HomeMy WebLinkAboutRES 98-270 RESOLUTION NO. 11 1?711:1
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager is hereby authorized to enter into a contract with the Southeast
Texas Community Development Corporation (SETCDC) for the expenditure of funds
related to the 1998 Community Development Block Grant Program. The funds will be
utilized for the purpose of site acquisition and development of up to 30 new sites in the
City's CDBG target areas and provide for additional site development costs on existing lots
in the ML King Addition. The contract is substantially in the form attached hereto as
Exhibit "X.
PASSED BY THE CITY COUNCIL of the City of Beaumont this theme day
of ' 1998.
- Mayor -
CONTRACT
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
WHEREAS, the City of Beaumont has received a Community Development
Block grant (CDBG) from the United States Department of Housing and Urban
Development (CDBG Program No. M-98-MC-48-0003);
WHEREAS, pursuant to the authority of Resolution Number , passed by the
Beaumont City Council on 1998, the Southeast Texas Community Development
Corporation, Inc. (SETCDC) an authorized Community Housing Development
Organization (CHDO) will enter into a contract with the City for CDBG funds totaling
TWO HUNDRED TWELVE THOUSAND FIVE HUNDRED AND NO/100 ($212,500);
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WHEREAS, the CDBG allocation of TWO HUNDRED TWELVE THOUSAND FIVE
HUNDRED AND NO/100 ($212,500) will be used for the purpose of acquiring thirty
(30) sites and predevelopment preparation. Acquisition of sites will be approved by
the City of Beaumont's Community Development Division. SETCDC will obtain
surveys, appraisals and title policies on sites acquired. Sites are to be used for the
construction of new homes which will provide decent, safe and sanitary housing for
low and moderate income families. SETCDC shall hold title to the sites up to and until
construction of the new homes. Prior to transferring titles to properties for
construction SETCDC will obtain an acceptable soil compaction test. It is at this time
titles may be transferred to builders, other CHDO's, or to the City of Beaumont at no
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EXHIBIT "A"
cost. City staff shall supply all technical assistance necessary to administer
acquisition, title work surveys, appraisals and preparation of sites. The SETCDC shall
obtain an engineering cost estimate prior to the start of site preparation for each lot.
The cost of site preparation must be approved by the City of Beaumont's Community
Development Division.
WHEREAS, the City of Beaumont and the SETCDC desire to enter into a
contract and agreement whereby the City of Beaumont will furnish said federal CDBG
grant funds to the SETCDC for the purpose of acquiring sites in low income
neighborhoods.
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS:
That for and in consideration of the mutual covenant, promises, and
agreements contained therein, the City_of Beaumont, hereinafter referred to as "City",
acting by and through Ray A. Riley, its duly authorized City Manager, and the
Southeast Texas Community Development Corporation, Inc., hereinafter referred to
as "Grantee", acting by and through Albert J. Price, Sr., its duly authorized President,
do hereby covenant and agree as follows:
1 .
Grantee, located at 1190 Grand Street, shall use the Federal 1995 HOME grant
funds, herein provided, to construct single-family housing units for lease or sale to
low to moderate income families. Grantee covenants and agrees to expend federal
grant funds in accordance with 24 CFR Part 92 (as now in effect and as may be
amended from time to time), which is incorporated by reference and constitutes part
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of the agreement. It is expressly understood and agreed by Grantee that this contract
and the procurement authorized and provided for hereunder have as their purpose or
goal to provide decent, safe and sanitary housing units to low and moderate income
persons. Grantee agrees to do all things necessary under this contract to complete
the program set out in "Exhibit A" attached hereto.
2.
It is understood and agreed that in no event shall the total distribution of
federal grant funds made to or in behalf of the Grantee pursuant to this agreement
exceed the total sum of $212,500.
3.
Funds to be available through the City's draw process on or after the effective
date of this contract. Grantee agrees and understands that this contract shall
terminate on December 31, 1999. Payment shall be made by the U.S. Treasury, who
will disburse 1998 CDBG funds (wire transfer) through Cash Management Information
System (CM/1) directly to the City, who will make payments upon receipt of invoices
from Grantee certifying that all requirements have been met. The Grantee
understands that all grant monies awarded may be terminated for cause or
convenience. Grantee further agrees that any grant funds remaining after this
agreement expires will revert to the City of Beaumont.
4.
Grantee understands and agrees that should Grantee become defunct or
insolvent, any and all grant funds on hand and any accounts receivable attributable
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to the use of grant funds shall transfer to the City of Beaumont.
Grantee further understands and agrees to and shall transfer to the City of
Beaumont any program income, real properties, equipment, supplies and any assets
acquired as a result of grant funds if Grantee becomes defunct or insolvent.
5.
It is expressly understood and agreed by and between the City and Grantee
that this agreement is wholly conditioned upon the actual availability of federal grant
funds under the United States Department of Housing and Urban Development (CDBG
Program No. M-98-MC-48-0003) and that all monies distributed to or in behalf of
Grantee hereunder shall be exclusively from federal monies received under said HOME
Program, and not from any other monies of the City.
6.
