HomeMy WebLinkAboutContracts & Agreements_76-2009_CCv0001.pdf JOINT AGREEMENT FOR
STATE OF CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM FUNDS
This Agreement is made and entered into this 9th day of June, 2009, by and between the
County of San Bernardino, of the State of California, hereinafter referred to as "COUNTY," and
the City of Redlands, a city within the COUNTY, hereinafter referred to as "CITY."
WHEREAS, the State of California Department of Housing and Community
Development (HCD) received an allocation of Neighborhood Stabilization Program (NSP) funds
as part of H.R. 3221, known as the Housing and Economic Recovery Act (HERA), herein
referred to as "ACT" for the purposes of addressing the issues with vacant foreclosed homes
and providing affordable housing opportunities for low- to moderate-income families (LMMI);
and,
WHEREAS, HCD subsequently allocated NSP funds to"CITY"; and,
WHEREAS, CITY has requested COUNTY to apply for and administer HCD NSP funds
on its behalf and COUNTY agrees to apply for, administer and be responsible for HCD NSP
funds on CITY'S behalf-, and,
WHEREAS, the execution of this Agreement is necessary to implement the
administration and expenditure of the HCD NSP funds in accordance with the HCD NSP
requirements.
NOW THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
1. 2ENERAL
This Joint Agreement is required by HCD and gives COUNTY authority to apply for,
receive, implement, and administer HCD NSP funds for eligible activities in the eligible
targeted areas of CITY, and any program income generated from the expenditure of
such funds. COUNTY is responsible for ensuring funds are spent on eligible activities in
eligible areas.
2. TERM
The term of this Agreement shall be the later of. (1) expenditure of State NSP funds
provided under this agreement along with program Income and the completion of the
activities funded with NSP funds; or (2) April 30, 2012, unless an earlier date of
termination Is fixed by HCD or the U.S. Department of Housing and Urban
Development, ("HUD"). The Intent Is for this Agreement to remain in effect until all HCD
NSP funds covered under the terms of this Agreement, and any income generated from
the expenditure of such funds, are expended, and the funded activities are completed.
This Agreement may not be terminated and neither party may withdraw from this
Agreement while it remains in effect.
Page 1 of 9
3. PREPARATION OF APPLICATION
COUNTY, by and through its Department of Community Development and Housing
(CDH), subject to approval of COUNTY Board of Supervisors, and in accordance with
HCD's agreement requirements, will be responsible for preparing and submitting to HCD
all necessary applications for HCD NSP funds. Application to HCD includes the
preparation and processing of the application, compliance with Citizen Participation
requirements as well as any other items HCD requests related to HCD NSP regulations.
4. ELIGIBLE PROGRAMS
CITY has requested COUNTY to implement the following NSP-eligible activities:
1. Down Payment Assistance (NSP-1) which provides down payment assistance to
purchaser-occupants of foreclosed properties.
2. Affordability Gap (NSP-3) which is a soft second mortgage to purchaser-occupants
of foreclosed properties.
3. Acquisition, Rehabilitation and Resale (NSP-4)which is the acquisition, rehabilitation
and resale of significantly damaged homes in heavily impacted neighborhoods.
5. BUDGET/PROGRAM SUMMARY
The Budget/Program Summary, attached hereto as Exhibit 2 of 2 is the initial allocation
of HCD NSP funds as requested by CITY for eligible programs and activities. CITY and
COUNTY anticipate changes, modifications and/or additions may need to be made to
the budget in order to avoid having one program activity under funded while another
activity is not being utilized. The CITY Manager or his or her designee shall be
authorized to act on behalf of the CITY and the Director of CDH, or his or her designee,
shall be authorized to act on behalf of the COUNTY in order to make any changes
necessary to meet NSP program needs. Written authorization by both CITY (through
the CITY Manager) and COUNTY (through the Director of CDH) is required in order for
there to be any changes, modifications and/or additions to the Budget/Program
Summary.
In order to implement and carry out its duties pursuant to this Agreement, COUNTY will
utilize the maximum amount available for administration of the HCD NSP funding, which
is five per cent (5%) or $33,615. The remaining grant amount of $638,698 will be
allocated on the CITY's behalf for eligible programs. As programs and projects are
implemented, COUNTY will receive up to eight per cent (8%) of the amount allocated to
programs as an activity deliver fee to help offset the expenses directly associated with
implementation of NSP activities.
HCD NSP grant amount: $672,313
Loan Administration Fee (5%): $ 615
Funds allocated to program activities: $638,698
Page 2 of 9
6. COMPLIANCE WITH FINAL PROGRAMS AND PLANS
COUNTY and CITY shall comply in all respects with final HCD NSP application and
plan, as well as any implementing regulations and guidelines.
7. COMPLIANCE WITH ACT AND REGULATIONS
COUNTY and CITY shall comply with all applicable requirements of ACT and its
regulations, in utilizing basic grant funds under ACT, and shall take all actions
necessary to assure compliance with COUNTY certifications required by Section 104(b)
of Title I of the Housing and Community Development Act of 1974, as amended.
COUNTY and CITY will comply with the provisions of the National Environmental Policy
Act of 1969 (NEPA), the California Environmental Quality Act (CEQA), Title VI of the
Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, Executive Order 11988,
e In.
SctioI.09.of Title
tie I-of-ACT,I the
he .Fair Housing-Act', and other applicable federal laws
and regulations. CITY agrees that HCD NSP funding for activities in or in support of
CITY are prohibited if CITY does not affirmatively further fair housing within its own
jurisdiction or impedes COUNTY actions to comply with its fair housing certification.
(CITY certifies that it has fair housing programs in place.)
8. CONFLICT OF INTEREST
CITY and COUNTY shall comply with all applicable federal and state laws, regulations
and policies governing conflict of interest, including state conflict of interest regulations
found in California Government Code Sections 1090, 1126, 87100 et seq., federal
conflict of interest regulations found in 24 CFR 570.611, 85.36, and 84.42, and any
other applicable policies, rules and regulations related to conflict of interest.
