HomeMy WebLinkAbout2002-09-17; City Council; 16895; Reallocation of Home Funds for Affordable HousingCITY OF CARLSBAD - AGENDA BILL
iB# 16,895
CITY Am. FUNDS FOR AFFORDABLE HOUSING ITG. 9/17/02
DEPT. HD. E TITLE: - REALLOCATON OF HOME
)EPT. HIRED
RECOMMENDED ACTION:
Hold a public hearing to accept comments on reallocation of funds from the City’s Community
Development Block GranVHOME Investment Partnership Program, and adopt Council Resolution No.
2002-278 reallocating the subject funds for affordable housing within the City of Carlsbad.
ITEM EXPLANATION:
Backaround
(HUD) under the Community Development Block Grant (CDBG) Entitlement Program to finance
Each year, the City receives funding through the U.S. Department of Housing and Urban Development
programs that serve the needs of lower income persons. In addition, as a participant in the San Diego
Urban County HOME Investment Partnership (HOME) Consortium, the City receives federal HOME
funds to provide affordable housing opportunities for lower income households. Over the years, the City
has allocated this CDBG & HOME funding to a variety of projects and programs which benefit lower
income households. This report is presented at this time to consider reallocation of HOME funds set-
aside to the Housing Reserve Fund specifically for the development of an affordable housing project. In
addition, this report discusses the need to reallocate HOME funds previously set aside for the
Residential Rehabilitation Program.
Affordable Housina Reserve Fund
.Over the last three years, the City Council has allocated a total of $376,551 in CDBG funds and
$812,879 in HOME funds into the CDBGlHOME Housing Reserve Fund. The funds are to be used to
create new, or enhance existing, affordable housing opportunities in Carlsbad for lower income
$376,551 in CDBG funds and $300,000 of the HOME funds from the CDBGlHOME Housing Reserve
households. On August 6, 2002, the City Council held a public hearing and approved reallocation of the
Fund for the specific purpose of purchasing property at 2578 Roosevelt Street for the development of
housing units affordable to lower income households. The property is currently in escrow, and the
study and an ALTA survey. It is anticipated that escrow will close on October 17, 2002 if all due diligence
Redevelopment Agency is conducting its due diligence activities which include a Phase I environmental
findings are deemed acceptable.
At this time, staff is requesting that the City Council consider and take action to allocate the balance of
HOME funds ($512,879) in the Housing Reserve Fund to activities related to actual
developmentkonstruction of the affordable housing project proposed for the site at 2578 Roosevelt
Street. Federal regulations require the City to hold another public hearing to reallocate additional funds
specifically for developmentkonstruction activities related to the subject affordable housing project. It
should be noted that if the City Council decides at a later date that the subject affordable housing project
will not be pursued for any reason, the subject funds may be reallocated to an alternate project at that
time.
Page 2 of Agenda Bill # 16,895
Reallocation of HOME Funds Set-Aside for Residential Rehabilitation Proqram
The City recently terminated the Residential Rehabilitation Program, which was administered by the
County of San Diego on behalf of the City. The termination was due to a general lack of overall interest
value following the rehabilitation work. There remains a balance of approximately $472,370 in HOME
in the program as well as difficulty in meeting the federal regulations that limited the maximum housing
funds originally allocated by the City Council for the Residential Rehabilitation Program which require
reallocation to an alternate project. Staff is recommending that the balance of HOME funding allocated
for the Residential Rehabilitation Program be reallocated to the developmenffconstruction of the
affordable housing project proposed for 2578 Roosevelt Street.
County Aareement for HOME Funds
The County Board of Supervisor’s is tentatively scheduled to hold a public hearing in October to approve
property acquisition and development funding for the Roosevelt Street Affordable Housing project. A
draft agreement between the City and the County regarding use of HOME funds for the project has been
submitted and is attached for Council review. The proposed resolution on this item authorizes the City
Manager to execute the County Agreement in substantially the form presented in Exhibit 2 to this report
and subject to prior approval by the City Attorney. The resolution also authorizes the City Manager to
execute documents for the acquisition of the Roosevelt Street property.
SUMMARY AND RECOMMENDATION:
It is staff’s recommendation that the City Council accept public comments on the recommended
reallocation of funds from the CDBG/HOME Program. Then, if acceptable, adopt the attached Council
resolution which will provide for reallocation of CDBG/HOME funds and authorize the City Manager to
execute the County Agreement for expenditure of HOME funding on the proposed affordable housing
project at 2578 Roosevelt Street.
FISCAL IMPACT:
The proposed reallocations will allow for a total of $985,249 in HOME funds to be expended on
developmenffconstruction costs related to a new affordable housing project at 2578 Roosevelt Street.
EXHIBITS:
2002-278
1. City Council Resolution No. / reallocating funds from the CDBG/HOME Program and
authorizing the City Manager to execute appropriate and related documents.
