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HomeMy WebLinkAboutContract 26666 AMENDMENT TO CITY SECRETARY CONTRACT NO. 25613 STATE OF TEXAS § CONTRACT Mp Y § COUNTY OF TARRANT § THIS Contract is made and entered into by and between the City of Fort Worth ("City"), acting by and through Libby Watson, its duly authorized Assistant City Manager, and the Near Southeast Community Development Corporation ("Contractor"), by and through Shirley Lewis, its duly authorized Executive Director. Contractor's business address is P.O. Box 1872, Fort Worth, Texas 76 10 1. WHEREAS, the City and Contractor have entered into a contract identified as City Secretary Contract No 23064 for a period beginning September 16, 1997 and ending September 15, 1999; and WHEREAS, the City and Contractor amended City Secretary Contract No 23064 through City Secretary Contract No. 24705 to add an additional $151,701 in March 19, 1999; and WHEREAS, the City and Contractor renewed City Secretary Contract No 24705 through City Secretary Contract No. 25613 for a year in February, 2000; and WHEREAS it is the mutual desire of the parties to extend said City Secretary Contract No. 25613; NOW, THEREFORE, in consideration of these premises and the terms and conditions hereinafter set forth,the parties covenant and agree as follows: Section 1 "Scope of Services" of City Secretary Contract No. 25613, currently on file in the office of the City Secretary of Fort Worth is hereby amended to read as follows: The City hereby certifies that Contractor is a Community Based Development Organization (CBDO)responsible for implementing the neighborhood revitalization strategy for the area. The area in which these programs will be available is the Near Southeast Model Blocks neighborhood. The contract shall be renewed for a term of one year, ending one year from the date of its execution with a performance review to be conducted by the City of Fort Worth at the end of the year. Contractor will offer housing, lots acquisition and economic development programs in keeping with the comprehensive revitalization plan developed for the area. ALL OTHER TERMS AND CONDITIONS OF THE CONTRACT REMAIN IN FULL FORCE AND EFFECT, BINDING UPON THE PARTIES, AND ARE HEREBY RATIFIED BY THE PARTIES. NSCDC CDBG Contract Amendment March 2001 3 '•`>Uue IN WITNESS WHEREOF, the parties hereto have executed four copies of this contract extension in Fort Worth, Tarrant County,Texas,this .// day of _AD. 20d. APPROVED AS TO FORM AND LEGALITY: CITY OFF R T WORTH B : Y _ Asst. C' Attorney L' by Watsen Assistant City Manager By: City Secre ry -1/-CI NEAR SOUTHEAST COMMUNITY DEVEL 9PNENT CORPO ON By: `Shirleyis, Executive Director Contract Authorization � Date NSCDC CDBG Contract Amendment March 2001 � j�u� ; r' 2 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Libby Watson, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the City of Fort Worth and that she executed the same as the act of said City of Fort Worth for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of A.D. 20 01 41i �P ROSELLA BARNES •, . _ /�� NOTARY PUBLIC'* State of Texas Nota Public in and for the State of Texas ti Comm. Exp.03-31-2005 Notary STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Shirley Lewis, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, as the act and deed of NSECDC, Inc. and in the capacity therein stated as its duly authorized president. GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS V day of 01(1G , A.D. 20 . ARTHUR% BLANTON,JR. Notary Public.State of Texas My Commission Expires Notary Public in and for the State of Texas MAY 2,2004 � NSCDC CDBG Contract Amendment March 2001 3 "t CUA �-G:� ��c1 o �::J'Lr a City of Fort Worth, Texas "favor And Council Communication DATE REFERENCE NUMBER LOG NAME I PAGE 3/6/01 C-18492 05EXTEND 1 of 3 SUBJECT EXTENSION AND AMENDMENT OF COMMUNITY DEVELOPMENT BLOCK GRANT AND COMMUNITY HOUSING DEVELOPMENT ORGANIZATION CONTRACTS WITH THE NEAR SOUTHEAST COMMUNITY DEVELOPMENT CORPORATION RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to extend Community Development Block Grant (CDBG) (City Secretary Contract No. 25613) and Community Housing Development Organization (CHDO) Contracts (City Secretary Contract No. 25612) with the Near Southeast Community Development Corporation, Inc. (NSECDC); and 2. Authorize the contract performance period to begin on the date of contract execution and end six months thereafter for the CHDO contract and twelve months thereafter for the CDBG contract; and 3. Authorize extension of the contracts if the NSECDC requests a further extension; and 4. Authorize amendment of the NSECDC CHDO contract to add an additional $6,000 from the CHDO Support (Operating) Fund to help the NSECDC pay for rising insurance costs. DISCUSSION: CHDO CONTRACT The NSECDC is the development arm of the Near Southeast Model Blocks. After receiving the $1.2 million award, the Model Blocks residents created and empowered the NSECDC to carry out on their behalf, community development activities including housing and economic development projects. The NSECDC is also a Community Housing Development Organization (CHDO) certified by the City to cant' housing development projects. On April 23, 1996 (M&C C-15417), the City Council approved an award of $196,595.00 in HOME CHDO funds to the NSECDC. This included $166,595 for the NSECDC to acquire, rehabilitate and sell three houses to first-time homebuyers and $30,000 for operating support. The City