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HomeMy WebLinkAboutContract 27263 CITY SECRETARY CONTRACT NO. STATE OF TEXAS § COUNTY OF TARRANT § THIS contract is made and entered into by and between the City of Fort Worth ("City"), acting by and through Joe Paniagua, its duly authorized Assistant City Manager, and Mitchell Boulevard Development Corporation ("Contractor"), by and through Gerald Shaw, its duly authorized President. Contractor's business address is 2517 Thannisch, Fort Worth, Texas 76105. WHEREAS, the City of Fort Worth ("City") has received a grant from the United States Department of Housing and Urban Development ("HUD") through the Home Investment Partnerships Program ("HOME"), Program Nos. M-00-MC-48-0204, with which the City desires to promote activities that expand the supply of affordable housing and the development of partnerships among the City, local governments, local lenders, private industry and neighborhood based nonprofit housing organizations; and WHEREAS, the primary purpose of the HOME program pursuant to the National Affordable Housing Act of 1990 ("NAHA") and 24 CFR 92, ("the Regulations") is to benefit low and very low income citizens by providing them with affordable housing; and WHEREAS, Contractor, a nonprofit corporation managed by a volunteer Board of Directors, is working to increase the number of decent, affordable housing units available to low and moderate income persons; and WHEREAS, the citizens and the City Council of Fort Worth have determined that the development of safe, decent and affordable housing is needed for moderate, low and very low income citizens of Fort Worth; NOW, THEREFORE, THIS AGREEMENT FURTHER WITNESSETH: 1 GENERAL PROVISIONS 1.1 Purpose 1.1.1 The express purpose of this contract is to provide Contractor with HOME funds not to exceed EIGHTY FOUR THOUSAND SEVEN HUNDRED TWO AND NO/100 ($84,702.00) to provide funding for the production of two home ownership opportunities for low-income, first-time homebuyers, in accordance with "Exhibit A — Program Summary". Eligible costs are those allowed under the HOME regulation 24 CFR. 1.1.2 Upon the sale of each house, Contractor may claim a developer's fee of$3,000 and any additional sales proceeds that exceed the development cost. These funds may be used by the Contractor, at its discretion, to further its Program goals. (No developer fees will be paid for projects where the development cost exceeds the sales price by more than ten Pagel percent (10%)). If, during this contract period, Contractor maintains the Performance Standards established by the City for retention of CHDO proceeds, the remaining proceeds from the sale of each house may be retained by the Contractor as CHDO proceeds and used for HOME-eligible or other housing activities to benefit low-income families, as required by 24 CFR 92.300(a)(2), if the project is begun before the end of this contract. 1.1.3 Once CHDO proceeds are used and recaptured by the Contractor, there are no further HOME requirements which must be met. The Contractor is free to use its discretion in the use of these funds. 1.1.4 The City hereby certifies that Contractor is a Community Housing Development Organization (CHDO) and acts as a housing developer as defined by HUD. 1.1.5 The City shall act through its agent, the City Manager, or his duly authorized representative, unless otherwise stated in this agreement. Contractor agrees to comply with the uniform administrative requirements contained in Section 92.505 of the HOME regulations, including Subpart F, and applicable City Codes and regulations. 1.2 Duration/Period of Affordability 1.2.1 This Contract begins on the date of execution of this contract and terminates twelve (12) months after execution of the contract except that the provisions relating to affordability shall remain in effect through the period of affordability of the last house sold under this program as provided in 12.2 below. This Contract may be extended for one (1) one-year term. Contractor shall request the extension in writing and submit the request to the City sixty (60) days prior to the end of the contract. The City may then approve the extension of the Contract for another year. It is specifically understood that it is the City's sole discretion whether to approve or deny the request. 1.2.2 The housing owned or developed by Contractor shall remain affordable as required by Section 92.254 of the Regulations. Affordability means that the actual principal, interest, property taxes, and insurance (PITI) for the purchase does not exceed thirty percent (30%) of the monthly adjusted income of a family with an income at or below eighty percent (80%) of the median income of the area, adjusted for family size, as established by HUD. If the housing does not meet the affordability requirements as stated below, the funds used to produce said housing must be repaid to the City. HOME-funded homebuyer programs must remain affordable housing for minimum periods of. 5 years where the per unit amount of HOME funds provided is less than $15,000; 10 years where the per unit amount of HOME funds provided is $15,000 to $40,000; and 15 years where the per unit amount of HOME funds provided is greater than $40,000. Repayment of the HOME fiends attributable to the unit or units that do not maintain the HOME affordability requirements will be required from the Contractor, if, at any time the Contractor is found to be non-compliant to the above time limits. Page 2 1.3 Income Requirement and Use of House as Principal Residence 1.3.1 The HOME Program uses the income definitions used in the Section 8 Program. Annual income includes earned income, income from assets, and income from other sources as defined by 24 CFR Part 5. Annual income is used to establish homeowner eligibility. The annual income of the homebuyer, adjusted for family size shall not exceed eighty percent (80%) of the area median income as established by HUD. Contractor shall use the most current HUD Program Income Guidelines to determine program eligibility. 1.3.2 The Contractor shall insure that the homebuyer will use the home purchased under this program as his/her principal residence during the period of affordability. 1.4 Housing Quality and Other Standards. 1.4.1 New housing units constructed under this contract shall meet the most current Model Energy Code published by the Council of American Building officials, the Uniform Federal Accessibility Standards (UFAS), the City's Basic Access Ordinance No. 14171 attached as Exhibit H and all other applicable standards under the City Codes and ordinances. 1.5 Other Requirements 1.5.1 The sales price of the house shall not exceed ninety-five percent (95%) of the median purchase price of the type of single family housing for Fort Worth as determined by HUD. 1.5.2 The sales price of the house shall not exceed the appraised value of the property as determined by an independent appraiser. 1.5.3 Contractor shall demonstrate that the CHDO funds shall be leveraged by other funding sources. 1.6. Independent Contractor 1.6.1. Contractor shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the City. Contractor shall have exclusive control of, and the exclusive right to control the details of the work and services performed hereunder, and all persons performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees or invitees. The doctrine of respondeat superior shall not apply as between City and Contractor, its officers, members, agents, servants, employees, subcontractors, program participants, licensees or invitees, and nothing herein shall be construed as creating a partnership or joint enterprise between City and Contractor. It is expressly understood and agreed that no officer, member, agent, employee, subcontractor, licensee or invitee of the Contractor, nor any program participant Page 3 hereunder, is in the paid service of City and that City does not have the legal right to control the details of the tasks performed hereunder by Contractor, its officers, members, agents, employees, subcontractors, program participants, licensees or invitees. 1.6.2 City shall in no way nor under any circumstances be responsible for any property belonging to Contractor, its officers, members, agents, employees, subcontractors, program participants, licensees or invitees, which may be lost, stolen, destroyed or in any way damaged; and Contractor hereby indemnifies and holds harmless City and its officers, agents, and employees from and against any and all claims or suits. 1.7 Termination. 1.7.1 This contract may be terminated by the City in the event of default, inability, or failure to perform on the part of Contractor, or whenever such termination is determined by the City to be in the City's best interest. Likewise, the contract may be terminated by Contractor if the City does not provide funds pursuant to this agreement. The contract may be terminated for mutual convenience upon agreement of the parties. 1.7.2 The parties acknowledge that HOME funds paid hereunder are intended to provide only partial funding for Contractor's program operations. If non-HOME funds to implement the program are not forthcoming to the Contractor during the contract term, the City may terminate this contract. 1.7.3 Pursuant to the City's CHDO Program and Funding Requirements, Contractor shall begin actual acquisition and construction work within 12 months from the date of contract execution. Failure to start within the 12-month period is grounds for contract termination. 1.7.4 City shall notify the Contractor in writing of any breach of this contract, and specify a reasonable time within which to cure the particular breach. After being notified of such material breach, if Contractor fails to cure the material breach within the time stated in the notice, this contract shall automatically terminate at the expiration of the stated time allowed for cure. 1.7.5 Contractor will return to City any unused monies previously distributed under this contract within thirty (30) days of the effective date of contract termination. City will have no responsibility or liability for Contractor's expenditures or actions occurring after the effective date of the contract termination. 