC electronically on the 10th of each month that contains the following information. 2.2.2.1. Total funds allocated 2.2.2.2. Total funds committed 2.2.2.3. Number of units completed 2.2.2.4. Administrative funds available 2.2.2.5. Administrative funds utilized. 2.3. Sub—Contractor—Statement of Responsibility 2.3.1. The City of Beaumont agrees to comply with all applicable sections requirements of Title 24 Code of Federal Regulations,Part 570 of the U.S.Housing and Urban Development regulations concerning the CDBG Program and all federal regulations and policies issued pursuant to these regulations. 2.3.2. The City of Beaumont agrees to utilize funds made available under this Contract to supplement rather than to supplant fimds otherwise available. Page 3 of 14 CDBG Sub-Contractor agreement 10!272006 2.3.3. The City of Beaumont shall collect and submit on a regular basis documentation regarding leverage funds being used in collaboration with CDBG Disaster Recovery funds. 2.3.4. The City of Beaumont shall maintain records regarding applicants who are determined not eligible to receive assistance,including written and prompt notification of denial. 2.3.5. The City of Beaumont shall comply with all state and federal Lead-Paint requirements, including appropriate notices,evaluations,inspections,certifications,and corrective procedures,and including those requirements described in Subparts J,M,and K of 24 CFR Part 570. 2.3.6. The City of Beaumont agrees to 2.3.6.1. Collect and maintain client data demonstrating client eligibility for services provided,including,but not limited to: 2.3.6.1.1. Owner occupied rehabilitation applications 2.3.6.1.2. Reconstruction/replacement housing applications 2.3.6.1.3. Homebuyer applications 2.3.6.1.4 Demolition 2.3.6.2. The City of Beaumont agrees to submit a complete,compliant file for each CDBG program beneficiary. 2.3.7. All customer/client information shall be maintained in a secure and confidential manner, and the City of Beaumont agrees to comply with all local,state,and federal guidelines 2.3,8. The City of Beaumont agrees to affirmatively market all properties and/or programs to eligible low or moderate-income residents as described in 24 CFR Part 570. 3. CONTRACT SUSPENSION/ITERMINATION 3.1. IC through any cause,the City of Beaumont shall fail to fulfill in a timely and proper manner its obligations under this Agreement;or if the City of Beaumont shall violate any of the covenants, agreements,or stipulations of this Contract,SETRPC shall,upon concurrent opinion of the CDBG Disaster Recovery Housing Advisory Committee,have the right to terminate this Contract by giving written notice to the City of Beaumont of such termination and specifying the effective date thereof at least thirty(30)days before the effective date of such termination. 3.1.1. In such event;all finished or unfinished documents,data,maps,studies,surveys, drawings,models,photographs and reports prepared by the City of Beaumont under this Contract shall,at the option of SETRPC(or subsequent Administrative entity)become the property of SETRPC. The City of Beaumont shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder. 4. COMPENSATION 4.1. Minimum Financial Standards Requirement 4.1.1. No compensation may be paid to the City of Beaumont until a qualified Certified Public Accountant has provided written certification to SETRPC that the City of Beaumont is in full compliance with the standards set forth in OMB A-102. Page 4 of 14 CDBG Sub-Contractor agreement 10!27/2006 4.2, Maximum Compensation 4.2.1. The TDHCA CDBG Disaster Recovery program specifically limits administrative costs to ten percent(10%)the allocation. The City of Beaumont will receive 5%of its total allocation for administrative purposes. 4.3. Compensation Structure 4.3.1. The City of Beaumont warrants and acknowledges that no other compensation will be paid for administration of the CDBG program under this Contract. 4.4. Definition of Administrative Costs: 4.4.1. The following are some specific administrativelproject delivery costs as defined by the CDBG Disaster Recovery Program that may be allowed: 4.4.1.1. The cost of any of the following items,when the item does not result in a beneficiary,as defined by the CDBG program,is an administrative cost. 4.4.1.1.1. Environmental assessments,reviews or tests; 4.4.1.1.2. Inspections 4.4.1.1.3. Work write-ups,specifications,or scopes of services 4.4.1.1.4. Architectural drawings or architectural work of any type 4.4.1.1.5. Loan processing 4.4.1.1.6. Relocation services 4.4.1.1.7. Assistance necessary to minimize hardship 4.4.1.2. If any of these items result in a beneficiary,then the item can be assigned as a project cost. 4.4.1.2.1. The City of Beaumont acknowledges and agrees to accept full responsibility to define,at the time of submission for reimbursement,whether an item is an administrative or project cost. 4.4.1.2.1.1. A project cost shall be defined by a street address and a beneficiary name at the time of submission 4.4.1.2.1.2. The City of Beaumont acknowledges and agrees that a cost submitted as administrative entity cost cannot later be changed to a project cost 4.4.1.2.1.3. The City of Beaumont acknowledges and agrees that a cost submitted as a project cost shall be converted to an administrative entity cost if the project proves infeasible. 4.4.2. Indirect Costs 4.4.2.1. The City of Beaumont may utilize an indirect cost rate allocation it and only if they have submitted a certified Indirect Cost Allocation Plan to its state cognizant agency. 4.5. Payment Structure 4.5.1. The City of Beaumont shall be reimbursed only for those items that are eligible expenses under the CDBG program Page 5 of 14 CDBG Sub-Contractor agreement 10%272006 5. PROGRAM INCOME 5.1. Program Income means gross income,including interest earned on CDBG Program funds or received by the City of Beaumont,which is directly generated from the use of CDBG Program funds. 5.1.1. When program income is generated by an activity that is only partially assisted with CDBG Program funds,the income shall be prorated to reflect the percentage of said funds 5.1.1.1. The definitions to be utilized are contained in CPD Notice 97-9. 5.1.2. Income generated by a project which is funded with program income,is also program income 5.2. The City of Beaumont shall report monthly all program income as defined at 24 CFR Part 570 generated by activities carried out with CDBG funds made available under this contract. 5.3. The City of Beaumont will track and account for any program income as required by HUD and outlined in HUD CPD Notice 97-9. 5.4. Any program income{shall be returned to the State of Texas. - - - _ Comment[HSI):Does this apply to -------------------------------------------------------------------------------------------....--------------- rental income generated when the owner 6. ADMINISTRATIVE ENTITY AND INSURANCE REQUIREMENTS ofreatalpropertytweives Rental Rehab 6.1. Financial Management: It is understood by the City of Beaumont that CDBG funds are subject to funding? the Federal Governments Office of Management and Budget circulars: 6.1.1. No.A-87,"Cost of Principles for State,Local,and Indian Tribal Governments" 6.1.2. No.A-133,"Audits of State and Local Governments,"and 6.1.3. No.A-102,"Grants and cooperative agreements with state and local governments" 6.2. Policies and Procedures 6.2.1. The City of Beaumont must establish and use a set of written accounting policies and procedures which meet the minimum standards established by the relevant OMB circulars for contract accounting. 6.2.1.1. Standards must include adequate internal controls and maintaining necessary source documentation for all costs incurred. 6.3. Audit 6.3.1. If the City of Beaumont expends$300,000 or more in Federal funds a year,the City shall have an audit conducted in accordance with the Federal Governments'Office of Management and Budget Circular No.A-133. 6.3.1.1. The audit shall be made by an independent auditor in accordance with generally accepted government auditing standards covering financial and compliance audits on funds provided under this Contract. 6.3.1.2. The City of Beaumont shall provide SETRPC with a copy of this audit within six(6) months of the ending of the city s fiscal year(s)coinciding with this Contract. 6.3.2. If the City of Beaumont expends less than$300,000 in Federal funds per fiscal year the City shall submit to SETRPC a copy of its annual audit within six(6)months of the close of the City's fiscal year. Page 6 of 14 CDBG Sub-Contractor agreement 10/27'2006 6.4. Documentation and Record-Keeping: The City of Beaumont shall maintain all records required by the federal regulations specified in 24 CFR Parts 91 and 570 and that are pertinent to the activities to be funded under this Contract. Such documentation shall be in a manner that conforms to HUD accounting practices,OMB Circular A-87,and CDBG Disaster Program Grant Regulations 24 CFR Parts 91 and 570. Such records shall include,but not be limited to: 6.4.1. Records providing a full description of each activity undertaken; 6.4.2. Records demonstrating that each activity undertaken meets one of the eligible activities of the CDBG Disaster Recovery Program; 6.4.3. Records required to document the acquisition,improvement,use or disposition of real property 6.4.4. Records documenting compliance with the fair housing and equal opportunity components of the CDBG Program; 6.4.5. Financial records as required by,24 CFR Part 570 and OMB Circulars A-102;and 6.4.6. Other records necessary to document compliance with Subpart F,G,and H of 24 CFR Part 570. 6.5. Retention Records shall be maintained in accordance with requirements prescribed by the U.S. Department of Housing and Urban Development under CDBG reg. 6.5.1. Specifically,the City of Beaumont shall maintain the required records for the required periods under the CDBG regulations as defined in Chapter V,24 CFR Part 570. 6.5.2. In the event of expiration or termination of this contract the City of Beaumont shall provide all required records to SETRPC. 6.6. Access to Records: At any time during normal business hours and as often as SETRPC,the Texas Department of Housing and Community Affairs and/or the Comptroller General of the Ututed States may deem necessary,there shall be made available to SETRPC,the Texas Department of Housing and Community Affairs,and/or representatives of the Comptroller General for examination,all of the City of Beaumont's records with respect to all matters covered by this Contract and the City of Beaumont shall permit said entities to audit,examine,and make excerpts or transcripts from such records,and to make audits of all contracts,invoices,materials, payrolls,records of personnel,conditions of employment,and other data relating to all matters covered by this Contract. 6.7. Information on File: The City of Beaumont must have on file and provide access to,current copies of 6.7.1. Documentation of governmental status; 6.7.2. Copy of City statutes; 6.7.3. Any license applicable to the City of Beaumont's proposed activities•, 6.7.4. Listing of the current mayor and City Council(including name,address,occupation, position on Council,and tenure), 6.7.5. Current organizational chart showing management and staffing structure; 6.7.6. The City of Beaumonfs written personnel(including staff and volunteers}policies, 6.7.7. The City of Beaumont's written accounting policies and procedures; Page 7of14 CDBG Sub.-Contractor agreement 10/27'2006 6.7.8. The City of Beaumont's written procurement policies and procedures;and 63.9. Work plan or administrative entity/program guidelines based on the description of the Program and Activities in Section I of this contract and which specifies: 6.7.9.1. The major tasks or activities to be performed under this contract; 6.7.9.2. Eligibility requirements for participation and procedure for verification of information related to storm damage and any assistance received by the beneficiary from FEMA,insurance,etc.; 6.7.9.3. How activities or tasks will be performed; 6.7.9.4. The measurable objectives for each task;and 6.7.9.5. The time frame within which the tasks will be accomplished. 6.8. Procurement the City of Beaumont shall comply with all SETRPC,State,and Federal policy concerning the purchase of equipment and shall maintain an inventory record of all non- expendable personal property as defined by such policies as may be procured with frmds provided herein. 6.8.1. The City of Beaumont shall procure materials in accordance with the requirements of Attachment O of OMB Circular A-1 I0,Procurement Standards,and shall subsequently follow Attachment N,Property Management Standards,covering utilization and disposal of property. 6.8.2. All program assets(unexpended program income,property;equipment etc.)shall revert to SETRPC to be held on behalf of the State of Texas upon termination of this Contract unless specified otherwise in writing. 6.9. Property Records The City of Beaumont shall maintain real property inventory records that clearly identify properties purchased,improved,or sold. Properties retained shall continue to meet eligibility criteria and shall conform with the restrictions specified in Subparts E and F 24 CFR Part 570. 6.10.Close-Outs The City of Beaumont's obligation to SETRPC shall not end until all close-out requirements are completed. Activities during this closeout period shall include,but are not limited to,making final payments,disposing of program assets(including the return of all unused materials,equipment unspent cash advances,program income balances,and receivable accounts to SETRPC to be held on behalf of the State of Texas). 6.10.1. All records generated under the Contract shall be maintained at the City of Beaumont. 6.11.Insurance: The City of Beaumont shall observe sound business practices with respect to providing such bonding and insurance as would provide adequate coverage for services offered under this Contract and will ensure that any contractor or subcontractor that is utilized during the performance of the work described in this Contract is adequately covered. 6.11.1. The City of Beaumont will comply with applicable workers'compensation statues and will obtain employers'liability coverage where available and other appropriate liability coverage for program participants,if applicable. 