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HomeMy WebLinkAboutAGENDA REPORT 1986 0818 CC REG ITEM 10A l O A MOORPARK //,/, 69, THOMAS C. FERGUSON4 STEVEN KUENY Mayor �•-:'�-,:� City Manager • DANNY A.WOOLARD F�� CHERYL J. KANE Mayor Pro Tern City Attorney JAMES A.HARTLEY ntv,\�i� RICHARD MORTON Councilmember Director of ALBERT PRIETO � � Community Councilmember Development LETA YANCY-SUTTON R.DENNIS DELZEIT Councilmember City Engineer THOMAS P.GENOVESE JOHN V.GILLESPIE City Treasurer MEMO RAN D LJM Chief of Police 970 : The Honorable City Council FROM : Diane Eaton, Associate Planner D ATE : August 14, 1986 (City Council meeting of 8/18/86) S U B JE C T : AGREEMENT WITH VILLA CAMPESINA (TR-4147) Backgound Attached you will find the proposed contract between the City of Moorpark and Villa Campesina, a Mutual Self-help Housing Program (62 unit housing subdivision on Tract 4147) . This agreement implements the provision of the CDBG award to provide funding for this project and specifies performance obligations for Villa Campesina. The contract has been forwarded to the State for their approval. Staff expects confirmation of such action prior to your August 18, 1986 City Council meeting. There has been one primary change from the original CDBG application which is reflected in the contract. The Grant proposal allows the $513, 000 subsidy to be rolled into a deferred no interest loans on the homes due in five (5) years. This was essentially extended to ten (10) years as part of the tract approval consistent with the Mello legislation. This has been modified to read as follows : VCC will use the $513, 000 monies for project development costs as specified in the budget, EXHIBIT "A" of the agreement. When lots are sold to individual families, these funds will be rolled-over as deferred no interest loans payable to. the City in an approximate amount of $8000. 00 for each of the 62 owners. 799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864 The Honorable City Council page 2 - August 14, 1986 SUBJECT: AGREEMENT WITH VILLA CAMPESINA (TR-4147) However, the loans will be due on resale or in five (5) years whichever comes first. In addition, when a loan becomes due, the City will refinance on the same terms for additional five (5) year periods not to exceed a total loan period of twenty-five (25) years if the family cannot repay the loan at the conclusion of any of the five (5) year periods. The determination to permit refinancing shall be based upon the then combined annual income and any assets and related factors for the household seeking to refinance the unit. It is important that this Agreement be approved so that CDBG funds may be released to allow purchase of the land for the project. Recommended Action 1. Approve the Agreement as presented plus any required modification by the State Department of Housing and Community Development Department and authorize the Mayor to sign on behalf of the City; 2. In the event the State approval and/or modifications to the Agreement are not received by the State prior to the meeting, approve the Agreement subject to the acceptance of any State modifications by the City Attorney and City Manager and authorize the Mayor to sign on behalf of the City. MOORPARK, CALIFORNIA City Council Meeting of _ 198L,z, ACTION: . �.�.��• �✓v. )d{}_al. YS1N 5.0 By /crl August 11, 1986 Draft AGREEMENT IMPLEMENTING VILLA CAMPESINA MUTUAL SELF HELP HOUSING PROJECT THIS AGREEMENT is made and entered into this day of , 1986, by and between the City of Moorpark, herein- after referred to as "City, " and the Villa Campesina Corporation, a California nonprofit corporation, hereinafter referred to as "VCC. " WITNESSETH: WHEREAS, this agreement is entered into by and between City, and VCC for the use and expenditure of Community Development Block Grant (hereinafter referred to as "CDBG") funds which the City has been approved to receive under the provisions of Title I of the Federal Housing and Community Development Act of 1974 (hereinafter referred to as the "HCD Act") under HUD Grant Number 85-STBG-153; and WHEREAS, VCC is an eligible entity (a neighborhood-based nonprofit organization) under 24 CFR Section 570. 204 (c) (1) to act as designated project sponsor and subrecipient and, as such sub- recipient, VCC will exercise general oversight over CDBG activities eligible under 24 CFR Section 570 . 202 . NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows: 1. Program description and authority; objectives and reports (a) The Villa Campesina Mutual Self Help Housing Program (sometimes hereinafter referred to as "the project" or, "the pro- gram") shall consist of the development of lots for a 62 home mutual self help housing subdivision on Tract 4147. The City will -1- grant to VCC $532, 800 in CDBG funds, subject to the availability of said . CDBG Rinds to be used for _-this project o VCC will use $513, 000. of these funds for project development costs- -as_ specified in the attached budget (Exhibit "A") ; when lots are sold to individual families, these funds will be rolled over as deferred no interest loans payable to the City. The loans will be due on resale or in five (5) years, whichever occurs first. When a loan becomes due, the City will refinance on the same terms for additional five (5) year periods not to exceed a total loan period- of twenty-five (25)) years P Y if the family cannot repay the , loan at that time`. The determination to permit refinancing shall be based upon the then combined annual income and any assets and related factors for the household seeking • to refinance the unit. For a loan due on resale, the City will refinance on the same terms if the home is sold to a low income family. At the time that each loan is paid off, the money will go to the City of Moorpark to be used for other low income housing projects in Moorpark as determined by the City. The City will keep loan files on each individual loan from the date of sale of lots to individual families. The balance of the funds, $19, 800, will be used by VCC for project administration. VCC will own the land on which, the project is to be developed during the expenditure of all CDBG funds by may transfer ownership to the Cabrillo Economic Development Corporation or another nonprofit corporation at a later stage of development upon approval of the City of Moorpark. (b) VCC agrees to submit to the City of Moorpark monthly progress reports concerning the accomplishment of the of the objectives of the project. - - (c) The Grant Agreement, dated June 28, 1985, between the City and the State of California, a copy of which is attached hereto as Exhibit "B" , is hereby incorporated into and made a part of this Agreements. VCC agrees to perform, on behalf of the City, all of the duties and obligations of the Grantee under the Grant Agreement. 2. Term of agreement The term of this agreement shall be from the date of execution of this agreement to and including July 1, 1987, unless sooner terminated as hereinafter provided. The Agreement may be extended by mutual agreement. 3. Method and conditions of payment of program expenses Payments to VCC of the sum provided for in Paragraph 1 (a) shall be made in accordance with the following procedure and subject to the following conditions: (a) VCC may file with the City a written claim for an advance of costs for anticipated expenses to be incurred by VCC in conducting the program for a period of thirty (30) days. Said advance shall not exceed the budget amounts contained in Exhibit "A" . The antici- pated expenses to be incurred by VCC may include, but are not limited to, land acquisition, escrow/title insurance costs, site acquisition commission, engineering, subdivision plan check and permit fees, flood control district and water interconnection fees and rought grading and fill. Said claim shall contain a breakdown of anticipated expenses and shall show the budget category to which the expenditure is chargeable. Thereafter, VCC' s claims shall be processed on an advance basis. At its discretion, VCC: may request funds on a a reimbursement basis. Costs for project management shall only be paid on a reimbursement basis not to exceed the aforementioned $19, 800. 00 . -3- (b) On or before the twentieth (20th) working day following the end of a calendar month, VCC, shall file with the City a written report itemizing each obligation incurred and/or expenditure made by VCC in conducting the program including the costs of management. Written reports shall be filed more frequently or less frequently upon written request of the City. Said reports shall have attached thereto originals of invoices or other documentation acceptable to the City to substantiate each obligation or expenditure and shall show the budget category to which it is chargeable. (c) Upon receipt of a request for an advance prepared and filed as provided above, City shall review said claim, and if the claim is properly prepared and substantiated and is for expenses authorized under the terms of the program and this agreement, and is otherwise proper and in 'order for payment, the City shall approve said claim and shall issue a warrant made payable to VCC. Said advance payments shall only be paid with CDBG Funds when said funds are received by the City. VCC acknowledges that no City funds shall be used to make an advance of funds under this Agreement. (d) No claim shall be filed or approved which is not prepared and substantiated as provided in this agreement and VCC agrees that no obligation shall be incurred and no claim shall be prepared for expenses which are not authorized under the terms of both the program and this agreement. (e) All claims must be received and filed with the City on or before July 1, 1987. No claims filed for whatever reason after that date will be honored or paid, unless otherwise agreed to by the City. 4. VCC to keep records VCC shall keep accurate written records of all expenses incurred by it and of monies received by it consistent with the requirements of Exhibit "B. " -4- 5. Audit of VCC' s records City and the State of California and the U.S. Government shall have the right to audit and review all records maintained by VCC pursuant to the Terms of this agreement. Any such audit and review may be conducted at any time during regular business hours. VCC is responsible for payment of all its own audit related costs. 