2. Draft agreement between County of San Diego for implementation of project with HOME funds.
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CITY COUNCIL RESOLUTION NO. 2002-278
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA APPROVING THE REALLOCATION OF CDBGNOME
PROGRAM FUNDS, AND AUTHORIZING THE CITY MANAGER TO
EXECUTE APPROPRIATE DOCUMENTS.
WHEREAS, the City of Carlsbad, California has previously allocated Community Development
Block Grant (CDBG) and Home Investment Partnership (HOME) funds from the U. S. Department of
Housing and Urban Development (HUD) to the City’s Housing Reserve Fund and to a residential
rehabilitation program for the purposes of assisting lower income households: and,
WHEREAS, the City now desires to reallocate HOME funds from the Housing Reserve Fund
;pecifically to a project to develop affordable housing on property located at 2578 Roosevelt Street; and,
WHEREAS, the City also desires to reallocate funding previously set-aside for the City’s
Residential Rehabilitation Program to develop affordable housing on property located at 2578 Roosevelt
Street; and,
WHEREAS, the City Council of the City of Carlsbad held a public hearing to consider the
:eallocation of HOME funds from the Housing Reserve Fund and the Residential Rehabilitation Program;
WHEREAS, the City Council has taken all testimony into account.
NOW, THEREFORE BE IT HEREBY RESOLVED as follows:
1. That the above recitations are true and correct.
2. That $512,879 in HOME funds from the CDBGMOME Housing Reserve Fund, are
specifically reallocated to developlconstruct the affordable housing project proposed to be
located at 2578 Roosevelt Street.
3. That up to $472,370 in HOME funds previously allocated by the City Council for use in the
City’s Single Family Rehabilitation Program are reallocated to developlconstruct the
affordable housing project proposed to be located at 2578 Roosevelt Street.
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4. That the City Manger is hereby authorized to execute documents for the acquisition of
property at 2578 Roosevelt Street including the agreement for the use of HOME funds with
the County of San Diego in substantially the form presented as Exhibit 2 to this resolution and
subject to prior approval of the City Attorney.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of
Zarlsbad, California, held on the 17 th day of September, 2002, by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Nygaard
NOES: Council Member Hall
ABSENT: Council Member Ku
ABSTAIN None
ITTES'lk
"mm"
INE 111. WOOD, City Clerk
'age 2 of 2 of Resolution No. 2002-278
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CONTRACT FOR MANAGEMENT AND IMPLEMENTATION OF
A HOME INVESTMENT PARTNERSHIPS PROJECT
This Contract entered into by and between the City of Carlsbad (hereinafter referred to as
“CRY”), and the COUNTY OF SAN DEGO (hereinafter referred to as “COUNTY”), on
.2002.
WITNESSETH
WHEREAS, there has been enacted into law Public Law 101-625, the HOME Act, Title
I1 of the Cranston-Gonzalez National Affordable Housing Act, creating the HOME Investment
Partnerships Program that provides funds to expand the supply of affordable housing for very
low-income and low-income persons; and
WHEREAS, County acting as the “Participating Jurisdiction” within a HOME
Consortium as that term is used in the Act, is authorized to apply for and accept HOME
Investment Partnerships Act Grant Funds with respect to its “Urban County” and the Consortium
Cities of Carlsbad, Encinitas, La Mesa, Santee, and Vista; and
WHEREAS, City is a unit of general local government located within the temtorial
boundaries of the County; and
WHEREAS, on, June 29, 1999, City and County renewed a cooperative agreement for
submission of a proposal to the Department of Housing and Urban Development (hereinafter
referred to as “HUD”); andor
WHEREAS, County received Board of Supervisor approval for the City’s proposed
project described in Attachment “A” here of (hereinafter referred to as the “Project’) on
Seutember 17.2002; and
WHEREAS, County incorporated the City’s proposal for the project described in
Attachment “A” hereof (hereinafter referred to as the “Project”) into the County’s Community
Development Block GranVHOME Investment PartnershipEmergency Shelter Grant Annual
Funding Plan which was submitted to the U.S. Department of Housing and Urban Development
(HUD); and
WHEREAS, the Cooperative Agreement provided that in the event that the City proposal
is approved by IIUD as part of the County proposal and a HOME Investment Partnership
program is made to the County on account of such proposal the parties heretofore will enter into
a supplementary contract providing for implementation of the City proposal by the County, the
City or by cooperative action of the two agencies; and
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WHEREAS, HuD has approved the County Annual Funding Plan for HOME Investment
Partnerships funds; and
WHEREAS, it is the desire of the City and the County that the Project be implemented;
and
WHEREAS, the City shall undertake the same obligations to the County with respect to
the Project in the County’s aforesaid Annual Funding Plan for participation in the HOME
Investment Partnerships Program; NOW THEREFORE
IT IS AGREED AS FOLLOWS:
1. WORK TO BE PERFORMED: City shall implement the Project described in
Attachment “A” hereof (entitled “Scope of Work”) fully in accordance with the terms of
the Annual Funding Plan approved by the County and submitted to the Department of
Housing and Urban Development (hereinafter referred to as “HUD”) in application for
funds to carry out the Project and the Certifications which were submitted concurrently
with the Annual Funding Plan. The Annual Funding Plan and Certifications form is
hereby incorporated by reference into this contract fully as if set forth herein.