6.11.2. The City of Beaumont will maintain adequate and continuous liability insurance on all vehicles owned,leased or operated by the City. All employees of the City of Beaumont who are required to drive a vehicle in the normal scope and course of their employment must possess a valid Texas driver's license and automobile liability insurance. Evidence of the employee's current possession of a valid license and insurance will be maintained on a current basis in City of Beaumont's files. Page 8 of 14 CDBG Sub-Contractor agreement 10/27'2006 6.113. Actual losses not covered by insurance as required by this Section may not be allowable costs under this Contract,and will remain the sole responsibility of the City of Beaumont or applicable party involved. 7. PERSONNEL AND PARTICIPANT CONDITIONS 7.1. Independent Contractor: Neither the City of Beaumont nor its employees are considered to be employees of SETRPC for any purpose whatsoever. The City of Beaumont is considered to be an independent contractor at all times in the performance of the scope of services described herein. 7.1.1. The City of Beaumont further agrees that neither it nor its employees are entitled to any benefits from SETRPC under the provisions of the Worker's Compensation Act of the State of Texas or to any of the benefits granted to employees of SETRPC under the provisions of the Personnel Policies as now enacted or hereafter amended. 7.1.2. The City of Beaumont certifies that it will establish,publish and post a statement of its policies and requirements on maintaining a drug free workplace which complies with the "Drug Free Workplace Act"(P.L.100.690)and shall require all providers of services under this Contract to comply with Drug Free Workplace requirements of the above noted Act. 7.2. Personnel: The City of Beaumont represents that it has,or will secure,all personnel required in performing all of the services required under this Contract. Such personnel shall not be employees of or have any contractual relationships with SETRPC. 7.2.1. All the services required hereunder will be performed by the City of Beaumont or under its supervision and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under state and local law to perform such services. 7.2.2. Any work or services subcontracted hereunder shall be specified by written contract or agreement and shall be subject to each provision of this Contract. 7.23. The City of Beaumont shall have in its possession a documented set of personnel policies and procedures,including fringe benefits,if any,available to its employees that have been formally adopted by its City Council. Such a document shall be made available for inspection and determination by the SETRPC as to its acceptability. 7.3. Prohibited Activity: The City of Beaumont is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities,sectarian,or religious activities,lobbying,political patronage,and nepotism activities. 7.3.1. Hatch Act: The City of Beaumont agrees that no funds provided,nor personnel employed under this contract,shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V United States Code, 7.4. Compliance with Civil Rights Laws and Executive Orders: 7.4.1. The City of Beaumont will comply with the provisions of and act in accordance with,all federal laws,rules and regulations,and Executive Orders related to equal employment opportunity,affirmative action,equal access to programs and services,and the enforcement of Civil Rights,including,but not limited to 7.4.1.1. Section 3 of the Housing and Urban Development Act of 1968; 7.4.1.2. Sections 103 and 109 of the Housing and Community Development Act of 1974,as amended 7.4.1.3. Title VI and Title VII of the Civil Rights Act of 1964,as amended; 7.4.1.4. Title VIII of the Civil Rights Act of 1968; Page 9 of 14 CDBG Sub-Contractor agreement 10%27'2006 7.4.1.5. Sections 502,503,504 and 505 of the Rehabilitation Act of 1973; 7.4.1.6. Equal Pay Act of 1963; 7.4.1.7. Age Discrimination in Employment Act of 1967,as amended; 7.4.1.8. The Vietnam Era Veterans Readjustment Act of 1974; 7.4.1.9. The 1986 U.S.Immigration Reform and Control Act; 7.4.1.10.Americans with Disabilities Act of 1990; 7.4.1.11.Executive Order 11063 of 1962;and 7.4.1.12.Executive Order 11246 of 1965,as amended 7.42 The City of Beaumont will not discriminate against any employee or applicant for employment because of race,color,religion,sex,age,national origin,or ancestry,physical or mental handicap,marital/familial status or Vietnam era or disabled veteran status. 7.4.3. The City of Beaumont will make reasonable accommodation to the known physical or mental handicap of an otherwise qualified employee or applicant for employment 7.4.4. The City of Beaumont will ensure and maintain a working environment free of sexual harassment and other unlawful forms of harassment;intimidation,and coercion in all facilities at which the City of Beaumont's employees are assigned to work. 7.4.5. The City of Beaumont will in all solicitations or advertisements for employees placed by or on behalf of the City,state that all qualified applicants will receive consideration of employment without regard to race,color,religion,sex,age,national origin or ancestry,or physical or mental handicap. • 7.4.5.1. The City of Beaumont agrees to post in conspicuous places,available to employees and applicants for employment,notices setting fiorth the provisions of this nondiscrimination clause. 7.4.5.2. EEO/AA Statement:The City of Beaumont will,in all solicitations or advertisements for employees placed by or on behalf of the City,state that it is an Equal Opportunity or Affirmative Action employer. 8. GENERAL REQUIREMENTS AND CONDTIONS 8.1. Debarment Suspension,Ineligibility and Exclusion Compliance_ 8.1.1. The City of Beaumont certifies that it has not been debarred,suspended or otherwise found ineligible to receive funds by an agency of the executive branch of the federal government 8.1.2. The City of Beaumont agrees that should any notice of debarment,suspension, ineligibility or exclusion be received by the City,the City will notify SETRPC immediately. 8.1.3. The City of Beaumont agrees to not procure or subcontract with any agency, organization,or contractor that has been debarred,suspended,or otherwise found ineligible to receive funds by an agency of the executive branch of the federal government Page 10 of 14 CDBG Sub-Contractor agreement 10/27i2006 8.2. Use of Funds for Sectarian Religious Purposes:The City of Beaumont covenants and agrees that no funds awarded through this program will be used for sectarian religious purposes,and specifically that 8.2.1. There will be no religious test for admission for services-, 8.2.2. There will be no requirement for attendance at religious services, 8.2.3. There will be no inquiry as to a clients religious preference or affiliation; 8.2.4. There will be no proselytizing;and 8.2.5. Services provided will be essentially secular. 8.3. Lobbying: The City of Beaumont understands that utilization of any federally appropriated funds provided the City by SETRPC pursuant hereto to influence or attempt to influence any member or employee of the Executive or Legislative branches of the federal government with respect to a covered federal action is prohibited. 8.3.1. The City of Beaumont further agrees that it shall comply with the certification and disclosure requirements of the applicable regulations. 8.4. Publication.Reproduction and Use of Materials: 8.4,1- If this Contract results in any book,publication,video,audio or any other copyrightable material,then the material produced with Federal funds shall be in the public domain. 8.5. Identification of Documents 8.5.1. All reports,maps,and other documents completed as a part of this contract,other than documents exclusively for internal use within The City of Beaumont shall contain the following information on the front cover or title page(or in the case of maps,in an appropriate block): TDHCA CDBG Disaster Recovery Program,month and year of the preparation,SETRPC and descriptive title. 8.6. Compliance with Laws: 8.6.1. In performing the services required hereunder,the City of Beaumont shall comply with all applicable laws,ordinances,and codes of the federal,staff and local governments, including environmental protection regulations. Failure to comply with the Administrative entity Requirements gall constitute grounds for termination of this Contract. 8.7. Insurance and Bonding 8.7.1. [The City of Beaumont shall carry sufficient insurance to protect contract assets from loss due to theft,fraud;-and/or`un4ne physiccal damage[ Comment[t;S2].z1 City is self- insured; ia3ured;tangteto be provided by Cite 8.8. Assignabllrty [Aftomey 8.8.1. The City of Beaumont shall not assign any interest in this Contract and shall not transfer any interest in the same(whether by assignment or notation]without the prior written consent of SETRPC thereto. 8.9. Conflict of Interest: 8.9.1. The City of Beaumont agrees to abide by the provisions of Subpart H 24 CFR Part 570.356 with respect to conflicts of interest and covenants that it presently has no financial interest and shall not acquire any financial interest direct or indirect which would conflict in any manner or degree with the performance of services required under this contract. 8.9.2. In the procurement of supplies,equipment construction and services by contractors,the conflict of interest provisions in 24 CFR Part 570 and OMB Circular A-110,respectively, shall apply. Page l I of 14 CDBG Sub-Contractor agreement 10!27/2006 8.9.3. No member,officer or employee of the contracting agency,or any other who exercises any functions or responsibilities with respect to the programs of the City of Beaumont during his/her tenure or for one year thereafter,shall have any interest,direct or indirect,in any contract or subcontract,or the proceeds thereof,for work to be performed in connection with the program assisted under this Contract. 8.9.3.1. The City of Beaumont shall incorporate,or cause to be incorporated in all such subsequent agreements or sub-agreements,a provision prohibiting such interest pursuant to the purposes of this section. 8.9.4. The City of Beaumont and SETRPC state to the best of their knowledge,no member of the Beaumont City Council and no other officer,employee,or agent of the City of Beaumont who exercises any function or responsibility in connection with the carrying out of the Program or the funds to which this Contract pertains,has any personal interest,direct or indirect,in this Contract. 8.10.Affirmative Action: 8.10.1. Approved Plan: The City of Beaumont agrees that it shall be committed to Affirmative Action principles as provided in the President's Executive Order 11246 of September 24, 1965. 8.10.2_ M/WBE: The City of Beaumont will use its best effort to afford minority and women- owned business enterprises the maximum practicable opportunity to participate in the performance of this contract 8.10.2.LAs used in this contract,the tern"minority and female business enterprise"means a business at least fifty-one(5 1)percent owned and controlled by minority group members or women. 8.10.22.For the purpose of this definition,"minority group members"are Afro-Americans, Spanish-speaking,Spanish surnamed or Spanish-heritage Americans,Asian- Americans,and American Indians,The City of Beaumont may rely on written representations regarding their status as minority and female business enterprises in lieu of an independent investigation. --------------------------------------- ------------------------------------ -°-------------------- Meted: #>CoL[Beaumont will scup t to each 9. LEGAL 9.1. Representation in Proposal: SETRPC has relied on all representations of the City of Beaumont in labor miion or representative of workers awarding this contract and the City of Beaumont warrants the accuracy of all representations in with which it has a collective bar3aiuin;asteement or other contract or said proposal. Misrepresentation in the proposal shall be cause to terminate this contract and the undestauding,a notice,to be provided by- City of Beaumont shall oNNv all amounts paid to it as liquidated damages should these amounts the agency contracting officer,advuung not be legitimate reimbursements for CDBG Disaster Recovery eligible activities. the labor union or worker's representative of the City of Bea wont's commitments hereunder,and shall post copies of the 92. TDHCA CDBG Disaster Recovery Funds Recognition: The City of Beaumont shall insure notice in conspicuous places available to recognition of the rote of TDHCA CDBG Disaster Recovery funds in providing services through employees and applicants for this Contract All activities;facilities,and items utilized pursuant to this Contract shall be employment.I prominently labeled as to the funding source_ In addition,the City will include a reference to the support provided herein in all publications made possible with funds made available under this Contract. 9.3. Notifications: Any notice hand-delivered or sent by mail(with a return receipt which indicates delivery)to the addresses below shall be deemed received for any purposes arising out of the execution of this contract. 10. For SETRPC,notices may be sent to: Chester Jourdan,Executive Director South East Texas Regional Planning Commission Page 12 of 14 CDBG Sub-Contractor agreement 1027/2006 2210 Eastex Freeway Beaumont,TX 77703 409-899-8444 409-347-0138(fax) 10.1.Construction and Severability: If any part of this Contract is held to be invalid or unenforceable, such holding will not affect the validity or enforceability of any other part of this Contract so long as the remainder of the Contract is reasonably capable of completion. 10.2.Enforcement: The City of Beaumont agrees to pay to SETRPC all costs and expenses including reasonable attorney's fees incurred by SETRPC in exercising any of its rights or remedies in connection with the enforcement of this Contract. 10.3.Entire Contract This Contract contains the entire agreement of the parties and supersedes any and all other agreements or understandings,oral or written,whether previous to the execution hereof or contemporaneous herewithin 10.4.Amendments: The City of Beaumont or SETRPC may amend this Contract at anytime provided that such amendments make specific reference to ibis Contract,and are executed in writing and signed by a duly authorized representative of both organizations. Such amendments shall not invalidate this Contract,nor relieve or release the City of Beaumont or SETRPC from its obligations under this Contract. 10.4.1. SETRPC may,in its discretion,amend this Contract to conform with federal,state,or local governmental guidelines,policies,and available funding amounts,or for other reasons. 