1998-143-Execute An Agreement With The Housing Authority Of The Santa Clara County For Below Market Price Housing Program ServicesRESOLUTION 1998 - 143
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO
EXECUTE AN AGREEMENT WITH THE HOUSING AUTHORITY OF THE SANTA
CLARA COUNTY FOR BELOW MARKET PRICE HOUSING PROGRAM SERVICES
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS RESOLVES AS
FOLLOWS:
WHEREAS, Town Code Section 29.10.3005 established the Below Market Price
Housing Program; and,
WHEREAS, The Town's Below Market Price Housing Program is a primary
component of the Town's affordable housing strategy; and,
WHEREAS, the Town desires to continue Below Market Price Housing Program
services within the Town of Los Gatos; and,
WHEREAS, the Town of Los Gatos solicited competitive bids from qualified agencies
providing below market price program services; and,
WHEREAS, The Housing Authority of the Santa Clara County is fully qualified to
provide Below Market Price services to the Town of Los Gatos; and,
WHEREAS, the Town finds the Housing Authority of the Santa Clara County
proposal best meets Town's needs.
NOW THEREFORE, BE IT RESOLVED that the Town Council of the Town of Los
Gatos does hereby authorize the Town Manager to execute an agreement with the Housing
Authority of the Santa Clara County for Below Market Price Program Services, (attached as
exhibit A) and further authorizes the Town Manager to execute Agreement Amendments extending
the term as long as they conform to the Council adopted budget.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 8th day of September, 1998, by the following vote:
COUNCIL MEMBERS:
AYES: Joanne Benjamin, Steven Blanton, Jan Hutchins,
Mayor Linda Lubeck.
NAYES: None
ABSENT: Randy Attaway
ABSTAIN: None -
C
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LO A S
LOS GATOS, CALIFORNIA
txhibit A
AGREEMENT FOR BELOW MARKET PRICE PROGRAM SERVICES
THIS AGREEMENT is entered into this day of , 1998, by
and between the Town of Los Gatos, State of California, herein called the "Town", and the
Housing Authority of the County of Santa Clara, engaged in providing Below Market Price
Housing Program services herein called the "Contractor ".
RECITALS
A. The Town desires to engage Contractor to provide services in conjunction with the below
market price program services, because of Contractor's experience and qualifications to
perform the desired work.
B. The Contractor represents and affi . rms that it is qualified and willing to perform the desired
work pursuant to this Agreement
AGREE MENTS
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
Scope of Services
The Contractor shall provide general administrative activities:
a. Contractor will advertise the program, as needed, to solicit buyers
for the waiting list.
b• Contractor will maintain a list of local lenders to identify those interested in
working with the program to process over - the - counter loans.
c• Contractor will maintain a waiting list of buyers.
d• Contractor will send a BMP program summary and application to prospective
buyers.
e. Contractor will maintain the procedures and, as required, modify them
from time to time to insure effective operation of the BMP program.
f. Contractor will develop a report form in conjunction with the Town
representative and submit semi - annual activity reports.
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The Contractor will facilitate housing unit sales:
a. Town will notify Contractor of BMP units available for sale, including
location, size, sales price for each unit, amenities, and targeted income
group.
b. Upon request, Contractor will supply the Town with current mortgage
interest, points, and PMI necessary to set sales prices of new units.
c. Contractor will prepare sales schedule for Town approval. Contractor will
then send notice of unit availability, sales price, location, and unit size to
everyone on waiting list with deadline for expression of interest.
d. Interested buyers will be sent/given an application and a flyer describing
the units, sales prices, amenities, deed restrictions, and selection
procedures.
e. Upon receipt of applications, Contractor will ensure that each application
is complete, verify eligibility and assign points. Contractor will rank the
applications according to criteria in the Town's current resolution.
f Contractor will submit the data on each eligible applicant to the Town for
approval.
g. Contractor will be available to applicants to answer questions regarding deed
restrictions, and will help facilitate escrow closing. Contractor will also facilitate
recordation of Deed Restrictions with Title Company prior to close of escrow.
h. Contractor will manage, for each sale, one "open house" for prospective
buyers to inspect the subject property.
The Contractor will provide services related to the rental housing component:
a. Contractor will provide property owner /manager of projects identified by
Town with most current income guidelines upon issuance by HUD each
year.
b. Contractor will monitor BMP units annually in October to ensure compliance with
the maintenance of affordable rent levels.
C. Contractor will advise owner /manager regarding their compliance with
Program.
d. Contractor will verify the eligibility of prospective tenants qualified by the
property manager.
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e. Contractor will, through information provided by the property manager,
verify tenant incomes on an annual basis.