Any person who is an employee, agent, consultant, officer, elected or appointed official
of the CITY, who exercises any functions or responsibilities with respect to HCD NSP
funded activities identified in this Agreement and who is in a position to participate in a
decision making process or gain inside information with regard to activities identified in
this Agreement, may not obtain a financial interest or benefit from the HCD NSP
assisted activities identified in this Agreement or any related contract, subcontract, or
agreement, either for themselves, an immediate family member or business partner,
during his/her tenure. CITY shall maintain written standards of conduct governing the
performance of its employees engaged in the award and administration of contracts.
9. POLICIES
CITY and COUNTY each have and are enforcing the following policies: (1) policies
prohibiting the use of excessive force by law enforcement agencies within its jurisdiction
against any Individuals engaged in non-violent civil rights demonstrations; and (2) a
policy of enforcing applicable state and local laws against physically barring entrance to,
or exit from, a facility or location which is the subject of such non-violent civil rights
demonstrations.
Page 3 of 9
10. INDEMNIFICATION
CITY agrees to indemnify, defend and hold harmless COUNTY and its respective
authorized officers, employees, agents and volunteers from any and all claims, actions,
losses, damages, and/or liability arising out of this Agreement from any cause
whatsoever, including the acts, errors or omissions and for any costs or expenses
incurred by COUNTY on account of any claim therefore, except where such
indemnification is prohibited by law.
Without limiting the foregoing Indemnification, CITY shall Indemnify and hold harmless
COUNTY and its respective authorized officers, employees, agents and volunteers from
any liability, claims, losses, demands, and actions incurred by COUNTY as a result of
the determination by HUD or HCD or their successors that activities undertaken by CITY
under,the program(s) fail to comply_with any laws, regulations,or policies applicable
thereto.
COUNTY shall, indemnify, defend, and hold CITY, its officers, agents, volunteers, and
employees, harmless from and against any loss, liability, claim, or damage that may
arise from any negligent act or omission by COUNTY, its officers, agents, and
employees.
11. INSURANCE REQUIREMENTS
Without in any way affecting the indemnity herein provided and in addition thereto, CITY
shall either provide evidence of a self insurance program satisfactory to County or
secure and maintain throughout the Agreement the following types of insurance with
limits as shown:
Additional Insured, — All policies, except for the Workers' Compensation, Errors and
Omissions and Professional Liability policies, shall contain endorsements naming the
County and its officers, employees, agents and volunteers as additional insureds with
respect to liabilities arising out of the performance of services hereunder. The additional
insured endorsements shall not limit the scope of coverage for the County to vicarious
liability but shall allow coverage for the County to the full extent provided by the policy.
Such additional insured coverage shall be at least as broad as Additional Insured (Form
B)endorsement form ISO, CG 2010.1185.
Waiver of Subrogation Rights — The CITY shall require the carriers of required
coverages to waive all rights of subrogation against the County, its officers, employees,
agents, volunteers, contractors and subcontractors. All general or auto liability insurance
coverage provided shall not prohibit the CITY and CIlYs employees or agents from
waiving the right of subrogation prior to a loss or claim. The CITY hereby waives all
rights of subrogation against the County.
Policies Primary and Non-Contributory — All policies required herein are to be primary
and non-contributory with any insurance or self-insurance programs carded or
administered by the County.
Severability of Interests — The CITY agrees to ensure that coverage provided to meet
these requirements is applicable separately to each insured and there Will be no cross
Page 4 of 9
liability exclusions that preclude coverage for suits between the CITY and the County or
between the County and any other insured or additional insured under the policy.
Proof of Coverage — The CITY shall furnish Certificates of Insurance to the County
Department administering the contract evidencing the insurance coverage, including
endorsements, as required, prior to the commencement of performance of services
hereunder, which certificates shall provide that such insurance shall not be terminated or
expire without thirty (30) days written notice to the Department, and CITY shall maintain
such Insurance from the time CITY commences performance of services hereunder until
the completion of such services. Within fifteen (15) days of the commencement of this
contract, the CITY shall furnish a copy of the Declaration page for all applicable policies
and will provide complete certified copies of the policies and endorsements immediately
upon request.
Acceptability of Insurance Carrier — Unless otherwise 'approved by Risk "Management,
insurance shall be written by insurers authorized to do business in the State of California
and with a minimum "Best" Insurance Guide rating of"A-VI 1".
Deductibles and Self-Insured Retention — Any and all deductibles or self-insured
retentions in excess of$10,000 shall be declared to and approved by Risk Management.
Failure to Procure Coverage — In the event that any policy of insurance required under
this contract does not comply with the requirements, is not procured, or is canceled and
not replaced, the County .has the right but not the obligation or duty to cancel the
contract or obtain insurance if it deems necessary and any premiums paid by the County
will be promptly reimbursed by the CITY or County payments to the CITY will be
reduced to pay for County purchased insurance.
Insurance Review — Insurance requirements are subject to periodic review by the
County. The Director of Risk Management or designee is authorized, but not required, to
reduce, waive or suspend any insurance requirements whenever Risk Management
determines that any of the required insurance is not available, is unreasonably priced, or
is not needed to protect the interests of the County. In addition, if the Department of
Risk Management determines that heretofore unreasonably priced or unavailable types
of insurance coverage or coverage limits become reasonably priced or available, the
Director of Risk Management or designee is authorized, but not required, to change the
above insurance requirements to require additional types of insurance coverage or
higher coverage limits, provided that any such change is reasonable in light of past
claims against the County, inflation, or any other item reasonably related to the County's
risk.
Any change requiring additional types of insurance coverage or higher coverage limits
must be made by amendment to this contract. CITY agrees to execute any such
amendment within thirty (30)days of receipt.
Any failure, actual or alleged, on the part of the County to monitor or enforce compliance
with any of the insurance and indemnification requirements will not be deemed as a
waiver of any rights on the part of the County.