10.42. If such amendments result in a change in the funding,the scope of services,or the schedule of the activities to be undertaken as part of this Contract such modifications will be incorporated only by written amendment signed by both the City of Beaumont and SETRPC. 10.4.3. Further,any future change in federal regulations or federal requirements governing the use or eligibility of CDBG Disaster Recovery Program funds are deemed to be immediately incorporated into this Contract and subject to the provisions herein. 10.5.Applicable Law: This Contract shall be governed by and construed and enforced in accordance with the laws of the State of Texas,the by-laws,rules and regulations of SETRPC and the applicable regulations of the U.S.Department of Housing and Urban Development and Texas Department of Housing and Community Affairs. 10.6.Approval Required: The parties hereto state that they are appropriately empowered by their respective BoardtCity Council to sign this Contract This Contract shall not become effective or binding until approved by Beaumont City Council and the SETRPC Executive Committee. APPROVED: BEAUMONT CITY COUNCIL 2006. Page 13 of 14 CDBG Sub-Contractor agreement 10/27"2006 SOUTH EAST TEXAS REGIONAL PLANNING COMMISSION ,2006 Bv: 4�je Haves Chester R.Jourdan,Jr. - -- ----------------- --------- Deleted:ccy GuucLun Qt Mager E\ecutive Director - , - Deleted:1favo,Beaumont.Texas ► n g C ommissio n Deleted: Page 14 of 14 7 October 31, 2006 Consider adopting proposed housing program guidelines related to a Disaster Recovery Program City of Beaumont �• Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner,Public Works Director MEETING DATE: October 31, 2006 AGENDA MEMO DATE: October 26, 2006 REQUESTED ACTION: Council consider adopting proposed Housing Program Guidelines for Disaster Recovery Programs. RECOMMENDATION The Administration recommends City Council adopt proposed Housing Program Guidelines that will serve as an administrative tool for the federal disaster recovery programs administered by the City. BACKGROUND Each Participating Jurisdiction is required to adopt program guidelines for the federal grant programs it administers. Guidelines for the TDHCA Residential Emergency Repair Program, TDHCA Housing Rehabilitation Program, and TDHCA Single-Family Rental Rehabilitation Program are attached in substantive form. BUDGETARY IMPACT None. PREVIOUS ACTION None. SUBSEQUENT ACTION None. RECOMMENDED BY City Manager, Public Works Director,Development Services Manager. .wr fj TDHCA Disaster Program TDHCA Residential Emergency Repair Program Guidelines - Effective: November 1, 2006 The objective of the Residential Emergency Repair Program is to provide assistance to homeowners with an urgent need for emergency repairs when they are without sufficient resources to make those repairs themselves. This program is designed to assist with "urgent need"repairs resulting from Hurricane Rita. Who is Eligible? As a homeowner, you may be eligible for assistance under this program, if you meet all the following conditions: 0 Your total household income is at or below 80% Median Area Income. You are age 62 and above and/or disabled. First priority will be given to persons age 62 and above who are also disabled. Second priority will be to persons age 62 and above. Third priority will be to persons who are disabled. There are no income limits imposed upon senior citizens. Fourth priority will be to all other qualified households on a first come, first served basis. A Your home (single-family dwelling unit) must be located within the city limits of the City of Beaumont. A Your home requires an urgent repair, which if left unattended, would jeopardize the health and safety of the occupants. Needed repairs must have resulted from hurricane force winds and/or rain. A You must own and occupy your property as your principal residence on a year-round basis. A You must hold the title to the property or contract for deed or contract for sale. Contract for Deed or Contract for Sale is subject to time restrictions. You must have lived and been in the process of buying the property for a minimum of one (1)year. The period of time an applicant has lived in a property under a lease may be taken into consideration in determining the one(1)year. + TDHCA Disaster Program-Residential Emergency Repair Program Effective November 1,2006 Pagel of 5 A You must be a United States citizen or legal resident alien. A You must complete the application process and your application and requested repairs must be approved by the City of Beaumont. Please note that all other disaster recovery funds, including but not limited to homeowner's insurance proceeds and funds from FEMA, Small Business Administration (SBA), Red Cross, etc., must be used and evidence provided, prior to the disbursement of any TDHCA Disaster Program Residential Emergency Repair funds. A Your property must meet all environmental restrictions and regulations including floodplain, historical, lead-based paint, etc. Properties in the 100-year floodplain or floodway are not eligible for assistance. If the inspection reveals any code violations that will not be repaired by the program, the homeowner will be advised and encouraged to apply to the City's Minor Repair Program. What Types of Repairs are Eligible? Generally, repairs that are an urgent need are eligible for assistance. Housing Services Division staff will inspect the unit to determine if the repair is eligible. Eligible Repairs: ❑ repairs necessary to protect the health and safety of the household members. ❑ repairs may include mechanical, plumbing, electrical, roofs, walls, floors, ceilings, foundations, doors, windows, cooling and heating systems, building related deficiencies, or repairs that involve hazards that would cause the unit to continue to deteriorate. The following are some examples of eligible repairs: Plumbing, Sewer Lines, Electrical Wiring Systems, Roofs, etc. r ❑ repairs not covered by insurance claims or other disaster related assistance. Please note that all other disaster recovery funds including but not limited to homeowner's insurance proceeds and funds from FEMA,SBA,Red Cross,etc., must be used,and evidence provided to Community Development Staff, prior to the disbursement of any Residential Emergency Repair Program funds.Such evidence includes FEMA damage assessment report, Insurance Adjuster's report or independent work write-up from a bonded contractor,paid receipts and/or canceled checks. If owner has already spent insurance funds for repairs,owner must provide proof of payment and detailed documentation of work completed. ❑ funds must be used for buying materials and contracted labor. TDHCA Disaster Program-Residential Emergency Repair Program Effective November 1,2006 Page 2 of 5 ❑ removal of trees and debris Repairs That Are Not Eligible: ❑ cosmetic repairs. Cosmetic repairs will not be carried out under the program unless they are necessary to make the immediate area,where the repair was completed, match the surrounding area as much as possible. ❑ rental property and mobile homes are not eligible for assistance. ❑ there is no requirement that these repairs bring the house up to minimum property standards. What are the Maximum limits for the Program? Eligible housing units may be assisted once. ❑ $24,000—any repairs over$24,000 will not be approved ❑ Lifetime Maximum: $24,000. Exception: Assistance may be provided upon reoccurrence of a hurricane and funding is made available to the City and approved for such assistance. Repairs Completed: Once the repairs are completed and the contractor receives payment, no additional repairs will be completed. Limited Funds: Staff responds to requests for Emergency Repairs on a first-come- first-served basis from eligible applicants based upon the date the completed application is received. Although a specific amount of funding has been approved by the Beaumont City Council, all program funding is subject to the availability of TDHCA Disaster Program funds. Does the Repair Need to be Paid Back? Assistance is provided in the form of a grant and does not need to be paid back. How do I Apply? 1. Contact the Housing Services Division for an application and inspection. 2. Complete the application process. 3. Submit required documentation, including Applicants Certification of Disability (where applicable), a copy of your deed and proof that taxes and insurance are current. What Happens After I Apply? ❑ The City of Beaumont Housing Services Division will complete an inspection to determine if the project is eligible. If eligible, you will receive instructions on how to proceed. ❑ The City of Beaumont Housing Services Division will review the application and will verify that federal guidelines and all other program requirements have been met. if any information is found to be intentionally falsified,the application will be rejected and the applicant will not be allowed to reapply to this program. TDHCA Disaster Program-Residential Emergency Repair Program Effective November 1,2006 Page 3 of S ❑ You will receive written notice of the date the application is accepted or rejected with details of the decision if the application is rejected. ❑ In the event your house is 45 years old or older, the Texas Historical Commission may have to be notified. ❑ After your application has been accepted, get at least two written estimates for the same work. If you are unable to get two estimates, contact the City of Beaumont Housing Services Division. THE CONTRACTOR YOU SELECT MUST COME TO OUR OFFICE LOCATED IN CITY HALL,ROOM 225,PRIOR TO BEGINNING ANY WORK TO SIGN AN ASSURANCE STATEMENT THAT THE CITY'S STANDARD CONTRACTOR'S GUIDELINES WILL BE ADHERED TO. NO PAYMENT WILL BE MADE FOR REPAIRS BY A CONTRACTOR WHO HAS NOT PROVIDED SUCH ASSURANCE STATEMENT. ❑ When painted surfaces will be affected in a house built before 1978, the area will be tested for lead based paint. A lead based paint inspection and/or risk assessment shall be conducted by a licensed risk assessor. If your house is found to have lead-based paint hazards, hazard reduction techniques will be utilized. ❑ A work write-up for the repairs needed to correct the health or safety-related problem must be submitted. The work write-up may be in the form of a FEMA or insurance adjuster's damage assessment report, or from an independent bonded contractor. Only contractors who cant'a minimum of$100,000 liability insurance may perform the work. You may select any interested contractor who documents appropriate insurance coverage and is not on the most recent list of contractors who are ineligible to work on projects involving federal funds. ❑ The contractor/repair company will provide warranty information for work completed. A copy of warranty information must be submitted to Housing Services. ❑ Upon final inspection approval, the contractor may submit an invoice. The payment request will be processed upon project approval and the contractor can usually expect payment within 15 wonting days from the date invoice was approved. What The Program Is Not Although the TDHCA Residential Emergency Repair Program is designed to respond to a variety of problems, it has limits and should not be confused with other programs offered by the City of Beaumont Housing Services Division. A It is not a rehabilitation program. The most recent item, system, or structure to fail in a home may prompt the homeowner to seek assistance from the TDHCA Residential Emergency Repair Program while many other items are also in need of repair. The TDHCA Residential Emergency Repair Program is designed to respond to urgent needs resulting from hurricane force winds and/or rain and, that if left unrepaired, would lead to further deterioration or to the house becoming unlivable. The City of Beaumont, Housing Services Division offers a Housing Rehabilitation Program that can address many more TDHCA Disaster Program-Residential Emergency Repair Program Effective November 1,2006 Page 4 of 5 issues than the TDHCA Residential Emergency Repair. A It is not assistance for home sellers. The homeowner must affirm that they intend to live in the home for the next 12 months as far as foreseeable. The funds are designed to keep a homeowner living in their home rather than assist them in selling it. If it is determined after repairs are made that residency requirements have been falsified, the City may require that all funds be repaid. A It is not a remodel service. To extend assistance to as many households as possible, systems and items should be repaired rather than replaced, if possible. Tips on Contractin for Home Repair Work We encourage you to compare prices. Get at least two written estimates for the same work when possible. Ask for local references from contractors. You can also call the Texas Department of Licensing and Regulation at(800) 803-9202 to see if a contractor has a current license in good standing. • Don't agree to or sign anything you do not understand.Ask questions- know what you are getting for your money. • Don't be pressured into purchasing items or contracting for repairs you don't want or really need. • Ask about guarantees and warranties on the materials and the labor. • Never pay for repair work in advance. (Although you may have to pay a deposit if your project should require the ordering of special items or materials.) • Ask the contractor if he will provide all the permits that are required for the repair work. • It is a good idea to let your insurance company know if your roof is replaced so that your policy will accurately reflect the age of your new roof, in case of any future claim. The program is administered by the City of Beaumont Housing Services Division and funded by the Texas Department of Housing &Community Affairs (TDHCA) Disaster Program. For questions about this program or to obtain an application, please contact: City of Beaumont Housing Services Division 801 Main, Suite 225 Beaumont, Texas 77701 (409)880-3763 The TDHCA Residential Emergency Repair Program is subject to availability of funds from the Texas Department of Housing&Community Affairs Disaster Program. If there are no funds available,the program will not be available. Applicant is subject to all guidelines changes. TDHCA Residential Emergency Repair Program guidelines are subject to change without notice. TDHCA Disaster Program-Residential Emergency Repair Program Effective November 1,2006 Page 5 of 5 UD9 TDHCA DISASTER PROGRAM TDHCA HOUSING REHABILITATION PROGRAM GUIDELINES Introduction Conversion and expansion of the nation's housing stock is one of the specific objectives to be met by the expenditure of Community Development,Block Grant (CDBG) funds. Title I of the Housing and Community Development Act provides that the principal beneficiaries of these expenditures should be person of low and moderate income. Affordable housing is a national priority and ranks as one of the foremost legislative agenda items. The City of Beaumont has participated in the Community Development Program since its inception in 1975. One of its major activities is the Housing Rehabilitation Program which was designed to provide deferred payment loans to low and moderate income persons primarily residing in designated CDBG strategy areas. The goal of the Housing Rehabilitation Program has been to prevent deterioration of older City neighborhoods and to provide safe, affordable housing for economically disadvantaged residents. Assistance has been directed toward individuals who own their own homes and investors with rental properties that provide units for low and moderate income persons. Purpose The purpose of the TDHCA Housing Rehabilitation Program is to provide financial and technical • assistance to eligible homeowners who need moderate or intensive repairs resulting from Hurricane Rita to keep their property safe and habitable, thereby prolonging the useful life of the structure, preserving the viability of the neighborhood and preventing slum conditions when economically feasible. Funding and Administration This housing rehabilitation activity is conducted by the Housing Services Division which is part of the Public Works Department. Funding for all aspects of this program comes from the Texas Department of Housing&Community Affairs(TDHCA)Disaster Program. This program is designed to assist with needed repairs resulting from Hurricane Rita. Eligibility Criteria Eligibility for housing rehabilitation assistance is established by criteria consistent with HUD income and housing code standards, as well as local City housing goals and objectives. d — �� 1 The program guidelines are as follows: 1. All applicants must meet HUD income eligibility requirements. 