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HomeMy WebLinkAbout11840 ORD - 12/19/1973JRR: j](�,cd:12- 17- 73:1st • TEXAS : AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDED CONTRACT WITH THE COMMUNITY DEVELOPMENT CORPORATION OF CORPUS CHRISTI FOR PLANNING AND CONSTRUCTING LOW INCOME AND LOWER MIDDLE INCOME HOUSING IN THE CITY OF CORPUS CHRISTI, AND ADMINISTER A LOAN POOL WITH ITS RELATED ACTIVITIES, ALL AS MORE FULLY SET FORTH IN THE CONTRACT, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "A "; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, SECTION 1. The City Manager be, and he is hereby, authorized and directed to execute an amended contract, for and on behalf of the City of Corpus Christi, with Community Development Corporation of Corpus Christi for the planning and constructing of low- income and lower middle- income housing in the City of Corpus Christi, and for the administration of a loan pool with its related activity, all as more fully set forth in the contract, a copy of which is attached hereto, marked Exhibit "A ", and made a part hereof. SECTION 2. The necessity to enter into the aforesaid agreement at the earliest practicable date in order that adequate housing may be provided for low - income and lower middle- income families in the City of Corpus Christi creates a public emergency and an imperative public necessity requiring the suspension of the Charter rule that no ordinance or resolution shall bepassed finally on the date of its introduction but that such ordinance or resolution shall be read at three several meetings of the City Council, and the Mayor having declared such emergency and necessity to exist, and having requested the suspension of the Charter rule and that this ordinance be passed finally on the date of its introduction and take effect and be in full force and effect from and aft r its passage, IT IS ACCORDINGLY SO ORDAINED, this they of sc� �/ 1973. ATTEST: "'M '_ -/I- �/ c (/lam City Secret MAYOMAYOOR THE CITY OF CORPUS CHRISTI, TEXAS APPROVED: y ,, / DAY OF �'ricglM f %_3 ty At orfip JRR: d :12 -18 -73 :1st _ • THE STATE OF TEXAS COUNTY OF NUECES X BE IT REMEMBERED THAT: WHEREAS, the City of Corpus Christi, a home -rule city, municipal corporation and body politic under the laws of the State of Texas, herein- after called THE CITY, and Community Development Corporation of Corpus Christi, a nonprofit corporation organized under the laws of the State of Texas, solely for charitable and educational purposes as those terms are defined under Section 501 (c) 3, Internal Revenue Code, 1954, as amended, hereinafter called CDC, are mutually desirous of planning and constructing low - income and lower middle - income single and multi - family housing, as those terms are generally understood in U. S. Department of Housing and Urban Development usage, within the corporate limits of the City of Corpus Christi, Texas; and in addition CDC will administer a loan pool in cooperation with lending institutions, making it possible for owners of substandard Housing to obtain financing for home improvements which they would normally be unable to obtain. A CDC loan committee will review and screen all loan applications, as well as administer a special account to aid in protecting the participating lending agencies against default; and WHEREAS, CDC, under Article IV of its Articles of Incorporation, is expressly empowered to, among other things, acquire, hold or dispose of land, funds, or other mixed or personal property, tangible or intangible, furnish outright grants, loans or investments to either public authorities or private individuals and corporations and to enter into contracts with public authorities for the furtherance of the foregoing stated purposes, including renting, leasing, sale or encumbrance of residential house; and WHEREAS, the City is empowered, under Art. 11, Sec. 5, Texas Constitution, Article 1175 generally, and City Charter Art.IX, Sec. 1, particu- larly but without limitation, to contract for the promotion of the public welfare, health and safety in furtherance of necessary and proper use and occupancy of property of the City (Art. IX, Sec. 6 (a)) and to promote in reasonable connection therewith the quality and quantity of the aforementioned housing available in the City, there being, this Council finds, a genuine need therefor in the City at this time, and that Community Development is a • L proper agency to serve as the City's independent contractor hereunder for the purposes heretofore expressed herein: NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE COVENANTS, TERNS, AND UNDERTAKINGS EXPRESSED, WITNESS THIS CONTRACT entered into between the CITY OF CORPUS CHRISTI, a municipal corporation and body politic of the State of Texas, hereinafter referred to as CITY, and the COMMUNITY DEVELOPMENT CORPORATION OF CORPUS CHRISTI, a nonprofit corporation under the laws of the State of Texas, hereinafter referred to as CDC. W I T N E S S E T H: I For the purpose of assisting the City in the performance of its responsibilities for improving the urban environment, particularly, but not limited to providing adequate safe and sanitary housing for low and moderate income families, CDC hereby undertakes and agrees to render the personal and professional services herein described upon the terms and conditions hereof. II A. As a fundamental policy, it is mutually agreed that assistance will be available to all organizations that wish to be considered as non- profit sponsors and to any private individual seeking a personal residence for himself and /or his family for all types of individual and'multi- family projects in all sections of the City with special consideration being given to reorient- ing growth patterns which now tend to segregate people