HomeMy WebLinkAboutContract 57358-A2SECOND AMENDMENT CSC No. 57358-A2
TO
CITY SECRETARY CONTRACT NO. 57358
This Amendment is entered into by and between the City of Fort Worth (hereafter
"City"), a home rule municipality, with its principal place of business at 200 Texas Street, Fort
Worth, Texas, and The Salvation Army, a Georgia nonprofit corporation (hereafter
"Developer"). City and Developer shall be referred to individually as a Party and collectively as
the Parties.
WHEREAS, on March 29, 2022, the Parties entered into City Secretary Contract 57358
(the "Contract") for City to provide Developer with up to $754,302.80 of Community
Development Block Grant ("CDBG") funds to rehabilitate the small and large Red Shield Shelters
located within the Salvation Army's Mabee Center located at 1855 East Lancaster Avenue, Fort
Worth, Texas.
WHEREAS, the original contract term was for one year beginning on March 29, 2022;
WHEREAS, delays in the Developer's internal procurement process interrupted the
original project timeline;
WHEREAS, the Contract allows for an extension for up to two additional, one-year
terms;
WHEREAS, the first amendment ("First Amendment") to the Contract allowed the
Completion Deadline to be extended until March 29, 2024, but the project will not be completed
by that time;
WHEREAS, the effective date of this Amendment will be March 30, 2024 ("Effective
Date");
WHEREAS, it is the mutual desire of the City and Developer to amend the Contract to
extend the term by another year from the deadline of March 29, 2024, set forth in the First
Amendment, and extend the completion deadline; and
NOW, THEREFORE, the Parties, acting herein by the through their duly authorized
representatives, do hereby agree to the following:
I.
Section 2. DEFINITIONS is amended to be and read as follows by deleting the original
definition of Completion Deadline and substituting the following:
Completion Deadline means July 31, 2024.
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
SECOND AMENDMENT to CSC NO. 57358 Page 1
The Salvation Army, A Georgia Corporation
Red Shield Emergency Shelter Rehabilitation Project
II.
Section 3. TERM is amended to be and read as follows by deleting the original language
in 3.1 and substituting the following:
3.1. Term of Contract
The term of this Contract is 3 years beginning on March 29, 2022 unless earlier
terminated as provided in this Contract.
EXHIBIT "C" — PROJECT AND REIMBURSEMENT SCHEDULE attached to the
Contract are hereby replaced with the attached EXHIBIT "C" PROJECT AND
REIMBURSEMENT SCHEDULE REVISED MARCH 2O24 attached hereto.
IV.
ALL OTHER TERMS SHALL REMAIN THE SAME
All other provisions of the Contract which are not expressly amended herein shall remain
in full force and effect.
V.
ELECTRONIC SIGNATURE
This Amendment and Extension may be executed in multiple counterparts, each of
which shall be an original and all of which shall constitute one and the same instrument.
A facsimile copy or computer image, such as a PDF or tiff image, or a signature, shall be
treated as and shall have the same effect as anoriginal.
VI.
EFFECT OF AMENDMENT
This Amendment shall be binding upon the Parties hereto and their respective successors
and assigns, if any.
[SIGNATURES APPEAR ON NEXT PAGE]
SECOND AMENDMENT to CSC NO. 57358 Page 2
The Salvation Army, A Georgia Corporation
Red Shield Emergency Shelter Rehabilitation Project
ACCEPTED AND AGREED TO AS OF THE EFFECTIVE DATE:
CITY OF FORT WORTH:
By:
Name: Fernando Costa
Title: Assistant City Manager
Date:
APPROVAL RECOMMENDED:
By: �w
Name: Victor Turner
Title: Director, Neighborhood Services
ATTEST:
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By:
Name:
Jannette S. Goodall
Title:
City Secretary
Developer:
The Salvation Army,
a Georgia Corporation
By: Paul McFarland (Mar 26, 202414:11 CDT)
Name:
Title:
Date: Mar 26, 2024
SECOND AMENDMENT to CSC NO. 57358
The Salvation Army, A Georgia Corporation
Red Shield Emergency Shelter Rehabilitation Project
CONTRACT COMPLIANCE
MANAGER:
By signing I acknowledge that I am the
person responsible for the monitoring and
administration of this contract, including
ensuring all performance and reporting
requirements.
f-, 2v-
By: Chad LaFoque (M a r26,2024 14:12 CDT)
Name: Chad LaRoque
Title: Housing Development Manger
APPROVED AS TO FORM AND
LEGALITY:
By. Le ie unt(Mar 26, 202417:19 CDT)
Name: Leslie L. Hunt
Title: Senior Assistant City Attorney
CONTRACT AUTHORIZATION:
M&C: 21-0107 Dated: February 16, 2021
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Page 3
EXHIBIT "C"
CONSTRUCTION AND REIMBURSEMENT SCHEDULE, REVISED MARCH 2O24
THE SALVATION ARMY, A GEORGIA CORPORATION
Activity CDBG Funds
Total Costs for Red Shield Emergency
Shelter Rehabilitation Proiect $754,302.80
• Contract signed
PHASE I COMPLETED * Procurement for Architectural &
Engineering*
by. 9/30/2023 • Architectural & Engineering Fees
*Contractor/subcontractor/vendor searches $62,969.67
under the Federal System for Award
Management (www.sam.2ov) must be
submitted prior to any reimbursement under
the Phase.