2. 70% of annual allocation will be used to serve eligible elderly and/or disabled applicants. 3. Remaining 30% of funds to be used for all other eligible applicants on a first come, first served basis Applicant Eligibility In order to be considered for housing rehabilitation assistance,the applicant must meet the following criteria: 1. The Owner must have clear title, and either reside in, or have moved out of the house temporarily with intent to move back into the house for which they requested assistance; 2. The owner must have owned their property for at least one (1) year prior to submitting an application for rehabilitation assistance; 3. Provide proof that mortgage payments are current; 4. Provide proof that taxes are current and hazard insurance is in force prior to start of construction; and 5. Total household income does not exceed the current Area Median Income limits established by HUD. Property Eligibility Rehabilitation work shall be limited to those properties that are determined in need of repairs resulting from Hurricane Rita, in order to comply with the City's Standard Housing Codes. The properties must either be located within the CDBG strategy area or must provide shelter for primarily low income residents. Scope of Work The extent of rehabilitation work specified shall be determined by the Housing Inspector's findings of Standard Housing code deficiencies and subsequent cost estimates for the necessary repairs to bring the house up to building code standards. In some cases, additional improvements beyond minimum standards may be warranted, especially in instances where serious violations may become Standard Housing Code deficiencies within the succeeding twelve (12) months. In most cases, however, general property improvements, which may be desirable but are not required to meet Standard Housing Code, shall not exceed ten percent (10%) of the repair cost. In addition to necessary Standard Housing Code repairs, specifications may include energy conservation improvements. 2 Lead-Based Paint Regulations Chancres On September 15, 1999, HUD issued a new Federal lead-based paint regulation implementing Title X of the Housing and Community Development Act of 1992. This regulation makes many important changes in the lead-based paint requirement applicable to housing funded through HUD's Community Planning and Development (CPD) Programs. State and local jurisdictions that receive funding from the Community Development Block Grant(CDBG)Program, HOME Program,McKinney Act homeless programs and other CPD programs were required to implement the new requirements by September 15, 2000. Bid Process The proposed bid process is as follows: (A) Contractors will be referred to owners from approved contractors list. (B)Owners will solicit bids from the approved contractors list. (C)Ownerwill select the contractor they wish to perform the work from the two lowest bids within ten percent of Housing Service Staff estimates. Staff and the owner will review the selected contractor's bid for cost, thoroughness, reasonableness and make a final decision on accepting, modifying or rejecting the bid. As an alternative, Housing Services Staff will retain the process of completing rehab cases through the formal bid process when necessary. Rehabilitation Categories The scope of work shall be defined and limited by the cost estimate to bring the property up to Standard Housing Code, Section 8, and other codes when applicable,except in those cases where the structure is too deteriorated to be repaired to Standard Housing Code, but needs immediate emergency repairs to make the structure habitable. Each current year's funding level of repairs shall be made in order to assume unit production acceptable to meet HUD guidelines, as well as to maximize the available fund to benefit the greatest number of eligible applicants. Estimated cost in excess of$15,000 for repair shall render the project economically unfeasible. In cases where lead is present and the cost estimate goes over the $15,000 deferred payment loan amount, additional funds up to $24,000 will be made available. Any amount that exceeds the maximum amount of $15,000 must be approved by the City Manager or its designee. The following table indicates the two (2) rehab categories. Category Estimated Cost Range Intensive Rehab (lead-based paint present) $15,000-$24,000 Moderate Rehab $500-$14,999 Project Selection Each applicant's property will have a cost write-up after thorough evaluation of the property's condition is made to determine the extent of work necessary to meet applicable Standard Housing Code. If the cost exceeds the $15,000 Moderate Rehab limit, the owner will be advised that the property is economically unfeasible (except where lead-based paint is present), and unless other isfinancial resources or alternative housing programs are available, no further action will be taken. 3 For cost estimates falling within the defined rehab categories,work will proceed on a first come,first served basis. Otherwise, the applicant will be placed on a waiting list and receive assistance as funds become available. Financial Assistance Financial assistance for housing rehabilitation work may be given to eligible applicants in the form of a deferred payment loan.The original amount of the deferred payment loan shall be reduced by 20% each year with the remaining balance terminated at the end of the 5th year of the loan, provided all obligations are met. Limitation of Assistance All eligible applicants must live within the city limits of Beaumont. Financial assistance will be offered only once to homeowners requesting rehabilitation work. Security for Rehabilitation Deferred Loans All rehabilitation assistance, excluding emergency repair grants, will be secured by a properly executed real estate lien note and deed of trust in favor of the City of Beaumont. Cancellation of Lien To prevent windfall profits from the resale of rehabilitated property,the City of Beaumont will place a lien upon the property for the amount of the deferred loan. If any of the following events occur during the term of the deferred loan, arrangements must be made with the City for payment of the remaining balance: 1. The sale of all or any interest in the subject property; 2. The death of the original loan recipient(in case of a husband and wife, the death of both); if both parties to this loan should die during its terms, the heirs would be required to assume and pay the remaining portion; or, 3. The breach of terms of the lien. Appeal Process The Rehabilitation Board of Adjustments and Appeals shall consider the written appeal of the applicants who feel that due process has been denied. The cause of such appeal shall be, but not limited to: 1. Denial of deferred loan due to excessive rehab cost estimates exceeding program guidelines; 2. Cases in which the applicant feels inaccurate information may have been included on the application which adversely affected their qualifications. The Housing Services Division shall advise applicants of their right to appeal and prepare the necessary documents for the Board resolution. Appeals must be postmarked within ten(10)days of the date of the letter of notification rejecting the application. -4 - 3®L City of Beaumont Housing Services Division TDHCA Single-Family Rental Rehabilitation Program Guidelines TDHCA Disaster Program Community Development Block Grant ��luill �s TDHCA Single-Family Dental Rehabilitation Program Guidelines Mayor Guy Goodson Mayor Pro-Tem Nancy Beaulieu Councilwoman Lulu Smith Councilman Andrew Cokinos Councilman Audwin Samuel Councilwoman Becky Ames Councilwoman Bobbie Patterson Kyle Hayes City Manager Adopted by the Beaumont City Council October_,2006 ..ter Housing Services Division 801 Main,Suite 225 P O Box 3827 Beaumont,Texas 77704 Phone 409.880.3763•Fax 409.880.3125 2 INTRODUCTION The TDHCA Single-Family Rental Housing Rehabilitation Program is designed to assist low and moderate-income families in securing safe, sanitary and decent housing. This program's objective is to rehabilitate renter-occupied housing units by making needed repairs resulting from Hurricane Rita with the first priority as correcting code violations and eliminating lead-based paint hazards,when present. The TDHCA Single-Family Rental Rehabilitation Program is administered by the City of Beaumonfs Housing Services Division and funded through a federal grant. These guidelines contain a detailed description of the program including policies and procedures. The purpose of these guidelines is to explain to potential clients and the citizens of Beaumont,the Rental Housing Rehabilitation Program and types of assistance available. For further information or clarification of the guidelines please contact: Housing Services Division 801 Main Street-Suite 225 Beaumont,Texas 77701 409-880-3763 (Office) 409-880-3125 (Fax) DESCRIPTION OF PROGRAM PROCEDURES I. ELIGIBILITY REQUIREMENTS: A. Applicantf(Owner) Requirements: Eligible property owner(s) (hereinafter referred to as Applicant)must: 1.) Be a citizen of the United States or a legal resident alien. 2.) Maintain primary residence within the city limits of Beaumont. 3.) Own rental housing unit(s) located within an eligible service area 4.) Hold fee simple title to the property. 5.) May have an annual gross household income up to 200% of the current Area Median Income for Beaumont, but must lease to tenants at or below 80%of the current Area Median Income for Beaumont. See Tables I.A and 1.13 below. 6.) Not have assets in excess of$300,000 (rental properties, personal property, cash on hand, stocks, bonds, etc.). 7.) Exhibit the financial ability to pay monthly property expenses including mortgage payments, taxes, insurance, utility bills, etc. 8.) Show proof of financial ability to fund the Applicant portion, if any, of 3 the rehabilitation project. 9.) Provide proof that all property taxes assessed by the various taxing agencies in Jefferson County are paid in full on all properties owned by Applicant. 10.) Obtain a statement of income on all tenants residing in occupied units to be assisted. Income data must be verified; i.e., by contacting the tenant's employer, obtaining a copy of the tenant's latest income tax return and obtaining copies of 3 months of paycheck stubs, etc. Annual income includes earnings (wages, pensions, etc.) spouse's earnings, interest from stocks, bonds, income from real estate, public assistance, etc. Also, include amounts of any monies regularly contributed to tenant(s) by any other adult member of the family, child support payments, SSI, etc. B. Tenant Requirements:The current and future tenants of a unit to be rehabilitated with funding from this program must be low or moderate income. Low/Moderate income is defined as 80 percent and below of the current Beaumont metropolitan area median income(AMI). See Table I.B below. Table I.A—Applicant Income Limits(200%AMI) Table 1.6—Tenant Income Limits (80%AMI) Household Size Maximum Owner Household Maximum Tenant Income Size Income 1 56,700 1 $28,350 2 64,800 2 $32,400 3 72,900 3 $36,450 4 81,000 4 $40,500 5 87,480 5 $43,750 6 93,960 6 $47,000 7 100,440 7 $50,200 8 106,920 8 1 $53,450 C. Service Areas includes CDBG target areas{see 1-3 below)plus rental units in the city limits outside the target neighborhoods that meet special criteria (see 4 below)AND needed repairs resulted from Hurricane Rita: 1.) Target Area—All neighborhoods within the City of Beaumonts CDBG Strategy Area. General boundaries are south and east of 1-10 and north and east of the Eastex Freeway. 2.) Any rental unit within the city limits of Beaumont a. when the unit is listed with the Beaumont Housing Authority Section 8 program and is currently housing income eligible renters;and 4 b. Owner must sign agreement to continue listing the unit with Section 8 program for the 5-year lien period and give preference to renting unit to low/moderate-income families. 3.)Any rental unit in the city limits of Beaumont a. when the unit has been identified as having lead-based paint hazards by a certified lead inspector; and b. when the unit is available for rental, or currently rented to low income household(s); and C. the owner agrees to market assisted housing unit(s)to, and give preference to low/moderate-income households with young children under the age of six for ten years. 