by socio- economic levels. B. Nondiscrimination. CDC will not discriminate against any person because of race, color, religion, sex or national origin. III A. CDC agrees to establish and operate a housing information and service center designed to define and catalog the activities of the private nonprofit and public agencies involved in rental and sale housing, prescribing the elements that are required for a comprehensive short and long range housing plan. B. Article IV of the Articles of Incorporation of CDC is included as Exhibit "A" to further describe the work program to be undertaken by CDC, except as expressly prohibited or excluded by the terms of III. D. hereof. C. It is expressly understood and agreed that money paid by the City under this contract shall not be expended for any use, purpose, cause, or item whatsoever that is not directly related to the supply of housing as heretofore described and, to this end, may be, with such limitations, expended only in such construction financing and /or for the salaries of the CDC Executive Director, Housing Representative for Counseling, and Secretarial Services, for actual services, as shown by a monthly report of CDC construction funding and activity as more fully set forth in Paragraph V hereof, as well as accounts of receipts from the City and the expenditures thereof, in such written forms as the Corpus Christi City Manager may from time to time direct, filed with said City Manager not later than ten (10) days after the first day of each month, such reports to accurately reflect the previous month's hours and activities as hereinbefore specified. No City funds shall be used for any private purpose or for any loans or reserves for loans. D. Under no circumstances shall any portion of said total sum be expended, directly or indirectly, for the carrying on of information programs designed to develop public opinion about policy questions which have not received affirmative action by the appropriate public body, or attempting to influence legislation, or for any political campaign whatever, or for the financing of any speaking engagements, or for*any social functions or parties, or in contravention of any law. The determination by the Corpus Christi City Attorney of a contravention of law for purposes of administration of this contract, shall be final. IV Such formal statements as are enumerated below that have been jointly approved by the City Council and the U. S. Department of Housing and Urban Development (HUD) will serve as the guidelines in the preparation of the housing plan, including the following: 1. The Workable Program for Community Improvement as approved March 1, 1972; 2. The Annual Arrangements Agreement approved May 31, 1973; 3. An analysis of the Corpus Christi Housing Market prepared and published by the Federal Housing Administration of HUD in March, 1971; 4. Report titled "Housing 1970" identifying selected categories from the 1970 Census prepared by the Coastal Bend Regional Planning Commission and published in July, 1971; 5. When available, the reports and recommendations prepared for the Community Renewal Plan for which a HUD Grant has been approved. V CDC shall render a written report at least once a month for the preceding month's activity to CITY'S Council and City Manager of the expendi- tures made, the number of applicants received, processed, and referred, the number and type of housing placements made, loans or income supplements arranged, and such other information pertinent to this Agreement or as the City Manager may from time to time request. A report of net expenditures for this program shall be furnished CITY no later than the twentieth day of the ensuing month. VI It is understood and agreed by and between CITY and CDC that CITY shall not be liable for any negligent or wrongful acts of CDC, its officers, employees, agents, or subcontractors and CDC hereby covenants and agrees to save and hold harmless CITY from any and all claims, demands, or judgments arising from CDC negligent or wrongful operations under this Agreement. VII A. The City shall pay to CDC for performance of this Agreement an amount not to exceed the actual total monthly expenditures by CDC of those items appearing in Exhibit "B" or a total of $14,583 for the contractual period (January 1, 1974 thru July 31, 1974), whichever is less unless sooner terminated in which event payment shall be pro rated for actual expenses. Exhibit "B" is by this reference incorporated herein and made a part hereof as fully as if written here in full. As additional consideration for CDC's performance of this Agreement the City shall provide CDC with office space and telephones, as long as these arrangements can transpire without additional cost to the City and for a period of time not to exceed the expiration date of this Agreement or until such a time as it becomes no longer feasible to do so in the judgment of the City. B. Requests for payment hereunder by CDC to CITY shall be made monthly, supported by the certification of the Executive Director and the CDC Treasurer that all expenditures for which such payment reimbursement is requested were made solely in performance of this Agreement. C. CDC and CITY hereby agree that CDC will request and accept purchase by CITY, for Lhe use of CDC in tha performance of this Agreement, machines, equipment, printing services or other property or services when it is determined by CITY that it can obtain such property or services at less net cost than the same purchases can be made by CDC. Whenever CITY purchases in this manner for CDC, it is hereby agreed by CDC that the cost of such purchases shall reduce the total budget commitment by CITY in an amount equal to such purchases. At the date of termination of this Agreement, title to