Page 5 of 9
The CITY agrees to provide insurance set forth in accordance with the requirements
herein. If the CITY uses existing coverage to comply with these requirements and that
coverage does not meet the specified requirements, the CITY agrees to amend,
supplement or endorse the existing coverage to do so. The type(s)of insurance required
is determined by the scope of the contract services.
Without in anyway affecting the indemnity herein provided and in addition thereto, the
CITY shall secure and maintain throughout the contract term the following types of
insurance with limits as shown:
Workers' Compensation/Employers Liability — A program of Workers' Compensation
insurance or a state-approved, self-insurance program in an amount and form to meet
all applicable requirements of the Labor Code of the State of California, including
Employer's Liability with $250,000 limits covering all persons including volunteers
providing services on behalf Of the CITY and all risks to such persons under this
contract.
If CITY has no employees, it may certify or warrant to the County that is does not
currently have any employees or individuals who are defined as "employees" under the
Labor Code and the requirement for Workers' Compensation coverage will be waived by
the County's Director of Risk Management.
Commercial/General Liability. Insurance — The CITY shall carry General Liability
Insurance covering all operations performed by or on behalf of the CITY providing
coverage for bodily injury and property damage with a combined single limit of not less
than one million dollars ($1,000,000), per occurrence. The policy coverage shall include:
(a) Premises operations and mobile equipment.
(b) Products and completed operations.
(c) Broad form property damage (including completed operations).
(d) Explosion, collapse and underground hazards.
(e) Personal Injury.
(0 Contractual liability.
(g) $2,000,000 general aggregate limit.
Automobile Liability Insurance — Primary insurance coverage shall be written on ISO
Business Auto coverage form for all owned, hired and non-owned automobiles or
symbol 1 (any auto). The policy shall have a combined single limit of not less than one
million dollars ($1,000,000)for bodily injury and property damage, per occurrence. If the
CITY is transporting one or more non-employee passengers in performance of contract
services, the automobile liability policy shall have a combined single limit of two million
dollars ($2,000,000) for bodily injury and property damage per occurrence. If the CITY
owns no autos, a non-owned auto endorsement to the General Liability policy described
above Is acceptable.
Umbrella Liability Insurance —An umbrella (over primary) or excess policy may be used
to comply with limits or other primary coverage requirements. When used, the umbrella
policy shall apply to bodily injury/property damage, personal injury/advertising injury and
shall include a "dropdown" provision providing primary coverage for any liability not
covered by the primary policy. The coverage shall also apply to automobile liability.
Page 6 of 9
In addition, if the Risk Manager determines that heretofore unreasonably priced or
unavailable types of insurance coverage or coverage limits become reasonably priced or
available, the Risk Manager is authorized, but not required, to change the above
insurance requirements, to require additional types of insurance coverage or higher
coverage limits, provided that any such change is reasonable in light of past claims
against COUNTY, inflation, or any other item reasonably related to the County's risk.
Any such reduction or waiver for the entire term of the Contract and any change
requiring additional types of insurance coverage or higher coverage limits must be made
by amendment to this Contract. CITY agrees to execute any such amendment within 30
days of receipt.
12. DISPOSITION OF PROGRAM INCOME
Any program income (defined as net iincome directly generated from the use of HCD
NSP funds) generated by the expenditure of HCD NSP funds received for eligible
activities will be considered program income of the County's NSP programs even if it is
generated by activities undertaken within or by CITY. COUNTY will track expenditures
and program income received directly related to CITY HCD NSP funds separately from
other COUNTY funds. Program income will be spent by COUNTY on NSP-eligible
activities as authorized by the HCD NSP program.
13. DISPOSITION OF REAL PROPERTY
COUNTY and CITY do not anticipate purchasing or owning any properties utilizing HCD
NSP funds.
14. CITY SUBJECT TO SUBRECIPIENT REQUIREMENTS
Pursuant to 24 CFR 570.501(b), CITY is subject to the same requirements applicable to
subrecipients for other HUD programs, including the requirements of 24 CFR 570.503
for a written agreement, containing at a minimum, certain provisions. The provisions
contained in Sections 16 through 18 address these minimum requirements, unless
addressed in other provisions of this Agreement.
15. RECORDS AND REPORTS
CITY agrees to prepare and submit program progress reports and other reports as
required by HCD or COUNTY pursuant to NSP requirements and guidelines. CITY shall
retain such records and supporting documentation as are required by HCD or COUNTY
for a period of five (5)years after the termination of this Agreement.
16. UNIFORM ADMINISTRATIVE REQUIREMENTS
CITY and COUNTY each agree to adhere to the Uniform Administrative Requirements
identified in 24 CFR 570.602, including, but not limited to, the requirements and
standards of OMB Circular No. A-87 and OMB Circular A-128.
Page 7 of 9
17. OTHER PROGRAM REQUIREMENTS
CITY and COUNTY each agree to carry out all activities pursuant to this Agreement in
compliance with all Federal laws and regulations described in 24 CFR 570,600 though
570.614 (excluding 570-604 and 24 CFR, part 52).
18 AMENDMENTS
This writing with any attachments embodies the whole of this Agreement. There are no
oral agreements. Except as herein provided, any amendments or modifications to this
Agreement shall not be valid unless in writing.
19. NOTICES
All notices shall be served in writing and shall be deemed to have served five (5) days
after deposit in the United States mail, first class, postage prepaid to the following:
COUNTY:
County of San Bernardino
Department of Community Development and Housing
290 North D Street, Sixth Floor
San Bernardino, CA 92415-0040
Attn: Mitch Slagerman, Director
With a copy to:
County Counsel
County of San Bernardino
385 North Arrowhead Avenue, Fourth Floor
San Bernardino, CA 92415-0140
Attn: Ruth E. Stringer, County Counsel
CITY:
City of Redlands
P.O. Box 37
3005 Cajon Street
Redlands, CA 92373-1505
Attn: N. Enrique Martinez
Each party may change contact information so long as notice is provided In writing to
the other party. The parties may also agree on other or additional forms of
communication of notices so long as any changes are reduced to writing and executed
by the authorized individuals.