4.) Any rental unit in the city limits of Beaumont a. when the unit has received damages resulting from a presidentially declared disaster, and b. when the unit is available for rental, or currently rented to low income household(s); and C. the owner agrees to market assisted housing unit(s)to, and give preference to low/moderate-income household(s)with young children under the age of six for ten years. I1.APPLICATION PROCESSING: Any property owner(s)wishing to apply for Rental Rehabilitation assistance must complete the application and all other required forms included in the proposal packet.All information on the completed applications will be verified by the Housing Services Division staff. If any information is found to have been intentionally falsified, the application will be rejected and the applicant will not be allowed to reapply. If it is determined the applicant is eligible for the program, a preliminary inspection will be made of the dwelling unit(s). The dwelling unit(s) must meet the following standards to be considered eligible for rehabilitation: • The unit(s) must be located within the recognized Service Area (see Section l.C). • The unit(s) must not be situated in the Designated Flood Plain Area. • Applicant may not occupy any assisted unit regardless of his or her income, with the exception of the circumstances set forth in Section VII-EE on page 14 of these Guidelines. • The unit(s) must be in an existing condition that would permit rehabilitation to bring the structure to meet current City of Beaumont building codes. • City-approved water supply, sanitary sewer and electrical system must service the unit(s). • The unit(s) must be two bedroom or larger. Preference will go to three bedroom and four bedroom units. • Owner must agree to have a Lead Paint Risk Assessment completed on all units to be assisted that were built before 1978(a"hold harmless'agreement must be signed by owner before City staff can conduct the Lead Risk Assessment). PROJECT SELECTION Project selection will be based upon an analysis of the following factors: 5 • Location of unit(s). • Number of bedrooms. • Acceptable credit rating and, as required, ability to obtain matching funds. • Number and extent of major health and safety violations to be corrected. • Tenant displacement(preference given to no displacement) • Economic feasibility • Amount of subsidy required • Owner's Equity in property • Potential impact on neighborhood • Track record of landlord in low income tenant placement • Management and maintenance capabilities • Quality of rehabilitation plan • Accessibility or adaptability of unit(s)for handicapped tenants • Commitment by landlord to and/or likelihood of low income tenant placement • Assisted unit(s) must be available for rental, or currently rented to low income household(s). IV. CONTRACTOR SELECTION, MONITORING AND DEBARMENT: A. Contractors participating in the Rental Rehabilitation Program will be selected by the eligible Applicant.The Applicant will be required to solicit at least two bids from contractors based on the preliminary work specifications provided by the City's Housing Inspector. The Applicant shall also be responsible for supplying all bidders with a Housing Services Division Contractor's Packet that includes the contractor information sheet, performance manual, and general specifications for workmanship, all insurance and bonding requirements, a contractor's eligibility certification form and a copy of the preliminary worts write up. Bid proposals and all other required forms from the contractors should be submitted to Housing Services Division for review. B. Acceptable bid proposals must fall within a ten percent(10%) margin of the cost estimate developed by the Housing Services Division Inspector.THE CITY OF BEAUMONT AND/OR THE APPLICANT RESERVE THE RIGHT TO REJECT ANY AND ALL BIDS.Any contractor whose name appears on the most current HUD Debarred Contractor's List or whom the City has determined ineligible due to prior unresolved complaints will not be eligible to participate in this program. C. Once the contractor has been selected and approved, a contract agreement must be signed. Before the contractor can start work, the Applicant must issue a notice to proceed. D. The Applicant,the Housing Services Division staff and the City of Beaumont building code inspectors will monitor the contractor's work. If the Applicant considers any work done by the contractor to be unsatisfactory or incomplete,the property owner should advise the contractor of the discrepancy and ask that it be corrected. E. Acceptance of Work 1.) Final Inspection- In order for the contractor to close out a rehabilitation job, a final inspection shall be made by the City of Beaumont building code inspector, the Housing Services Division Inspector, and the 6 property owner. If the final inspection results in no additional work or no specified corrections, the property owner shall sign the contractor's release form which states that all work has been completed to their (property owner's) satisfaction. The building code inspector shall sign a final inspection form to confirm the same. At this time, the contractor is required to submit to the property owner copies of all warranties and releases of liens from subcontractors and suppliers. The Housing Services Division staff will not authorize payment to the contractor until these documents are properly completed and submitted to the property owner and copies provided to the Housing Services Division. 2.) Warranty of Work-As stated in the rehabilitation contract, the contractor shall guarantee the work performed for a period of at least one year from the date of final acceptance. The owner is responsible for periodic review of the work. F. Contractor Debarment 1.) A contractor will be declared ineligible to participate in projects funded by the City of Beaumont's Housing Rehabilitation Program for one or more of the following causes, except where work is delayed for reasons noted in Section VILL 2.) Failure to complete a project within the prescribed contract period. 3.) Failure to complete warranty repairs within a reasonable time period. 4.) Failure to use licensed plumbing and electrical subcontractors. 5.) Failure to obtain proper insurance, i.e., both liability and worker's compensation. 6.) Failure to complete work in accordance with program specifications and/or accepted standards of workmanship. 7.) Failure to pay all subcontractors working on the project appropriately and/or submit affidavits of payment signed by all subcontractors. 8.) Failure to obtain proper permits for work in progress. G. Contractors will be notified of their proposed debarment and will be afforded the opportunity to comment or appeal the action. All appeals must be made in writing to the Housing Services Division at least 15 days after the date of the notification letter. V. PAYMENT TO CONTRACTOR: A. The contractor shall receive payment for all completed contracts within 15 working days after final inspection and approval of all work. Ten percent (10%)of the total contract amount will be withheld for 30 days.At the end of this time,the property owner must approve release of contingency funds. 7 B. An"All Bills Paid" affidavit or release of lien from all subcontractors and suppliers must be submitted for completed work before any payment can be processed. Rental rehabilitation partial payment minimum are as follows: projects over$40,000 at least 10 percent per draw, projects under $40,000 15 percent per draw. VI. FINANCIAL ASSISTANCE OPTIONS: Two(2) levels of assistance are available based on owner income as follows: Owner income at 81 -200 percent of the area median income can receive up to $25,000($6,250 per unit up to a maximum of 4 units)as a deferred payment loan, forgiven after 5 years. Owner income at or below 80 percent of the area median income can receive up to $35,000($8,750 per unit up to a maximum of 4 units) as a deferred payment loan, forgiven after 5 years. For either level of assistance, owner will be required to sign documents securing liens for a 5-year period. During lien period, owner must maintain property as rental property and lease to households at or below 80%of the area median income. Applicants are required to sign a contract.A lien will be placed on the property for the 5-year period. Applicants are required to maintain the property as rental property and lease to low and moderate4ncome households for the 5-year period. Owner funds, including other forms of assistance such as insurance payments, FEMA and SBA assistance, must be expended prior to the City providing any Rental Rehabilitation Assistance. Owner may not convert property to condominiums or any type of cooperative ownership for the 5-year duration of the lien. Owner may not discriminate against tenants receiving Federal, State or local rental assistance for the 5-year duration of the lien. The project must be maintained according to adopted City of Beaumont building codes in effect during the year in which the rehabilitation took place. Owner must affirmatively market vacant units for the 5-year duration of the lien using the"fair housing logo"below. EQUAL HOUSING OPPORTUNITY 8 All unit(s)will be made available and leased to persons whose income is at or below 80%of the area median income. If the Applicant violates any of these restrictions, the entire amount of the loan less 20%for each full year after completion of the rehabilitation of the units until the time of default,will be due and payable in full immediately after the owner is notified that the loan must be repaid. VII. PROGRAM GUIDELINES: A. Property owner agrees to comply with all HUD requirements to not discriminate upon the basis of race, ethnicity, religion, gender, disability status or family status in the sale, lease, rental, or use of occupancy of the subject property. B. Property owner agrees to not award any contract for rehabilitation work to be paid for in whole or in part with the proceeds of the grant, to any contractor who, at the time, is ineligible under the provisions of any applicable regulations issued by the Secretary of Labor, United States Department of Labor, or the Department of Housing and Urban Development to receive an award of such contract. C. The tenant will continue to occupy the premises during the rehabilitation. Any tenant required to move temporarily or permanently as a result of the rehabilitation*,must be paid relocation/displacement costs as outlined in the City's tenant's Pre-Notification Letter. (Appendix IV to these Guidelines) *Any displacement of tenant(s)living in unit(s)at the time applicant decided to apply for funding who move because of their inability to pay increased rents, are considered displaced. Displacement costs are the responsibility of the property owner. D. Property owner agrees that any existing utility services will be made available to the contractor without charge as follows: electricity, gas,water and,when available and necessary, telephone(local calls only). E. Property owner agrees that it is his/her sole responsibility to see that the contractor completes the work specified in his contract to the owner's satisfaction and that the City of Beaumont has no responsibility for any defects,faulty worts or incomplete work by the contractor.The owner further agrees that the City has no liability for warranty of any of the workmanship or materials furnished by the contractor under the contract. The owner further agrees that latent or hidden conditions in the property which were not included in the original inspection and work write-up of the City are not the responsibility of the contractor nor of the City,but remain the responsibility of the owner. F. As part of the consideration for providing the funds to rehabilitate property as 9 described herein,the property owner agrees to maintain and keep the property in good repair after the completion of the work to be performed by contractor, taking into consideration the ability of the owner to do so. The property owner also agrees to maintain the property up to City of Beaumont Building Code standards that were in effect when the rehabilitation was completed. Owner agrees to do this during the term of the loan agreement and understands that if at anytime the property fails to meet these Code standards, the loan amount will become due immediately. G. The owner shall issue a written Notice to Proceed within thirty (30) days from the date of acceptance of the contractors bid and proposal. If the contractor does not receive the Notice to Proceed within this 30-day period, the contractor has the option of withdrawing his/her bid and proposal. If the contractor chooses to do this, a written notice rust be delivered to the owner with a copy to the City. The contractor shall not begin the work to be performed until receipt of written Notice to Proceed from the owner after which the contractor shall begin the work within ten(10)calendar days of the date of said Notice and shall complete said work within ninety(90)days or as agreed to in the Rehabilitation contract. H. The contractor shall not assign the contract without written consent of the owner and the City and/or its agent. I. The contractor shall not be responsible for any delays in the completion of work due to the following: 1.) Any acts of the govemment; including controls or restrictions upon or requisitioning of materials, equipment, tools or labor by reason of war, National Defense or any other national emergency. 2.) Any acts of the owner. 