2. Time of Performance The services of the Contractor are to commence October 1, 1998,
and continue to June 30, 1999. The contract may be extended for one year through June
30, 2000, and for another year through June 30, 2001, upon mutual agreement of the
parties as evidenced by an amendment approved in the same manner as this Agreement.
3. Compliance__ with Laws, The Contractor shall comply with all applicable laws, codes,
ordinances, and regulations of governing federal, state and local laws. Contractor
represents and warrants to Town that it has all licenses, permits, qualifications and
approvals of whatsoever nature which are legally required for Contractor to practice.
Contractor represents and warrants to Town that Contractor shall, at its sole cost and
expense, keep in effect or obtain at all times during the term of this Agreement any
licenses, permits, and approvals which are legally required for Contractor to provide the
services required by this Agreement. Contractor shall maintain a Town of Los Gatos
business license pursuant to Chapter 14 of the Code of the Town of Los Gatos.
4. Sole Responsibility. Contractor shall be responsible for employing or engaging all persons
necessary to perform the services under this Agreement.
5. Inform__ ation /Report Handlim All documents furnished to Contractor by the Town and all
reports and supportive data prepared by the Contractor under this Agreement are the
Town's property and shall be delivered to the Town upon the completion of Contractor's
services or at the Town's written request. All reports, information, data, and exhibits
prepared or assembled by Contractor in connection with the performance of its services
pursuant to this Agreement are confidential until released by the Town to the public, and
the Contractor shall not make any of the these documents or information available to any
individual or organization not employed by the Contractor or the Town without the written
consent of the Town before such release. The Town recognizes and acknowledges that
Contractor is a public entity subject to the Public Records Act. Contractor agrees to
promptly provide any request for public records relevant to its performance outlined herein
to Town for response thereto.
6. Con pensation. Compensation for Contractor's professional services shall not exceed
$9,315 as reflected in Exhibit A; and payment shall be based upon Town approval in
accordance with Exhibit B.
7. Availability of Records. Contractor shall maintain the records supporting this billing for
not less than three (3) years following completion of the work under this Agreement.
Contractor shall make these records available to authorized personnel of the Town at the
Contractor's offices during business hours upon written request of the Town.
8. Project Ma gage. The Project Manager for the Contractor for the work under this
Agreement shall be Richard Warren, Property Management Director.
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9. Assignability and Subcontracting. The services to be performed under this Agreement are
unique and personal to the Contractor. No portion of these services shall be assigned or
subcontracted without the prior written consent of the Town.
10. Notices. Any notice required to be given shall be deemed to be duly and properly given
if mailed postage prepaid, and addressed to:
To Town: Regina A. Falkner
Community Services Director
Town of Los Gatos
110 East Main Street
Los Gatos, CA 95030
To Contractor: Richard Warren
Property Management Director
Housing Authority of Santa Clara County
505 W. Julian Street
San Jose, CA 95110
or personally delivered to Contractor to such address or such other address as Contractor
designates in writing to Town.
11. Independent Contractor. It is understood that the Contractor, in the performance of the
work and services agreed to be performed, shall act as and be an independent contractor
and not an agent or employee of the Town. As an independent contractor he /she shall not
obtain any rights to retirement benefits or other benefits which accrue to Town
employee(s). With prior written consent, the Contractor may perform some obligations
under this Agreement by subcontracting, but may not delegate ultimate responsibility for
performance or assign or transfer interests under this Agreement.
Contractor agrees to testify in any litigation brought regarding the subject of the work to
be performed under this Agreement.
12. Conflict of Interest. Contractor understands that its professional responsibilities is solely
to the Town. The Contractor has and shall not obtain any holding or interest within the
Town of Los Gatos without written consent of the Town. Contractor has no business
holdings or agreements with any individual member of the Staff or management of the
Town or its representatives nor shall it enter into any such holdings or agreements. In
addition, Contractor warrants that it does not presently and shall not acquire any direct or
indirect interest adverse to those of the Town in the subject of this Agreement, and it shall
immediately disassociate itself from such an interest should it discover it has done so and
shall, at the Town's sole discretion, divest itself of such interest. Contractor shall not
knowingly and shall take reasonable steps to ensure that it does not employ a person having
such an interest in this performance of this Agreement. If after employment of a person,
Contractor discovers it has employed a person with a direct or indirect interest that would -
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conflict with its performance of this Agreement, Contractor shall promptly notify Town
of this employment relationship, and shall, at the Town's sole discretion, sever any such
employment relationship.
13. Equal Employment_ Opportuni . Contractor warrants that it is an equal opportunity
employer and shall comply with applicable regulations governing equal employment
opportunity. Neither Contractor nor its subcontractors do and neither shall discriminate
against persons employed or seeking employment with them on the basis of age, sex,
color, race, marital status, sexual orientation, ancestry, physical or mental disability,
national origin, religion, or medical condition, unless based upon a bona fide occupational
qualification pursuant to the California Fair Employment & Housing Act.