20. AUTHORIZED OFFICERS
Except as stated in Section 5 with respect to budget/program changes, any nonmaterial
changes in the form of amendments may be made by the chief executive officers
(defined as the individuals holding the positions at the time of the need for an
amendment)so long as such changes are reduced to writing.
Page 8 of 9
21. COUNTERPART EXECUTION
This Agreement may be executed in counterparts. When executed, each counterpart
shall be deemed an original irrespective of the date of execution. Said counterparts
shall together constitute one and the same Agreement.
22. EFFECTIVE-DATES
This Agreement shall be effective for all purposes when this Agreement and like
Agreements have been executed by COUNTY and CITY, properly submitted to HCD,
the grantor, by the designated deadline, and approved by HCD.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of
the day and year written above.
COUNTY OF SAN BERNARDINO CITY OF REJ)LANDS
By:
By:
GARY C. OVITT, Chairman JON HARRISON, MAYOR
Board of Supervisors
DATED: DATED: may 27, 2oog
By: ATTEST
MARK H. UFFER, County Administrative
Officer
By:
DATED: LO IE PO City
YZER`� Clerk
APPROVED AS TO LEGAL FORM
RUTH E. STRINGER
COUNTY COUNSEL
By: Dated:
MICHELLE D. BLAKEMORE
Principal Assistant County Counsel for CDH
SIGNED AND CERTIFIED THAT A COPY OF By:
THIS DOCUMENT HAS BEEN DELIVERED TO
THE CHAIRMAN OF THE BOARD
Dated:
DENA M. SMITH
Clerk of the Board of Supervisors
of the County of San Bernardino
By:
Page 9 of 9
EXHIBIT 1 of 2
COUNTY OF SAN BERNARDINO-CITY OF REDLANDS
JOINT AGREEMENT FOR
STATE OF CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM FUNDS
INSURANCE INVENTORY
WORKERS' COMPENSATION/EMPLOYERS' LIABILITY INSURANCE
Name of Insurance Company:
Effective Dates:
Employer's Liability Limit$
Certificate of insurance Attached Yes No: On File wl CDH
COMPREHENSIVE GENERAL AND AUTOMOBILE LIABILITY INSURANCE
Name of Contractor's General Insurance Company:
Limits of Liability Effective Dates:
Per Occurrence$ Additional Insured Endorsement Attached—Yes— No: On File w/CDH
Annual Aggregate $ Certificate of Insurance Attached—Yes—No: On File w/CDH
Name of Contractor's Automobile Liability Insurance Company:
Limits of Liability Effective Dates:
Per Person $ Per Accident$ Damage Liability Combined Single Limit$
ERRORS AND OMISSIONS LIABILITY INSURANCE
Name of Contractor's Insurance Company:
Limits of Liability Effective Dates:
Per Occurrence$ Additional Insured Endorsement Attached Yes—No: On File w/CDH
Annual Aggregate$ Certificate of Insurance Attached Yes— No: On File w/CDH
PROFESSIONAL LIABILITY INSURANCE
Name of Contractor's Insurance Company:
Limits of Liability Effective Dates:
Per Occurrence$ Additional Insured Endorsement Attached Yes—No: On File w/CDH
Annual Aggregate$ Certificate of Insurance Attached Yes—No: On File w/CDH
Page 1 of 1
EXHIBIT 2 OF 2
COUNTY OF SAN BENARDINO-CITY OF REDLANDS
JOINT AGREEMENT FOR
STATE OF CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM FUNDS
BUDGET/PROGRAM SUMMARY
The CITY has been awarded $672,313 in HCD NSP funds. Of this amount, COUNTY will utilize the
maximum amount available for administration of the HCD NSP, which is five percent (5%) or $33,615.
The remaining grant amount of $638,698 will be allocated for eligible programs. As programs and
projects are implemented, COUNTY will receive up to eight percent (8%) of the amount allocated to
programs as an activity deliver fee to help offset the expenses directly associated with implementation of
NSP activities.
Modifications, changes and additions of eligible NSP activities may be made with the.written approval of
both CITY and COUNTY.
CITY has requested COUNTY budget the following amounts to HCD NSP eligible activities:
Total Activity Activity Activity Activity
NSP Activity Description Budget Delivery% Dollars Delivery
Dollars
Affordability Gap which is a soft second
mortgage to purchaser-occupants of
foreclosed properties. $613,698 8% $568,239 $45,459
Acquisition, Rehabilitation and Resale which —
is the acquisition, rehabilitation and resale of
significantly damaged homes in heavily $ 25,000 8% $ 23,149 $ 1,851
impacted neighborhoods
Page 1 of 1
k.
FOR COUNTY USE ONLY
New Vendor Code Dept. Contract Number
Chance SC ECDA
Cancel
County Department Dept. Orgn. Contractor's License No.
Community Development and Housing ECD ECD
County Department Contract Representative Telephone Total Contract Amount
County of San Bernardino I
Mitch Slagerman, Director (909)388-0808 N/A
FAS Contract Type
Revenue El Encumbered El Unencumbered Y Other: Cooperation Aareement
CONTRACT TRANSMITTAL if not encumbered or revenue contract type,provide reason: Zero dollar contract
Commodity Code Contract Start Date Contract End Date Original Amount Amendment Amount
June 9, 2009 April 30, 2012 N/A N/A
Fund Dept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No. Amount
I I N/A
Project Name Estimated Payment Total by Fiscal Year
HCD(NSP) FY Amount I/D FY Amount I/D
City-County Cooperation
oreement
CONTRACTOR City of Redlands
Federal ID No. or Social Security No. N/A
Contractor's Representative N. Enrique Martinez , City Manager
Address P. O. Box 3005, 35 Cajon St., Redlands, CA 92373-1505 Phone (909)798-7500
Nature of Contract: (Briefly describe the general terms of the contract)
The State of California received an allocation of approximately $145,000,000 of Neighborhood Stabilization
Program (NSP) funds from the U.S. Department of Housing and Urban Development and then subsequently
allocated these funds to various cities throughout the State. The City of Redlands received an allocation of
$672,313 and has requested the County to apply for, implement and administer these funds on its behalf. The
attached Joint Agreement is required by the State of California Department of Housing and Community
Development (HCD) in order for the County to apply for and administer HCD NSP funds on behalf of the City of
Redlands. The Joint Agreement utilizes language which has been prescribed by HCD. Once entered, the Joint
Agreement will remain in effect until the later of: (1) the expenditure of HCD NSP funds provided in this
agreement along with program income and the completion of the activities funded with HCD NSP funds; or (2)
three (3) years,
The attached Agreement consists of 9 pages and 2 exhibits.