3.) Causes not reasonably foreseeable by the parties to this contract at the time of the execution of the contract which are beyond the control and without the fault or negligence of the contractor; including but not limited to acts of God or of the public enemy; acts of another contractor in the performance of some other contract with the owner, fires,floods, epidemics, quarantine restrictions, strikes, freight embargoes and weather of unusual severity such as hurricanes, tomadoes, etc. 4.) Any delay of the subcontractor occasioned by any of the causes specked in Subparagraphs (A)(B) and(C)above, provided that the contractor promptly(within 10 days) notifies the Owner in writing of the cause of the delay. If the facts show the delay to be properly excusable,the owner shall extend the contract time by a period commensurate with the period of excusable delay. J. The contractor shall not be held responsible for preexisting violations of law including but not restricted to zoning or building code regulations at the property listed in the contract. Before beginning work, the contractor shall 10 examine the work write-up for compliance with the applicable ordinance and codes for the new or replaced work and shall immediately report any discrepancy to the owner.Where the requirements of the work write-up fail to comply with such applicable ordinances or codes for the new or replaced work,the owner and the City will adjust the contract by change order to conform to such ordinances or code and make appropriate adjustment in the contract price unless waivers in writing covering the difference have been granted by the proper authority. No work may be performed on property located in the 100-year Flood Plain or where improperly zoned. K. The contractor shall comply with all non-discrimination clauses included in the contract; non-compliance may result in termination of the contract. L. Bids or proposals will be submitted at the bidder's risk and the City and/or the owner reserve the right to decline funding for projects not in compliance with the guidelines. M. Subcontractors shall be bound by the terms and conditions of the contract, insofar as it applies to their work.This shall not relieve the general contractor from the full responsibility to the owner for the completion of all work to be executed under this agreement and he shall not be released from this responsibility by any sub-contractual agreement he may make with others. N. When adjacent property is affected or endangered by any work done under this contract, it shall be the responsibility of the contractor to take whatever steps are necessary for the protection of the adjacent property and to notify the owner thereof of such hazards. O. Repairs shall be made to all surfaces damaged by the contractor resulting from his/her work under this contract at no additional cost to the owner. Where"repair of existing work' is called for by the contract, the feature shall be placed in"equal to new condition"either by patching or replacement. All damaged, loose or rotted parts shall be removed and replaced and the finished work shall match adjacent work in design and dimension. P. After the final inspection and acceptance by the owner of all work under the contract including cleanup, the contractor shall submit to the owner for approval a requisition for payment.When the required warranties and other required documents have been submitted and the contractor has executed the release of liens, the final payment will be made. The payment will include any amounts remaining due under the contract as adjusted in accordance with approved change orders. Payments will be made within 15 days of formal requisition for payment. Partial payments will be made at discretion of the owner with the consent of the City. Q. A Rehabilitation Loan may be made to cover the cost necessary to bring the dwelling into conformance with City of Beaumont Codes. The two categories of repairs listed below are to be included as priority items: 1.) Required Repairs: Code violations which create hazardous conditions in regard to safety or health will generally involve the r basic heating, plumbing or electrical systems. 77 2.) Recommended Repairs: Code corrections or preventive maintenance efforts that should be undertaken to avoid more costly future action. 3.) Heating, plumbing and electrical improvements 4.) Weatherization 5.) Exterior work such as roofing, siding, painting, step and porch repair and retaining walls 6.) Interior work such as renovation and repair of existing kitchen and bath facilities. R. Participants in the Rehabilitation Program should be aware that the appraised value of their property might increase which consequently may cause their yearly property taxes to increase. S. Change orders may be made to cover an item of work that cannot be determined until sometime during the course of the rehabilitation work. Change orders will be considered as follows: 1.) Change orders are used to add work necessary to correct incipient items that have been found to be defective after work is in progress but were not anticipated at the time the contract was executed. 2.) The change order amount is limited to a maximum of 10 percent (10%)of the total contract amount. If it is necessary to request a change order to make required repairs and the contract is already at the maximum amount, a work item of less priority will be deleted from the bid proposal in order to compensate for the added amount(see "Note"below). NOTE: Owner is responsible for 100 percent of project expenditures that exceed this program's financial assistance maximum limits. 3.) Change orders will be used when it is necessary to delete work from a contract for any reason.When items are deleted from the contract,they shall be at their previously bid amount. When items are deleted, but do not have specific costs, in such cases the contract shall be reduced by negotiating the cost at prevailing rates. 4.) All change orders shall be executed by the property owner, contractor, and a Housing Services Division official. 5.) Except for the purpose of affording protection against any emergency endangering life or property, the Contractor shall make no change in the work or rehabilitation, provide any extra or additional work or supply additional labor, services or materials beyond that actually required for the execution of the contract. 6.) All change order requests must be submitted by the contractor, signed by the homeowner and approved by Housing Services 12 Division. No claim for an adjustment of the contract price by the contractor or homeowner will be valid unless this is done. 7.) The approval of a change order shall constitute authorization by the property owner and Housing Services Division to change the loan amount equal to the cost of the work added or deleted, unless all available funds have been utilized. If this is the case, the owner must absorb the total cost or delete non-code items in order to pay for the work described in the change order(see"Note"below). 8.) It may be necessary to change the time of completion due to the addition of certain work items or delays that are beyond the contractor's control. (See Section IV.F.2) T. If the work completed is not in accordance with the construction contract, Housing Services Division shall advise the property owner of the non-compliance who then shall obtain appropriate action from the contractor. No payment shall be processed on a construction contract until a contractor has satisfactorily completed all necessary corrective action. U. The owner shall be able to select the color and style of certain materials(i.e. carpet,floor covering, paneling, paint, etc.). V. The contractor warrants that all materials,fixtures, and equipment furnished by the contractor and its subcontractors shall be new, of good title and that the work will be done in a neat and workmanlike manner. Neither the final payment nor any provision in the contract nor partial or entire use or occupancy of the premises by the owner shall constitute an acceptance of work not done in accordance with the Contract or relieve the Contractor of liability in respect to any express warranties or responsibility for faulty materials or workmanship.The contractor shall promptly remedy any defect in the work and pay for any damage to other work resulting therefrom that may appear within a period of one year from the date of final acceptance of the work unless a longer period is specified. The owner will give notice of observed defects with reasonable promptness. W. Mobile homes are not eligible for rehabilitation. X. Interest of certain federal and other officials: 1.) No member or Delegate to the Congress of the United States and no Resident Commissioner and no federal employee shall be admitted to any share or part of this contract or to any benefit to arise from same. 2.) No member of the governing body of the City and no other public official of or within the City or County who exercises any functions or responsibilities in connection with the administration of the Housing& Community Development Block Grant Program and no other employee of the Housing Services Division who exercises any such functions or responsibilities shall have any interest, direct or indirect, in rehabilitation proceeds which is incompatible or in conflict with the 13 discharge or fulfillment of his functions and responsibilities in connection with the carrying out of the Housing Rehabilitation Program.The length of time this exclusion shall be in effect is one(1) year following the ending of term of office and shall be binding upon, but not limited to, all of the individuals and agencies herein described. Y. The property owner agrees that for a period of five years after the project is completed not to convert the rehabilitated units to condominium ownership. If the owner does convert rehabilitated units to condominium ownership,the entire loan amount shall be due immediately. Z. The property owner agrees not to discriminate against prospective tenants on the basis of their receipt of or eligibility for, housing assistance under any Federal, State or local housing assistance program; on the basis that the tenants have a minor child who will be residing with them;or on the basis that they are handicapped. AA. Applicant agrees to rent all assisted units to households whose total gross annual income is at or below 80 percent of the area median income found in Table 1.13, page 7 of these guidelines(see "note' below).Applicant agrees to track tenant income and beneficiary data (See Appendix V—Tenant Income and Beneficiary Tracking Form).This form is to be made available to the Housing Services Division when requested. The Form is to be completed at the time assisted units are leased. NOTE: Income Limits may change annually—usually on October 1S`. It is the Applicant's responsibility to request a copy of the most current income limits from the Housing Services Division. BB. The property owner agrees to maintain the rehabilitated property up to adopted City of Beaumont Building Code Standards in effect the year in which the rehabilitation was completed. This will be applicable for a period of at least ten years after the project is completed. CC. The property owner agrees to comply with applicable lead-based paint regulations. DD. The property owner agrees to comply with the City of Beaumont's program requirements, including submitting copies of all tenant correspondence regarding this project to the Housing Services Division. EE. When the property to be rehabilitated is a tri-or four-plex, and the owner/applicant meets the income limits for tenants (see Table I.B on page 4 of these guidelines),the owner/applicant is eligible to occupy one of the assisted units. Vlll. MINIMUM REHABILITATION STANDARDS: Minimum Housing Standards apply to all rehabilitation work performed. 14 Roofs Roofs should not leak and have no evidence of rotted decking,fascia or soffit. Any roof with two or more layers of roofing must be stripped to the decking. If it is determined a new roof is necessary the decking must be checked for broken or rotted decking and shall be repaired or replaced as needed. Where new decking is required the material shall be one-half inch plywood or one-half inch wafer board to be used with H clips between sheets. All roofs that are stripped shall be replaced with new felt paper,the proper flashing and metal drip edge with 240 pound shingles.Any roof with less than a 4112 pitch shall be covered with rolled roofing, with at least 12 inches of lap, if installation of rolled roofing is not sufficient to promote proper run off roof will be rebuilt. Windstorm provisions must be met for all roofing repairs and/or installations. Siding and Trim All exterior siding and trim shall be free of holes, cracks or rotted material that might admit moisture into walls. New siding may be applied only if the cost of new siding and installation is comparable to the repair and painting costs of the existing siding. Windows All windows and hardware shall operate satisfactorily. Cracked or broken windows shall be replaced.Window glazing shall be weather tight and windows shall be weather stripped so as not to allow entry of air and water around the glass, sashes or window casings.All windows shall have screens and working locks. Drainage The grade of concrete or dirt should drain at least five feet away from foundation walls. Site Improvements All replaced concrete surfaces are to be level with the widths to match the existing surfaces.All steps that pose a threat to the occupants shall be repaired or, if necessary, replaced. Foundations and Piers Skirting shall be six(6) inches underground level. If it is necessary to install skirting, new 22 or 24 gauge skirting shall be used. Kitchens Kitchens shall have a specific area that contains a sink with hot and cold running water, counter workspace, and space for storage of cooking utensils. 