1.8 Venue 1.8.1 Should any action, whether real or asserted, at law or in equity, arise out of the execution, performance, attempted performance or non-performance of this agreement, venue for said action shall be in Tarrant County, Texas. Page 4 1.9 Written Instrument is Entire Agreement 1.9.1 All terms of this contract shall apply to any and all subcontractors of Contractor which are in any way paid with HOME funds or who perform any work in connection with Contractor's Program. 1.9.2 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 other provisions which can be given effect without the invalid provision. 1.9.3 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. 1.9.4 This written instrument and the exhibits attached hereto, which are incorporated by reference and made a part of this contract for all purposes, constitutes the entire contract by the parties hereto concerning the work and services to be performed under this contract. Any prior or contemporaneous oral or written agreement, which purports to vary the terms of this contract, shall be void. Any amendments to the terms of this contract must be in writing and must be approved by each party to this contract. 1.9.5 The paragraph headings contained herein are for convenience in reference to this contract and are not intended to define or to limit the scope of any provision of this contract. 2 DUTIES AND RESPONSIBILITIES OF CITY 2.1 Disbursement of Funds 2.1.1 The City will furnish federal grant funds, (HUD HOME Investment Partnerships Program No. M-00-MC-48-0204) for use as stated herein. The City will monitor the use of such funds to ensure appropriate use of the funds. Funds shall be disbursed after execution of this contract and compliance with the provisions therein. Disbursements from the HOME account for actual acquisition, construction, and/or sale will not be made until actually needed for payment. Payment of expenses will require completion of a "Request For Funds" form (Attachment I), and a copy of supporting documents, including the property sales contract, appraisal, notice to seller, environmental review and contract between Contractor and builder (Exhibit E—Contract For Construction). 2.2 Amount of Funds 2.2.1 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 Page 5 EIGHTY FOUR THOUSAND SEVEN HUNDRED TWO AND NO/100 DOLLARS ($84,702.00). 2.2.2 Contractor shall be paid on an advance of funds basis for all expenses incurred under this contract to pay for specific acquisition of lots, and related soft costs pertaining to property identified for the purpose of this Program. Prior to the release of funds for construction draws work items must pass inspection by the City's Housing Department inspectors evidenced by a completed inspection form Exhibit F—Request for Inspection). 3 DUTIES AND RESPONSIBILITIES OF CONTRACTOR 3.1 Statement of Work, Budget and Time Line for Goals and Expenditures 3.1.1 Contractor will use the Eighty Four Thousand, Seven Hundred and Two Dollars ($84,702.00) for the acquisition of lots, construction and sale of new homes to low income buyers as defined in Paragraph 1.3.1 above. Contractor shall insure that homebuyers complete a homeownership training program prior to closing. Contractor shall also help homebuyers obtain closing cost assistance and/or deferred loan payment under the City's Homebuyer's Assistance Program or other available programs to make housing affordable to the homebuyers. Funds will be utilized only to provide affordable housing within the City of Fort Worth, Texas. 3.2 Budget 3.2.1 Contractor agrees that the HOME funds will be expended in accordance with the projected Development Budget in Exhibit B attached hereto and incorporated for all purposes. Any change exceeding ten percent (10%) of the total cost per housing unit shown in this Budget shall be made only with the 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 Eighty-four Thousand, Seven Hundred and Two Dollars ($84,702). 3.2.2 The funds will be payable based on a drawdown schedule based on extent of completion of each house as approved by the City housing inspectors. Contractor shall demonstrate that the CHDO funds shall be leveraged by other funding sources. 3.3 Time Line for Goals and Expenditures 3.3.1 Contractor shall work in accordance with the schedule in the Program Implementation in Exhibit C and ensure that program goals and expenditures correspond with the completion of the Program. 3.4 Reversion of Assets 3.4.1 Contractor agrees to return to the City any HOME funds remaining on hand at the end of Page 6 w the contract. If repayments, interest or other returns on investment attributable to HOME funds are received after the term of this contract, they shall be returned to the City to be deposited in the City's HOME account established for the Contractor's development fund. In the event the Contractor administering the development fund established under this contract is dissolved, this contract shall thereupon terminate. In the event this contract is terminated with or without cause, or for any reason whatsoever, all assets of the HOME development fund including cash, interest payments thereon from loans or otherwise, all outstanding notes, mortgages and other instruments to secure HOME funds and any real property valued in excess of$25,000 owned by the Contractor less than five years or a longer period of time that was acquired or improved with HOME funds from the development fund shall belong to the City and shall be transferred to the City or to such assignees as the City may designate. ' 3.5 Affirmative Marketing 3.5.1 Contractor must adopt affirmative marketing procedures and requirements for all HOME housing. The procedures and requirements must include methods for informing the public, owners and potential homebuyers about fair housing laws and policies so as to ensure that all individuals, without regard for race, creed, nationality or religion, are given an equal opportunity to participate in the Program. The Contractor will be solely responsible for the effective marketing responsibilities necessary to achieve the Contractors' production goals set forth in Paragraph 1.1.1 above. 3.6 Recapture Provisions 3.6.1 Contractor understands that there are specific property recapture requirements on HOME- funded properties and a requirement that the homebuyer must use the property as its principal residence. These requirements shall be incorporated in the property deed restriction or covenant running with the land. In addition, the loan documents (Deed of Trust Note) should also incorporate these requirements. The recapture provisions will remain in effect on property purchased with HOME funds for the affordability periods described in Paragraph 1.2.2 above. 3.7 Records and Reports 3.7.1 Contractor will keep or cause to be kept an accurate record of all actions taken and all funds expended, with source documents, in the pursuit of the objectives of the performance of this contract. Such records shall be kept for the period of affordability mandated by the Regulations. 3.7.2 Contractor will obtain and keep on file the following information on each client served by the Program: Page 7 y 3.7.2.1 Annual income and size of the household; 3.7.2.2 Ethnic group, using one of the following five categories: White, not Hispanic; Black, not Hispanic; Hispanic; Asian or Pacific Islander; American Indian or Alaskan Native; 3.7.2.3 Whether the head of household is male or female; is a single male or female householder with or without children; 3.7.2.4 Additional statistical information as may be required by the City Housing Department or HUD regulations and any amendments thereto. 3.7.3 Contractor will keep on file the following information an documentation on each individual project: 3.7.3.1 Proof that the project meets the applicable property and other standards; 3.7.3.2 The per unit amount of HOME and non-HOME dollars invested; 3.7.3.3 The compliance with the affirmative marketing requirements and existence of acceptable procedures; 3.7.3.4 Compliance with relocation requirements, if applicable; 3.7.3.5 Minority and female owned business data, and affirmative fair housing actions; and 3.7.3.6 Compliance with conflict of interest rules. 3.7.4 By the 15th of each month for the duration of the contract, including the period of affordability as applicable, Contractor will supply the City with a report detailing: 3.7.4.1 Progress toward goal achievement; (Exhibit G-Program Services); and 3.7.4.2 Expenditure detail. (Attachment I- "Request For Funds", Attachment II "Detail Statement of Costs" & Attachment III "Expenditure Worksheet"). 3.7.4.3 The amount of leveraging generated by this grant, including items that qualify as HOME match. 3.7.5 Reports shall be submitted in the format specified by City. 3.8 Cost Principles Page 8 r 3.8.1 Contractor shall comply with the requirements and standards of OMB Circular A-122, "Cost Principles for Non-Profit Organizations" 3.8.2 All non-federal entities that expend $300,000 or more in federal funds within one year, regardless of the source of the Federal award, must submit to City an annual audit prepared in accordance with 24 CFR part 84 generally, with specific reference to OMB Circular A-133. The audit may cover the period of the contract. This audit must be prepared by an independent certified public accountant, be completed within twelve (12) months following the end of the period being audited and be submitted to the City within thirty (30) days of its completion. Non-federal entities that expend less that $300,000 a year in federal funds are exempt from Federal audit requirements for that year, but records must be available for review or audit by appropriate officials of the Federal agency, pass-through entity (City), and General Accounting Office (GAO). (Exhibit D-Independent Audit Requirement) 3.8.3 City reserves the right to perform an audit of Contractor's program operations and finances at any time during the term of this contract, if City determines that such audit is necessary for City's compliance with OMB Circular A-128, and Contractor agrees to allow access to all pertinent materials as described in section headed records and reports above. If such audit reveals a questioned practice or expenditure, such questions must be resolved within fifteen (15) days after notice to Contractor of such questioned practice or expenditure. If questions are not resolved within this period, City reserves the right to withhold further funding under this and/or future contract(s). 