City shall also undertake the same obligations to the County that the County has
undertaken to HUD pursuant to said Annual Funding Plan and Certifications. City shall
hold County harmless against any indemnity which it may suffer with respect to HUD on
account of any failure on the part of City to comply with the requirements of any such
obligation. The obligations undertaken by City include, but are not limited to, the
obligation to comply with the current and most up-to-date version of each of the
following:
Title I1 of the Cranston-Gonzalez National Affordable Housing Act (Public Law
101-625) as amended;
Regulations of the Department of Housing and Urban Development relating to
HOME Investment Partnerships Program (Title 24, Part 92 of the Code of Federal
Regulations commencing with Section 92.1);
Regulations of the Department of Housing and Urban Development relating to
environmental review procedures for the HOME Investment Partnerships
Program (Title 24, Subpart G, Part 92 of the Code of Federal Regulations,
commencing at Section 92.352);
Title VI of the Civil Rights Act of 1964 (Public Law 88-352); Title VJII of the
Civil Rights Act of 1968 (Public Law 90-284); Section 109 of the Housing and
Community Development Act of 1974; Executive Order 11246; Executive Order
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11063; and any HUD regulations heretofore issued or to be issued to implement
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these authorities relating to civil rights;
(e) Section 3 of the Housing and Community Development Act of 1974, includes:
(1) The work to be performed under this contract is subject to the
requirements of section 3 of the Housing and Urban Development Act of
1968, as amended, 12 U.S.C. 170111 (section 3). The purpose of section 3
is to ensure that employment and other economic opportunities generated
by HUD assistance or HUD-assisted projects covered by section 3, shall,
to the greatest extent feasible, be directed to low- and very low-income
persons, particularly persons who are recipients of HUD assistance for
housing.
(2) The parties to this contract agree to comply with HUD's regulations in 24
CFR part 135, which implement section 3. As evidenced by their
execution of this contract, the parties to this contract certify that they are
under no contractual or other impediment that would prevent them from
complying with the part 135 regulations.
(3) The City shall send to each labor organization or representative of workers
with which the City has a collective bargaining contract or other
understanding, if any, a notice advising the labor organization or workers'
representative of the City's commitments under this section 3 clause, and
will post copies of the notice in conspicuous places at the work site where
both employees and applicants for training and employment positions can
see the notice. The notice shall describe the section 3 preference, shall set
forth minimum number and job titles subject to hire, availability of
apprenticeship and training positions, the qualifications for each; and the
name and location of the person(s) taking applications for each of the
positions; and the anticipated date the work shall begin.
(4) The City shall include the section 3 clause in every subcontract subject to
compliance with regulations in 24 CFR part 135, and shall take
appropriate action, as provided in an applicable provision of the
subcontract or in this section 3 clause, upon a finding that the
subcontractor is in violation of the regulations in 24 CFR part 135. The
City will not subcontract with any subcontractor where the City has notice
or knowledge that the subcontractor has been found in violation of the
regulations in 24 CFR part 135.
(5) The City shall certify that any vacant employment positions, including
training positions, that are filled (1) after the Contractor is selected but
before the contract is executed, and (2) with persons other than those to
whom the regulations of 24 CFR part 135 require employment
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opportunities to be directed, were not filled to circumvent the City ‘s
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obligations under 24 CFR part 135.
(6) Noncompliance with HUD’s regulations in 24 CFR part 135 may result in
sanctions, termination of this contract for default, and debarment or
suspension from future HUD assisted contracts.
(7) With respect to work performed in connection with section 3 covered
Indian housing assistance, section 7(b) of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450e) also applies to the work to
be performed under this contract. Section 7(b) requires that to the greatest
extent feasible (i) preference and opportunities for training and
employment shall be given to Indians, and (ii) preference in the award of
contracts and subcontracts shall be given to Indian organizations and
Indian-owned Economic Enterprises. Parties to this contract that are
subject to the provisions of section 3 and section 7(b) agree to comply
with section 3 to the maximum extent feasible, but not in derogation of
compliance with section 7(b).
The Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 and regulations adopted to implement that Act in the Code of Federal
Regulations, Title 24, Part 42;
Office of Management and Budget Circular A-87 entitled “Cost Principles for
State, Local and Indian Tribal Governments”; Office of Management and Budget
Circular A-133 entitled “Audits of States, Local Governments, and Non-Profit
Organizations.” Reference is particularly made to the Code of Federal
Regulations Part 85 entitled “Administrative Requirements for Grants and
Cooperative Agreements to State, Local and Federally Recognized Indian and
Tribal Governments.”