(Attach this transmittal to afl contracts not prepared on the "Standard Contract"form.)
Akproved as V Legal Form(sign in blue ink) Reviewed as to Contract Compliance Pres/en B99 for Signa re
Ilk- 4
County Counsel
Date Date 05- --2q - 2 C,�V�
Date
AuditorlController-Recorder Use0
0 Contract Database FAfn-�,
Input Date Keyed By
Revised 1/13/2009
Attachment B-4
Cooperation Agreement with City of Redlands
JOINT AGREEMENT FOR
STATE OF CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM FUNDS
This Agreement is made and entered into this gth day of June, 2009, by and between the
County of San Bernardino, of the State of California, hereinafter referred to as "COUNTY," and
the City of Redlands, a city within the COUNTY, hereinafter referred to as "CITY."
WHEREAS, the State of California Department of Housing and Community
Development (HCD) received an allocation of Neighborhood Stabilization Program (NSP) funds
as part of H.R. 3221, known as the Housing and Economic Recovery Act (HERA), herein
referred to as "ACT" for the purposes of addressing the issues with vacant foreclosed homes
and providing affordable housing opportunities for low- to moderate-income families (LMMI);
and,
WHEREAS, HCD subsequently allocated NSP funds to "CITY"; and,
WHEREAS, CITY has requested COUNTY to apply for and administer HCD NSP funds
on its behalf and COUNTY agrees to apply for, administer and be responsible for HCD NSP
funds on CITY'S behalf; and,
WHEREAS, the execution of this Agreement is necessary to implement the
administration and expenditure of the HCD NSP funds in accordance with the HCD NSP
requirements.
NOW THEREFORE, in consideration of the mutual covenants herein set forth and the
mutual benefits to be derived therefrom, the parties agree as follows:
1. GENERAL
This Joint Agreement is required by HCD and gives COUNTY authority to apply for,
receive, implement, and administer HCD NSP funds for eligible activities in the eligible
targeted areas of CITY, and any program income generated from the expenditure of
such funds. COUNTY is responsible for ensuring funds are spent on eligible activities in
eligible areas.
2. TERM
The term of this Agreement shall be the later of: (1) expenditure of State NSP funds
provided under this agreement along with program income and the completion of the
activities funded with NSP funds; or (2) April 30, 2012, unless an earlier date of
termination is fixed by HCD or the U.S. Department of Housing and Urban
Development, ("HUD"). The intent is for this Agreement to remain in effect until all HCD
NSP funds covered under the terms of this Agreement, and any income generated from
the expenditure of such funds, are expended, and the funded activities are completed.
This Agreement may not be terminated and neither party may withdraw from this
Agreement while it remains in effect.
Page 1 of 9
3. PREPARATION OF APPLICATION
COUNTY, by and through Its Department of Community Development and Housing
(CDH), subject to approval of COUNTY Board of Supervisors, and In accordance with
HCD's agreement requirements, will be responsible for preparing and submitting to HCD
all necessary applications for HCD NSP funds. Application to HCD Includes the
preparation and processing of the application, compliance with Citizen Participation
requirements as well as any other items HCD requests related to HCD NSP regulations.
4. ELIGIBLE PROGRAMS
CITY has requested COUNTY to implement the following NSP-eligible activities:
1. Down Payment Assistance (NSP-1) which provides down payment assistance to
purchaser-occupants of foreclosed properties.
2. Affordability Gap (NSP-3) which is a soft second mortgage to purchaser-occupants
of foreclosed properties.
3. Acquisition, Rehabilitation and Resale (NSP-4)which is the acquisition, rehabilitation
and resale of significantly damaged homes In heavily Impacted neighborhoods.
5. BUDGET/PROGRAM SUMY
The Budget/Program Summary, attached hereto as Exhibit 2 of 2 is the Initial allocation
of HCD NSP funds as requested by CITY for eligible programs and activities. CITY and
COUNTY anticipate changes, modifications and/or additions may need to be made to
the budget in order to avoid having one program activity under funded while another
activity is not being utilized. The CITY Manager or his or her designee shall be
authorized to act on behalf of the CITY and the Director of CDH, or his or her designee,
shall be authorized to act on behalf of the COUNTY in order to make any changes
necessary to meet NSP program needs. Written authorization by both CITY (through
the CITY Manager) and COUNTY (through the Director of CDH) is required in order for
there to be any changes, modifications and/or additions to the Budget/Program
Summary.
In order to implement and carry out its duties pursuant to this Agreement, COUNTY will
utilize the maximum amount available for administration of the HCD NSP funding, which
is five per cent (5%) or $33,615. The remaining grant amount of $638,698 will be
allocated on the CITY's behalf for eligible programs. As programs and projects are.
implemented, COUNTY will receive up to eight per cent (8%)of the amount allocated to
programs as an activity deliver fee to help offset the expenses directly associated with
Implementation of NSP activities.
HCD NSP grant amount: $672,313
Loan Administration Fee (5%): S 33.x.,,5
Funds allocated to program activities: $638,698
Page 2 of 9
6. COMPLIANCElit ITH FINAL,PROGRAMS AND PLANS
COUNTY and CITY shall comply In all respects with final HCD NSP application and
plan, as well as any Implementing regulations and guidelines.
