HomeMy WebLinkAboutContract 30015 CITY SECRETARY
CONTRACT NO.
FIRST AMENDMENT TO
CITY SECRETARY CONTRACT NO. 25738
WHEREAS, on April 4, 2000 the City of Fort Worth and Women's Second
Chance, Inc. made and entered into City Secretary Contract No. 25783, hereinafter
referred to as the "Contract" as authorized by M&C G-12831 adopted by the City
Council on February 29, 2000;
WHEREAS, as a result of disputes between the City of Fort Worth, Tarrant
County, and Women's Second Chance, Inc., arising out of the construction of
improvements contemplated under the Contract, construction was shut down for over 2
years;
WHEREAS, as a result of the work being shut down, building permits expired
which required renewal, building codes were amended which then governed the
construction work because of new building permits were required;
WHEREAS, additional construction work has been performed that requires
additional funding and necessitates an amendment to the Contract;
WHEREAS, the Contract has been assigned to Women's Haven of Tarrant
County, Inc.; and
WHEREAS, the City of Fort Worth and Women's Haven of Tarrant County, Inc.
desire to amend the Contract in order to provide additional funding to complete
improvements as contemplated by the Contract, such additional funding being provided
for under M&C G-14042 on August 7, 2003 and M&C C-19989 on March 11, 2004.
Now, therefore, the City of Fort Worth, hereinafter referred to as "City", acting
herein by and through Reid Rector, its duly authorized assistant city manager, and
Women's Haven of Tarrant County, Inc., hereinafter referred to as "Contractor", acting
herein by and through Sharon Marshall, its duly authorized executive director, do hereby
agree as follows:
Section 1.
Subsection 1.1.1 of Section 1, General Provisions, of City Secretary Contract No.
25738 is hereby amended to be and read as follows:
"1.1.1 The express purpose of this agreement is to provide Contractor
with HOME funds not to exceed Two Hundred Ninety Thousand Two
Hundred and Fifty Dollars ($290,250.00), to provide a loan toward the
acquisition and the development of an apartment building consisting of a
total of nine one-bedroom units on Parkdale Avenue in accordance with
Exhibit "A"— Program Summary. The total development cost is es
d
c
at approximately $455,000.00. The Contractor will be receiving
additional funding from HUD to complete the project."
Section 2.
Section 2.2, Amount of Funds, of Section 2, Duties and Responsibilities of
the City, of City Secretary Contract No. 25738 is hereby amended to be and read
as follows:
"2.2 Amount of Funds
2.2.1.1 It is agreed that the total distribution of federal grant funds made
available to or paid on behalf of Contractor, during the term of this
contract shall not exceed the total sum of Two Hundred Ninety
Thousand Two Hundred and Fifty Dollars ($290,250.00).
2.2.1.2 Two Hundred Ninety Thousand Two Hundred and Fifty Dollars
($290,250.00) shall be used toward the acquisition and rehabilitation
of an apartment building off Parkdale with 9 one-bedroom units, in
accordance with Exhibit E — "Program Budget", and will be
available for periodic draws during the development and
rehabilitation and/or renovations, according to rehab specifications
approved by the City of Fort Worth."
Section 3.
Section 3.2, Budget, of Section 3, Duties and Responsibilities of
Contractor, of City Secretary Contract No. 25738 is hereby amended to be and
read as follows:
"3.2 Budget
3.2.1 Contractor agrees that the HOME Funds will be expended in
accordance with Exhibit E — "Program Budget". No change
shall be made without prior written approval of the City.
Under no circumstances shall the total amount of program
funds expended by Contractor from funds paid by the City
exceed Two Hundred Ninety Thousand Two Hundred and Fifty
Dollars ($290,250.00)."
Section 4.
Subsection 3.7.1 of Section 3, Duties and Responsibilities of Contractor, of City
Secretary Contract No. 25738 is hereby amended to be and read as follows:
"3.7.1 Contractor promises to repay to the City of Fort Worth
Two Hundred Ninety Thousand Two Hundred and Fi y.MilArs
WOMEN'S HAVEN OF"IARRANT COUNTY,INC
FIRST AMENDMENT
Page'of 5 ��
($290,250.00), or so much thereof as shall have been advanced, at
its location at 1000 Throckmorton, Fort Worth, Texas 76102
subject to the following conditions and limitations:"
Section 5.
