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HomeMy WebLinkAbout12242 ORD - 08/28/1974�i :VMR:8 -27 -74 • ST TEXAS: AN ORDINANCE AUTHORIZING A CONTRACT WITH COMMUNITY DEVELOPMENT COR- PORATION OF CORPUS CHRISTI FOR PLANNING AND CONSTRUCTING OF LOW - INCOME AND LOWER MIDDLE - INCOME HOUSING, CONTINUING THE COUNSELING SERVICE, AND ACTING AS GENERAL CONTRACTOR IN THE HOUSING REHABILITATION LOAN PROGRAM IN THE CITY OF CORPUS CHRISTI, ALL AS MORE FULLY SET FORTH IN THE CONTRACT, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF; 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 ENTER INTO A CONTRACT, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, WITH COMMUNITY DEVELOPMENT CORPORATION OF CORPUS CHRISTI FOR PLANNING AND CON- STRUCTING OF LOW- INCOME AND LOWER MIDDLE- INCOME HOUSING, CONTINUING THE COUNSELING SERVICE AND ACTING AS GENERAL CONTRACTOR IN THE HOUSING REHABILITATION LOAN PROGRAM IN THE CITY OF CORPUS CHRISTI, ALL AS MORE FULLY SET FORTH IN THE CONTRACT, A COPY OF WHICH IS ATTACHED HERETO, 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 PROVFDED 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 BE PASSED 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 AFTER ITS PASSAGE, IT IS ACCORDINGLY SO ORDAINED, THIS THE��DAY OF AUGUST, 1974. ATTEST: ..i1L• DAY OF AUGUST, 1974 I a 0- MAYOR THE k2 OF CORPUS CHRISTI TEXAS 12242 • TIE STATE OF TEXAS J( COUNTY OF NUECES X BE IT REMEMBERED THAT: WHEREAS, the CITY OF CORPUS C11RISTI, a home -rule city, municipal corporation and body politic under the laws of the State of Texas (hereinafter called "CITY ") and COMMUNITY DEVELOPMENT CORPORATION OF CORPUS CHRISTI, a non- profit 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 of administering the Corpus Christi gommunity_ Loan Program in cooperation with participating local financial institutions thereby making it possible for owners of substandard housing to obtain financing for home improvements which they would normally be unable to obtain; and of providing Community Design Center services including, but not limited to, building design services to families or organizations at the neighborhood level who cannot afford to pay for such multi - discipline technical assistance for development or redevelopment of community projects, and a local housing repair estimating and design mechanism which would be available to put into action should the Corpus Christi metropolitan area suffer a natural disaster; 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 housing;.and WHEREAS, the CITY is empowered, under Art, 11, Sec, 5, Texas Constitution, Article 1175 V.A.C.S., generally, and City Charter Art. LF, Sec. 1, particularly 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 Asst CDC is's proper agency to serve as the CITY's independent contractor hereon* for the purposes heretofore expressed herein: NOW, 'THEREFORE, FOR AND IN CONSIDERATION OF THE COVENANTS, TERMS, AND 11NDERTAKINGS EXPRESSED, WITNESS THIS CONTRACT entered into between the CITY and CDC W I T N E S S E T H: I For the purpose of assisting the City in the performance of its respon- sibilities 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 reorienting growth patterns which now tend to segregate people by socio- economic levels. B. 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 non- profit 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_ CDC agrees that it will provide to the City the administration of the Corpus Christi omm nits Loan Program in cooperation with local participates lending institutions including but not limited to operating a CDC Loan Committee to review and screen all loan applications prior to Housing Finance Board review; overseeing a special account to aid in protecting the participating lending institutions against foreclosure losses; serving as General Contractor for those families processed through the Corpus Christi Community Loan Program; providing ongoing review of the Corpus Christi Community Loan Program including the stage of loan processing construction progress and repayment histories; making available homeownershin and default counseling to families utilizing the loan program, and providing rehabilitation design services to families processed through -the Corpus Christi Community, Loan Program. C. CDC agrees that it will provide to the CITY by means of the VISTA volunteers assigned to CDC the following Design Center services including but not limited to, incorporating into new or redevelopment projects in their initial inception effective planning and counseling technical assistance providing building design services to families or organizations at the neighborhood