Section 92.503 “Program Income, Repayments, and Recaptured Funds” of the
HOME Regulations. Any Program Income earned by the City in carrying out the
activities of this Agreement shall be retained by the City and shall be used by the
City for projects approved by the County within the City’s jurisdiction in
accordance with HOME regulations. The City shall report all Program Income to
the County.
Upon expiration of this agreement, City shall transfer to the County any HOME
funds on hand at the time of expiration and any accounts receivable attributable to
the use of HOME funds:
Section 92.252 or 92.254, as applicable, “Affordability” of the Regulations of the
Department of Housing and Urban Development relating to the HOME
Investment Partnerships Program. Repayment of any funds to the County is
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required if the housing does not meet the affordability requirements for the
specified time period;
The following laws and regulations relating to preservation of historic places:
Public Law 89-665 the Archeological and Historical Preservation Act of 1974
(Public Law 93-291), and Executive Order 11593 including the procedures
prescribed by the Advisory Council on Historic Preservation in 36 Code of
Federal Regulations, Part 800;
The Labor Standards Regulations set forth in Section 570.705 of 24 CFR, Part
570;
SB 975 Prevailing Wages. SB975, effective January 1, 2002, expands the
categories of projects that are considered “public works” for purposes of paying
“prevailing wages” pursuant to California Labor Code section 1771. Among the
expanded categories of projects are those in which public agencies grant money or
lend money at other than market rates. Certain projects are exempt from the
requirement to pay prevailing wages pursuant to subdivisions (c) and (d) of
California Labor Code section 1720. It is the City’s obligation to determine
whether payment of prevailing wages is required. City agrees to defend
indemnify and hold harmless the County, Department of Housing and Community
Development and its officers and employees from and against any claim, lawsuit,
administrative proceeding, damages, fines or penalties relating to the issue of non-
payment of prevailing wages. A copy of SB 975 is attached (ATTACHMENT
C), however, the law may have been amended at the time of awarding a
construction, repair or maintenance contract and City will be obligated to comply
with the law in effect at that time.
The Hatch Act relating to the conduct of political activities (Chapter 15 of Title 5,
U.S.C.);
The Flood Disaster Protection Act of 1974 (Public Law 93-234 and the
regulations adopted pursuant thereto) 24 CFR, Chapter X Subpart B;
The Rehabilitation Act of 1973 (Public Law 93-112) as amended; including
Section 504 which relates to nondiscrimination in federal programs and Housing
and Urban Development Regulations set forth in 24 CFR Part 8;
The Clean Air Act (42 U.S.C. Section 1857 et seq.) and the Federal Water
Pollution Control Act, as amended (33 U.S.C. Section 1251 et seq.) and the
regulations adopted pursuant thereto (40 CFR, Part 15);
The Drug-Free Workplace Act of 1988 (Public Law 100-690);
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HuD#- Section 1012 and 1013 of the Residential Lead-Based Paint Hazard Reduction
Act of 1992 (Title X) and the regulations adopted pursuant thereto (24 CFR, Part
35).
No member, officer or employee of the City, or its designee or agents, no member
of the governing body of the locality in which the program is situated, and no
other public official of such locality or localities who exercises any functions or
responsibilities with respect to the program during hidher tenure or for one year
thereafter, shall have any interest, direct, or indirect, in any contract or
subcontract, or the process thereof, for work to be performed in connection with
the program assisted under the Grant, and that it shall incorporate, or cause to be
incorporated, in all such contracts or subcontracts a provision prohibiting such
interest pursuant to the purposes of this certification;
In accordance with Section 519 of Public Law 101-144, the City certifies that it
adopted and is enforcing a policy prohibiting the use of excessive force by law
enforcement agencies within its jurisdiction against any individuals engaged in
nonviolent civil rights demonstrations.
The City certifies, that in accordance with Section 319 of Public Law 101-121, to
the best of his or her knowledge and belief that:
(1) No federal appropriated funds have been paid or will be paid, by or on
behalf of the undersigned, to any person for influencing or attempting to
influence an officer or employee of any agency, a member of Congress, an
officer or employee of Congress, in connection with the awarding of any
federal contract, the making of any federal grant, the making of any
federal loan, the entering into of any cooperative contract, and the
extension, continuation, renewal, amendment, or modification of any
federal contract, grant, loan, or cooperative contract.
(2) If any funds other than federal appropriated funds have been paid or will
be paid to any person for influencing or attempting to influence an officer
or employee of any agency, a member of Congress, or an employee of a
member of Congress in connection with this federal contract, grant, loan,
or cooperative contract, the undersigned shall complete and submit
Standard Form-LLL, “Disclosure Form to Report Lobbying”, in
accordance with its instructions.