14. Insurance
a. Minimum Scope of Insurance:
i. Contractor agrees to have and maintain, for the duration of the contract,
General Liability insurance policies insuring him/her and his /her firm to an
amount not less than: one million dollars ($1,000,000) combined single
limit per occurrence for bodily injury, personal injury and property
damage.
ii. Contractor agrees to have and maintain for the duration of the contract, an
Automobile Liability insurance policy ensuring him/her and his /her staff to
an amount not less than one million dollars ($1,000,000) combined single
limit per accident for bodily injury and property damage.
Contractor shall provide to the Town all certificates of insurance, with
original endorsements effecting coverage. Contractor agrees that all
certificates and endorsements are to be received and approved by the Town
before work commences.
iv. Contractor agrees to have and maintain, for the duration of the contract,
professional liability insurance in amounts not less than $1,000,000 which
is sufficient to insure Contractor for professional errors or omissions in the
performance of the particular scope of work under this agreement
b. General Liability:
The Town, its officers, officials, employees and volunteers are to be
covered as insured as respects: liability arising out of activities performed
by or on behalf of the Contractor; products and completed operations of
Contractor, premises owned or used by the Contractor. This requirement
does not apply to the professional liability insurance required for
professional errors and omissions.
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ii. The Contractor's insurance coverage shall be primary insurance as respects
the Town, its officers, officials, employees and volunteers. Any insurance
or self - insurances maintained by the Town, its officers, officials, employees
or volunteers shall be excess of the Contractor's insurance and shall not
contribute with it.
Any failure to comply with reporting provisions of the policies shall not
affect coverage provided to the Town, its officers, officials, employees or
volunteers.
iv. The Contractor's insurance shall apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits
of the insurer's liability.
C. All Coverages: Each insurance policy required in this item shall be endorsed to
state that coverage shall not be suspended, voided, cancelled, 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 Town. Current certification of such
insurance shall be kept on file at all times during the term of this Agreement with
the Town Clerk. Town agrees that Contractor coverage through self- insurance
pool CHRMA, shall be acceptable
d. In addition to these policies, Contractor shall have and maintain Workers'
Compensation insurance as required by California law and shall provide evidence
of such policy to the Town before beginning services under this Agreement.
Further, Contractor shall ensure that all subcontractors employed by Contractor
provide the required Workers' Compensation insurance for their respective
employees.
16. Indemnification. The Contractor shall save, keep and hold harmless indemnify and defend
the Town its officers, agent, employees and volunteers from all damages, liabilities,
penalties, costs, or expenses in law or equity that may at any time arise or be set up
because of damages to property or personal injury received by reason of, or in the course
of performing work which may be occasioned by a willful or negligent act or omissions
of the Contractor, or any of the Contractor's officers, employees, or agents or any
subcontractor.
17. Waiver. No failure on the part of either parry to exercise any right or remedy hereunder
shall operate as a waiver of any other right or remedy that party may have hereunder, nor
does waiver of a breach or default under this Agreement constitute a continuing waiver of
a subsequent breach of the same or any other provision of this Agreement.
18. MediatiOn/Arbitration. If a dispute arises from or relates to this contract or the breach
thereof and the dispute cannot be settled through direct discussions, the parties agree, prior
to filing any legal action, to settle the dispute in an amicable manner by mediation. The
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mediator shall be chosen by mutual agreement of the parties. Thereafter, any unresolved
claim or controversy arising from or related to this contract or breach thereof shall be
settled by binding arbitration, and judgment on the award rendered by the arbitrators may
be entered in Superior or Municipal Court of the County of Santa Clara, whichever court
has jurisdiction thereof. The arbitrator shall be selected by mutual agreement of the
parties. The costs of the mediation and /or arbitration shall be shared equally between the
parties.
19. Governing Law. This Agreement, regardless of where executed, shall be governed by and
construed to the laws of the State of California. Venue for any action regarding this
Agreement shall be in the Superior or Municipal Court of the County of Santa Clara.
20. Termination of Agreement. The Town and the Contractor shall have the right to terminate
this agreement with or without cause by giving not less than ninety (90) days written notice
of termination. In the event of termination, the Contractor shall deliver to the Town all
plans, files, documents, reports, performed to date by the Contractor. In the event of such
termination, Town shall pay Contractor an amount that bears the same ratio to the
maximum contract price as the work delivered to the Town bears to completed services
contemplated under this Agreement pursuant to Exhibit A and B hereto, unless such
termination is made for cause, in which event, compensation, if any, shall be adjusted in
light of the particular facts and circumstances involved in such termination.