7. COMPLIANCE WITH ACT AND REGULATIONS
COUNTY and CITY shall comply with all applicable requirements of ACT and Its
regulations, In utilizing basic grant funds under ACT, and shall take all actions
necessary to assure compliance with COUNTY certifications required by Section 104(b)
of Title 1 of the Housing and Community Development Act of 1974, as amended.
COUNTY and CITY will comply with the provisions of the National Environmental Policy
Act of 1959 (NEPA), the California Environmental Quality Act (CEQA), Title VI of the
Civil Rights Act of 1964, Title Vill of the Civil Rights Act of 1958, Executive Order 11988,
Section f 00'of Titie11 of ACT, the'Pali Housing Act, and other applicable federal laws
and regulations. CITY agrees that HCD NSP funding for activities In or in support of
CITY are prohibited if CITY does not affirmatively further fair housing within its own
jurisdiction or impedes COUNTY actions to comply with its fair housing certification.
(CITY certifies that It has fair housing programs In place.)
8. CONFLICT OF INTEREST
CITY and COUNTY shall comply with all applicable federal and state laws, regulations
and policies governing conflict of Interest, including state conflict of interest regulations
found in California Government Code Sections 1090, 1126, 87100 at seq., federal
conflict of interest regulations found In 24 CFR 570.611, 85.38, and 84.42, and any
other applicable policies, rules and regulations related to conflict of interest.
Any person who is an employee, agent, consultant, officer, elected or appointed official
of the CITY, who exercises any functions or responsibilities with respect to HCD NSP
funded activities identified in this Agreement and who is In a position to participate In a
decision making process or gain inside information with regard to activities identified in
this Agreement, may not obtain a financial interest or benefit from the HCD NSP
assisted activities Identified In this Agreement or any related contract, subcontract, or
agreement, either for themselves, an Immediate family member or business partner,
during his/her tenure. CITY shall maintain written standards of conduct governing the
performance of its employees engaged in the award and administration of contracts.
9. POLICIES
CITY and COUNTY each have and are enforcing the following policies: (1) policies
prohibiting the use of excessive ford by law enforcement agencies within its jurisdiction
against any individuals engaged in non-violent aril rights demonstrations; and (2) a
policy of enforcing applicable state and local laws against physically barring entrance to,
or exit from, a facility or location which Is the subject of such non-violent civil rights
demonstrations.
Page 3 of 9
10. INDEMNIFICATION
CITY agrees to indemnify, defend and hold harmless COUNTY and its respective
authorized officers, employees, agents and volunteers from any and all claims, actions,
losses, damages, and/or liability arising out of this Agreement from any cause
whatsoever, Including the ads, errors or omissions and for any costs or expenses
Incurred by COUNTY on account of any claim therefore, except where such
Indemnification Is prohibited by law.
Without limiting the foregoing Indemnification, CITY shag indemnify and hold harmless
COUNTY and Its respective authorized officers, employees, agents and volunteers from
any Ilabli ty, claims, bases, demands, and actions incurred by COUNTY as a result of
the determination by HUD or HCD or their successors that activities undertaken by CITY
under the program(s) fail to cornp ly.with MY._laws, regulations or policies applicable
thereto.
COUNTY shall, indemnify, defend, and hold CITY, Its officers, agents, volunteers, and
employees, harmless from and against any loss, liability, claim, or damage that may
arise from any negligent act or omission by COUNTY, its officers, agents, and
employees.
11. INSURANCE REQUIREMENTS
Without in any way affecting the indemnity herein provided and in addition thereto, CITY
shall either provide evidence of a self insurance program satisfactory to County or
secure and maintain throughout the Agreement the following types of insurance with
limits as shown:
Additional Insured — All policies, except for the Workers' Compensation, Errors and
Omissions and Professional Liability Aides, shall contain endorsements naming the
County and its officers, employees, agents and volunteers as additional insureds with
respect to liabilities arising out of the performance of services hereunder. The additional
Insured endorsements shall not limit the scope of coverage for the County to vk,arlous
liability but shall allow coverage for the County io the full extent provided by the policy.
Such additional Insured coverage shall be at least as broad as Additional Insured (Form
B)endorsement form ISO, CG 2010.1185.
Waiver of Subrogation Rights — The CITY shall require the carriers of required
coverages to waive all rights of subrogation against the County, its officers, employees,
agents,volunteers, contractors and subcontractors. AN general or auto IWAIty insurance
coverage provided shall not prohibit the CITY and CITY's employees or agents from
waiving the right of subrogation prior to a loss or claim. The CITY hereby waives all
rights of subrogation against the County.
Polices Primary and Non-Ccmtributory — AN policies required herein are to be primary
and non-contributory with any insurance or self-insurance programs carried or
administered by the County.
Severability of Interests — The CITY agrees to ensure that coverage provided to meet
these requirements is applicable separately to each insured and there will be no moss
Page 4 of 9
liability exclusions that preclude coverage for suits between the CITY and the County or
between the County and any other Insured or additional Insured under the policy.
Proof of Coverage — The CITY shall furnish Certificates of Insurance to the County
Department administering the contract evidencing the Insurance coverage, Including
endorsements, as required, prior to the commencement of performance of services
hereunder,which certificates shall provide that such Insurance shall not be terminated or
expire without thirty (30) days written notice to the Department, and CITY shall maintain
such Insurance from the time CITY commences performance of services hereunder until
the completion of such services. Within fifteen (15) days of the commencement of this
contract, the CITY shall furnish a copy of the Declaration page for all applicable policies
and will provide complete certified copies of the policies and endorsementi immediately
upon request
Acceptability of Insurance Carrier — Unless otherwise approved by Risk Management,
Insurance shall be written by Insurers authorized to do business In the State of California
and with a minimum"Best" Insurance Guide rating of*A-VII".
Deductibles and Self-Insured Retention — Any and all deductibles or self-insured
retentions in excess of$10,000 shall be declared to and approved by Risk Management.