The City shall adopt an “Affirmative Marketing” Plan in accordance with Section
92.351, if the housing being funded contains five or more units.
The Architectural Barriers Act of 1968 (42 U.S.C. Section 4151);
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2. COMPLIANCE WITH LAWS: City shall comply with all applicable state laws
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and regulations, and local ordinances and regulations when doing the work required by this
Contract.
3. COMPENSATION: County shall reimburse City for the costs it incurs for work
performed under this Contract, not to exceed a maximum reimbursement of $986.000. City shall
not submit claims to the County nor shall County reimburse City for costs for which City is
reimbursed from a source other than the funds allocated for work under this Contract.
4. COMPENSATION SCHEDULE: County shall pay City monthly progress
payments upon certification and submittal by City of a statement of actual expenditures incurred,
provided, however, that not more than 90% of the total agreed compensation will be paid during
the performance of this Contract. The balance due shall be paid upon certification by City that
all of the required services have been completed. Payment by County is not to be construed as
final in the event HUD disallows reimbursement for the project or any portion thereof. The 10%
retention will not apply to acquisition or service contracts.
5. EXPENDITURE STANDARD: In order to insure effective administration and
performance of approved HOME Investment Partnerships Grant Projects and to meet HUD
performance standards, City shall demonstrate reasonable progress on implementation of the
project, expending all contracted funds within 18 months from the date the contract is executed.
In the event all funds are not expended within 18 months, the County shall notify the City of the
expenditure deficiency. City shall have a total of 60 calendar days from the date of the County’s
written notification to correct the deficiency. If the deficiency is not corrected within that time,
City agrees that the County may reallocate the amount of the expenditure deficiency.
6. w: This contract shall commence when executed by the parties and shall
continue in effect until terminated as provided herein.
7. TERMZNATION FOR CONVENIENCE This Contract may be terminated by
either party delivering 30 day written notice of intent to terminate upon the other party.
However, notice of termination given by City shall not be effective unless the County determines
that there are no outstanding obligations to HUD pursuant to the Project.
8. AUTOMATIC TERMINATION. This Contract shall terminate at the discretion
of the County if the United States Government terminates the HOME Investment Partnerships
Grant Program or terminates the Project, which is the subject of this Contract.
9. TERMINATION OF CONTRACT FOR CAUSE: City and County recognize
that the County is the governmental entity which executed the grant agreement received pursuant
to the County’s application and that County is responsible for the proper performance of the
Project. If City fails to fulfill in a timely and proper manner its obligations under this contract to
undertake, conduct or perform the Project identified in this Contract, or if City violates any state
laws or regulations or local ordinances or regulations applicable to implementation of the
Project, or if City violates any provisions of this contract, County shall have the right to
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terminate this contract by giving at least five days written notice to City of the effective date of
termination. Even if County terminates the Agreement, City shall remain liable to County for all
damages sustained by County due to City’s failure to fulfill any provisions of this Contract, and
County may withhold any reimbursement payments from City for the purpose of set-off until the
exact amount of damages due to County from City is determined. City hereby expressly waives
any and all claims for damages for compensation arising under this contract except as set forth in
this section in the event of such termination.
10. CONTRACT ADMINISTRATION: The Director, Department of Housing and
Community Development shall administer this contract on behalf of the County. The Carlsbad
City Manager shall administer this contract on behalf of the City. Within a reasonable time after
the County makes a request, City shall give the County progress reports or other documentation
as required by the County’s Contract Administrator to audit City’s performance of this Contract.
11. RECORDS AND REPORTS: The City shall maintain records and make such
reports as required by the Director, Department of Housing and Community Development, to
enable the County to analyze City’s project. All records of the City related to this Contract or
work performed under this Contract shall be open and available for inspection by HUD and/or
County auditors during normal business hours.
12. QUARTERLY REPORTS: City shall provide the County with a quarterly report,
submitted no later than 30 days after the last day of the previous quarter, which includes a
narrative of the services provided, progress towards meeting the timeline goals stated in the
contract, and an itemized accounting of the expenditures of HOME funds during the previous
quarter. Failure to submit quarterly reports in a timely manner will result in withholding of
HOME funds until the report has been submitted.
Report due dates are: January 30, April 30, July 30 and October 30.
13. INDEMNIFICATION County shall not be liable for, and City shall defend and
indemnify County and its officers, agents, employees and volunteers against any and all claims,
deductibles, self-insured retentions, demands, liability, judgments, awards, fines, mechanics’
liens or other liens, labor disputes, losses, damages, expenses, charges or costs of any kind or
character, including attorneys’ fees and court costs (collectively, Claims), which arise out of or
are in any way connected with the work covered by this Contract arising either directly or
indirectly from any act, error, omission or negligence of City or its officers, employees, agents,
Citys’, licensees or servants, including without limitation, Claims caused by the concurrent act,
error, omission or negligence, whether active or passive, of County, and/or its agents, officers,
employees or volunteers. However, City shall have no obligation to defend or indemnify County
from a Claim if it is determined by a court of competent jurisdiction that such Claim was caused
by the sole negligence or willful misconduct of County or its agents or employees.