all unexpended property (machines, equipment, and unused supplies and materials) purchased by CITY for CDC under this subparagraph C, or otherwise, shall immediately vest in CITY. D. The personnel described in the Budget shall be under the super- vision of the person designated as Executive Director by the Board of Directors of CDC. Either CITY or CDC may cancel and terminate this Agreement, with or without cause, by sending a written notice of such cancellation to the other party hereto at these addresses: City Manager City of Corpus Christi P. 0. Box 9277 Corpus Christi, Texas 78408 Community Development Corporation of Corpus Christi P. 0. Box 26 Corpus Christi, Texas 78403 Such cancellation and termination shall be effective at the end of the period of thirty consecutive days immediately following the date of personal delivery of such notice to the above address or, in the event of mailing of notice, the date of certified mailing of such notice. This agreement shall become effective as of January 1, 1974, and the services herein contracted shall begin as of that date, on a month to month basis and terminate upon written notice to the above address by City to CDC or on July 31, 1974, whichever occurs sooner. EXECUTED IN DUPLICATE ORIGINAIS, this the day of 197 ATTEST: City Secretary APPROVED: DAY OF City Attorney Director of Finance Director of Planning & Urban Development CITY OF CORPUS CHRISTI By - R. Marvin Townsend, City Manager COMMUNITY DEVELOPMENT CORPORATION OF CORPUS CHRISTI By Jack K. Dumphy, President George E. Clower, Jr., Vice - President Charles J. Kaler, Jr., Secretary Charlie Richard Perrin, Treasurer James M. Williams, Executive Director ARTICLE IV from ARTICLES OF INCORPORATION of COMMUNITY DEVELOPMENT CORPORATION OF CORPUS CHRISTI The corporation is organized solely for charitable and educational purposes as those terms are defined under Section 501(c) (3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States Internal Revenue Law)'. In this regard, its purposes will be to furnish assistance to projects and undertakings for the improvement of the public peace, health and safety, civic development and public welfare in the Corpus Christi metropolitan area of South Texas, and to participate in programs for the elimi- nation of slum conditions and in urban redevelopment and other projects con- ducive to the progress of the community as such relate to adequate housing and elimination of slum conditions for persons with low and moderate income, and in connection therewith to do rhv fnlio�,t„o• (a) Acquire, improve, hold, or dispose of land and real property and any interest therein; (b) Acquire, hold or dispose of funds and other property, real or personal, tangible or intangible; (c) Make outright grants, loans or investments of its funds or property to either public authorities or private individuals and corporations in furtherance of its stated purposes, and to enter into contracts with public authorities, private persons, firms or corporations in connection therewith; (d) To carry on any activity for the purposes above stated, either directly or as agent, for or with other persons, firms or corporations, or in whole or in part through or by means of any other person, firm or corporation, and generally to do any and all further and other things which may be necessary or incidental to the purposes above stated, including the construction of improvements upon real property of the corporation or of others and the renting or leasing, sale or encumbrance of real, personal or mixed property acquired by it, or the outright grant of any such property without consideration but in furtherance of said pruposes. �h�b�f No part of the net earnings of the corporation shall inure to the benefit of or be distributable to its members, officers, or other private persons, except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distri- butions in furtherance of the purposes set forth in this article. No substan- tial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting, to influence legislation, and the corpora- tion shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of any candidate for public office. Notwithstanding any other provision of these articles, the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from Federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States Internal Revenue Law) or (b) by a corporation, contribu- tions to which are deductible under Section 170(c)(2) of the Internal Revenue Code of 1954 (or the corresponding provision of any future United States Internal Revenue Law.) • COMMUNITY DEVELOPMENT CORPORATION OF CORPUS CHRISTI Revised Budget January 1, 1974 through July 31, 1974 Salaries: Executive Director $ 6,650.00 Rousing Representative 4,200.00 Automobile Allowances 595.00 Employee Benefits 1,220.00 Office Supplies 400.00 Postage 224.00 Convention, Travel, Dues and 958.00 Subscriptions Printing, Advertising, etc. 177.00 Telephone 159.00 TOTAL $14,583.00 City participation will be limited to the seven (7) month period beginning January 1, 1974 and ending July 31, 1974. C7 • Corpus Christi, Texas • day of , 19_Zj TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspen- sion of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council; I, therefore, request that you suspend said Charter rule or requirement and pass this ordi- nance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, MAYOR T CITY OF CORPUS CHRISTI, The Charter rule was suspended by the following vote: Jason Luby James T. Acuff Rev. Harold T. Branch Thomas V. Gonzales Ricardo Gonzalez Gabe Lozano, Sr. J. Howard Stark The above ordinance was passed by the fol\Yowing vote: Jason Luby James T. Acuff Rev. Harold T. Branch Thomas V. Gonzales Ricardo Gonzalez Gabe Lozano, Sr. J. Howard Stark