15 Stairs All stairs shall provide for the safety of ascent and descent.All treads and risers should show no evidence of breakage or have evidence of excessive wear. All stairs shall be equipped with handrails. Utility Areas Gas or oil fired water heaters or furnaces shall not be located in the bathrooms or bedrooms. In addition to all plumbing and electrical codes, water heaters and furnaces shall be enclosed with a sealed door and adequate upper and lower combustion air.All washer and dryer hookups must meet City Code. Structural System The wood, masonry or steel components shall be in serviceable condition for the expected useful life of the rehabilitated building. Structural members that are in seriously deteriorated condition shall be replaced. Sagging and unleveled floors shall be raised and stabilized as level as possible without causing interior damage. Termite inspection and treatment shall be done if evidence of active infestations exist.A certified pest control company will carry out the treatment and present documents of proof. Electrical System All replacement of existing wiring and equipment shall be done in conformance with the 2002 National Electric Code and the City of Beaumont Code. Any potential source of electrical hazard or ignition of combustible material shall be corrected. GFCI outlets shall be used in bathrooms, kitchen, garage, and exterior receptacles. Additional outlets shall be added to eliminate extension cords and, at the request of the City Inspector,to meet City Codes. Plumbing The plumbing system shall operate free of fouling and clogging, and not have cross-connections which permit contamination of the water supply or back siphonage between fixtures. All sinks, lavatories,water closets,water heater, and other plumbing fixtures shall have accessible cutoff valves.All fixtures shall have P-traps, necessary vents and be properly connected to a public or private sewage disposal system.All sewer lines shall have accessible cleanouts.All water heaters shall be installed with double wall vent stack, a pop-off valve, and overflow to the exterior of the structure. Mechanical Equipment 16 All gas fired heating units must be vented with double wall pipe and proper upper and lower combustion air. The unit shall not be installed in a living area such as bedrooms or under stairways. Rigid gas pipe must be used to supply heating units with a maximum of three (3)feet of flexible pipe from the stop to the appliance.All ductwork shall be properly sealed from the heat source to the register vent and from the return air supply to the heat source.A gas pipe pressure test is required. All leaks must be repaired. Insulation and Weatherization An "R-30° insulation value in the attic shall be required. Exterior Doors All exterior doors shall be solid core.All locks shall be capable of tightly securing the door and shall be readily operable from the inside without the use of keys. All exterior doors shall be weather stripped so that there is no significant entry of air or water into the structure. Porches and Decks All porches and decks shall be safe and capable of supporting anticipated loads.All porches and decks in deteriorated condition and which serve no useful purpose or which are not economically repairable shall be removed. Porches and decks 30 inches above grade shall have guardrails and flights of stairs with four or more risers. They shall have a handrail on at least one side. Gutters and Downspouts Gutters and downspouts should exist where they are deemed necessary to promote proper drainage. Gutters will not normally be installed if they do not already exist. Downspouts that cannot be connected to drain tiles shall have splash backs with proper site grading. Chimneys and Vents Furnace and water heater vents shall be double wall vent pipe. Existing unlined masonry chimneys having open mortar joints or cracks shall be removed or made safe by installation of a UL approved flue liner. Vent-a-hood stacks shall be vented through the roof. Interiors All floors,walls, and ceilings shall be maintained in good, dean, and sanitary condition. All peeling paint,cracked or loose plaster and other defective surface conditions shall be eliminated. All doors shall be operational. 17 Carpet and vinyl that is badly worn, tom or too dirty to be cleaned shall be replaced. This shall be determined by the C.D. Inspector. Existing carpet shall be cleaned with a commercial steam cleaner, if necessary. Bath An operational water closet, tub or shower, and lavatory should be in the bathroom. Hot water should flow to the lavatory and tub or shower. Cold water should be supplied to all fixtures. Either a window or an exhaust fan must be present to properly vent the bathroom_ Cabinets Built-in kitchen cabinets shall be repaired up to 50 percent of the cost of new cabinets. Bathroom cabinets are not required. ALL WORK MUST COMPLY WITH HUD TITLE X REGULATIONS REGARDING LEAD—BASED PAINT.BY APPLYING FOR CDBG FUNDS,OWNERIAPPLICANT UNDERSTANDS THE CITY MUST COMPLETE A LEAD RISK ASSESSMENT TO DETERMINE THE SCOPE OF WORK AND COST ESTIMATE ON PROPERTIES BUILT BEFORE 1978. FOR PROPERTIES BUILT BEFORE 1978,OWNER I APPLICANT MUST EXECUTE AN ACKNOWLEDGEMENT AND RELEASE OF LIABILITY FOR LEAD PAINT TESTING OF PROPERTY. 18 APPENDICES Appendix I - Fair Market Rents (FMRS) Appendix II - Rental Rehabilitation Procedures Appendix III -Application For The City Of Beaumont Appendix IV-Tenant Pre Notification Sample Letter Appendix V-Tenant Beneficiary Tracking Form • 19 APPENDIX FAIR MARKET RENTS—FY2007 Final-Approved for Beaumont, Texas Area Name 0 BR 1BR 2BR 3BR 4BR Beaumont $442 $496 $593 $735 $762 *Beaumont Port Arthur, TX MSA, includes Hardin, Jefferson and Orange Counties 20 APPENDIX II-RENTAL REHABILITATION PROCEDURES The following list of procedures is designed to insure that property owners understand their responsibilities under the Rental Rehabilitation Program. Please call the Housing Services Division at(409) 880-3763 if you have any questions regarding these procedures. 1.) Return completed application. Include a copy of property deed, current mortgage information, if applicable, tax payment receipts from all property-taxing entities, proof of insurance coverage on the property and documentation of all owner(s)income and assets'. 2.) A set of work specifications must be submitted by the owner and approved by the Housing Services Division. If requested, Housing staff can provide assistance with project bid documents and the bidding process. 3.) The owner of the proposed property will bear the responsibility of contacting at least two general contractors, who will submit bid proposals.These proposals must remain within a margin of ten percent of the estimate determined by the Housing Services Division. 4.) Upon project approval, a title search must be submitted. 5.) Certification that all tenants have received timely written notice that they will not be displaced by the project must be submitted within two weeks of application submission. 6.) Requests for all interim and final payments must be requested through the Housing Inspector and will require an itemized fist of completed work and costs. The"Request for Payment"will be signed by the property owner, the contractor and the appropriate Housing Services Division staff at a mutually agreed time and place. IT IS THE CONTRACTOR'S RESPONSIBILITY TO INITIATE A REQUEST FOR PAYMENT WITH THE HOUSING SERVICES DIVISION. 7.) A final inspection must be completed by Housing Services Division. 8.) Final payment is contingent on receipt of the following by Housing Services Division: a) signed affidavits from all subcontractors stating that they have received full payment b) affidavit from general contractor and signature on lien assignment c) executed requests for payment 21 *Documentation of income sources may include but is not limited to the following: • Current year's income tax Return with W-2's for each household member who has filed tax returns. (if self employed, provide most current three year's complete tax returns. • Most current Social Security income statement if applicable. • Paycheck stubs for last four weeks for each employed household member. • Names and addresses of all retirement income or any other income sources (ALL INCOME SOURCES AND ASSETS MUST BE DISCLOSED— RETIREMENT, RENTAUHAP INCOME, TANF (Shelterlutilities), PROPERTIES OWNED, ETC.) • Divorce decree if you receive child/other support from a divorce or if you were awarded property through a divorce. • Name, address, account number(s)of all banks, credit unions, savings banks, IRA accounts, etc. for all household members who have any such accounts and two most current month's of bank account(s) statements (complete). • If project includes lead-based paint hazard reduction work, complete application and agreement forms for Beaumont ALERT Program. 22 APPENDIX III Application City of Beaumont Rental Rehabilitation Program 23 APPENDIX IV APPENDIX IV-TENANT PRE NOTIFICATION SAMPLE LETTER p,M- m- '2 Y. d "%fin .wwJr4 pew ''- " aTPJ .�. � fbiniB& , ,,. ice: «.. /.d. Re- vie_ Dear Tenant: This letter is to let you know that the rental unit where you live is being considered for rehabilitation through the U.S. Department of Housing and Urban Development Rental Rehabilitation Program under the City of Beaumont's Rental Rehabilitation Program. PLEASE DO NOT MOVE! This renovation project is being considered in order to provide you with a safer, more comfortable and attractive place to live. If you move without receiving a notice to vacate from the owner, you may not be eligible for relocation assistance. We do not foresee that you or any other resident will be displaced by the rehabilitation. However, if for some unforeseen reason displacement should become necessary, relocation assistance will be provided for you. If you need more information or need further explanation, please contact(OWNER) at (TELEPHONE NUMBER), or the City of Beaumont at(409)-880-3763. Thank you for your cooperation. Please keep in mind this project is simply under consideration at this time so PLEASE DO NOT MAKE ANY PLANS TO MOVE. Should we decide at a later date to proceed with the project, you will be notified. I hereby certify that I have received this notice. Name: Address: City/State/zip: Signature Date: 24 FE.NAN't'BENl--'1FIC 1ARV INFORMA11ON TRAC:KI[NG FORM -Ina f\SSIS'rEA)REWAI.LINVI'S Rental Property Rental Property Address: Owner Name: Tenant Name(s) Apt. Current Are Date Apt. Does this Number Age 65 Minority Ethnicity Female Disabled Section Gross No. Monthly Utilitles Leased Tenant Still of Hshld or Over Code * Code`* Head of 7 g Annual D Rent Included to Reside in Occupants ? lawcadee imewdee Hshold? Asst? Household In Rent?" Tenant knit? YIN bob*] t>vow} YIN YIN YIN Income— M"p m z v >t I M z n z iD ca a-a �a Z M Z 3 M -nX nc D X Oww,a 0wow Rtp w* ,I Or9iy lm Ow Idwrnmica FolXW Ams k Im iPld conrox Please Print Name, Title Date Form Completed Please indicate"Y"if all or"N"if no utilities are included in rent If partial utilities are included in rent,please indicate(i.e., n Wtr.,Sld Wst,Elec.,Sewg.,Gas,Etc.) oo not include Cable TV,Alarm systems,;phone,etc,as uftfies. X *`Minority Codes; 1.Mlle I-Amukanindlan1AlssitsNatlae z 2 a flak I Atriaan Amedoan I s Ameltcanlndan IAlaska Nod"&Whits -n 3-Me*I Atrioan Amedcan&WNte 6 Q Amerinanindlan lAkAs Native&Mw.k I African American 0 4=Asian 9 a Hative iiawxallan I01 ar pao2ic Istander 5 a Asian 3 White i U a otlln NIUJ i Radii st 49 *-Ethnicity Codes: ii-mspanic 12-Nonspank — Owner must retain income verification docurnents on all tenant(s)for at least three years beyond the note's maturity date. (Owner understands that income documentation may be ntviawed by Chy of Dentin Buff andlor MUD officials upon Mquest.) TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS INTAKE APPLICATION EQUAL HOUSING OPPORTUNITY Southeast Texas Regional Planning Commission Contract Number: Sub-Contractor: City of Beaumont Date Pre-Application Received: N/A Time Pre-Application Received: N/A Date CDBG Application Received: Time CDBG Application Received: APPLICANT INFORMATION Applicant Last Name Applicant First Name Middle Name Current Address: City, State,Zip: Home Phone: Daytime Telephone: ate of Birth: Disabled Yes No CO-APPLICANT INFORMATION(if applicable) Co-Applicant Last Name Applicant First Name Middle Name Current Address: City, State,Zip: Home Phone: Daytime Telephone: Date of Birth: Disabled Yes No ELIGIBILITY INFORMATION If the answer to any of the following questions is NO,you are not eligible for assistance: Was the damaged unit a single family residence(including manufactured housing units, ❑Yes ❑ No duplexes, or condominiums)? Was that unit damaged or destroyed on September 24,2005 as a direct result of Hurricane ❑yes ❑ No Fonn 14.22-lake Application Page 1 of 6 Revised 10/12/2006 86 APPLICANT INFORMATION the answer to any of the following questions is NO,you are not eligible for ssistance: Did you own or rent a single family residence(including manufactured housing units, ❑Yes ❑ No duplexes, or town homes)on September 24,2005? Was the unit the primary residence of the applicant on the date of the storm? ❑Yes ❑ No If the answer to the following question is NO,your application will require a special review to determine eligibility: Did you register with FEMA for storm related assistance for structural damage to the home? ❑Yes ❑ No DAMAGED RESIDENCE INFORMATION Damaged Residence Address: City, State,Zip: Damaged Residence Phone: Do you have an appraisal for your property that was completed before September 24, 2005? ❑ Yes ❑ No es,what was the date of appraisal? If yes,what is the appraised value of the property? Type of Structure: (including manufactured housing units,duplexes,or condominiums) If a manufactured housing unit,did you own the land? ❑Yes ❑ No Was the property located in a floodplain? ❑Yes ❑ No ❑ Don't Know Have you obtained a building permit(s)to complete repairs to home? ❑Yes ❑ No If yes,what date did you obtain the building permit? If yes, Permit No. Ownership/Acquisition Deed of Damaged Residence El Yes ❑ No Are there any other names on the deed for the damaged residence? If yes,provide information below(including any entity,for example,a Trust): Form 14.22—UCake Application 2 of 6 Revise&1011212D06 Page Last Name First Name Middle Name Social Security No.: f an Owner Entity—provide Tax ID number: Date of Birth: Daytime Telephone: (} ASSISTANCE REQUEST Type of Assistance Requested: ❑ Emergency Repair(Max. $25,000) Amount Requested $ ❑ Rehabilitation.