Construction/Rehabilitation of Mabee
Center:
• Procurement for Construction
PHASE II
Contractor*
COMPLETED BY:
• Construction Costs
$641,333.13
5/31/2024
* 100% Completion of Project
*Contractor/subcontractor/vendor searches
under the Federal System for Award
Management (www.sam.2ov) must be
submitted prior to any reimbursement under
the Phase.
Completion/Close Out of Mabee Center:
• Punch List/Final Inspections by
Neighborhood Services
PHASE III
Department Inspectors
FINAL PAYMENT
• Rehabilitation Completed
COMPLETED BY:
• Final Reimbursement Forms to $50,000.00
7/31/2024
include Section 3 Report per
CBDG contract Section 10 and
14.11
• Compliance with Davis -Bacon per
CDBG Contract Section 8.5
TOTAL CDBG FUNDS $754,302.80
SECOND AMENDMENT to CSC NO. 57358 Page 4
The Salvation Army, A Georgia Corporation
Red Shield Emergency Shelter Rehabilitation Project
3/21/24. 3:10 PM M&C Review
CITY COUNCIL AGENDA
Create New From This M&C
Official site of the City of Fort Worth, Texas
FoR� T�
DATE: 2/16/2021 REFERENCE **M&C 21- LOG 19SALVATIONARMYREHABPROJECT
NO.: 0107 NAME:
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: (CD 8) Authorize Change in Use and Expenditure in the Amount of $754,302.80 of
Community Development Block Grant Funds Restricted Cash to The Salvation Army, a
Georgia Corporation in the Form of a Forgivable Loan for the Rehabilitation of the Mabee
Center Located at 1855 East Lancaster Avenue, Authorize Execution of Contract,
Authorize a Substantial Amendment to the City's 2019-2020 Action Plan, Authorize the
Substitution of Funding Years, and Find that Funding the Rehabilitation Serves a Public
Purpose
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a change in use and expenditure in the amount of $754,302.80 in Community
Development Block Grant Restricted Cash funds to The Salvation Army, A Georgia
Corporation in the form of a forgivable loan for the rehabilitation of the Mabee Center located
at 1855 East Lancaster Avenue, Fort Worth, TX 76103;
2. Authorize a Substantial Amendment to the City's 2019-2020 Action Plan;
3. Authorize the City Manager, or his designee, to substitute of funding years in order to meet
United States Department of Housing and Urban Development commitment, disbursement
and expenditure deadlines;
4. Authorize the City Manager, or his designee, to execute a contract with The Salvation Army, A
Georgia Corporation for the project for a one year term beginning on the date of execution of
the contract;
5. Authorize the City Manager, or his designee, to extend or renew the contract with up to two
one-year extensions if The Salvation Army, A Georgia Corporation requests an extension and
such extension is necessary for completion of the project;
6. Authorize the City Manager, or his designee, to amend the contract if necessary to achieve
project goals provided that the amendment is within the scope of the project and in
compliance with City policies and applicable laws and regulations governing the use of federal
grant funds; and
7. Find that funding the renovation of the Mabee Center achieves the public purpose of
providing shelter to homeless families in the City and helps ensure their health and welfare
and that adequate controls are in place to ensure that the public purpose is carried out.
DISCUSSION:
On August 27, 2019, the Fort Worth Housing Finance Corporation (FWHFC) Board approved the sale
of 904 E. Weatherford, commonly known as the Airporter property, for a proposed 219-unit multifamily,
mixed income housing development in downtown Fort Worth (FWHFC-2019-03). FWHFC made a
number of attempts to develop affordable housing on the property; however, since no CDBG eligible
project was ever developed, federal regulations required FWHFC to sell the property for fair market
value since Community Development Block Grant (CDBG) funds were used for its acquisition. The
sale closed on February 26, 2020, and the proceeds from the sale, $2,852,000.00, were transferred
back to the City from the FWHFC, as required by CDBG regulations. The Department of Housing and
Urban Development (HUD) permitted the City to retain and reallocate the full amount of the proceeds,
which is considered CDBG program income. CDBG regulations require that the City use CDBG
program income for other CDBG-eligible projects.
apps.cfwnet.org/counci I_packet/mc_review.asp? I D=28659&counci ldate=2/16/2021 1 /3
3/21/24. 3:10 PM
M&C Review
The Salvation Army, A Georgia Corporation (The Salvation Army), has requested $754,302.80 in
CDBG funds, in the form of a forgivable loan, for the rehabilitation of the Mabee Center located at
1855 East Lancaster Avenue. The Salvation Army provides emergency shelter to more than 500 Fort
Worth families each year and is the primary shelter for homeless families. In 2017, The Salvation
Army temporarily converted the single woman and men's shelter to provide a shelter for families and
children, but this space requires renovations to accommodate the differences between sheltering
single persons and families. The Salvation Army has a men's residential program on campus, and any
work resulting from this Project will not reduce or change the number of shelter beds for single
men. The scope of work includes the renovation of the existing shelter to create two dormitory -style
family shelters, restrooms to accommodate families, safe building entrance and check -in area, three
separate family rooms, an ADA family room as well as other 1st floor common areas that are utilized
by families. The CDBG funds will be used for design, soft costs and construction associated with the
completion of the project.