Failure to Procure Coverage — In the event that any policy of Insurance required under
this contract does not comply with the requirements, Is not procured, or Is canceled and
not replaced, the County has the right but not the obligation or duty to cancel the
contract or obtain Insurance if it deems necessary and any premiums paid by the County
will be promptly reimbursed by the CITY or County payments to the CITY will be
reduced to pay for County purchased insurance.
Insurance Review — Insurance requirements are subject to periodic review by the
County. The Director of Risk Management or designee Is authorized, but not required, to
reduce, waive or suspend any insurance requirements whenever Risk Management
determines that any of the required Insurance Is not available, Is unreasonably priced, or
is not needed to protect the Interests of the County. In addition, if the Department of
Risk Management determines that heretofore unreasonably priced or unavailable types
of Insurance coverage or coverage limits become reasonably priced or available, the
Director of PJsk Management or designee is authorized, but not required, to change the
above insurance requirements to require additional types of insurance coverage or
higher coverage limits, provided that any such change is reasonable In light of past
claims against the County, inflation, or any other Item reasonably related to the County's
risk.
Any change requiring additional types of Insurance coverage or higher coverage limb
must be made by amendment to this contract. CITY agrees to execute any such
amendment within thirty (30)days of receipt.
Any failure, actual or alleged, on the part of the County to monitor or enforce compliance
with any of the insurance and Indemnification requirements will not be deemed as a
waiver of any rights on the part of the County.
Page 5 of 9
The CITY agrees to provide Insurance set forth in accordance with the requirements
herein. If the CITY uses existing overage to comply with these requirements and that
coverage does not meet the specified requirements, the CITY agrees to amend,
supplement or endorse the existing coverage to do so. The type(s)of insurance required
Is determined by the scope of the contract services.
Without In anyway affecting the indemnity herein provided and In addition thereto, the
CITY shall secure and maintain throughout the contract term the following types of
Insurance with limits as shown:
::porkers' Comoensation/Emolovers Labiilty — A program of Workers' Compensation
insurance or a state-approved, self-insurance program in an amount and form to meet
all applicable requirements of the Labor Code of the State of Callfomia, Including
Ewer's Liability with $250,000 limits ,covering all persons Including volunteers
providing services on behalf of the CITY and all risks to such persons under this
contract.
If CITY has no employees, it may certify or warrant to the County that is does not
currently have any employees or Individuals who are defined as "employees" under the
Labor Code and the requirement for Workers'Compensation coverage will be waived by
the County's Director of Disk Management
Corn erclal/Generai Lability insurance — The CITY shall cavy General Liability
Insurance covering all operations performed by or on behalf of the CITY providing
coverage for bodily Injury and property damage with a combined single limit of not less
than one million dollars ($1,000,000), per occurrence. The policy coverage shall Include:
(a) Premises operations and mobile equipment
(b) Products and completed operations.
(c) Broad form property damage(including completed operations).
(d) Explosion, collapse and underground hazards.
(e) Personal Injury.
(f) Contractual liability.
(g) $2,000,000 general aggregate limit.
Automobile Liability Insurance — Primary insurance coverage shall be written on ISO
Business Auto overage form for all owned, hired and non-owned automobiles or
symbol 1 (any auto). The-policy shall have a combined single limit of not less than one
million dollars ($1,000,000)for bodily injury and property damage, per occurrence. If the
CITY Is transporting one or more non-employee passengers In performance of contract
services, the automobile liability policy shall have a combined single limit of two million
dollars ($2,000,000) for bodily injury and property damage per occurrence. if the CITY
owns no autos, a non-owned auto endorsement to the General Liability policy described
above is acceptable.
Umbrella Liability Insurance—An umbrella (over primwy) or excess policy may be used
to comply with limits or otter primary coverage requirements. When used, the umbrella
policy shall apply to bodily Injury/property damage, personal Injury/advertlsdng Injury and
shall include a "dropdown' provision providing primary coverage for any liability not
covered by the primary policy.The coverage shall also apply to automobile liability.
Page 6 of g
In addition, If the Risk Manager determines that heretofore unreasonably priced or
unavailable types of insurance coverage or coverage limits become reasonably priced or
available, the Risk Manager is authorized, but not required, to change the above
Insurance requirements, to require additional types of Insurance coverage or higher
coverage limits, provided that any such change Is reasonable In light of past claims
against COUNTY, Inflation,or any other Item reasonably related to the County's risk.
Any such reduction or waiver for the entire term of the Contract and any change
requiring additional types of Insurance coverage or higher coverage limits must be made
by amendment to this Contract. CITY agrees to execute any such amendment within 30
days of receipt
12. DISPOSITION PROGRAM INCOME
Any program income (defined as not.income.,directly generated from the.use of HCD
NSP funds) generated by the expenditure of HCD NSP funds received for eligible
activities will be considered program income of the County's NSP programs even if It Is
generated by activities undertaken within or by CITY. COUNTY will track expenditures
and program income received directly related to CITY HCD NSP funds separately from
other COUNTY funds. Program income will be spent by COUNTY on NSP-eligible
activities as authorized by the HCD NSP program.
13. DISPOSITION OF REAL PROPERTY
COUNTY and CITY do not anticipate purchasing or owning any properties utilizing HCD
NSP funds.
14. CITY SUBJECT TO SUBRECIPIENT REQUIREMENTS
Pursuant to 24 CFR 570.501(b), CITY is subject to the same requirements applicable to
subreciplents for other HUD programs, including the requirements of 24 CFR 570.503
for a written agreement, containing at a minimum, certain provisions. The provisions
contained In Sections 16 through 18 address these minimum requirements, unless
addressed In other provisions of this Agreement.
15. RECORDS AND REPORTS
CITY agrees to prepare and submit program progress reports and other reports as
required by HCD or COUNTY pursuant to NSP requirements and guidelines. CITY shall
retain such records and supporting documentation as are required by HCD or COUNTY
for a period of five (5)years after the termination of this Agreement
16. UNIFORM ADMINISTRATIVE REQUIREMENTS
CITY and COUNTY each agree to adhere to the Uniform Administrative Requirements
Identified In 24 CFR 570.502, Including, but not limited to, the requirements and
standards of OMS Circular No. A-87 and OMB Circular A-1 28.