6. Project budget A budget showing VCC' s proposed expen- ditures in conducting the project and containing a breakdown of those expenditures by major categories and subcategories is attached hereto as Exhibit "A" and is incorporated by reference herein as though set forth in full. VCC shall not obligate or expend funds for purposes other than those shown in the approved budget and shall be limited in making expenditures or incurring obligations for purposes shown in any budget category to the amounts budgeted for that category unless both the City Manager and appropriate state agency approves in writing a budget transfer from one budget category to another. 7 . Compliance with laws and regulations VCC agrees to comply with all the provisions of the HCD Act and all rules and regulations adopted pursuant thereto and with all other State and Federal laws and regulations applicable to the program to be conducted hereunder. 8 . Notices All notices, herein required, including payments and other documents required to be delivered under this Agreement shall be in writing, and delivered in person or sent by United States first class mail, postage prepaid. Notices required to be given to City shall be addressed as follows : City Manager, City of Moorpark, 799 Moorpark Avenue, Moorpark, California, 93021. Notices required to be given to VCC shall be addressed as follows: Villa Campesina Corporation, 11011 Azahar Street, Saticoy, California, 93004 . -5- Any party may change such address by notice in writing to the other parties and thereafter notices shall be addressed and transmitted to the new address. Notices shall be deemed delivered upon personal services or deposit in the United States mail. 9 . Hold Harmless and indemnification VCC shall hold harmless, indemnify and defend the City and its officers, employees and servants from any claim, demand, damage, liability, loss, cost or expense, for any damage whatsoever, including but not limited to, death or injury to any person and injury to any property, arising from, or in any connected with, the performance of this Agreement, except such damage as is caused by the sole negligence of the City or any of its officers, employees or servants. 10. Nothing contained in this Agreement shall be deemed, con- strued or represented by the City or VCC or by any third person to create the relationship of principal or agent, or of a partnership, or of a joint venture, or of any other association of any kind or nature between the City and VCC. 11. VCC shall not assign this Agreement, or any of the rights, duties or obligations hereunder without prior written authorization of the City of Manager. it is understood and acknowledged by the parties that VCC is uniquely qualified to perform the Project. 12. This Agreement constitutes the entire agreement of the parties concerning the subject matter hereof and all prior agreements or understandings, oral or written, are hereby merged herein. This -6- Agreement shall not be amended in any way excepte Agreement shall not be amended in any way except by a writing ex- pressly purporting to be such an amendment, signed and acknowledged by both of the parties hereto. 13. Should interpretation of this Agreement, or any portion thereof, be necessary, it is deemed that this Agreement was pre- pared by the parties jointly and equally, and shall not be inter- preted against either party on the ground that the party prepared the Agreement or caused it to be prepared. 14. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding, unless executed in writing by the party making the waiver. Agreement shall not be amended in any way except by a writing ex- pressly purporting to be such an amendment, signed and acknowledged by both of the parties hereto. 13. Should interpretation of this Agreement, or any portion thereof, be necessary, it is deemed that this Agreement was pre- pared by the parties jointly and equally, and shall not be inter- preted against either party on the ground that the party prepared the Agreement or caused it to be prepared. 14. No .waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding, unless executed in writing by the party making the waiver. -7- 15. In the event any action, suit or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to, this Agreement or as a result of any alleged breach of any provision of this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including reasonable attorney' s fees, from the losing party, and any judgment or decree rendered in such a proceeding shall include an award thereof. 16. This agreement is made, entered into, executed and is to be performed in Moorpark, Ventura County, California, and any action filed in any court or for arbitration for the interpretation, enforce- ment and/or otherwise of the terms, convenants and conditions referrred to herein shall be filed in the applicable court in Ventura County, California. IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the day and year first above written. VILLA CAMPESINA CORPORATION By: Teresa Cortes, President CITY OF MOORPARK By: Mayor ATTEST: City Clerk #17/crl -8-