City and its successors, assigns, and guarantors, if any, jointly and severally agree to indemnify,
defend (with counsel selected by County) reimburse and hold County and its officers, employees
and agents harmless from any claims, judgments, damages, penalties, fines, costs, liabilities
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HuD#- (including sums paid in settlement of claims) or loss, including attorneys’ fees, consultants’ fees,
and experts’ fees which arise during or after the contract term for any losses incurred in
connection with investigation of site conditions, or any cleanup, remedial, removal or restoration
work required by any hazardous Materials Laws because of the presence of Hazardous Materials,
in the soil, ground water or soil vapors on the premises, and the release or discharge of
Hazardous Materials by City during the course of any alteration or improvements of the Premises
by City, unless Hazardous Materials are present solely as a result of the gross negligence or
willful misconduct of County, its officers, employees or agents. The indemnification provided by
this section shall also specifically cover costs incurred in responding to:
Hazardous Materials present or suspected to be present in the soil,
ground water to or under the Property before the Commencement
date;
Hazardous Materials that migrate, flow, percolate, diffuse, or in
any way move on to or under the Property following the
commencement Date; or
Hazardous Materials present on or under the Property as a result of
any discharge, release, dumping, spilling (accidental or otherwise),
onto the Property during or after the Term of this contract by any
person, corporation, partnership or entity other than County.
The foregoing indemnities shall survive the expiration or termination of the contract any or any
transfer of all or any portion of the Premises, or of any interest in this contract and shall be
governed by the laws of the State of California.
14. AUDIT COSTS: City shall reimburse County for all costs incurred to investigate
and audit City’s performance of its duties under the Contract if City is subsequently found to
have violated the terms of the Contract. Reimbursement shall include all direct and indirect
expenditures incurred to conduct the investigation or audit. County may deduct all such costs
from any amount due City under this Contract.
15. PRECEDENCE: This contract constitutes the entire agreement of the parties and
supersedes any previous oral or written understandings or contracts related to the matters
covered herein. This contract may not be modified except by written amendment executed by
each party.
16. ACKNOWLEDGEMENT OF FUNDING: City shall identify the County of San
Diego as the source of funding, or, if applicable, one of the sources of funding in public
announcements that are made regarding the project. Acknowledgement of the County’s funding
role, for example, should be included in publicity materials related to the project. In addition,
City agrees that the County shall be apprised of any special events linked to the project so that a
review can be made on what role, if any, the County would assume.
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17. INSURANCE: City agrees to comply with the insurance requirements set forth
in Attachment B.
18. NO WAIVER: No failure, inaction, neglect or delay by County in exercising any
of its rights under this Contract shall operate as a waiver, forfeiture or abandonment of such
rights or any other rights under this Contract.
19. NOTICE: Any notice or notices required or permitted to be given pursuant to this
Contract shall be personally served by the party giving notice or shall be served by certified mail.
Notices shall be sufficient if personally served on or if sent by certified mail, postage prepaid,
addressed to:
CITY
City Manager
City of Carlsbad
-1200 Carlsbad Village Dr.
Carlsbad, CA 92008
COUNTY:
Director
County of San Diego, Department of
Housing and Community Development
3989 Ruffin Rd.
San Diego, CA 92123-1890
IN WITNESS WHEREOF, the parties have executed this contract on the day and the
year first above written.
CITY OF CARLSBAD COUNTY OF SAN DIEGO
Raymond R. Patchett, City Manager Catherine J. Trout, Director
Date
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(ATTACHMENT A)
Scope of Work
The City of Carlsbad (CONTRACTOR) has a certain project to be implemented with HOME
Investment Partnership Grant Program funds. The work to be accomplished includes the
following:
CITY OF CARLSBAD-ROOSEVELT STREET APARTMENTS PROJECT: Funding in the
amount of up to $986,000 to the City of Carlsbad for the acquisition and construction of 11
apartment units.
1.
A. ESTIMATED TIME SCHEDULE: CONTRACTOR will make all good faith and
reasonable efforts to implement the project in compliance with the following
estimated implementation schedule, or earlier:
Project Completion August 2007
B. ESTIMATED BUDGET: CONTRACTOR shall make all good faith and reasonable
efforts to complete the work under this Contract within the following estimated
budget. In no case shall CONTRACTOR be entitled to, or shall County reimburse
CONTRACTOR for more than $1,200,000 for work performed under this Contract.
Cost of Acquisition and Construction: $986,000
Total: $986,000
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(AmACHMENT B)
Insurance
1. INSURANCE: For the term of this agreement, the City shall include the County in its
program of liability self-insurance. Evidence of such program of self-insurance shall be
evidenced by a "Statement of Coverage" issued by the City to the County.