Grantee agrees to keep accurate records to document its adherence to
applicable federal regulations and all "other federal requirements", along with
documentation and records of all expenditures of said CDBG Program funds. Grantee
further understands and agrees to comply with the applicable requirements and
standards of OMB Circular A-110 (Uniform Administrative Requirements for Grants
and Cooperative Agreements to State and Local Governments), said provisions being
incorporated herein by reference. The Grantee also understands and agrees to adhere
to the City's procurement process. The City shall reserve the right to investigate,
examine and audit, at any time, any and all such records relating to the operations or
expenditures of Grantee under this agreement.
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7.
Grantee covenants and agrees to fully cooperate with the City in monitoring the
effectiveness of the expenditure of grant funds and the City shall have access at all
reasonable times to the offices, premises and records of Grantee in regard to the
administration of this contract.
8.
Grantee shall operate hereunder as an independent contractor and not as an
officer, agent, servant or employee of the City. Grantee shall have exclusive control
of the program and all persons involved in same subject only to the terms of this
agreement and shall be solely responsible for the acts and omissions of its officers,
members, agents, servants, employees, subcontractors, program participants,
licensees and invitees. It is expressly understood and agreed that, other than those_ _
people who receive wages on a regular basis from Grantor, that no officer, member,
agent, servant, employee, subcontractor, licensee, invitee of Grantee nor any program
participant hereunder is in the paid service of the City. It is also expressly understood
and agreed that Grantor will provide technical assistance to Grantee in the
furtherance of its program.
9.
Grantee hereby covenants and agrees, in consideration for the funds herein
provided to provide decent, safe and sanitary housing to low and moderate income
families of the City of Beaumont, Jefferson County, Texas.
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10.
No officer, employee or member of Grantee or Grantee's subcontractors shall
have a financial interest, direct or indirect, in this contract or the monies transferred
hereunder, or be financially interested, directly or indirectly, in any contract relating
to the operations conducted by it, nor in any contract for furnishing services or
supplies to Grantee, with the exception of the service fee on a per unit basis from
grant for the administration of this contract. Any willful violation of this paragraph
with the knowledge, expressed or implied, of Grantee or its subcontractors, shall
render this contract voidable by the City of Beaumont.
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No grants shall be made by Grantee to its directors or officers, either directly
or indirectly, through family members, business partners or employees. Grantee
agrees that no CDBG funds shall be used, either directly or indirectly, for religious
purposes. Any willful or violation of this paragraph with the knowledge, expressed
or implied, of Grantee shall render this contract voidable by the City of Beaumont.
12.
Grantee covenants and agrees that its officers, members, agents, employees,
program participants and subcontractors-shall abide by and comply with all Federal,
State and local laws, including all ordinances, rules and regulations of the City of
Beaumont, as amended. Grantee further covenants and agrees that it will fully
comply with the terms and conditions of the CDBG Program under which these funds
are granted.
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13.
The provisions of this agreement are severable and if for any reason a clause,
sentence, paragraph, or other part of this agreement shall be determined to be invalid
by a court or federal or state agency, board or commission having jurisdiction over
the subject matter thereof, such invalidity shall not affect the other provisions which
can be given effect with the invalid provision.
14.
The failure of the City to insist upon the performance of any term or provision
of this agreement or to exercise any right herein conferred shall not be construed as
a waiver or relinquishment to any extent of the City's right to assert or rely upon any
such term or right on any future occasion.
15.
This written instrument and attachments constitute the entire agreement by the
parties hereto concerning the matter performed hereunder and any prior or
contemporaneous, oral or written agreement which purports to vary from the terms
hereof shall be void.
16.
Grantee covenants and agrees to hold harmless the City and its officers,
agents, servants and employees, from and against any and all claims or suits for
property loss or damage and/or personal injury, including death to any and all
persons, or whatever kind of character whether real or asserted, arising out of or in
connection with the execution, performance, attempted performance or non-
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performance of this contract and agreement and/or the operations, activities and
services of the program described herein, whether or not caused, in whole or in part,
by alleged negligence of officers, agents, servants, employees, contractors, or sub-
contractors of the City.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in
Beaumont, Jefferson County, Texas, this day of
A.D., 19
THE CITY OF BEAUMONT ATTEST:
By: Ray A. Riley Barbara Liming
City Manager Deputy City Clerk
THE SOUTHEAST TEXAS COMMUNITY
DEVELOPMENT CORPORATION, INC. ATTEST:
By: Albert J. Price, Sr. Antoinette Hardy
President Director
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"EXHIBIT A"
PROGRAM BUDGET
1. Site acquisition and predevelopment
expenses $192,500
2. M.L. King Addition Site Development
Costs 20,000
TOTAL PROGRAM BUDGET $212,500
PROJECT SCHEDULE
Twenty (20) sites @ 57,500/site $1501000
Ten (10) undersized sites @ 54,250/site 42,500
M. L. King Addition ten (10) sites @ 52,000/site 20,000
TOTAL $212,500
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EXHIBIT "A" (cont'd)
TARGETED NEIGHBORHOODS FOR SITE ACQUISITION
1 . Pear Orchard Neighborhood nine (9) to fifteen (15)
lots.
2. Avenues Neighborhood three (3) to six (6) lots.
3. Cable Street Neighborhood three (3) to six (6)
lots.
4. North End Neighborhood (Detroit/Fillmore Street
area) three (3) to six (6) lots.
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