City Secretary Contract No. 25738 is hereby amended by adding a new paragraph
3.7.1.1, which shall be and read as follows:
"3.7.1.1 Paragraph 3.7.1 above is subject to the Assignment of
Community Loan Note and Deed of Trust, Security Agreement and
Assignment of Rents dated August 27, 2003 by and between Women's
Second Chance, Inc., Women's Haven of Tarrant County, Inc. and the
City of Fort Worth."
Section 6.
Subsection 3.16.2 of Section 3, Duties and Responsibilities of Contractor, of City
Secretary Contract No. 25738 is hereby amended to be and read as follows:
"3.16.2 Contractor will maintain blanket fidelity coverage in the form of
an insurance bond in the amount of$290,250.00 to insure against
loss from the fraud, theft or dishonesty of any of Contractor's
officers, agents, trustees, directors or employees. The proceeds of
such bond shall be used to reimburse City for any and all loss of
HOME monies occasioned by such misconduct. To effectuate
such reimbursement, such bond shall include a rider stating that
reimbursement for any loss or losses thereunder shall be made
directly to City for the use and benefit of Contractor."
Section 7.
Exhibit A attached to City Secretary Contract No. 25738 is hereby
replaced with the Exhibit A attached hereto.
Section 8.
All other terms and conditions of City Secretary Contract No. 25738 not
amended herein remain unaffected and in full force and effect.
Q-
Executed this the �,f day of May, 2004.
14UN1b:NS IIAVEti OF TARRANT(Yri'NCI INC _
FIRST ANlENDMENT
Page 3of5 �S
(Remainder of Page Intentionally Left Blank)
%VOM7-:N'S HAVEN OF I-ARRANT('OI:N I IN('
FIRST AIvMNDMENT
Page 4 of 5 a
Approval Recommended: CITY OF FORT WORTH
C441-y��-(-�A- By: 6 L�rl rc-4.
Jer a Walker, Director Reid Rector
Housing Department Assistant City Manager
Approved as to Form and Legality: ATTEST:
Assistant City Attorney Syly Glover, City Secretary
ATTEST: WOMEN'S HAVEN OF
TARRANT COUNTY, INC.
By:
Board Secretary Sharon Marshall
Executive Director
Contract Authorization
-0-03 t .
Date
WO%TFN S HAVEN OF TARRANT COUNTY.INC
FIRST AMENDMENT 3
Page 54
PROGRAM SUMMARY
PROGRAM TITLE
WOMEN'S HAVEN OF TARRANT COUNTY INC.-TRANSITIONAL HOUSING
2000-2004
ITOTAL LOAN AMOUNT(Acquisition and Rehabilitation) $290,250
INTEREST RATE 1.5%
TERM
10 years
MONTHLY PAYMENT $2,606.20
DESCRIPTION:
Women's Haven of Tarrant County, Inc. is a nonprofit organization that provides supportive services for battered
women and their children. Services provided include counseling, case management,legal advocacy, health services,
transitional housing and assistance in securing community services.
PROGRAM OBJECTIVES:
To purchase, rehabilitate and rent an apartment building consisting of nine one-bedroom units to battered women
with children.
PROGRAM MEASURES
Acquisition of apartment building
Monthly inspection and draws on construction
Rehabilitation of all 9 one-bedroom units
Lease apartments to qualified applicants
Make monthly payment
Payoff loan
EXHIBIT A
City of Fort Worth, Texas
"Agar And Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
8/7/03 **G-14042 12WOMENSSECOND 1 of 2
SUBJECT SETTLEMENT OF CLAIMS OF MODERN CONTRACTORS V. WOMEN'S SECOND
CHANCE, INC. ET AL, CASE NO. 48-190689-01
RECOMMENDATION:
It is recommended that the City Council:
1. Approve the below described proposed settlement of the lawsuit arising from the breach-of-contract
claims by Modern Contractors; and
2. Authorize the City Manager to amend City Secretary Contract No. 25738 to increase project funding
by up to $70,000 to complete the rehabilitation and renovation. of Women's Second Chance, Inc.
transitional housing facilities; and
3. Authorize the City Manager to extend and amend the contract, as necessary, to achieve project
goals; and
4. Authorize execution of the documents necessary to complete the settlement.
DISCUSSION:
Modern Contractors filed this lawsuit against the Women's Second Chance, the City, Tarrant County,
Tarrant County Community Development Corporation, and Keith Harlin seeking payment for the alleged
breach of contract. Modern Contractors entered into a contract with the Women's Second Chance to
provide labor and materials to rehabilitate and renovate Women's Second Chance's facilities at 621,
708, 710 and 714 Parkdale Street. The City and Tarrant County (through Tarrant County Community
Development Corporation) each contracted with Women's Second Chance to provide 50% of the
funding for the contract between Women's Second Chance and Modern Contractors. Modern
Contractors alleged that it suffered damages when the City and Tarrant County breached their
respective contracts with Women's Second Chance. Modern Contractors contends that the City and
Tarrant County breached their contracts with Women's Second Chance when Tarrant County stopped
funding its contract with Women's Second Chance.