A. All Subcontractors utilized to carry out the County funded Predevelopment
activities, within 10 working days prior to the inception of their contract with
City, shall submit to County certificates of insurance and appropriate separate
endorsements to the actual insurance Policy, evidencing that the Subcontractor
has obtained for the period of the Contract insurance in the following forms of
coverage and minimum amounts specified from insurance carriers with an A. M.
Best rating of A VII and above.
i) An occurrence policy of Commercial General Liability insurance insuring
Subcontractor against liability for bodily injury, including death, personal injury or
property damage arising out - of all operations of the Contractor during the execution
of the said contract of not less than One Million Dollars ($1,000,000) per occurrence.
(1) The City of Carlsbad and the County of San Diego, its officers, agents,
employees, and volunteers shall be added as Additional Insured by separate
endorsement to the policy.
(2) Subcontractor's liability insurance shall apply as primary insurance, and any other
insurance or self-funded program maintained by County or Board shall be excess
only and non-contributing.
ii) Statutory Workers' Compensation insurance along with Employer's Liability of not
less than One Million Dollars ($1,000,000).
iii) A Comprehensive Automobile Liability Insurance policy for bodlly injury, including
death, and property damage which provides total limits of not less than one million
dollars ($1,000,000) combined single limit per occurrence applicable to all owned,
non-owned and hired vehicles.
iv) Professional Errors and Omissions Liability Insurance. if City provides andor
engages the services of any type of professional, including, but not limited to,
engineers and architects, whose failure due to a mistake or deficiency in design,
formula, plan, specifications, advisory, technical or other services could result in
liability, City or Consultant shall obtain professional errors and emissions liability
insurance in an amount of not less than one million dollars ($1,000,000). If this policy
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contains a self retained limit, it shall not be greater than Ten Thousand Dollars
($10,000) per occurrence/event; if the coverage contains one or more aggregate
limits, a minimum of 50% of any such aggregate limit must remain available at all
times; if over 50% of any aggregate limit has been paid or reserved, County may
require additional coverage to be purchased by Consultant to restore the required
limits. The policy shall include limited contractual liability coverage. This coverage
shall be maintained for all work pursuant to the Agreement.
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BILL NUMBER: SB 975
CHAPTER 938
FILED WITH SECRETARY OF STATE OCTOBER 14,2001
APPROVED BY GOVERNOR OCTOBER 14,2001
PASSED THE SENATE SEPTEMBER 6,2001
PASSED THE ASSEMBLY SEPTEMBER 4,2001
AMENDED IN ASSEMBLY AUGUST 30,2001
AMENDED IN ASSEMBLY JULY 18,2001
AMENDED IN ASSEMBLY JULY 12,2001
AMENDED IN ASSEMBLY JULY 10,2001
AMENDED IN ASSEMBLY JUNE 25,2001
INTRODUCED BY Senator Alarcon
FEBRUARY 23,2001
An act to amend Section 63036 of the Government Code, and to amend Section 1720 of the
Labor Code, relating to the California infrastructure and economic development bank.
LEGISLATIVE COUNSEL'S DIGEST
SB 975, Alarcon. California Infrastructure and Economic Development Bank.
Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act,
establishes the California Infrastructure and Economic Development Bank in the Trade and
Commerce Agency. The act requires public works financed by the bank to comply with certain
laws applicable to payment of prevailing wages on public works.
This bill would require any of those public works financed through the use of industrial
development bonds under the California Industrial Development Financing Act to comply with
those laws relating to payment of prevailing wages.
Existing law generally defines "public works" to include construction, alteration,
demolition, or repair work done under contract and paid for in whole or in part out of public
funds.
This bill would redefine "public works" to include installation and provide that "paid
for in whole or in part with public funds" means certain payments, transfers, credits, reductions,
waivers, and performances of work, but does not include the construction or rehabilitation of
affordable housing units for low- or moderate-income persons, as specified. '
This bill would provide that certain private residential housing projects and
development projects built on private property are not subject to the prevailing wage, hour, and
discrimination laws that govern employment on public works projects.
This bill would also make technical, nonsubstantive changes.
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THE PEOPLE OF THE STATE OF CALJFORhVA DO ENACT AS FOUO WS:
SECTION 1. Section 63036 of the Government Code is amended to read
63036. It is the intent of the Legislature that the activities of the bank be fully
coordinated with any future legislative plan involving growth management strategies designed to
protect California's land resource, and ensure its preservation and use it in ways which are
economically and socially desirable. Further, all public works financed pursuant to this division,
including those projects financed through the use of industrial development bonds under Title 10
(commencing with Section 91500), shall comply with Chapter 1 (commencing with Section
1720) of Part 7 of Division 2 of the Laborcode.