3.8.4 If as a result of any audit it is determined that Contractor has misused, misapplied or misappropriated all or any part of the grant funds described herein, Contractor agrees to immediately reimburse the City the amount of such monies so misused, misapplied or misappropriated, plus the amount of any sanctions, penalty or other charge levied against City because of such misuse, misapplication or misappropriation. 3.9 Monitor Effectiveness of Services and Work 3.9.1 The City will review the activities and performance of each contractor and subrecipient not less than annually as required in Section 92.504 (e) of the HOME regulations. 3.9.2 Contractor agrees to fully cooperate with City in monitoring the effectiveness of the services and work to be performed by Contractor's compliance with the terms of this contract. The City shall have access at all reasonable hours to offices and records (dealing with the use of the funds that are the basis of this contract) of Contractor, its officers, directors, agents, employees, and subcontractors for the purpose of such monitoring. 3.9.3 Contractor agrees to likewise monitor the effectiveness of the services and work to be performed by its subcontractors. Page 9 1 1 3.10 Compliance with All Applicable Laws and Regulations 3.10.1 Federal 3.10.1.1 Contractor agrees to comply with the following laws and the regulations issued thereunder as they are currently written or are hereafter amended during performance of this contract: 3.10.1.1.1 Title VI of Civil Rights Act of 1964 (42 USC 2000d et seq) 3.10.1.1.2 Title VIII of Civil Rights Act of 1968 (42 USC 3601 et seq) 3.10.1.1.3 Executive Orders 11063, 11246, as amended by 11375 and as supplemented by Department of Labor regulations (41 CFR, Part 60) 3.10.1.1.4 Section 504 of the Rehabilitation Act of 1973 (29 USC 794) 3.10.1.1.5 The Age Discrimination Act of 1975 (42 USC 6101 et seq) 3.10.1.1.6 National Environmental Policy Act of 1969 (NEPA) and the related authorities listed HUD's implementing regulations (24 CFR Part 58) 3.10.1.1.7 Immigration Reform and Control Act of 1986 (Pub. L. 99-603, 100 Stat .3359, as amended) specifically including the provisions requiring employer verifications of legal worker status of its employees 3.10.1.1.8 Housing and Community Development Act of 1987 (Pub. L. 100-242, 101 Stat. 1815, as amended) 3.10.1.1.9 The Americans with Disabilities Act of 1990 (42 USC 12101 et seq) 3.10.1.1.10 National Affordable Housing Act of 1990 3.10.1.1.11 The Drug Free Workplace Act of 1988 (24 CFR part 23, subpart F) 3.10.1.2 Contractor, in the operation of its program, will also comply with Office of Management and Budget Circular A-122 and attachments and revisions thereto, regarding principles for determining costs for HOME-funded programs. 3.10.2 Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 USC 1701 3.10.2.1 As the work performed under this contract is on a project assisted under a program providing direct federal financial assistance from the HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 USC 1701, Contractor covenants to abide by the requirements of the said Section 3. It requires as follows: 3.10.2.1.1 That, to the greatest extent feasible, opportunities for training and employment be given to lower income residents of the project area, and 3.10.2.1.2 That, to the greatest extent feasible, contracts for work in connection with the project be awarded to business concerns which are located in or owned in substantial part by persons residing in the area of the project. Page 10 1 1 3.10.2.2 Contractor will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development, set forth in 24 CFR 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this contract. Contractor certifies and agrees that it is under no contractual or other impediment, which would prevent it from complying with the requirements. 3.10.2.3 Contractor agrees that it will send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or workers representatives of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. 3.10.2.4 Contractor agrees that it will include the said Section 3 clause in every subcontract for work in connection with the project and will, at the direction of City, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, CFR135. Contractor agrees that it will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135 and will not let any subcontract unless the subcontractor has first provided Contractor with a preliminary statement of ability to comply with the requirements of these regulations. 3.10.2.5 City and Contractor understand and agree that compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this contract shall be a condition of the Federal financial assistance provided to the project, binding upon City and Contractor, and their respective successors, assignees and subcontractors. Failure to fulfill these requirements shall subject Contractor and its subcontractors, its successors and assignees, to those sanctions specified by the Grant Agreement through which federal assistance is provided and to such sanctions as are specified by 24 CFR 3.10.3 Clean Air Act; Clean Water Act; Environmental Protection Agency (EPA) Acts and Regulations 3.10.3.1 This contract is subject to the requirements of Section 306 of the Clean Air Act, as amended (42 USC 1857(h) et seq.), Section 508 of the Clean Water Act (33 USC 1368), Water Pollution Control Act, as amended (33 USC 1251 et seq.) and the regulations of the EPA with respect thereto at 40 CFR, Part 15, as amended from time to time, and Executive Order 11738 (42 USC 7606 nt.). In compliance with said regulations, Contractor agrees and, with respect to a nonexempt transaction, shall require each subcontractor to agree to the Page 11 following requirements: 3.10.3.1.1 A stipulation that no facility to be utilized in the performance of nonexempt contract or subcontract work is included on the List of Violating Facilities issued by the (EPA) pursuant to 40 CFR 15.20; 3.10.3.1.2 Compliance with all the requirements of Section 114 of the Clean Air Act, as amended (42 USC 1857c-8), and Section 308 of the Federal Water Pollution Control Act, as amended (33 USC 1318), relating to inspection, monitoring, entry, reports and information, as well as all other requirements specified in said Section 114 and Section 308 and all regulations and guidelines issued hereunder; 3.10.3.1.3 A stipulation that, as a condition for the award of the contract, prompt notice will be given of any notification received from the Director, Office of Federal Activities, EPA, indicating that a facility utilized or to be utilized for the contract is under consideration to be listed on the EPA List of Violating Facilities; 3.10.3.1.4 Agreement by Contractor that it will include or cause to be included the criteria and requirements of this section in every nonexempt subcontract, requiring that Contractor will take such action as City may direct as a means of enforcing such provisions. 3.10.3.2 In no event, shall any amount of the assistance provided under this contract be utilized with respect to a facility which has given rise to a conviction under the Clean Air Act or the Clean Water Act. 3.10.4 Other Laws 3.10.4.1 Contractor covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with all other laws, (federal, state and local) relevant to the performance of this contract, including all ordinances, rules and regulations of the City of Fort Worth and the Regulations. Contractor further promises and agrees that it has read, and is familiar with, terms and conditions of the Regulations under which funds are granted and that it will fully comply with same. It is agreed and understood that, if City calls the attention of Contractor to any such violations on the part of Contractor or any of its officers, members, agents, employees, program participants or subcontractors, then Contractor shall immediately desist from and correct such violation. 3.11 Prohibition Against Discrimination 3.11.1 Contractor, in the execution, performance or attempted performance of this contract and agreement, will not discriminate against any person because of sex, race, religion, Page 12 color or national origin, nor will Contractor permit its officers, members, agents, employees, subcontractors or program participants to engage in such discrimination. 3.11.5 During the performance of this contract Contractor agrees, and will require all its subcontractors to agree, as follows: 3.11.5.1 Contractor will not unlawfully discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. Contractor will take affirmative action to ensure that applicants are employed and that employees are treated fairly during employment without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. 3.11.5.2 Contractor will, in all solicitations or advertisements for employees placed by or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. 3.11.6 In accordance with the policy of the Executive Branch of the federal government, Contractor covenants that neither it nor any of its officers, members, agents, employees, program participants or subcontractors, while engaged in performing this contract, shall, in connection with the employment, advancement or discharge of employees or in connection with the terms, conditions or privileges of their employment, discriminate against persons because of their age or because of any handicap, except on the basis of a bona fide occupational qualification, retirement plan or statutory requirement. 3.11.7 Contractor further covenants that neither it nor its officers, members, agents, employees, subcontractors, program participants, or persons acting on their behalf, shall specify, in solicitations or advertisements for employees to work on this contract, a maximum age limit for such employment unless the specified maximum age limit is based upon a bona fide occupational qualification, retirement plan or statutory requirement. 3.11.8 In accordance with the provisions of the Americans With Disabilities Act of 1990 ("ADA"), Contractor warrants that it and any of its subcontractors will not unlawfully discriminate on the basis of disability in the provision of services to the general public, nor in the availability, terms and/or conditions of employment for applicants Page 13 for employment with, or employees of Contractor or any of its subcontractors. Contractor warrants it will fully comply with ADA's provisions and any other applicable federal, state and local laws concerning disability and will defend, indemnify and hold City harmless against any claims or allegations asserted by third parties or subcontractors against City arising out of Contractor's and/or its subcontractors' alleged failure to comply with the above-referenced laws concerning disability discrimination in the performance of this agreement. 3.11.9 This agreement is made and entered into with reference specifically to the ordinances codified at Chapter 17, Article III, Division 3 ("Discrimination in Employment Practices"), of the City Code of the City of Fort Worth, and Contractor hereby covenants and agrees that Contractor, its officers, members, agents, employees and subcontractors, have fully complied with all provisions of same and that no employee, applicant or program participant has been discriminated against by the terms of such ordinances by either the Contractor or its officers, members, agents, employees or subcontractors. 4.1 Prohibition Against Interest 4.1.1 No member, officer or employee of City or its designees or agents; no member of the governing body of the locality in which the Program is situated; and no other public official of such locality or localities, who exercises any functions or responsibilities with respect to the program funded hereunder during his tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed hereunder. Contractor shall incorporate, or cause to be incorporated, like language prohibiting such interest in all contracts and subcontracts hereunder. 4.11.2 No officer, employee, member or program participant of Contractor or its 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 the sale to Contractor of any land, materials, supplies or services purchased with any funds transferred hereunder, except on behalf of Contractor, as an officer, employee, member or program participant. Any willful violation of this paragraph with the knowledge, expressed or implied, of Contractor or its subcontractors shall render this contract voidable by the City of Fort Worth. 4.11.3 No officer, employee, agent, consultant, elected official or appointed official of the participating jurisdiction, Contractor or its subcontractors who exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME assisted activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one (1) Page 14 year thereafter. 4.12 Assignment 4.12.1 Contractor shall not assign all or any part of its rights, privileges, or duties under this contract without the prior written approval of City. Any attempted assignment of same without approval shall be void, and shall constitute a breach of this contract. It is agreed that the City has the right to inspect and approve in writing any proposed subcontracts between Contractor and any subcontractor engaged in any activity in conjunction with this HOME funded project prior to any charges being incurred. 4.13 Indemnity and Bonding 4.13.1 Contractor covenants and agrees to indemnify, hold harmless and defend, at its own expense, 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, of whatsoever kind or character, whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or nonperformance 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 subcontractors of City; and Contractor hereby assumes all liability and responsibility of City and its officers, agents, servants, and employees for any and all claims or suits for property loss or damage and/or personal injury, including death, to any and all persons, of whatsoever kind or character, whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or nonperformance of this contract and agreement and/or the operations, activities and services of the programs described herein, whether or not caused in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors or subcontractors of City. Contractor likewise covenants and agrees to and does hereby indemnify and hold City harmless from and against any and all injury, damage or destruction of property of City, arising out of or in connection with all acts or omissions of Contractor, its officers, members, agents, employees, subcontractors, invitees, licensees, or program participants, or caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors or subcontractors of City. 4.13.2 Contractor will maintain a blanket fidelity coverage in the form of insurance or bond in the amount of Eighty-Four Thousand, Seven Hundred and Two Dollars ($84,702) , 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 uses and benefit of Contractor. Page 15 4.14 Waiver of Immunity 4.14. 1 If Contractor, as a charitable or nonprofit organization, has or claims an immunity or exemption (statutory or otherwise) from and against liability for damages or injury, including death, to persons or property, Contractor hereby expressly waives its rights to plead defensively such immunity or exemption as against City. This section shall not be construed to affect a governmental entity's immunities under constitutional, statutory or common law. 4.15 Insurance Requirements 4.15.1 Commercial General Liability (CGL) Insurance $500,000 each occurrence $1,000,000 aggregate limit 4.15.2 Business Automobile Liability Insurance $1,000,000 each accident Insurance policy shall be endorsed to cover"Any Auto". Pending availability of the following coverage, and at the discretion of the Contractor, the policy shall be the primary responding insurance policy versus a personal auto insurance policy if or when in the course of Contractor's business as contracted herein. 4.15.3 Directors and Officers Insurance (D. & O) Optional (Highly Recommended) Note: This insurance shall cover the Contractor and any associated Board of Directors members. 4.15.4 Workers' Compensation Insurance Part A: Statutory Limits Part B: Employer's Liability $100,000 each accident $100,000 disease-each employee $500,000 disease-each policy limit Note: Such insurance shall cover employees performing work on any and all projects including but not limited to construction, demolition, rehabilitation. Coverage shall be maintained by Contractor or its subcontractors. In the event the respective subcontractors do not maintain coverage, the Contractor shall maintain the coverage on such subcontractor for each applicable subcontract. 4.15.5 Additional Requirements Such insurance amounts shall be revised upward at City's option and that Contractor shall revise such amounts within (30) following notice to Contractor of such requirements. Page 16 Contractor will submit to City document that it has obtained insurance coverage and has executed bonds as required in this contract and prior to payment of any monies provided hereunder. Each insurance policy shall be endorsed to provide City with a maximum sixty (60) days notice of cancellation, non-renewal, and/or material change in policy terms or coverage. Insurance policies required herein shall be endorsed to include the City of Fort Worth as an additional insured as its interest may appear. Additional insured parties shall include employees, officers, agents, and volunteers of the City of Fort Worth. The Workers' Compensation Insurance policy shall be endorsed to include a waiver of subrogation, also referred to as, a waiver of rights of recovery, in favor of the City of Fort Worth. Any failure on part of the City to request certificate(s) of insurance shall not be construed as a waiver of such requirement nor as a waiver of the insurance requirements themselves. Insurers of Contractor's insurance policies shall be licensed to do business in the state of Texas by the Department of Insurance or be otherwise eligible and authorized to do business in the state of Texas. Insurers shall be acceptable to the City insofar as their financial strength and solvency and each such company shall have a current minimum A.M. Best key Rating Guide rating of ANII or other equivalent insurance industry standard rating otherwise approved by the City of Fort Worth. In the event there are local, federal or other regulatory insurance or bonding requirements for the housing program addressed in this contract, should such requirements exceed those specified herein, the former shall prevail. Contractor shall agree to require its subcontractors to maintain applicable insurance coverage, limits, and other requirements as those specified herein; and, Contractor shall require its subcontractors to provide Contractor with certificate(s) of insurance documenting same; and, Contractor shall require its subcontractors to have the City of Fort Worth and the Contractor endorsed as additional insureds (as their interest may appear) on their respective insurance policies. Contractor shall require its subcontractors to maintain builders risk insurance at the limit of applicable project(s) costs when the value of materials involved exceeds $10,000 or at a different limit value as specified by the City of Fort Worth. Page 17 4.16 Program Income Qualifications for Families 4.16.1 Contractor agrees to abide by HUD income guidelines, which are specific to the type of project that is undertaken by the Contractor. 4.17 Certification Regarding Lobbying 4.17.1 The undersigned representative of Contractor hereby certifies, to the best of his or her knowledge and belief, that: 4.1.7.1.1 No federal appropriated funds have been paid or will be paid, by or on behalf of Contractor, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee 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. 4.1.7.1.2 If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, member of Congress in connection with this federal contract, grant, loan or cooperative agreement, Contractor shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 4.1.7.1.3 The Contractor shall require that the language of this certification be included in all subcontracts or agreements involving the expenditure of federal funds. Page 18 IN WITNESS WHEREOF, the parties hereto have executed four copies of this contract in Fort Worth, Tarrant County, Texas, this day of e_, _, AD 2001. ATTEST: CITY OF FORT W " By: ,City ecretary Joe Pania a Assistan it�;qna APPROVED AS TO FORM AND LEGALITY: ///'J jVj,7�� Contract Authorization Asst. C Attorney l-_.;2 O/ Date MITCHELL BOULEVARD DEVELOPMENT CORPORArTI i By: G al S , Page 19 UA d 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 Joe Paniagua, 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 he 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 3 day of 2001. 1 VD _ Notary Public in and for the State of Texas STATE OF TEXAS § DEANNA BARAN NOTARY PUBLIC STATE OF TEXAS § COMMISSION EXPIRES: COUNTY OF TARRANT § OCTOBER 24,2005 BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Gerald Shaw, 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 Mitchell Blvd. Development Corporation and that he executed the same as the act of said Mitchell Blvd. Development Corporation for the purposes and consideration therein expressed and i the capacity therein stated as its duly authorized officer or representative.r d GI UNDER MY HAND AND SEAL OF OFFICE this day of d jlev, 2001. WILLIAM ROLLINS JR. * � * Notary Ptblk STATE OF TEXAS Notary Public in and fort State of Texas My Comm.Exp,06/03/2004 Page 20 � Y EXHIBIT A PROGRAM SUMMARY PROGRAM TITLE MITCHELL BLVD. NEW HOME CONSTRUCTION 2001 HOME-CHDO New Home Construction (Program Funds) $84,702.00 Supplies $0.00 Contractual Services (Closing Cost/Downpayment Assistance Funds) $0.00 Capital Outlay $0.00 TOTAL $84,702.00 DESCRIPTION: Mitchell Boulevard Development Corp.will purchase vacant lots and construct two(2) new houses for resale to qualified low to moderate income home buyers. The contract period begins on the date of execution and ends twelve months thereafter. PROGRAM OBJECTIVES: To construct and sell two(2) properties in the program area. PROGRAM MEASURES: During the contract period, Contractor shall submit evidence of the following: Residential sales contracts for two (2) houses. Client intake documenting that the buyers qualify as low-moderate income Related closing documents, notes, deeds of trust i r . ............ .......... ...... ...... ...... ......... ............... ............... XX ���� ����� ��i i_� m ....................... T ;111111 ......................................... x ................. 1IOIICC1r10111 XXX a m...-w: . ....................... .......... �0111 ................ . ... � ................... s i .......... ............. - 11'. ��1 11 e,. , fi�� IIN�� ............................... .... ...... ...... ...... ....... .............. ....................... NINE ............... .... .... .............................X:.:.X.:.: ...... ...... ...... .... :::::::::MNll Engines I lose seems Ins on' EXHIBIT D INDEPENDENT AUDIT REOUIREMENT BUSINESS/AGENCY NAME: . PROGRAM: AMOUNT FUNDED: S Name of Independent Auditor who will perform agency audit: (Independent Auditor) Date audit is to perform: (Month and Year) The following language is a condition of your contract with the City: "In accordance with OMB Circulars A-128 and A-133, for all contracts in the amount of$300,000 or more, Contractor must submit to City an annual audit of its program operations and finances, covering either its , fiscal year during which this contract is in force or covering the period of this contract. This audit must be prepared by an independent certified public accountant and must be submitted within three(3) months of its completion. Costs of preparation of this audit may be an allowable expenditure of federal funds in an amount proportional to that of the federal funds used in Contractor's total agency operating budget." Signature Date EXHIBIT E CONTRACT FOR CONSTRUCTION This CONSTRUCTION CONTRACT ("Contract") is made between, ("Owner") and ("Contractor"), on this Day of , 2000 for the purpose of constructing ONE single family dwelling (s) on a lot(s) provided by the "Owner" within the Corporate limits of Fort Worth,TX ("Work"). *The lot site address is:. *Its legal description is: *Attach an Addendum for multiple units constructed. The "Owner' Representative" (as defined below) shall compensate the Contractor a total sum of $ and no/100. Payment shall be made in accordance with Article 9 of this Contract. The date of Commencement shall be ; with a Completion date not to exceed 120 Days ("Contract Time"). Owner and Contractor hereby agree to the following: TERtMS AND CONDITIONS Article 1 GENERAL PROVISIONS 1.1 TERMS USED IN THE CONTRACT 1.1(a). This Contract, the Infill Program and Specifications for Constntction of Single Family Homes as a requirement of participating in the City of Fort Worth Infill Housing Program represent the entire and integrated agreement between the parties and are together referred to as"Contract Documents". 1.1(b). The term "Work" shall mean the construction and services required including all labor, materials, equipment and services provided by the Contractor to fulfill the Contractor's" obligations and responsibilities under the Contract Documents. 1.1(c ). The term Owner's Representative shall mean: the City of Fort Worth Housing Department who provides administration of the Contract as described in the Contract t 07n_sioo Documents. The Owner's Representative will have the authority to act on behalf of the Owner only to the extent provided in the Contract Documents. 1.1(d). This Contract may be amended or modified ONLY by a mutually agreed written modification or in the form of a Change Order. A Change Order shall be a written order to the Contractor signed by the "Owner" or Owner's Representative to change the Work, Contract Sum or Contract Time. A change order is a part of this Contract and the Contract Documents. 1.1(e). The exhibits and addendum's attached together with the change orders are a part of this contract and binding on all parties. Those items include but are not limited to, Change Orders, Contractor's Application and Certificate for Payment, Contractor's Affidavit of Payment of Debts and Claims, and the Certificate of Substantial Completion, Drawings, and other Specifications. Article 2 RESPONSIBILITIES OF THE OWNER 2.1 INFORMATION AND SERVICES 2.1(a). If requested by the Contractor, the Owner shall furnish and pay for a survey and a legal description of the site. 2.1(b). Except for permits and fees which are the responsibility of the Contractor under the Contract Documents, the Owner shall obtain and pay for necessary approvals, easements, assessments and charges: 2.2 OWNER'S RIGHT TO STOP WORK If the Contractor fails to comply with the Contract terms, the Owner.or the Owner's Representative may direct the Contractor in writing to stop the Work until the correction is made. 2.3 OWNER'S RIGHT TO CARRY OUT THE WORK If the Contractor defaults or neglects to carry out the Work in accordance with the Contract Documents and fails within fourteen days (14) from the date of written notice from the Owner or Owner's Representative to cure such default, the Owner or Owner's Representative may, without prejudice to other remedies, cure such defaults. In such case, a Change Order shall be issued deducting the cost of correction from payments due Contractor. If the default is not reasonably susceptible to cure by Contractor within the fourteen (14) day period, Owner will not exercise the option to terminate this agreement so long as the Contractor has commenced to cure the default within the fourteen (14) day period and diligently complete the work within a reasonable time. 2 07/_8/00 2.4 OWNER'S RIGHT TO PERFORM CONSTRUCTION/AWARD SEPARATE CONTRACTS 2.4(a). • The Owner reserves the right to perform construction or operations related to the project with the Owner's own forces, and to award separate contracts in connection with other portions of the project. 2.4(b). The Owner shall require the Contractor to coordinate and cooperate with separate contractors employed by the Owner. 2.4(c). The Owner shall require that costs by delays or by improperly timed activities or defective construction be borne by the party responsible therefor. 2.5 If a defect occurs and if the Contractor does not cure the defect timely according to the contract .provisions the Owner may enter into a separate contract with a third party to cure their defect. The contractor then shall timely reimburse the Owner for the cost of contracting with the third party and the cost to cure the defect. Article 3 RESONSIBILITIES OF THE CONTRACTOR 3.1 EXECUTION OF THE CONTRACT Execution of the Contract by the Contractor is a representation that the Contractor has visited the site, become familiar with local conditions under which the Work is to be performed and correlated personal observations with requirements of the Contract Documents. 3.2 REVIEW OF CONTRACT DOCUMENTS AND FIELD CONDITIONS BY THE CONTRACTOR The Contractor shall carefully study and compare the Contract Documents with each other and with information furnished by the Owner. Before commencing activities, the Contractor shall (1) take field measurements and verify field conditions; (2) carefully compare this and other information known to the Contractor with the Contract Documents; and (3) promptly report errors, inconsistencies or omissions discovered to the Owner's Representative. 3.3 SUPERVISION AND CONSTRUCTION PROCEDURES 33(a). The "Contractor shall supervise and direct the Work, using "Contractor's" best skill and attention. The Contractor shall be solely responsible for and have control over construction means, methods, techniques, sequences and procedures, and for coordinating all portions of the Work. 3.3(b). The Contractor, as soon as practicable after award of the Contract, shall furnish in writing to the Owner through the Owner's Representative the names of subcontractors or suppliers for each portion of the Work. The Owner's Representative will promptly reply 3 07/28/00 to the Contractor in writing if the "Owner" or the Owner's Architect, after due investigation, has reasonable objection to the subcontractors or suppliers listed. 3.3(c ). The Contractor will comply with Minority/Woman Business Enterprise (M/WBE) requirements as outlined in the "Specifications for Construction of Single Family Homes". The Owner has a minimum goal of 40% of the dollar volume of the contract for MWBE participation. 3.3(d). The Contractor will comply with all local building codes , ordinances and the Model Energy Code. 3.4 LABOR AND MATERIALS Unless otherwise provided in the Contract Documents, the Contractor shall provide and pay for labor, materials, equipment, tools, utilities, transportation, and other facilities and services necessary for proper execution and completion of the Work. The Contractor shall deliver, handle, store, and install materials in accordance with manufacturer's instructions. 3.5 WARRANTY The Contractor warrants to the Owner and Owner's Representative that: (1) materials and equipment furnished under the Contract will be new and of good quality unless otherwise required or permitted by the Contract Documents; (2) the Work will be free from defects not inherent in the quality required or permitted; (3) the Work will conform to the requirements of the Contract Documents and the Contractor shall provide a ten year warranty. 3.6 TAXES The Contractor shall pay sales,.consumer, use and similar taxes that are legally required when the Contract is executed. 3.7 INSURANCE During the term of this contract and any extension there of, contractor shall maintain an insurance policy with the following coverage: 3.7 (a) Commercial General Liability Insurance of a minimum of $1,000,000.00 per occurrence. 3.7 (b) Business Auto Liability Insurance of a minimum of$1,000,000.00 each accident. 3.7 (c) Statutory Workers' Compensation Insurance including employer's liability. 3.7 (d) Builder's Risk Insurance to cover the property in the course of the project (against fire, hail, theft, etc. of materials and incomplete construction). 3.7 (e) In addition, the City of Fort Worth and Fort Worth Housing Finance Corporation shall be endorsed as an additional insured on all insurance policies. 4 07/28/00 3.8 PERMITS,FEES AND NOTICES 3.8(a). The Contractor shall obtain and pay for the building permit and other permits and government fees, licenses and inspections necessary for proper execution and completion of the Work. 3.8(b). The Contractor shall comply with the notices required by agencies having jurisdiction over the Work. If the Contractor performs work knowing it to be contrary to laws, statutes, ordinances, building codes, and rules and regulations without notice to the Architect, Owner's Representative and Owner, the Contractor shall assume full responsibility for such Work and shall bear the attributable costs. The Contractor shall promptly notify the Architect/Owner's Representative in writing of any known inconsistencies in the Contract Documents with such governmental laws, rules and regulations. 3.9 USE OF SITE The Contractor shall confine operations at the site to areas permitted by law, ordinances, permits, the Contract Documents and the Owner. 3.10 SUBMITTALS The Contractor shall promptly review, approve in writing and submit to the Owner's Representative Shop Drawings, Product Data, Samples, and similar submittals required by the Contract Documents. Shop Drawings, Product Data, Samples and similar submittals are not a part of the Contract Documents. 3.11 CUTTING AND PATCHING The Contractor shall be responsible for cutting, fitting or patching required to complete the Work or to make its parts fit together properly. 3.12 CLEANING UP The Contractor shall keep the premises and surrounding area free from accumulation of debris and trash related to the Work. 3.13 SECTION 3 CLAUSE Executive Order 11246 prohibits job discrimination on the basis of race, color, religion, gentler, or national origin and requires affirmative action to assure equality of opportunity in all aspects of employment. The Contractor also agrees to the following: A. The work to be performed under this contract is on a project assisted under a program providing direct Federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Development Act of 1968, as amended, 12 U.S.C. 170 1u. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in or owned in substantial part by persons residing in the area of the project. 5 07/28/00 B. The parties to this contract will comply with provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this contract. The parties to this contract certify and agree that they are under no contractual or other disability that would prevent them from complying with these requirements. C. Contractor shall send to each labor organization or representative of workers with which lie has collective bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization or workers' representative of his commitments under Section 3 clause and shall post copies of the notice in conspicuous places available to employees;and applicants for employment or training. D. Contractor shall include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the applicant or the recipient of Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development 24 CFR 135. The Contractor will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations tinder 24 CFR 135 and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. E. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of the contract, shall be condition of the Federal assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its contractors and subcontractors, its successors, and assigns to those sanctions specified by the grant or loan agreement or contract through which Federal assistance is provided, and to such sanctions as are specified by 24 CFR 135. 3.14 INDEMNIFICATION Contractor covenants and agrees to and does hereby indemnify, hold harmless and defend, at its own expense, Owner's Representative, 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, of whatsoever kind or character, whether real or asserted, arising out of or in connection with, directly or indirectly, the work and services to be performed hereunder by Contractor, its officers, agents, employees, subcontractors, licensees or invitees, 'whether or not caused, in whole or in part, by the alleged negligence of the officers, agents, servants, employees, contractors, subcontractors, licensees and invitees of the ONN,ner's Representative; and said Contractor does hereby covenant and agree to assume all liability and responsibility of Owner's Representative, its officers, agents, servants and employees for any and all claims or suits for property loss or damage and/or personal injury, including death, to any and all persons, of whatsoever kind or character, whether real or asserted, arising out of or in connection with, directly or indirectly, the work and services to be performed hereunder by Contractor, its officers, agents, employees, 6 o7n_s1oo subcontractors, licensees or invitees, whether or not caused, in whole or in part, by the alleged negligence of the officers, agents, servants, employees, contractors, subcontractors, licensees and invitees of the Owner's Representative. Contractor likewise covenants and agrees to, and does hereby, indemnify and hold harmless Owner's Representative from and against any and all injuries, damage, loss or destruction to property of Owner's Representative during the performance of any of the terms and conditions of this Contract, whether arising out of or in connection with or resulting from, in whole or in part, any and all alleged acts or omissions officers, agents, servants, employees, contractors, subcontractors, licensees, invitees of Owner's Representative. Article 4 OWNER'S REPRESENTATIVE RESPONSIBILITIES 4.1 The Owner's Representative will visit the site at intervals appropriate to the stage of construction to become generally familiar with the progress and quality of the Work. 4.2 The'Owner's Representative will not have control over or be in charge of or be responsible for construction means, methods, techniques, sequences or procedures, or for ..safety precautions and programs in connection with the Work, since these are solely the Contractor's responsibility. The Owner's Representative will not be responsible for the Contractor's failure to carry out the Work in accordance with the Contract Documents. 4.3 The Owner's Representative will have the authority to reject Work that does not. conform to the Contract Documents. 4.4 The Owner's Representative's duties, responsibilities and limits of authority as describes in the Contract Documents will not be changed without written consent of the Owner. 4.5 Based on the Owner's Representative's observations and evaluations of the Contractor's Application for Payment, the Owner's Representative will review and certify the amounts due the Contractor. 4.6 The Owner's Representative will promptly review and approve or take appropriate actions upon Contractor's submittals such as Shop Drawings, Product Data and Samples, but only for the limited purpose of checking for conformance with information given and the design concept expressed in the Contract Documents. 4.7 The Owner's Representative will promptly interpret and decide matters concerning performance tinder any requirements of the Contract Documents on written request of either the Owner or Contractor. 7 07/28/00 4.8 The Owner's Representative require additional testing if necessary or minor change order as provided in Section 6.3. 4.9 The Owner's Representative shall terminate the contract upon written approval by Owner. 4.10 Interpretations and decisions of the Owner's Representative will be consistent with the intent of and reasonably inferable from the Contract Documents and will be in writing or in the form of drawings. When making such interpretations and decisions, the Owner's Representative will endeavor to secure faithful performance by both Owner and Contractor, will not show partiality to either and will not be liable for results of interpretations or decisions so rendered in good faith. Article 5 TESTING AND INSPECTIONS 5.1 Tests, inspections and approvals of portions of the Work required by the Contract Documents or by laws, ordinances, riles, regulations or orders of public authorities having jurisdiction shall be made at an appropriate time. If the Owner's Representative requires additional testing, the Contractor shall perform these tests. 5.2 The Owner shall pay for additional tests except for testing Work found to be defective for which the Contractor shall pay. Article 6 CHANGES IN THE WORK 6.1 After execution of the Contract, changes in the Work may be accomplished by Change Order or by order for a minor chancre in the Work. The Owner, without invalidating the Contract, may order changes in the Work within general scope of the Contract consisting of additions, deletions or other revisions, the Contract Sum and Contract Time being adjusted accordingly. 6.2 The Owner's Representative will have the authority to order minor changes in the Work not involving changes in the Contract Sum or the Contract Time and inconsistent with the intent of the Contract Documents. Such changes shall be written orders and shall be binding on the Owner and Contractor. The Contractor shall carry out such written orders promptly. 6.3 If concealed or unknown physical conditions are encountered at the site that differ materially from those indicated in the Contract Documents or from those conditions ordinarily found to exist, the Contract Sum and Contract Time shall be subject to equitable adjustment. 8 07/28/00 Article 7 CORRECTION OF WORK 7.1 The Contractor shall promptly correct Work rejected by the Owner's Representative because of failure to conform to the requirements of the Contract Documents. Such failure constitutes a default and is subject to the provisions in Section 2.3. The Contractor shall bear the cost of correcting such rejected Work. 7.2 In addition to the Contractor's other obligations including warranties under the Contract, the Contractor shall, for a period of one year after Substantial Completion, correct work not conforming to the requirements of the Contract Documents. 7.3 If the Contractor fails to cure the default in accordance with Section 2.3, Owner may cure it and the Contractor shall reimburse the Owner for the cost of correction. Article 8 TIME 8.1 Time limits stated in the Contract Documents are of the essence of the Contract. 8.2 If the work is delayed at any time by change orders, labor disputes, fire, unusual delay in deliveries, unavoidable casualties or other causes beyond the Contractor's control, the Contract Time shall be extended by Change Order for such reasonable time as the Owner's Representative may determine. Article 9 PAYMENTS AND COMPLETION 9.1 CONTRACT SUM The Contract Sum stated in the Contract, including authorized adjustments, is the total amount payable by the Owner to the Contractor for performance of the Work under the Contract Documents. A 10% retainage will be required for all projects exceeding $4000.00. 9.2 APPLICATIONS FOR PAYMENT 9.2(a). At least ten (10) days before the date established for each progress payment, the Contractor shall submit to the Owner's Representative an itemized "Application for Payment" for operations completed in accordance with the values stated in the Contract. Such application shall be supported by data substantiating the Contractor's" right to 9 07/28/00 payment as the Owner or Owner's Representative may reasonably require and reflecting retainage if provided for elsewhere in the Contract Documents. 9.2(b). The Contractor warrants that title to all Work covered by an Application for Payment will pass to the Owner no later than the time of payment. The Contractor further warrants that upon submittal of an Application for Payment, all Work for which Certificates for Payment have been previously issued and payments received from the Owner shall, to the best of the Contractor's knowledge, information and belief, be free and clear of liens, claims, security interests or other encumbrances adverse to the Owner's interests. 9.2(c). The Owner's Representative will, within seven days after receipt of the Contractor's Application for Payment, either issue to the Owner a Request for Payment, with a copy to the Contractor, for such amount as the Owner's Representative determines is properly due, or notify the Contractor and Owner in writing of the Owner's Representative's reasons for withholding payment in part or in whole. 9.3 PROGRESS PAYMENTS 9.3(a). After the Owner's Representative has issued a Request for Payment, the Owner .shall make payment based on a Percentage of Completion schedule provided to the Owner by the Contractor. This schedule requires mutual agreement evidenced by signatures representing "both"parties which shall become a part of this Contract. 9.3(b). Upon receipt of payment from the Owner the Contractor shall promptly pay each subcontractors and material suppliers, out of the amount paid to the Contractor based on the work completed. 9.3(c). Neither the Owner or the Owner's Representative shall have the responsibility for the payment of money to subcontractors or material suppliers. 9.3(d). A Request for Payment, progress payment, or partial or entire use or occupancy of the project by the Owner shall not constitute acceptance of Work performed if it is not in accordance with the requirements of the Contract Documents. 9.4 FINAL COMPLETION AND FINAL PAYMENT 9.4(a). Upon receipt of a final Application for Payment with all required documents, the Owner's Representative will inspect the Work. When the Owner's Representative finds the Work acceptable and the Contract fully performed, the Owner's Representative will promptly issue a final Request for Payment. 9.4(b). Final payment shall not become due until the Contractor submits to the Owner's Representative releases and waivers of liens, and data establishing payment or satisfaction of obligations, such as receipts, claims, security interests or encumbrances 10 07/28/00 • arising out of the Contract and any other documents, certificates, surveys or warranties required by Contract Documents. 9.4(c). Acceptance of final payment by the Contractor, a subcontractor or a material supplier shall constitute a waiver of claims by that payee except those previously made in writing and identified by that payee as unsettled at the time of final Application for Payment. Article 10 SAFETY PRECAUTIONS AND PROGRAMS 10.1 The Contractor shall be responsible for initiating, maintaining, and supervising all safety precautions and programs, including all those required by law in connection with performance of the Contract. The Contractor shall promptly remedy loss and damage to property caused in whole or in part by the Contractor, a subcontractor, anyone directly or indirectly employed by them or anyone for whose acts they may be liable. Article 11 TERMINATION OF THE CONTRACT 11.1 TERMINATION BY THE CONTRACTOR If the Owner fails to make payments when due or breaches any other terms of this Contract, the Contractor may terminate the Contract, upon written notice to the Owner, and recover from the Owner payment for Work executed and for proven loss with respect to materials, equipment, tools, construction equipment and machinery, including reasonable overhead, profit and damages. 11.2 TERMINATION BY THE OWNER 11.2(x). The Owner or the Owner's Representative upon written consent from Owner, may terminate the Contract if the Contractor: 1. consistently, persistently or repeatedly refuses or fails to supply enough properly skilled workers or proper materials; 2. fails to make payments to subcontractors for materials or labor in accordance with the respective agreements between the Contractor and the subcontractors; 3 violates federal, state or local laws, ordinances, rules, regulations or orders of a public authority having jurisdiction; or 4. is otherwise in breach of a provision of the Contract Documents. 11.2(b). When an}, of the above reasons exist, the Owner , after consultation with the Owner's Representative, may without prejudice to any other rights or remedies of the Owner and after giving the Contractor and Contractor's surety if any, written notice, terminate the employment of the Contractor and may: 07/28/00 • 1. take possession of the site and of all materials thereon owned by the Contractor; 2. finish the Work by whatever reasonable means or method the Owner may deem expedient. 11.2(c ). When the Owner or Owner's Representative terminates the Contract for one of the reasons listed in 11.2(a), the Contractor shall not be entitled to receive further payment until all the Work is completed and accepted. 11.2(d). If the unpaid balance of the Contract Sum exceeds costs to finish the Work, such excess shall be paid to the Contractor. If such costs exceed the unpaid balance, the Contractor shall pay the difference to the Owner. This, obligation for payment shall survive termination of the Contract. Article 12 ASSIGNS 12.1 This Contract may not be assigned by either party. Article 13 GOVERNING LAW 13.1 This Contract shall be governed by and construed in accordance with the laws of the State of Texas. Article 14 PERFORMANCE OF CONTRACT 14.1 The obligations under the terms of the contract are performable in Tarrant County, Texas. Article 15 VENUE 15.1 The parties hereto hereby consent that venue of any action brought under this Contract shall be in Tarrant County,Texas. 12 07/28/00 • Article 16 SEVERABILITY 16.1 If one or more of the provisions of this Contract is held invalid, unenforceable or illegal in any respect, the remainder of the Contract shall remain valid and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Contract in Fort Worth, Tarrant County, Texas, this day of A.D. 2000. Owner Contractor Title By: Acknowledged by: For City of Fort Worth Housing Department as Owner's Representative 13 07/28/00 ADDENDUM #1 A minimum of five() inspections are required: (1) FIRST REQUIRED INSPECTION Foundation- No concrete shall be placed without the steel, poly, plumbing and beams inspection. After inspection is completed and the slab is poured the contractor will receive the first draw in the amount of 18% of the contract price. (2) SECOND REQUIRED INSPECTION Framing- After the house has been framed, decked, cornice installed, roofing and siding is completed. The contractor will receive the second draw in the amount of 18% of the contract price. (3)THIRD REQUIRED INSPECTION An inspection is required after the brick, windows, electrical rough-in, plumbing top-out, hvac rough-in and the wall insulation is completed( prior to installation of drywall). Contractor will receive the third draw in the amount of 18% of the contract price. ".(4) FOURTH REQUIRED INSPECTION An inspection is required after the installation of the drywall, tape/ bed/ texture, trim-out, interior and exterior paint, floor coverings, cabinets and counter tops and the plumbing trim-out is completed. The contractor will receive the fourth draw in the amount of 18% of the contract price. (5) FIFTH REQUIRED INSPECTION Final inspection- All finish work completed. Drive and approach, grading, electrical, hvac, attic insulation and the Building card has been completely signed off as being complete. The contractor will receive the fifth draw in the amount of 18% of the contract price. RETAINAGE The 10% retainage will be released after completion of the punch list and installation of the appliances. Contractor shall give Owner's representative a three (3) day notice to schedule the required inspections. 14 07/28/00 e r r ADDENDUM #2 Add to Article 9 Paragraph 9.3 Progress payment. 9.3 (e) CONSTRUCTION DRAWS Progress payment shall coincide'with the five (5) required inspections. ADDENDUM 93 PROPERTY: The following items are to be included in the contract for construction: Site prep and dirt work Driveway Curb cut Approach Water and sewer lines from tap to house 2-10 Home Buyers Warranty 15 07/28/00 y REQUEST FOR INSPECTION Agency: Construction Contractor: Property Address: Contractor's Address: Draw # Amt. Requested: Date: HOME CDBG Housing: I hereby agree that the work stated by the contractor has been accomplished and approve payment to the contractor in accordance with the agreement, contingent upon inspection. It is understood that the actual amount disbursed will be based on the findings of that inspection. I approve payment in the amount of Housing Program Manager Signature: Date: Inspection conducted by: I hereby certify that all work is completed as indicated on the Contractor's payment request. Signature: Date: Amt.: RETAINAGE: CITY OF FORT `NORTH HOUSING DEPARTMENT REQUEST FOR FUNDS Agency Program Name: Contract Number: Report Period: Contract Amount: Date of Request: _.-. SECT[ON.I(AGENCY)' to :..Z. ; _ CASH BALANCE ANALYSIS FOR APR } I. Be.innin;Cash Balance S S 2. Amount Received: Pro-ram Income S S City of Fort.Worth S S Interest Earned S S 3. Total Funds Available(I +2) S S 4. Less Expenditure(detail statement cost) S S 5. ENDING CASH BALANCE (3-4) S S Opera..tng Costt - .rte...r.. .._V.... �.• t...�....1.—.v..0 •........ .w.v._ ...__.. .. •. .., .. .. n 6. Estimated Expenditures S 7. Funds Needed (6-5) S S. Less Estimated Program Income S 9. Unpaid Request for Payment Previously Submitted S 10. Amount of This Request(7-8 &9) S TOTAL AMOUNT At' 'IJ STED x r 1.:..a..+_._�._... ..:_ ......_.��..... ......�......_...n...s..�....:,:.4.. ....s.^:Rl.+.k«r_ .r,!, Mme'• *"..y.a _. _._ i t- i " J _ fi SS 1y£'3".4 - ItiIARS- Purchasing Request A. MARS INPUT: Vendor/PO Number/Requisition Number B. Fund/Account/Center C. Total Amount of this Request SECTION III j . .. •. _ ... .... ...-.p..,.•}:.AFw tJ/:J k-.....-.:�JGti;�_a.` ;-c :rc�,... .. . .� �� .s."'S:a �.• :-� {.. -a. � t -�' ' .. .. .lam ..0 .. .. .. .->.r:.� ..> ._ .. ... _. .. . I. Verification A. MARS- Purchasing: (NAM C) B. Contract Manager: C. Accounting: I�ame) 2. Authorization A. Agency: 1 Vmtl B. hlgmt & Budget Administrator / (Na„C) Housing Director / IF O�F.It S3,50O.00 (Nanw) CITY OF FORT WORTH HOUSING DEPARTiv1ENT MANAGEMENT AND BUDGET DIVISION DETAIL STATEMENT OF COSTS CO`1TP-ACr N0. G E.�C l' DATE ROGRAM l TO REPORT PERIOD PROGRAII MONTHLY CUMULATIVE COST CATEGORY ACCOUNT BUDGET EXPENDITURES TO DATE 'ERSONAL SERVICES BALANCE salaries 516010 FICA 518010 .;Cc Insurance 515050 Iealth Insurance 518060 'nenlployment- Federal 518090 inenlploymem Tax-State 51 SO90 Worker's Comp 518040 retirement S IS070 SUPPLIES )rtice Supplies 521010 'osta:e 521020 'eaching Aids 522030 'ood Supplies 522030 Mier Operating Supplies 523300 :ONTRACTUAL SERVICES 'elephone 535040 :lectric 535020 ;as(Utility) 535010 �'nter!Waste Disposal 535030 '.ent(Building) 537010 'ustodial Services 539220 )t'tice Equipment Rental 537030 rinting 533030 .epairs 53600 iddity Bond 538210 inbility Insurance 534020 BealB Accounting 538060 rilate Auto Alloleance-Local 532130 Avertising 533010 'ontcrences R Seminars 531180 'ontractual Services--Land Acq. 539120 Idirect Cost 517010 'APITAL OUTLAY urniture. Fietures 511330 �I'tice Equipment 541370 ropert�' Insurance OTAL Sub-Contractors Certification: I certify that the costs incurred are taken from the books of accounts and that such costs art valid and consistent with the terms of the agreement. :\:CIE and TITLE O-AUTHORIZED OFFICER SIGNATURE and DATE C(TY OF FORT WORTH • ` t-(OUStNG DEPARTMENT CONTRACT MANAGEMENT c)MStON . EXPENDn-URES WORKSHEET FlEpoRr psz,00 c ca�No. o.�Tr oi: DATE Ct{ECK NO. PAYEE DESCRIPTION ACCOUNT NO. I A. OUNT 70TA1 ,IE and TITLE OF AUTHORIZED OFFICER SIGNATUR:- and OATS w.cu fors+oso, City of Fort Worth, Texas "avow and Council communication DATE REFERENCE NUMBER LOG NAME PAGE 10/2/01 **C-18758 05MITCHELL 1 of 2 SUBJECT CONTRACT WITH MITCHELL BOULEVARD DEVELOPMENT CORPORATION, INC. MBDC COMMUNITY HOUSING DEVELOPMENT ORGANIZATION CHDO RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to execute a contract with the Mitchell Boulevard Development Corporation, Inc. (MBDC) in the amount of$84,702 for one year from the date of contract execution; and 2. Authorize the MBDC to retain a portion of the proceeds, as defined by Section 92.300(a)(2) of the Home Investment Partnership Program (HOME) Final Rule, that result from the investment of CHDO set-aside (program) funds and as specified by the contract; and 3. Authorize the City Manager 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 applicable laws and regulations. DISCUSSION: On August 1, 2000 (M&C G-12972), the City Council authorized a CHDO contract with the MBDC in the amount of $150,000 (HOME funds). Under the terms of the contract,.the MBDC was to produce two single-family homes for sale to first-time, low-income homebuyers. Delays in construction and unforeseen circumstances prevented the MBDC from accomplishing its objective within the allotted time. Consequently, the closing of the sale for the first house built under this contract was delayed until September 2001. A second house will soon be under contract for construction, with completion scheduled for January 2001. This contract for the remaining balance of$84,702 will allow the MBDC to fulfill the terms of their original contract and undertake additional housing development in the Mitchell Boulevard area. Under the federal HOME program regulations as defined by Section 92.300(a)(2), the City is permitted to allow a CHDO, through the terms of the written agreement, to retain the proceeds resulting from the investment of CHDO set-aside funds for use in HOME eligible or other housing activities which benefit low-income families. These actions will not require any additional appropriations from the City. On September 11, 2001, the terms of the above proposal were endorsed by the Safety and Community Development Committee for City Council approval. The Mitchell Boulevard Model Blocks is located in COUNCIL DISTRICT 8. City of Fort Worth, Texas "avow and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 10/2/01 '"*C-18758 1 05MITCHELL 2 of 2 SUBJECT CONTRACT WITH MITCHELL BOULEVARD DEVELOPMENT CORPORATION, INC. MBDC COMMUNITY HOUSING DEVELOPMENT ORGANIZATION CHDO 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. JP:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) Joe Paniagua 6140 APPROVED Ming Department Head: s.41TY COUNCIL Jerome Walker 7537 (from) OCT 2 ZIMi GR76 539120 005208128150 $84,702.00 AdditlNd Iufermatlw Coitact: � Clt�Soarohr�d t#� Jerorna Walker 7537 it1 of Fort Wottl4 TQZW