level who cannot otherwise afford such market rate services within their present budgets; providing technical expertise to enhance the quality of development within community neighborhoods; and organizing a local mechanism to be available to deal with housing rehabilitation problems a natural disaster would bring with it. D. CITY agrees that it will provide to CDC Construction *tanager supervision for community improvement projects wherein CDC serves as General Contractor for those families processed through the Corpus Christi .Community Loan Program; supportive secretarial services when needed and available from the Neighborhood Improvement Division secretarial pool office space telephones Xerox use, and equipment, as long as these arrangements can transpire without additional cost to` the CITY 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. E. 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 Paragraph III (G) hereof. F. 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 and administrative overhead expenditures of the CDC Executive Director, Housing Representative for Counseling and VISTA volunteers, 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 fifteen (15) 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. C. 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 con- travention 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. 2. The Annual Arrangements Agreement as approved. 3. An analysis of the Corpus Christi Housing Market prepared and published by the Federal Housing Administration of HUD. 4. Reports and recommendations regarding housing as prepared and approved by the Coastal Bend Council of Governments. 5. 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 expenditures 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 to the CITY no later than the fifteenth (15) day of the ensuing month. VI It is understood and agreed by and between the CITY and CDC that the -CITY and CDC shall not be liable for any negligent or wrongful acts of the other party, its officers, employees, agents, or subcontractors and they hereby covenant and agree to save and hold harmless the other party from any and all claims, demands, or judgments arising from their 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 monthly expenditures by CDC of those items appearing in Exhibit "B" and Exhibit "C" or a total of $29,046 for the con- tractual period (August 1, 1974 through July 31, 1975), whichever is less. Exhibit "B" and Exhibit "C" are by this reference incorporated herein and made a part hereof as fully as if written here in full. In the event this Agreement is sooner terminated payment shall be prorated for actual expenses. B.. Under this Agreemenp, CDC hereby grants to the City an option to purchase the performance of Design Center services as more fully set forth in Paragraph III (C) of this Agreement in an amount not to exceed.the actual total monthly expenditures by CDC of those items appearing in Exhibit "D" or a total of $2,500 for the period from January 1, 1975 through July 31, 1975, whichever is less. C. 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 D. CDC and the CITY hereby agree that CDC will request and acdept purchase by the CITY, for the use of CDC in the performance of this Agreement, machines, equipment, printing services or other property or services when it is determined by the CITY that it can obtain such property or services at less net cost than the same purchases can be made by CDC. Whenever the 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 the 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 the CITY for CDC under this subparagraph D, or otherwise,. shall immediately vest in CITY. E. For initial working capital in furtherance of this Agreement the CITY- - - - - r - - - - - - -will advance to CDC not more than one twelfth (1/12) - - - - - of the total of said CITY participation. F_ The personnel described in the Budget shall be under the supervision of the person designated as Executive Director by the Board of Directors of CDC. C. 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.O.Box 9277 Corpus Christi, Texas 78408 Community Development Corporation of Corpus Christi P.O.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. VIII This Agreement shall become effective August 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, 1975, whichever occurs sooner. E_ C�iED IN D� ; ?LIC.1 r ORIGIR9LS, this the day of 197 MM ZST: CITY OF CORPUS CHRISTI By: City Secretary R. Marvin Townsend, City Manager APPROVED: DAY OF City Attorney Director of Finance Director of Planning and Urban Development C0MUNITY DEVELONIMATT CORPORATION OF CORPUS &MSTI By: Jack A. Dumphy, President George E. Clower, Jr., Vice— President Charles J. Baler, Jr., Secretary Pair, Treasurer ames M. Williams, Executive Director c iICL° Pi fro,_ A:?TICLES O I ?fCv ?02 \�IO`I of C0 :'MD.;ITY D t-LLO ?