SEC. 2. Section 1720 of the Labor Code is amended to read:
1720. (a) As used in this chapter, "public works" means:
(1) Construction, alteration, demolition, installation, or repair work done under contract
and paid for in whole or in part out of public funds, except work done directly by any public
utility company pursuant to order of the Public Utilities Commission or other public authority.
For purposes of this paragraph, "construction" includes work performed during the design and
preconstruction phases of construction including, but not limited to, inspection and land
surveying work.
(2) Work done for irrigation, utility, reclamation, and improvement districts, and other
districts of this type. "Public work" shall not include the operation of the irrigation or drainage
system of any irrigation or reclamation district, except as used in Section 1778 relating to
retaining wages.
(3) Street, sewer, or other improvement work done under the direction and supervision
or by the authority of any officer or public body of the state, or of any political subdivision or
district thereof, whether the political subdivision or district operates under a freeholder's charter
or not.
(4) The laying of carpet done under a building lease-maintenance contract and paid for
out of public funds.
(5) The laying of carpet in a public building done under contract and paid for in whole
or part out of public funds.
(6) Public transportation demonstration projects authorized pursuant to Section 143 of
the Streets and Highways Code.
(b) For purposes of this section, "paid for in whole or in part out of public funds"
means the payment of money or the equivalent of money by a state or political subdivision
directly to or on behalf of the public works contractor, subcontractor, or developer, performance
of construction work by the state or political subdivision in execution of the project, transfer of
an asset of value for less than fair market price; fees, costs, rents, insurance or bond premiums,
loans, interest rates, or other obligations that would normally be required in the execution of the
contract, which are paid, reduced, charged at less than fair market value, waived or forgiven;
money to be repaid on a contingent basis; or credits applied against repayment obligations.
(c) Notwithstanding subdivision (b):
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(1) Private residential projects built on private property are not subject to the
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requirements of this chapter if the projects are not built pursuant to an agreement with a state
agency, redevelopment agency, or local public housing authority.
(2) (A) If the state or a political subdivision requires a private developer to perform
construction, alteration, demolition, installation, or repair work on a public work of improvement
as a condition of regulatory approval of an otherwise private development project, and the state
or political subdivision contributes no more money, or the equivalent of money, to the overall
project than is required to perform this public improvement work, and the state or political
subdivision maintains no proprietary interest in the overall project, then only the public
improvement work shall thereby become subject to this chapter.
(B) If the state or a political subdivision reimburses a private developer for costs that
would normally be borne by the public, or provides directly or indirectly a public subsidy to a
private development project that is de minimis in the context of the project, an otherwise private
development project shall not thereby become subject to the requirements of this chapter.
(3) The construction or rehabilitation of affordable housing units for low- or moderate-
income persons pursuant to paragraph (5) or (7) of subdivision (e) of Section 33334.2 of the
Health and Safety Code that are paid for solely with moneys from a Low and Moderate Income
Housing Fund established pursuant to Section 33334.3 of the Health and Safety Code or that are
paid for by a combination of private funds and funds available pursuant to Section 33334.2 or
33334.3 of the Health and Safety Code does not constitute a project that is paid for in whole or in
part out of public funds.
(4) "Paid for in whole or in part out of public funds" shall not include tax credits
provided pursuant to Section 17053.49 or 23649 of the Revenue and Taxation Code.
(d) Notwithstanding any provision of this section to the contrary, the following projects
shall not, solely by reason of this section, be subject to the requirements of this chapter:
(1) Qualified residential rental projects, as defined by Section 142 (d) of the Internal
Revenue Code, financed in whole or in part through the issuance of bonds that receive allocation
of a portion of the state ceiling pursuant to Chapter 11.8 of Division 1 (commencing with Section
8369.80) of the Government Code on or before December 31,2003.
(2) Single-family residential projects financed in whole or in part through the issuance
of qualified mortgage revenue bonds or qualified veterans' mortgage bonds, as defined by
Section 143 of the Internal Revenue Code, or with mortgage credit certificates under a Qualified
Mortgage Credit Certificate Program, as defined by Section 25 of the Internal Revenue Code,
that receive allocation of a portion of the state ceiling pursuant to Chapter 11.8 of Division 1
(commencing with Section 8869.80) of the Government Code on or before
December 31,2003.
(3) Low-income housing projects that are allocated federal or state low-income housing
tax credits pursuant to Section 42 of the Internal Revenue Code, Chapter 3.6 of Division 31
(commencing with Section 50199.4) of the Health and Safety Code, or Sections 12206, 17058, or
23610.5 of the Revenue and Taxation Code, on or before December 31,2003.
(e) If a statute, other than this section, or an ordinance or regulation, other than an
ordinance or regulation adopted pursuant to this section, applies this chapter to a project, the
exclusions set forth in subdivision (d) shall not apply to that project.
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(f) For purposes of this section, references to the Internal Revenue Code shall mean the
Internal Revenue Code of 1986, as amended, and shall include the corresponding predecessor
sections of the Internal Revenue Code of 1954, as amended.
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