Staff recommends the followina loan terms:
i. Contract term of one year commencing on the date of execution with the option for two one-
year extensions;
ii. Payment of the CDBG funds and performance of the CDBG requirements will be secured by a
Deed of Trust and other loan documents;
iii. No interest will be charged on the loan unless The Salvation Army defaults under the terms
of the contract;
iv. Loan term to commence on the date of execution of loan documents and end at the
termination of the five year Performance Period;
v. Performance Period shall begin upon issuance of a Certificate of Occupancy for use of the
rehabilitated portion of the shelter; and
vi. Loan will be deferred and forgiven at the end of the five-year Performance Period if all CDBG
requirements and terms and conditions of the contract have been met.
Staff recommends that City Council approve amendments to the City's 2019-2020 Action Plan, and
authorize the expenditure of $754,302.80 in CDBG funds for the proposed rehabilitation of the Mabee
Center. A public comment period was held from November 16, 2020 to December 16, 2020. No
comments were received.
The Action Plan funding years selected may vary and be substituted based on the principle of First In,
First Out (FIFO) in order to expend oldest grant funds first. The funds may be used for any CDBG-
eligible costs related to this project on behalf of homeless populations.
The renovations funded through this loan will help provide shelter to homeless families in the City
which is vital for protecting their health and safety and connecting them to critical resources that can
help them exit homelessness. The City's contract and loan documents will ensure that that public
purpose will be carried out.
The project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are available in the current operating budget, as
previously appropriated, in the Grants Operating Federal Fund to support the approval of the above
recommendations and amendment to the contract. Prior to any expenditure being incurred,
the Neighborhood Services Department has the responsibility to validate the availability of funds.
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year (Chartfield 2)
Submitted for Citv Manaqer's Office by: Fernando Costa (6122)
apps.cfwnet.org/counci I_packet/mc_review.asp? I D=28659&counci (date=2/16/2021 2/3
3/21/24. 3:10 PM
Originating Department Head:
M&C Review
Victor Turner (8187)
Additional Information Contact:
ATTACHMENTS
Chad LaRoque (2661)
Leticia Rodriguez (7319)
19SALVATIONARMYREHABPROJECT FID table.xlsx (CFW Internal)
19SALVATIONARMYREHABPROJECT funds avail.docx (CFW Internal)
From 1295.pdf (CFW Internal)
Salvation Armv.pdf (Public)
apps.cfwnet.org/counci I_packet/mc_review.asp? I D=28659&counci ddate=2/16/2021 3/3
FORT WORTH
Routing and Transmittal Slip
Neighborhood Services
Department
DOCUMENT TITLE: CDBG The Salvation Army Rehab
Second Amendment
M&C 21-0107 CPN CSO # RESERVED DOC#
57358
DATE:
TO:
INITIALS
1. Dyan Anderson
—Nj? a 6202 s or
2. Paul McFarland, Area Commander
LO�%.�y�/ Ol.
Fao�MCFar�antl (Mar26, 2�741411 CDT)
3. Chad La Roque
Chad Lagoque20241412 CDT)
4. Victor Turner
5. Leslie Hunt
Le ie pu.t fMa, 26, 202417. 14 -
6. Fernando Costa
7. Jannette S. Goodall
8. Allison Tidwell
Good Afternoon,
Attached is the Second Amendment to CSC # 57358. Thank you
DATE OUT
Mar26,2024
Mar 26, 2024
M a r 26, 2024
M a r 26, 2024
Mar 26, 2024
Mar 26, 2024
Mar 27, 2024
DOCUMENTS FOR CITY MANAGER'S SIGNTURE: All documents received from any and all City
Departments requesting City Manager's signature for approval MUST BE ROUTED TO THE
APPROPRIATE ACM for approval first. Once the ACM has signed the routing slip, David will review
and take the next steps.
NEEDS TO BE NOTARIZED: ❑ Yes XNo
RUSH: ❑ Yes ❑No SAME DAY: ❑ Yes ❑No NEXT DAY: X Yes ❑No
ROUTING TO CSO: x Yes ❑ No
Action Required:
❑ As Requested ❑ Attach Signature, Initial and Notary Tabs
❑ For Your Information
X Signature/Routing and or Recording
❑ Comment
❑ File