`Z. CO29O A7-0O i 0: CO3pGS C ui, The corporation is organi zed sD!eiy for charitable and educatienal purposes as those terms are eafinad under Section 501(c) (3) of the Internal Revenue Code of 1954 (or the correspond-i-3 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 person; with low and moderate incose_ and in connection tb erewil-b Cn do [ha follp_i-.c- - (a) Acquire, improva, 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 irves.tments of its funds or property to either public 'authorities or private individuals and. 'corporations iri furtherance of its stated p :urposes, a-d to enter into contracts with public authorities, private persons, fir or corporations in connection therewith; - (d) To carry on any activity fc. the purposes above stated, either directly or as agaat, for or with other zarsons, firm-, or corporations, or in cahole or in part through or by means of aay other person; firm a, corporation, and generally to do any and all further and other thin s which may be necessary or .incidental to the purposes above s_.__ed, including Lire construction- of ir,provecients upon real pro? ?rL3, of the - _,00ra.'.ion or of others a d t,,. rend!,.- or lcz.ing, sale or encumbrance of real, p- arsonll cr Trixe' property a ;uirzd p, by :.t, or t':n ocaright grant of any suc'.• Fro; :. -:rty winnu` ca :sid'_r: :a- in furtltaran: : >_ of said prc-)o :,: N-1 P,!-'-: O C e e_rni r„ Of _tee co,oc,,atiOn s..all _.. t0 the __ O' i_LS_�7;.__J _o its c. -J2rSa O a Or OC_, 7_Lva__ P=:r.;on_ .;c the corpara_ior. ,,..a.l b _ta;.oriczc' an-, - 'pc.. -- -- =a par ._o_.30:Z_ble uempeesation for services _enc> -rem and to ra`ca pa,, �ncs _rd butioas in furt ^--ranee of the purposes , -t forth in this i.o sn,D;tma- tial part of the activities of the corporation shall be t1-2 carrying or. Of pro•aganda, Or,otharc:ise attemptin„ to influence legislation, and t___ corpora_ tion shall not participata in, or intervene in (including the oubl_is%ing or distribution of statements) any political casp2_oa on behalf of any candidate for public office. Notcaithstanding any other provision of these articles, the corporation shall not carry en any other activities not permitted to be carried on (a) by a corporation exempt from Federal in cowe tae under Section 501(c)(3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future Lnited States Internal Revenue Law) or (b) by a corporation, contribu- Lions to which are deductible wader Sect'en 170(c)(2) of the Internal Reveaue Code of 1954 (or the correspondib.g provision of any future United States Inze =_aa Revenue Law.) Exhibit "B" COL-MMITY DEVELOPPrsNT CORPOPATION OF CORPUS CHRISTI Budget August 1, 1974 through December 31, 1974 1. Salaries A. Executive Director $ 5,225.00 B. Hcusing Representative for Counseling 3,300.00 2. Automobile Allowance 1,050.00 3. Employee Benefits 852.50 4. Office Space 0 5. Supplies & Duplication 750.00 6. Telephone & Postage 470.00 7. Dues, Subscriptions, Training & Conferences 470.00 8. Printing & Advertising 285.00 9. Legal, Audit, Bond & Insurance 416.65 10. Equipment 450.00 TOTAL $ 13,269.15' Exhibit "C" CO�HMTY DEVELOP.NJENT CORPORATION OF CORPUS CHRISTI Budget January 1, 1975 through July 31, 1975 1. Salaries A. Executive Director $ 7,315.00 B. Housing Representative for Counseling 41620.00 2. Automobile Allowance 595.00 3. Employee Benefits 1,193.50- 4. Office Space 0 5. Supplies & Duplication 350.00 6. Telephone & Postage 350.00 7. Dues, Subscriptions, Training & Conferences 595.00 8. Printing & Advertising 175.00 9. Legal, Audit, Bond & Insurance 583.35 10. Equipment 0 TOTAL $ 15,776.85f CMMUITY D. VE"LOPHENT CO31'ORUTION OF CORPUS CHF —TSTS Optional Budget January 1, I975 through July 31, 1975 1. Salaries A. Executive Director B. Housing Representative for Counseling 2. Automobile Allowance 3. Employee Benefits 4. Office Space 5. Supplies & Duplication 6. Telephone & Postage 7. Dues, Subscriptions, Training & Conferences 8. Printing & Advertising 9. Legal, Audit, Bond b Insurance 10. Equipment TOTAL $ 0 0 875.00 0 0 700. CO 300.00 5.00 220.00 0 400.00 $ 2,500.00 Corpus Christi, Texas 1V tt day of , 19 7— 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, ! _11� MAYOR �_,,,i ITY OF CORPUS CHR' I, TEXAS 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 owing vote: Jason Luby James T. Acuff Rev. Harold T. Branch Thomas V. Gonzales Ricardo Gonzalez Gabe Lozano, Sr. J. Howard Stark R.t�/