Part of Tarrant County's obligation to Women's Second Chance included funding certain administrative
expenses. During the course of the project, Tarrant County stopped funding all its contracts with
Women's Second Chance due to problems encountered with program administration.
While the City and Tarrant County deny liability in this lawsuit, the City and Tarrant County reached a
proposed compromise settlement with Modern Contractors after a court-ordered mediation. The
settlement allows the project to be completed and resolves all issues raised by Modern Contractors'
lawsuit against the City and Tarrant County. In return for the City's settlement, Modern Contractors
agrees to dismiss its lawsuit against all parties and release all claims. Also, the settlement provides
that the City will inspect Modern Contractors' work and will pay Modern Contractors through the
Women's Second Chance contract with the City as the work is completed.
City of Fort Worth, Texas
"n.jor And cou"Cil commu"icatio"
DATE REFERENCE NUMBER LOG NAME PAGE
8/7/03 **G-14042 12WOMENSSECOND 2 of 2
SUBJECT SETTLEMENT OF CLAIMS OF MODERN CONTRACTORS V. WOMEN'S SECOND
CHANCE, INC. ET AL, CASE NO. 48-190689-01
The Housing Department and the Law Department recommend settlement of the case on those terms.
Approval of this settlement should not be construed as an admission of liability by the City or its officers,
agents, and employees. In fact, any such liability in this matter is specifically denied. This settlement is
entered into only to avoid further time consuming and costly litigation.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the current operating budget, as appropriated,
of the Grants Fund.
RRA
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
GR76 539120 005206772130 $70,000.00
Reid Rector 6140
Originating Department Head:
David Yett 7623 (from) APPROVED 8/7/03
GR76 539120 005206772030 $70,000.00
Additional Information Contact:
392-
.Jerome Walker 7537
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/11/2004
DATE: Thursday, March 11, 2004
LOG NAME: 05GOBERN REFERENCE NO.: **C-19989
SUBJECT:
Amend City Secretary Contract No. 25738 with Women's Second Chance, Inc. Assigned
to Women's Haven to Reallocate $20,000 of Additional Funding
RECOMMENDATION:
It is recommended that the City Council
1. Reallocate $20,000 out of 2003 Home Affordable Housing Development Fund (AHDP) to complete the
rehabilitation and renovation of Women's Second Chance, Inc.'s Parkdale Avenue Transitional Housing
project; and
2. Authorize the City Manager to amend City Secretary Contract No. 25738 with Women's
Second Chance, Inc., and to further amend, renew or extend such contract as necessary to complete the
project.
DISCUSSION:
Women's Second Chance, Inc. received funding from the City of Fort Worth in year 2000 to rehabilitate
property located at 708 and 710 Parkdale Avenue as transitional housing for women with children. The
rehabilitation contractor, Modern Contractors, filed a lawsuit against Women's Second Chance, Inc., the
City, Tarrant County, Tarrant County Community Development Corporation, and Keith Harlin, seeking
payment for an alleged breach of contract. While the City and Tarrant County denied liability in this lawsuit,
the City and Tarrant County reached a compromise settlement with Modern Contractors after a court-
ordered med? tion.
The time delay between the construction stoppage and settlement of the lawsuit was in excess of two
years. The building permit had expired, and a new plan review was required before startup of
construction. The settlement of this lawsuit occurred before the new building permit review, and did not
include the new requirements and those costs to Modern Contractors to meet the new code requirements.
All contracts with Women's Second Chance, Inc. were assigned to Women's Haven effective August 27,
2003.
The Parkdale Avenue Transitional Housing is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the current operating budget, as appropriated, of
the Grants Fund.
Logname: 05GOBERN „_ ,
-;O Fur�d/Account/Centers FROM Fund/Account/Centers
GR76 539120 005206846130 $20.000.00 GR76 539120 005206846060 $20.000.00
Submitted for City Manager's Office by- Reid Rector (6140)
Originating Department Head: Jerome Walker (7537)
Additional Information Contact: Jerome Walker (7537)
Lo2name: 05GOBERN n ��