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HomeMy WebLinkAbout12782 ORD - 09/03/1975JKH:hb:9 /2/75:lst AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH THE COMMUNITY DEVELOPMENT CORPORATION OF CORPUS CHRISTI FOR PLANNING AND CONTRACTING OF LOW INCOME AND LOWER MIDDLE INCOME HOUSING, CONTINUING COUNSELING SERVICES; 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, IN SUBSTANTIALLY THE FORM ATTACHED HERETO AND MADE A PART HEREOF, NARKED EXHIBIT "A "; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be and he is hereby authorized to enter into a contract with the Community Development Corporation of Corpus Christi for planning and contracting of low income and lower middle income Yousing, continuing counseling services 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, in substantially the form attached hereto and made a part hereof, marked Exhibit- "A ". SECTION 2. The necessity to authorize execution of the afore- said contract 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 ordi_ance or resolution shall be passed finally on the date of its intro- duction but that such ordinance or resolution shall be read at three several meetings of the City Council and the Mayor having declared that such emergency and necessity 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 1975: ATTES City Secre ary AY& Nro•e A THE CITY OF CORPUS CHRISTI, TEXAS PPRQVED: '-/ O , 1975: / City Attorney 12782 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 (here- inafter called "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 multifamily 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 Community 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 multidiscipline 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 VACS, generally, and City Charter Art_ 7X, Sec. 1, particularly, but without limitation, to contract for the promotion of the public welfare, health and safety in futherance 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 CDC is a proper agency to serve as the City's independent contractor hereunder for the purposes heretofore expressed herein: NOW, THEREFORE, FOR AND IN CONSIDERATION OF' THY, COVENANTS, TERMS, AND UNDERTAKINGS 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 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 nonprofit sponsors and to any private individual seeking a personal residence for himself and /or his family for all types of individual and multifamily projects in all sections of the City with special consideration being given to reorienting growth patterns which now tend to segregate people by socioeconomic levels. B. CDC will not discriminate against any person because of race, color, religion, sex or national origin. III A. CDC agrees that it will provide to the City the adminis- tration of the Corpus Christi Community Loan Program in cooperation with -2- 0 0 local participating 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 home owner- ship and default counseling to families utilizing the loan program and providing rehabilitation design services to families processed through the Corpus Christi Community Loan Program. B. CDC agrees that it will provide to the City by means of its Community Design Center 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. C. City agrees that it will provide to CDC construction manager supervision for community improvement projects wherein CDC serves as general contractcr 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. D. Provide the City advice and assistance in the planning and implementation of its housing rehabilitation programs, upon request. E. Provide home ownership counseling, including budgeting -3- 1 , and money management, to families that are planning to purchase homes, and to those who are experiencing payment difficulties with major emphasis on 235 mortgage insured homes. CDC will assist and direct to proper resources those families who have home maintenance problems and proiride reference information for other specific family needs. F. Article IV of the Articles of Incorporation of CDC is included as Exhibit "A" to further describe the work program to be under- taken by CDC, except as expressly prohibited or excluded by the terms of Paragraph I1I(H) hereof. G. 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 IV 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. H. 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 what- ever, 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 -4- n _ o of administration of this contract, shall be final. IV 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. V It is und_rstood 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. VI A. The City shall pay to CDC for performance of this agree- ment an amount not to exceed the actual monthly expenditures by CDC of those items appearing in Exhibit "B" and not to exceed a total of $30,893 for the contractual period (August 1, 1975 through July 31, 1976), which- ever is less. Exhibit "B" is 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. 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 reimburse- . ment is requested were made solely in performance of this agreement. C. CDC and the City hereby agree that CDC will request and accept purchase by the City, for the use of CDC in the performance of this agreement, machines, equipment, printing services or other property or - -5- 0 0 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 C, or otherwise, shall immediately vest in City. D. For initial working capital in furtherance of this agree- ment the City will advance to CDC not more than one - twelfth (1/12) of the total of said City participation. E. 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. F. Either City or CDC may cancel and terminate this agree- ment, 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 92771 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 conser_utive 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. VII This agreement shall become effective August 1, 1975, 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, 1976, whichever occurs sooner. EXECUTED IN DUPLICATE. ORIGINALS, this the day of 1975. ATTEST: CITY OF CORPUS CHRISTI By: City Secretary R. Marvin Townsend, City Manager -6- N APPROVED: DAY OF , 1975: Cit y A torney y r Direc or of Finance Director of Planning and Urban Development u COMMUNITY DEVELOPMENT CORPORATION OF CORPUS CHRISTI By: Charles J. Yaler, Jr., President Sim Pair Vice President Mrs. Robert Clarke, Secretary Charles F. Garrett, Treasurer F. E. Van Sickle, Executive Director + J + + s 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 therpwit-h to an rhp (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 per 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. 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.) O EXHIBIT " 0 '4 COMMUNITY DEVELOPMENT CORPORATION OF CORPUS CHRISTI Budget August 1, 1975 through July 31 1976 1. Salaries 2. Automobile Allowance 3. Employee Benefits 4. Office Space 5. Supplies $ Duplication 6. Telephone & Postage 7.- Dues, Subscriptions, Training & Conferences 8. Printing d Advertising 9. Legal, Audit, Bond & Insurance 10. Equipment TOTAL $22,367.00 3,300.00 2,256.00 0 800.00 750.00 470.00 100.00 850.00 0 . $30,893.00 CORPUS CHRISTip TEXAS TO THE MWERS OF THE CITY COUNCIL COPPUS CHRISTI TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCES 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; 11 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 40Rpo-Tem THE CITY OF00DRPUS CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: .JASON LUBY DR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GULLEY 1 GABE LOZANO, SR. EDWARD L. SAMPLE THE ABOVE ORDINANCE WAS PASSED BY THE F60OWING VOTE: JASON LUBY DR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE i