HomeMy WebLinkAbout11/16/1993, C-2 - AGREEMENT WITH HOUSING AUTHORITY FOR GRANT ADMINISTRATION AND OWNERSHIP OF THE HOMELESS SHELTER PROPERTY �I'IuAlylll�lllllll�l II MEETING
c�� DTE:
KIWI I� of San Lai S oBI Spo
COUNCIL AGENDA REPORT ITEM NUMBER: 01�1
FROM: Ken Hampian, Assistant City Administrative Officer
Prepared By: Deb Hossli, Administrative Analyst 1 11y•
SUBJECT: Agreement with Housing Authority for grant administration and ownership of
the homeless shelter property
CAO RECOMMENDATION: By motion, approve and authorize the Mayor to execute an
agreement with the Housing Authority for grant administration and ownership of the
homeless shelter property.
DISCUSSION.
Back round
In 1991, at the request of the Economic Opportunity Commission (EOC), the City Council
agreed to apply for a Community Development Block Grant (CDBG) to purchase and
rehabilitate the homeless shelter property. The grant application was for $438,000 and
provided sufficient funding to purchase the site, remodel the Shelter Services Center and
administer the grant. In order to satisfy CDBG regulations and meet the tight grant
submission timeframe, the grant application was prepared cooperatively with the City
sponsoring the grant application (as non-profits cannot apply directly) and the Housing
Authority coordinating preparation of the grant (with assistance from the EOC,the City and
the County Homeless Services Coordinator). As the Council is aware, the City was awarded
the CDBG grant in the summer of 1991.
The CDBG grant application very clearly set out the roles of the City, Housing Authority
and EOC for grant administration and property ownership should the City be successful in
securing the grant. Specifically, the City agreed to take responsibility for grant
administration oversight and insuring that the property remains a homeless shelter; the
Housing Authority agreed to take responsibility for administration of the grant and
ownership of the homeless shelter property; and the EOC agreed to take responsibility for
the operation of a homeless shelter program on the site in compliance with CDBG
guidelines.
With respect to grant administration status, the property has been purchased and ownership
transferred to the Housing Authority. The remodel portion of the project is underway and
expected to be completed by year end. The only remaining task to fulfill the terms of the
CDBG grant agreement involves the adoption of an agreement between the City and
Housing Authority for grant administration and long term ownership of the homeless shelter
property. This agreement is necessary to assure the State that the grant has been carried
out in accordance with State CDBG guidelines.
�II��►�H►�1111111111IIBIU city of san tuts osispo
COUNCIL AGENDA REPORT
Page 2
Agenda Report - Housing Authority
Agreement
City staff and Housing Authority staff have developed an agreement for grant administration
and long term ownership of the homeless shelter property. The EOC is not a party to this
agreement as the City holds a separate contract with the EOC for operation of the homeless
shelter. Key elements of the agreement between the City and Housing Authority include:
Grant Administration
► The City acknowledges that it is the official recipient of the CDBG grant, and
as such, assumes responsibility for insuring that the grant is carried out in
accordance with CDBG guidelines and that the property is used in perpetuity
for homeless shelter activities.
► The Housing Authority will act as the sub-grantee for the CDBG grant, and
as such, carry out of provisions of the grant agreement in accordance with
CDBG guidelines. The Housing Authority will receive $30,000 (allocated
within the grant) to administer the grant.
I
Property Ownership
► The Housing Authority holds title to the homeless shelter property and agrees
to use it for the operation of a homeless shelter facilities. If a time exists in
the future where homeless services are no longer needed or feasible, the
Housing Authority agrees to use the property for a substitute housing activity
acceptable to the State. City Council approval will be required for any
changes in use to the property.
► The Housing Authority will not lease, assign, or sell the property without
approval from the City Council.
► Ownership of the property will revert back to the City if the Housing
Authority defaults on any of the terms of this agreement.
Operation and Maintenance
► The Housing Authority will allow the EOC (or another homeless shelter
provider approved by the City and Housing Authority) to operate a homeless
shelter program on the site for $1 per year.
����►�►►��IIIIIIuIp�Nu►�����II City of San LaiS OBISpo
COUNCIL AGENDA REPORT
Page 3
Agenda Report - Housing Authority
► The City and Housing Authority agree to insure that provider of the homeless
shelter program on the site will operate the program in accordance with State
CDBG guidelines.
► The Housing Authority will maintain the property and physical structures on
the site in a decent, safe and sanitary condition. The Housing Authority and
City will work cooperatively to secure outside sources of funding (e.g., grants)
for the long-term maintenance of the facility.
CONCURRENCES:
The State Department of Housing Community Development staff has reviewed and .
approved the agreement. The Housing Authority Board of Directors is scheduled to take
up the agreement during their November 18, 1993 meeting.
FISCAL IMPACT:
Approval of this agreement.will not result in any costs to the City.
ATTACHMENT:
1 - Agreement with Housing Authority
I
g/home-sr
L'-�-3
AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO
FOR GRANT ADMINISTRATION AND OWNERSHIP OF
THE HOMELESS SHELTER PROPERTY
This agreement (hereinafter called agreement) is hereby entered into day of
, 1993 by and between the City of San Luis Obispo, (hereinafter called "City"),
and the Housing Authority of the City of San Luis Obispo, a public agency (hereinafter
called "Authority"):
Whereas, the City desires to have homeless shelter services available to its residents
and, as such, has worked cooperatively with the County of San Luis Obispo, the Authority
and the Economic Opportunity Commission (EOC) to insure that these services are
available in the county; and
Whereas, the City applied for and received a Community Development Block Grant
(CDBG) in 1991 for $438,000 to purchase and rehabilitate the homeless shelter located at
750 Orcutt Road in San Luis Obispo, California as shown on Exhibit "A" in an effort to
insure the long-term viability of the homeless shelter program; and
Whereas, the CDBG application set out the roles of the City and the Authority for
carrying out the terms of the grant as follows: (1) the City would sponsor the grant
application, provide grant administration oversight, and insure the property is used in
perpetuity for homeless shelter activities; and (2) the Authority would prepare the grant
application, administer the grant, and assume ownership responsibilities for the homeless
shelter property. The grant application also acknowledged that the EOC, or another
qualified homeless shelter program operator, would take full responsibility for operating a
homeless shelter program on the property in compliance with CDBG guidelines; and
Whereas, it is now necessary to formalize this arrangement through the development
of an agreement between the City and the Authority. It should be acknowledged that the
City has a separate agreement with the EOC for the operation of the homeless shelter
program.
Now, therefore, in consideration of mutual covenants, conditions, promises and
agreements herein set forth, the City and Authority hereby agree to the following terms and
conditions:
Grant Administration
1. The City acknowledges that it is the official recipient of a CDBG grant in the
amount of$438,000 to purchase and rehabilitate the homeless shelter located at 750
Orcutt Road. As such, the City agrees to take responsibility for insuring that all
terms and conditions of the CDBG agreement are met and that the property will be
used for homeless shelter activities in perpetuity.
Page 2
Agreement
2. The Authority agrees to act as the sub-grantee and, as such, carry out all provisions
of the 1991 CDBG grant between the City and the State Department of Housing and
Community Development. Charges for carrying out the grant will not exceed the
$30,298 allocated for administration as established in the 1991 CDBG grant
agreement and be made in accordance with OMB Circular A-122.
3. The Authority agrees to: (a) carry out all terms of 1991 CDBG grant in compliance
with State and Federal laws; (b) assist in any audits required by the State
Department of Housing and Community.Development in connection with the 1991
CDBG grant; and (c) retain all 1991 CDBG grant documentation for a period of five
years after formal grant closeout.
Property Ownership and Usage
4. The City has transferred effective September 4, 1992 to the Authority fee title to the
Homeless Shelter property located at 750 Orcutt Road. The City granted ownership
of the property to the Housing Authority for the sole use and operation as a
homeless shelter as set out in the 1991 CDBG grant proposal.
5. The Authority agreed to accept fee title for the property for the sole purpose of
operating a homeless shelter program. However, should a time exist in the future
when it is determined that homeless sheltering services are no longer feasible (e.g.,
there are no qualified program providers available, a need for homeless services no
longer exists, no monies are available to operate an effective and efficient program,
etc.), the Authority agrees to use the site for a substitute housing activity that
benefits the Target Income Group as defined by the State Department of Housing
and Community Development. City Council approval will be required for any
changes to use of the property.
6. The Authority agrees that it shall not lease, assign, sell, or enter into a sale or cause
to be sold, the property without approval of the City Council.
7. The Authority agrees that no liens or encumbrances shall be secured against the
property.
8. The Authority agrees that ownership of the property will revert back to the City if
the Authority: (a) defaults on any provisions contained in this agreement caused or
indirectly caused by the Authority; or (b) becomes insolvent, files bankruptcy, or is
otherwise unable to maintain the use of the site as a homeless shelter or other use
that benefits the Target Income Group as defined by the State Department of
Housing and Community Development regulations.
Page 3
Agreement
Daily Operation and Maintenance of the Property
9. The Authority agrees to allow the EOC (or other suitable homeless shelter program
provider approved by the City and Authority) to operate a homeless shelter program
on the property at a rental rate of$1 per year. Should the EOC cease to operate a
homeless shelter program on the property, the Housing Authority will work with the
City and County of San Luis Obispo to locate an alternative homeless shelter
program provider acceptable to all parties.
10. The City agrees to insure that the provider of the homeless shelter program will
operate the program in a manner that assures that at least 70% of the clients served
will be from the Targeted Income Group as determined by the State Department of
Housing and Community Development regulations.
11. The Authority agrees to protect and maintain in a decent, safe and sanitary condition
the physical structures and property at the site. The Authority and City will work
cooperatively to secure outside sources of funding (e.g., grants) for the long-term
maintenance of the homeless shelter property.
Insurance
12. The Authority agrees to provide proof of insurance in accordance with the
requirements established in Exhibit 'B".
Attorney's Fees
13. In the event of any action at law or in equity between the parties hereto, arising out
of or related to this agreement or the breach thereof, the prevailing party shall be
entitled, in addition to such other relief as may be granted, to a reasonable sum for
attorney's fees in such litigation.
Worker's Compensation
14. The Authority certifies that it is aware of the provisions of the Labor Code of the
State of California, which require every employer to be insured against liability for
workers compensation or to undertake self-insurance in accordance with the
provisions of that Code, and it certifies that it will comply with such provisions
throughout the term of this agreement.
Hold Harmless and Indemnification
15. The Authority hereby agrees to indemnify and save harmless the City, its officers,
agents, and employees against:
Page 4
Agreement
A. Any and all claims and demands which may be made against the City, its
officers, agents or employees by reason of any injury or death of any person
or corporation caused by any negligent act or omission of the Authority under
this agreement or of the Authority's employees or agents;
B. Any and all damage to or destruction of the property of the City, its officers,
agents, or employees, occupied or used by or in the care, custody, or control
of the Authority, or in proximity to the site of the Authority, caused by any
negligent act or omission of the Authority under this agreement;
C. Any and all claims and demands which may be made against the City, its
officers, agents, or employees by reason of any injury to or death of or
damage suffered or sustained by an employee or agent of the Authority under
this agreement, however caused, excepting, any such claims or demands which
are the result of the negligence or willful misconduct of the City, its officers,
agents, or employees;
D. Any and all penalties imposed or damages sought on account of the violation
of any law or regulation or of any term or condition of any permit, when said
violation of any law or regulation or of any term or condition of any permit
is due to negligence on the part of the Authority.
The Authority, at its own costs, expense, and risk shall defend any and all
suits, actions, or other legal proceedings that may be brought against or for
employees on any such claim or demand of such third persons, or to enforce
any such penalty, and pay and satisfy any judgement or decree that may be
rendered against the City, its officers, agents, or employees in any such suit,
action, or other legal proceeding, when same were due to negligence of the
Authority.
Other Requirements
16. The Civil Rights, HCD, and Age Discrimination Acts Assurances:
During the performance of this Agreement, the City and Authority assure that no
otherwise qualified person shall be excluded from participation or employment,
denied program benefits, or be subjected to discrimination based on race, color,
national origin, sex, age, or handicap, under any program or activity funded by this
contract, as required by Title VI of the Civil Rights Act of .1964, Title I of the
Housing and Community Development Act of 1974, as amended, and the Age
Discrimination Act of 1975, and all implementing regulations.
17. The Training, Employment, and Contracting Opportunities for Business and Lower
Income Persons Assurance of Compliance:
-.2-
Page 5
Agreement
A. The work to be performed under this Agreement 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 Urban Development Act of
1968, as amended, 12 U.S.C. 1701u. 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.
B. The parties to this Agreement 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 Part 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 which would prevent them from complying with
these requirements.
C. The Grantee will send to each labor organization or representative of workers
with which he has a collective bargaining agreement or other contract or
understanding, if any, a notice advertising the said labor organization or
worker's representative of his 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.
D. The Grantee will include these Section 3 clauses in every contract and
subcontract for Work in connection with the project and will, at the direction
of the State, stake appropriate action pursuant to the contract upon a finding
that the Grantee or any contractor or subcontractor is in violation of
regulations issued by the Secretary of Housing and Urban Development, 24
CFR Part 135 and, will not let any contract unless the Grantee or contractor
or 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 Part 135, and all applicable rules and orders of the Department issued
thereunder prior to the execution of the Agreement shall be a condition of
the federal financial assistance provided to the project, binding upon the
Grantee, its successors, and assigns. Failure to fulfill these requirements shall
subject the Grantee, its contractors and subcontractors, its successors, and
assigns to those sanctions specified by the grant or contract through which
federal assistance is provided, and to such sanctions as are specified by 24
CFR Part 135.
�a�
Page 6
Agreement
18. State Nondiscrimination Clause:
A. During the performance of this contract, contractor and its subcontractors
shall not unlawfully discriminate against any employee or applicant for
employment because of race, religion,color,national origin, ancestry, physical
handicap, medical condition, marital status, age (over 40) or sex. Contractors
and subcontractors shall insure that the evaluation and treatment of their
employees and applicants for employment are free of such discrimination.
Contractors and subcontractors shall comply with the provisions of the Fair
Employment and Housing Act (Government Code, Section 12900 et seq.) and
the applicable regulations promulgated thereunder (California Code of
Regulations,Title 2, Section 7258.0 et seq.). The applicable regulations of the
Fair Employment and Housing Commission implementing Government Code,
Section 12990, set forth in Chapter 5 of Division 4 of Title 2 of the California
Code of Regulations are incorporated into this contract by reference and
made a part hereof as if set forth in full, Contractor and its subcontractors
shall .give written notice of their obligations under this clause to labor
organizations with which they have a collective bargaining or other agreement.
B. This contractor shall include the nondiscrimination and compliance provisions
of this clause in all subcontracts to perform work under the contract.
Notices
19. Whenever any notice is required hereunder, such notice shall be deemed to have
been given when personally delivered, or three (3) days after it is mailed, if mailed by
United States mail, certified, return receipt requested, to the parties at the addresses listed
below or such other addresses as the parties hereafter designate in writing:
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, CA 93403-8100
Housing Authority of the City of San Luis Obispo
P.O. Box 638
San Luis Obispo, CA 93406
Executed this day of 1993, at San Luis Obispo,
California.
HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO
Chairperson
{i P r
Page 7
Agreement
CITY OF SAN LUIS OBISPO
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
mey
I:eoc.agr
4
:�..e •
-S RES
•
PW
•
• M
9 • , i �r�rov '
re a.pc
A Al 3-?f
� r�Cil -
:
Q 1
9 ; v 7 G�5��,y •T A�� ER-. 007-
J Ai
CNa3-ds
,da
OC iG A;i7-77
L4 -?:
73(� 7 0
Homeless Shelter+
Property
FK ZS
-e eR i5•B.
G ! " • 33 G? R �-
ip
Ir
IL
06
VICINITY MAP
/� P NORTH
A-i
EXHIBIT "A"
INSUIL X REQUIREMENTS FOR CON. ACTORS
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of the work hereunder
by the Contractor, his agents, representatives, employees or subcontractors.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any
auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
Mnimtnn Limits of Insurance
Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage.
If Commercial General Liability or other form with a general aggregate limit is used, either the general
aggregate limit shall apply separately to this project/location or the general aggregate limit shall.be twice
the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. -
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City,
either. the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its
officers,officials,employees and volunteers;or the Contractor shall procure a bond guaranteeing payment of losses
and related investigations, claim administration and defense expenses.
Other Im=nce ProyWorts
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following
provisions:
1. The City,its officers, officials, employees, agents and volunteers are to be covered as insureds as respects:
liability arising out of activities performed by or on behalf of the Contractor, products and completed
operations of the Contractor, premises owned,occupied or used by the Contractor, or automobiles owned
leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the
scope of protection afforded to the City, its officers, official, employees, agents or volunteers.
2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as
respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-
insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess
of the Contractor's insurance and shall not contribute with it.
3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties
shall'not affect coverage provided to the City, its officers, officials, employees, agents or volunteers.
4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is
brought, except with respect to the limits of the insurer's liability.
5. Each insurance policy.required by this clause shall be endorsed to state that coverage shall not be
suspended,voided,cancelled by either party, reduced in coverage or in limits except after thirty(30)days'
prior written notice.by certified mail, return receipt requested, has been given to the City.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.
Verification of Coverage
Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements
effecting general liability and automobile liability coverage are also required by this clause. The endorsements are
to be signed by a person authorized b that insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City before work commences.
Subcontractors
Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and
endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements
stated herein. if
Attachment "B" 14