(Max. $65,000) Amount Requested $ ❑ Reconstruct/New Construction(Max. $125,000) Amount Requested $ HOUSEHOLD COMPOSITION AND CHARACTERISTICS — List the Head of Household and all other members of the household. Indicate the relationship of each family member to the Head of Household. Household Member Name Relationship to Date of Birth Sex Social Security Number Head of HR Head of Household HEAD of HOUSEHOLD(check one)—THIS INFORMATION IS REQUIRED. It is being collected to ensure compliance with federal Fair Housing and Equal Opportunity regulations. Race of Head of Household: ❑ White ❑ Black/African American ❑ Asian ❑ American Indian/Alaska Native ❑ Native Hawaiian/Other Pacific Islander [] Asian and White ❑ Black/African American and White ❑ American Indian/Alaska Native and White ❑ American Indian/Alaska Native and Black/Af ican American ❑ Other Multi Racial Ethnicity of Head of Household: ❑ Hispanic—A person of Mexican,Cuban,Puerto Rican, South or Central American,or other Spanish culture or origin, regardless of race. Terms such as"Latino"or"Spanish Origin"apply to this category. Non-Hispanic—A person not of Mexican, Cuban,Puerto Rican, South or Central American, or other Spanish culture or origin,regardless of race. Foam 14.22—Intake Application Revised:10/12/2006 page 3 of6 lURRICANE RITA VICTIMS INFORMATION rder to be eligible to receive assistance under the Community Development Block Grant Disaster Recovery Program r Hurricane Rita, housing either owned or rented by low income households must have been damaged as a result of Hurricane Rita. Check all of the following that apply. ❑ The home occupied by persons in this household was damaged or destroyed September 24,2005,by Hurricane Rita. ❑ I/we are currently homeless or living in sub-standard housing due to damage caused by Hurricane Rita.. Explain: ❑ Uwe have been displaced from our housing due to damage caused by Hurricane Rita. Explain: ❑ Other: OTHER ASSISTANCE RECEIVED Assistance provided under the Community Development Block Grant Disaster Recovery Program for Hurricane Rita may not exceed a household's unmet housing needs. List all other sources of financial or housing assistance received (local, state, federal, and private sources). List all insurance companies currently covering your real property-. List all insurance companies that were providing coverage to your real property on September 24, 2005. Have you applied for any storm-related assistance for damage to your home from any source F1 Yes ❑ No (local, state,federal, private)? If yes,proceed with this section. If no. proceed to the income action. signing this application, the applicant authorizes the state or any of its duly authorized resentatives to verify the information contained herein, including this section. Title 18, ,Section 1001 of the U.S. Code states that a person is guilty of'a felony for knowingly and willingly making false or fraudulent statements to any department of the United States Government. FEMA Have you received any storm related assistance from FEMA for structural damage to your ❑Yes ❑ No home? Amount Approved: $ Amount,if any,Received to Date: $ What is your FEMA Registration No.? 1)---------2)--------- SBA ❑Yes ❑ No Have you received any storm-related assistance from the SBA for damage to your home? Amount Approved: $ Amount, if any,Received to Date: $ What is your SBA Application No.? ---------- What is your SBA Loan No.:--------- INSURANCE ve you received any storm-related assistance from your insurance company for damage to ❑Yes ❑ No r home? Form 14.22—Wake Application Page 4 of 6 Revised:1 0/1 212 0 0 6 FM Insurance coverage in effect 9/24/2005 - Claim received: $ ose: Insurance coverage currently in effect- Purpose(fire,flood,wind, etc.): OTHER SOURCES ❑ Other financial assistance received: Purpose: ATTACH ADDITIONAL SHEET IF THERE ARE ADDITIONAL SOURCES INCOME INFORMATION Includes: Wages, salaries and tips,alimony,child support,military income,part-time income,temporary income,TANF, Social Security, other benefits,other income. FOOD STAMPS ARE NOT CONSIDERED INCOME—do not list food stamps. List ALL household members and their incomes_Attach a separate sheet if you need more space. Full Source of Income Payment Basis Household Member Name Time (include employer name and Rate of Pay (weekly, Student? phone number) monthly,etc.) Is there anyone in your household that is disabled? If so, please list them: EXPENSE INFORMATION Indicate the MONTHLY dollar expenditures for your family. Circle any of the listed expenses that are delinquent. Rent $ Phone $ Medical $ Credit Card $ Electric $ Car Payment $ Cable TV $ Credit Card $ Gas $ Car Insurance $ Medical Insurance $ Loan $ Water $ Child Care $ Rentals $ Loan $ her s ec' Fom 14.22—hdake Application Page 5 of 6 Revised 10/12/2006 THIS APPLICATION IS THE FIRST STEP IN THE APPLICATION PROCESS FOR DISASTER RELATED UNMET HOUSING NEEDS. INCOMPLETE APPLICATIONS WILL NOT BE CONSIDERED. ALL INFORMATION REQUESTED BELOW MUST BE ATTACHED: • AWARD OR DENIAL LETTERS FROM FEMA; • AWARD OR DENIAL LETTERS FROM SBA; • AWARD OR DENIAL LETTERS FROM PERSONAL INSURANCE; DENOTE lF HOME IS ONE OF THE FOLLOWING(Circle One): • WOOD STRUCTURE • BRICK STRUCTURE • MOBILE HOME • Provide label/seal Number: • Provide certificate number: • Provide serial number: ALL BLANKS MUST BE COMPLETED OR HAVE "N/A" WRITTEN M. THE APPLICATION MUST BE SIGNED BY ALL PERSONS LISTED ON THE DEED. RETURN TO: CITY OF BEAUMONT HOUSING SERVICES DIVISION 801 MAIN STREET, SUITE 225 BEAUMONT,TEXAS 77701 ATTN: DISASTER PROGRAM APPLICATION APPLICANT CERTIFICATION I/We understand the information provided above is collected to determine if Uwe are eligible to receive assistance under the Community Development Block Grant Disaster Recovery Program for Hurricane Rita. I/We hereby certify that all the information provided herein is true and correct. I/We understand that providing false statements or information is grounds for termination of housing assistance and is punishable under federal law. I/We authorize the above-referenced,the state of Texas and any of its duly authorized representatives to verify all information provided on this application. Signature of Applicant: Date Signature of Co-Applicant: Date arning: Title 18,Section 1001 of the U.S. Code states that a person is guilty of a felony for knowingly and willingly making false or fraudulent statements to any department of the United States Government. Foam 14.22—Intake Application Page 6 M Revised:10/1212006 APPLICANT'S CERTIFICATION OF DISABILITY (Must be completed by physician) City of Beaumont Housing Services Division: This certifies that (Patient's name) has been examined by me, and in my opinion meets the following guidelines, set forth in the U. S. Census Bureau's report on Americans With Disabilities 9991-92(SIPP Report P70-33), in determining if persons are severely disabled. A person may be determined to have a severe disability if they: "(a) use a wheelchair or had used another special aid for six months or longer, (b) were unable to perform one or more functional activities or needed assistance with an Activity of Daily Living (ADL) or an Instrumental Activity of Daily Living (IADL); (c) were prevented from working at a job or doing housework; or(d) had a selected condition including autism, cerebral palsy, Alzheimer's disease, senility or dementia, or mental retardation. Finally, persons who were under 65 years of age and who were covered by Medicare or who received SSI were considered to have a disability(and a severe disability)." Functional activities include seeing, hearing, having one's speech understood, lifting and carrying, walking up a flight of stairs, and walking. ADL's include getting around inside the home, getting in or out of bed or a chair, bathing, dressing, eating, and toileting. IDAL's include going outside the home, keeping track of money or bills, preparing meals, doing light housework, and using the telephone." Physician's Name (Print or Type) Date Physician's Signature *Note: If there are any special needs which should be addressed concerning this patient, please outline them on a separate page and attach to this document. Return to: Linda M. Semien City of Beaumont Housing Services Division 801 Main Street, Suite 225 Beaumont, Texas 77701 (409) 880-3763 the right to insist upon the Contractor's full compliance with the terms of this contract, and by the act of approval under Section 11, the Office does not waive any right ht of action which may exist or which p may subsequently accrue to the Office under this contract. C. The Contractor shall comp) with Y 24 CFR Section 85.36, this contract and all applicable federal, state and local laws, regulations, and ordinances.for making procurements D. The Contractor shall maintain a retainage in the amount p under this contract. or rehabilitation subcontract entered into by the Contractor aunt until five percent determines of each construction labor standards requirements applicable to each such subcontract have been satisfied. CONFLICT OF INTEREST A.' The Contractor shall ensure that no employee, officer, or in the selection, or in the award or administration of a subcontra agent of the Contractor shall participate conflict of interest, real or apparent, would be involved: Such cant supported by funds provided if a The employee, officer, or agent; 2 any member of his or her immediate family- 3) his or her ah nerl) or, 4) any organization which employs, or is about to employ an of interest in the firm or person selected to perform the subcontract. Chapter 171, Texas Local Government Code and 24 the above, has a financial or other ct The Contractor shall comply with B• In all cases not governed by Subsection C.F.R.R 570.489(h) of the federal regulations. of this Section who exercise or have exercised any functions(A) of this Section, re persons specified in subsection (C) activities assisted under this contract or any other CDBG contract o or responsibilities with respect to the Participate in a d-ecision making process or gain inside information w' . . obtain a financial interest or benefit from the activity, or have r who are in a position to have any interest in any contract, subcontract or agreement with regard to such activities, may *ure r_eunder; either--forthem-selves or those with Who an interest or benefit from the activity, or _ -_ t with respect thereto,-or the proceeds or for one year thereafter. m they have family or business ties during their C. The conflict of interest provisions of Subsection (B)Ppointed a I to an agent, consultant, officer, or elected official or a pp y of the Contractor. official of the personwho is Contractor or a spulbcontractor D. The Contractor shall include the substance of this section in all subcontracts. SECTION 13. NONDISCRIMINATION RELIGIOUS A ORG,�NIZATIONS CTIVITY AND FAITH-BASED A. The Contractor shall ensure that no person shall on the religion, sex, age, or handicap be excluded from subjected to discrimination under excluded denied access ground of race, color, national origin, participation in, be denied the benefits of, or be part with funds made available under this contract. to any program or activity funded in whole or in B. Organizations that are religious or faith-based organization, to participate in this program and activities funded under receiving funds under this contract shall not discriminate are eligible, on the same basis as any other organizations' religious character or affiliation. None the this contract..The Contractor Noe of t against an organization on the basis t the under this contract shall involve, nor shall an this contract, be used to engage in inherently religious performances received rendered by the Contractor Y portion of the funds received by the Contractor under contract may not be used for the acquisition, construction, or re ha s activities. Funds made available under this hose structures are used for inherently religious activities *act may be used for the acquisition, construction habilitation of structures to the extent that those structures are used for conducting eligible s' Funds made available under this eligible and inherently religious activities, funds ' of rehabilitation of structures only to the extent 9 activities. Where i structure is used for both made available under this contract may not exceed Page 6 of 14 the cost of those portions of the acquisition co nstruction, or rehabilitation that are attributable to q eligible activities in accordance with the cost accounting requirements- under this contract. The Contractor shall comply with the regulations Department of Housing C Urban Development faith-based applicable to funds provided based a t v ties_ at 24 C F.R Sec. 70.200 SECTION 14. LEGAL AUTHORITY U)• A. The.Contractor assures and guarantees that the C into this contract, receive funds authorized by this contract, possesses the legal authority to enter has obligated itself to perform. tract, and to perform the services the Contractor B. The person or persons signing and executing this contract or representing themselves as signing and executing this con warrant and guarantee that he, she or they have be on behalf of the Contractor, , this contract on behalf of the Contractor and toe been duly authorized by the on behalf th the Contractor,e Contractor to execute hereby Performances, and provisions set forth, al+dly and legally bind the Contractor to all terms, C. The Office shall have the right to suspend or terminate this legal authority of either the Contractor or the person i signing to render performances. The Contractor ' his contract if-there is a dispute as to the 9 g this contract to enter into this contract or Office for performance of the provisions of this contract; if th is liable to the Office for any money it has received from the contract for reasons enumerated in this Section 14. e Office has suspended or terminated this SECTION 15. LITIGATION AND CLAIMS The Contractor shall give the Office immediate notice proceeding before an administrative agency, filed a�_ainst the Co in writing of 1) any action, including any any subcontract;and 2)-ariy claim against the Contractor, t ntractor may be entitled to be reimbursed b ntractor arising out the performance Office, the Contractor shall furnish immediate) to he cost and expense e which the y the Office. Except as otherwise directed by the the Contractor with respect to such action or claim. the Office copies of all pertinent papers received b SECTION 16. Y CHANGES AND AMENDMENTS A• Except as specifically provided otherwise in this contract, any alterations, additions or the terms a this contract shall be b contract, as Y amendment in writing and executed by both parties to this tions to Per the Memorandum of Understanding between the Office and T , amendments e excess of five 5 ) percent of the amount of the contract must receive pdor contract ov from the TDHCA Governing Board or in accordance with Contractor by the Office. alternative requirements as provided to the B. It is understood and agreed by the in accordance with the Act, the Regulations oftthe Performances, assurances under this contract must be rendered Office by the Contractor, and the assurances and certifications and certifications made to of Housing and Urban Development atrons made to the United States. Department pment by the State of Texas with regard to the operation of the Texas ant Community Development Block Grant Program. Based on the ensure the legal and effective se considerations, and in order to � that the Performance of this contract by both parties, it is agreed b the parties that le performances under this contract are amended by the provision Man mentation Manual and any amendments thereto and may fu y p s Policmanner. The Office may from time to time during the period s of the TXCDBG Project �y directives which serve to establish, interpret, e Y doer be amended in the following ct. Such policy directives shall be promulgated of performance of this contract issue BG issuances, shall have the effect r ulg clarify performance requirements under this g by the Directors the act and in the form in of apon the Contractor, as if written herein qualifying the terms of this contract and shall be binding _ amendments to the TxCDBG Project Im lamentation Manual provided however that the policy directives and any g shall not alter the terms of this contract Page 7 of 14