Page 7 of 9
17. OTHER PROGRAM REQUIREMENTS
CITY and COUNTY each agree to carry out all activities pursuant to this Agreement In
compliance with all Federal laws and regulations described In 24 CFR 570.600 though
570.614 (excluding 570-604 and 24 CFR, part 52).
18 AMENDMENTS
This writing with any attachments embodies the whole of this Agreement. There are no
oral agreements. Except as herein provided, any amendments or modifications to this
Agreement shall not be valid unless In writing.
19. NOTICES
AN notices shall be served in writing and shall be deemed to have served five (5) days
after deposit in the United States mail,first class, postage prepaid to the following:
COUNTY:
County of San Bernardino
Department of Community Development and Housing
290 North D Street, Sixth Floor
San Bernardino, CA 92415-0040
Attn: Mitch Slagerman, Director
With a copy to:
County Counsel
County of San Bernardino
385 North Arrowhead Avenue, Fourth Floor
San Bernardino, CA 92415-0140
Attn: Ruth E. Stringer, County Counsel
CITY:
City of Redlands
P.O. Box 37
3005 Cajon Street
Redlands, CA 92373-1505
Attn: N. Enrique Martinez
Each party may change contact information so long as notice Is provided In writing to
the other party. The parties may also agree on other or additional forms of
communication of notices so long as any changes are reduced to writing and executed
by the authorized Individuals.
2o. AUTHORIZED OFFICERS
Except as stated In Section 5 with respect to budget/program changes, any nonmaterial
changes in the form of amendments may be made by the chief executive officers
(defined as the Individuals holding the positions at the time of the need for an
amendment)so long as such changes are reduced to writing.
Page 8 of 9
21. COUNTERPART EXECUTION
This Agreement may be executed In counterparts. When executed, each counterpart
shall be deemed an original irrespective of the date of execution. Said counterparts
shall together constitute one and the same Agreement
22. EFFECTIVE DATES
This Agreement shall be effective for all purposes when this Agreement and like
Agreements have been executed by COUNTY and CITY, properly submitted to HCD,
the grantor, by the designated deadline, and approved by HCD.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of
the day and year written above.
COU F SAN BE I O CITY OF REDLANDS
f By.
By.G Y C. ITT, ON HARRISON, MAYOR
Board of pervisors
DATE D: I ` DATED: May 27, 2009
By; ATTEST
MARK H. OFFER, CounVMmInIstratIve
Officer
DATED:_�/ �' LO E PO , ity Clerk
APPROVED AS TO LEGAL FORM
RUTH E. STRINGER
OUNTY COUNSEL .
Dated:
� ��MICHELE D. MORE
Prindpal Ass t my Counsel for CDH
SIGNED AND CERTIFIED THAT A COPY OF By.
THIS DOCUME ELIVERED TO
Op TA
THE CHAIR
Dated:
DENA g
Clerk
of the tyd o
� N
i
Page 9 of 9
I
EXHIBIT 1 of 2
COUNTY OF SAN BERNARDINO -CITY OF REDLANDS
JOINT AGREEMENT FOR
STATE OF CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM FUNDS
INSURANCE INVENTORY
WORKERS' COMPENSATION/EMPLOYERS' LIABILITY INSURANCE
Name of Insurance Company:
Effective Dates:
Employer's Liability Limit$
Certificate of Insurance Attached Yes No: On File w/CDH
COMPREHENSIVE GENERAL AND AUTOMOBILE LIABILITY INSURANCE
Name of Contractor's General Insurance Company:
Limits of Liability Effective Dates:
Per Occurrence$ Additional Insured Endorsement Attached Yes No: On File w/CDH
Annual Aggregate $ Certificate of Insurance Attached Yes No: On File w/CDH
Name of Contractor's Automobile Liability Insurance Company:
Limits of Liability Effective Dates:
Per Person $ Per Accident$ Damage Liability$ Combined Single Limit$
ERRORS AND OMISSIONS LIABILITY INSURANCE
Name of Contractor's Insurance Company:
Limits of Liability Effective Dates:
Per Occurrence$ Additional Insured Endorsement Attached Yes No: On File wl CDH
Annual Aggregate$ Certificate of Insurance Attached Yes No: On File w/CDH
PROFESSIONAL LIABILITY INSURANCE
Name of Contractor's Insurance Company.
Limits of Llabil Effective Dates:
Per Occurrence S Additional Insured Endorsement Attached Yes r No., On File w/CDH
Annual Aggregate$ Certificate of Insurance Attached Yes No: On File w/CDH
Page 1 of 1
EXHIBIT 2 OF 2
COUNTY OF SAN BENARDINO -CITY OF REDLANDS
JOINT AGREEMENT FOR
STATE OF CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM FUNDS
BUDGET/PROGRAM SUMMARY
The CITY has been awarded $672,313 In HCD NSP funds. Of this amount, COUNTY will utilize the
maximum amount available for administration of the HCD NSP, which Is five percent (5%) or $33,615.
The remaining grant amount of $638,698 will be allocated for eligible programs. As programs and
projects are Implemented, COUNTY will receive up to eight percent (8%) of the amount allocated to
programs as an activity deliver fee to help offset the expenses directly associated with Implementation of
NSP activities.
Modifications, changes and additions of eligible NSP activities may be, made with the,wriften approval of
both CITY and COUNTY.
CITY has requested COUNTY budget the following amounts to HCD NSP eligible activities:
Activity
NSP Activity Description Total Activity Act" Activity Delivery
Budget Delivery% Dollars Dollars
Affordability Gap which is a soft second
mortgage to purchaser-occupants of
foreclosed properties. $613,698 8% $568,239 $45,459
Acquisition, Rehabilitation and Resale which
Is the acquisition, rehabilitation and resale of
significantly damaged homes In heavily $ 25,000 8% $ 23,149 $ 1,851
Impacted neighborhoods
Page 1 of 1