21. Amendment. No modification, waiver, mutual termination, or amendment of this
Agreement is effective unless made in writing and signed by the Town and the Contractor.
22. Entire Agreement. This Agreement including exhibits A and B hereto, constitutes the
complete and exclusive statement of the Agreement between the Town and Contractor. No
terms, conditions, understandings or agreements purporting to modify or vary this
Agreement, unless hereafter made in writing and signed by the parry to be bound, shall be
binding on either parry.
IN WITNESS WHEREOF, the Town and Contractor have executed this Agreement as of
the date indicated on page one (1).
David W. Knapp, Town Manager
Town of Los Gatos
ATTEST:
Clerk of the Town of Los Gatos,
Los Gatos, California
Marian V. Cosgrove, Town Clerk
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John C. Burns, Executive Director
Santa Clara County Housing Authority
Approved as to Form:
Orry P. Korb, Town Attorney
Page 7 of 7 -
xhibit A to Agreement
BELOW MARKET PRICE HOUSING PROGRAM
PROPOSAL SUMMARY
Agency: Housing Authority of the County of Santa Clara
Contact Person: Richard Warren
Address: 505 West Julian St
San Jose, Ca. 95110
Phone: 408-993-3081 Fax: 408- 971 -8374
Fee for Services: October 1, 1998 through June 30, 1999
Monthly Service Fee
$185 x 9 Months= S1,665.00 (1)
Single Unit Sales Fee
(a) Fee To Determine Applicant
Income Eligibility S150.00(2)
(b) Fee To Facilitate Escrow S350.00(2)
Sale of Two or More Units
Rental Unit Monitoring Fee
Same as Single Unit Fee. Cost
reductions will be in advertising
and joint mailing.
$150.00 Per Tenant x 5 = 5750.00
Fee for Services: July 1, 1999 though June 30, 2000
Monthly Service Fee
5190.00 x 12 Months= $2280.00(1)
Single Unit Sales Fee
(a) Fee To Determine Applicant
Income Eligibility S155.00.(2)
(b) Fee To Facilitate Escrow $360.00(2)
Sale of Two or More Units
Rental Unit Monitoring Fee
1
Same as Single Unit Fee. Cost
reductions will be in advertising
and joint mailing.
$155.00 Per Tenant x 5 = 5775.00
Fee for Services: July 1, 2000 through June 30, 2001
Monthly Service Fee
$195.00 x 12 Months = $2340.00
Single Unit Sales Fee
(a) Fee To Determine Applicant
Income Eligibility $160.00
(b) Fee To Facilitate Escrow $370.00
Sale of Two or More Units
Rental Unit Monitoring Fee
Same as Single Unit Fee. Cost
reductions will be in advertising
and joint mailing.
$160.00 Per Tenant x 5 = S800.00
(1) Base monthly fee charged to administer the program. The fee will be paid quarterly
(net 30 days) upon receipt of an approved invoice.
All advertising costs and appraisal fees must be approved in advance by Town and
reimbursed by the Town. Contractor will submit a reimbursement request to the
Town, which will pay all documented approved expenses.
(2) A fee will be charged for each BMP unit sold.
`signature
Title , J
Date
EXHIBIT B
PAYMENTS TO CONTRACTOR
I. GENERAL. TOWN agrees to pay CONTRACTOR for the performance of the services,
work, and duties, subject to and performed in connection with the Agreement a sum of
money not to exceed the amount set forth in "Exhibit A" attached to the Agreement. These
payments are made on a monthly or quarterly basis pursuant to the Agreement. The
statement or statements requesting payment shall be in a form approved by the Town, and
the CONTRACTOR shall specify the services performed by the CONTRACTOR during the
month or quarter for which payment is sought.
IL TOWN REVIEW. It shall be the policy of the Town to pay promptly (net 30 days) all bills
which become due and payable by the Town. Payment to the CONTRACTOR shall be made
30 days after receipt by TOWN of the monthly or quarterly invoices: The CONTRACTOR'S
invoice must be mailed to the Town of Los Gatos, Accounts Payable at P.O. Box 949, Los
Gatos, California 95031, and must include the Town's purchase order number. The TOWN
will determine whether payment can be made under the Agreement and may rely upon the
certification by CONTRACTOR that the items appearing on the statement and its supporting
data are eligible items under the PROGRAM. However, no such determination shall
constitute a waiver by the TOWN of its right to recover from CONTRACTOR any monies
paid on items that were not eligible to payment under the PROGRAM and the Agreement.
The total amount of payments made to the CONTRACTOR shall be distributed as shown in
"Exhibit A" attached to the Agreement.