of Fort Worth contracted these funds with the NSECDC on September 20, 1996 with City Secretary Contract No. 22137. The contract has been extended twice and expired February 13, 2001. The NSECDC has completed the rehabilitation of two houses. One house, at 900 East Leuda, has been sold. The NSECDC is working with several buyers and hopes to close on the second house at 1114 East Terrell by the end of February 2001. The third house is currently under rehabilitation and will be completed before the end of February. Because of the age, poor condition, and historic characteristics of the houses, the NSECDC had difficulty finding contractors which delayed completion of this project. Furthermore, once rehabilitation began, the units were frequently burglarized and vandalized, causing the contractors to redo work that had been completed. City of Fort Worth, Texas 4Vayjor Ansi Counin't Communication DATE REFERENCE NUMBER LOG NAME PAGE 3/6/01 C-18492 05EXTEND 2 of 3 SUBJECT EXTENSION AND AMENDMENT OF COMMUNITY DEVELOPMENT BLOCK GRANT AND COMMUNITY HOUSING DEVELOPMENT ORGANIZATION CONTRACTS WITH THE NEAR SOUTHEAST COMMUNITY DEVELOPMENT CORPORATION The NSECDC has a balance of$72,382 in program funds to finish up their project. Since the signing of the original contract, the City has increased the minimum insurance requirements resulting in insurance cost increases. These requirements include workers compensation, fidelity bond, general liability and auto insurance. The Housing Department has agreed to add $6,000 from the CHDO Support Fund to help offset the increased insurance costs. This will increase the NSECDC's CHDO balance to $78,382 (see the attached budget). CDBG CONTRACT On July 18, 1997 (M&C C-16184), the City Council authorized $414,500 in CDBG funds for the NSECDC. The City contracted these funds with the NSECDC on September 8, 1997 through City Secretary Contract No. 23064. That contract was later amended to City Secretary Contract No. 24705 to add an additional $151,701, thus giving the NSECDC a spending authority of $566,201. The current balance in this fund is $278,897 (see the attached budget). No change in the budget is proposed at this time. The objectives in the CDBG contract are to (1) acquire 15 vacant lots for housing development, (2) acquire, rehabilitate and sell 5 houses to first-time homebuyers, and (3) undertake economic development activities. Vacant Lots and Housing - The NSECDC has independently acquired 13 vacant lots and 5 additional lots through a partnership with the Bank of America Community Development Corporation (BACDC). The NSECDC is currently negotiating the purchase of 5 more lots, 2 from private owners, and 3 from the Fort Worth Housing Finance Corporation (HFC). BACDC will build new homes on these lots. Acquisition, Rehab, Resale - The NSECDC has acquired 4 of the 5 houses required under the CDBG contract, and 3 of the 4 are under construction (924 East Leuda, 1100 East Humbolt and 1136 East Cannon). A contract for rehabilitation on the fourth house (1205 East Leuda) will be executed before the end of February 2001. The NSECDC expects to close on the 5th house soon. Economic Development - The NSECDC proposes to link their economic development with the redevelopment of Evans Avenue. It plans to develop a telecommuting center to train area residents in computing. Graduates will be able to perform data entry, computer billing, medical transcription, and other telecommunication services. As an initial step, the NSECDC opened the computer center in October 2000 through a partnership with the United Way, IBM, Computer Innovations of Dallas, and Volunteers In Service To America (VISTA). The NSECDC also proposes to create an office complex for non-profit organizations and small businesses on or near the Evans Avenue redevelopment area. It has acquired 1 building and 2 lots. The building (908 East Humbolt) is a two-story structure that can be used for office space after rehabilitation. NSECDC plans to move and rehabilitate a donated building for office space to one of the lots. The rehabilitation of these buildings is projected to be completed by September 2001. City of Fort Worth, Texas "011for And coun"'I Communication DATE REFERENCE NUMBERLOG NAME PAGE 3/6/01 C-18492 05EXTEND 3 of 3 SUBJECT EXTENSION AND AMENDMENT OF COMMUNITY DEVELOPMENT BLOCK GRANT AND COMMUNITY HOUSING DEVELOPMENT ORGANIZATION CONTRACTS WITH THE NEAR SOUTHEAST COMMUNITY DEVELOPMENT CORPORATION The NSECDC has made substantial progress in achieving its objectives under the CHDO and CDBG contracts and requested a year's extension of both contracts to complete their goals. Staff recommends that the CHDO contract be extended for six months and the CDBG contract for 12 months from the date of execution of the contracts. The Near Southeast Model Blocks is located in COUNCIL DISTRICT 8. The Safety and Community Development Committee approved this recommendation at its meeting on February 13, 2001. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that upon approval of the above recommendations, funds will be available in the current operating budget, as appropriated, of the Grants Fund. LW:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) APPROVED Libby Watson 6183 GR76 539120 005206113140 $6,000.00 CITY COUNCIL Originating Department Head: KRI 6 2001 Jerome Walker 7537 (from) GR76 539120 005206113090 $6,000.00 t ate/ Additional Information Contact: City Secretary of the City of Fort Worth,:e-as Jerome Walker 7537