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HomeMy WebLinkAbout13987 ORD - 10/19/19770 JKH:hb:1O /1,/77 V , AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH THE COMMUNTIY DEVELOPMENT COR- PORATION PROVIDING FOR HOUSING PLANNING, CON- STRUCTION, AND OTHER RELATED ACTIVITIES FOR $40,000, THE CONTRACT TERM TO BE FOR A PERIOD OF ONE YEAR, COMMENCING AUGUST 1, 1977, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO, MARKED EXHIBIT "A ", AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. a - I . 0 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager is hereby authorized to enter into a contract with the Community Development Corporation to provide certain services as detailed therein, a copy of said contract being attached hereto, marked Exhibit "A" and made a part hereof for all purposes. SECTION 2. That the necessity to provide adequate housing generally within 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, having requested the suspension of the Charter rule and that this ordinance take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED this the Iqk day of © 0 L,&AA_ , 1977. ATTEST: rnsm APPROVED: /�JJ DAY OF & , 1977: J. BRUCE AYCOCK, CITY ATTORNEY By /6/,) at&'� Assistant Cit orney MAYOR THE CITY OF CORPUS CHRISTI, TEXAS 13987 MICROFILMED � ®`i 1090 CONTRACT THE STATE OF TEXAS Q COUNTY OF NUECES WHEREAS, the City of Corpus Christi, a municipal corporation and body politic under the laws of the State of Texas, hereinafter called "City ", desires to attract more low and moderate income housing to Corpus Christi; and WHEREAS, the City benefits from more economic activity, increased property tax and direct employment, and material purchases developed by such housing; and WHEREAS, the Community Development Corporation of Corpus Christi, a nonprofit corporation organized under the laws of the State of Texas, hereinafter called "CDC ", is desirous of planning and constructing low and lower middle income single and multi - family housing within the City, administering the Community Development Block Grant Fund Loan Program, and an emergency local housing repair estimating and design activity and providing budgeting and default counseling; 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, CDC has been carrying out a service program to help Insure better housing for low income families in City, and other programs to stimulate and increase economic activity in the City; and WHEREAS, the City is empowered, under Article 11, Sec. 5, Texas Constitution, Article 1175 VACS, generally, and City Charter Art.IX, 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 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 THE COVENANTS, TERMS AND UNDERTAKINGS EXPRESSED, WITNESS THIS CONTRACT entered into between the City and CDC. I CDC agrees: 1. To provide professional housing consultation services to City through consultation, packaging, and promotion of safe, sanitary housing for low to moderate income families, the elderly and the handicapped in City, and to assist in creating conditions which will encourage the construction of new or rehabilitated apartment complexes or single family homes into satisfactory dwellings. 2. For the purpose of assisting City in the performance of Its responsibilities CDC hereby undertakes and agrees to render the personal and professional services herein described upon the terms and conditions hereof. 3. That assistance will be available to all organizations that wish to be nonprofit sponsors and to any private individual seeking a personal residence for himself and /or his family for all types of indi- vidual and multi - family projects in all sections of City with special con- sideration being given to reorienting growth patterns which now tend to segregate people by socioeconomic levels. 4. That CDC will not discriminate against any person because of race, color, religion, sex or national origin. 5. That it will assist City in the administration of the Community Development Block Grant Fund Loan Program including, but not limited to, operating a CDC Loan Committee to review, screen, and approve all loan applications and providing ongoing review of the Community -2- Development Block Grant Fund Loan Program including loan processing, con- struction progress to include periodic inspections and final inspection prior to disbursement of final payment to contractors. 6. To provide the City advice and assistance in the planning and implementation of its housing rehabilitation programs, upon request. 7. To provide home ownership counseling, including budgeting 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 provide reference information for other specific family needs. 8. To carry out those activities described in Article IV of the Articles of Incorporation of CDC, included as Exhibit "A ". 9. To create a Federal Housing Information Program to be used by sponsors of single or multi - family housing complexes. 10. To have direct telephone and mail contacts with employees or officers of groups which may desire to bring housing to City. 11. To develop brochures describing CDC services and distribute such information and brochure through direct mailings. 12. To develop promotional items to be used at various meetings throughout the area to promote housing production in City. 13. To develop a visual presentation for use at housing workshops. 14. To direct contacts at seminars and workshops elsewhere throughout the State and County to attract housing production in City. 15. That the professional services provided under this contract will be supervised by the Board of Directors of CDC. 16. That it will record expenditures involved in this program on a monthly basis in separate accounts, according to the budget approved by the City. CDC will provide an independent audit for such expenditures indicating expenditures under this contract for the year ending July 31, 1978. Additionally, CDC will provide access to its records during regular business hours for the purposes of City conducted audits or monitoring. -3- 17. That it will render a written report at least once each month for the preceding month's activity to City 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 (15th) day of the ensuing month. 18. 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 reimbursement is requested were made solely in performance of this agreement. II City agrees: I. That for the services performed by CDC hereunder, the City will compensate CDC in a total sum not to exceed $40,000 for housing development and related activities from August 1, 1977 to July 31, 1978. 2. That upon execution hereof, the City will disburse to the CDC a sum equal to one - twelfth (1/12) of the total of $40,000 or that amount which is appropriate after compensating for the previous advance payment. During the term of this contract City will pay to CDC a sum equal to one - twelfth (1/12) of said amount for the services herein engaged on a monthly basis. III The parties further agree that: 1. In no event shall City be liable for any contr4cts what- ever made by CDC with any person, firm, corporation, association or governmental body, other than City itself. 2. In no event shall the City be liable for any damages, injuries, or losses charged to or adjudged against the CDC arising from its operations, use, or maintenance of facilities. 3. Either party may terminate this contract as of the last day of any month upon thirty (30) days prior written notice with cause to -4- the other party. Notice shall be deemed given to commence as of the deposit date in U. S. Certified Mail properly stamped for and addressed for delivery to City at City Hall, Corpus Christi, Texas, and to CDC, P. 0. Box 26, Corpus Christi, Texas 78403. IV Because certain contractual funds of this contract will be derived from the City's Community Development Block Grant, CDC agrees with specific reference to those activities outlined under No. 7 below, to follow the following regulations: 1. CDC agrees to conduct its activities in accordance with Federal Management Circular 74 -4 and 74 -7 and HUD's Applicability to Community Development Block Grants with reference to attachments B. C. N, and 0, thereof. 2. CDC agrees to comply with paragraph 570.506 Federal Register with reference to Program Income. 3. CDC agrees to comply with 570.201(f) of the Federal Register as revised with reference to new housing construction. 4. CDC agrees to maintain time distribution records and a cost allocation plan as outlined in paragraph 7 below. 5. CDC agrees to comply with all applicable Equal Opportunity regulations which are available and on file in the Neighborhood Improvement Office. 6. CDC agrees to comply with any other rule or regulation promulgated by HUD during the life of this contract, which is directly related to and covering Community Development Block Grant funded activities when so informed in writing by the Director of Planning and Urban Development or his representative. 7. The following activities will be reimbursed when eligible from Community Development Block Grant funds to City with the total reim- bursement not to exceed $10,000: A. Pre - purchase counseling at $300 per case. B. Default counseling at $60 per case. C. CDC Loan Committee reviews of the City's Loan Program applications at $50 per review. -5- V If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this contract shall be held invalid or uncon- stitutional by final judgment of a court of competent jurisdiction it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this contract, for it is the definite intent of the parties hereto that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. VI This agreement shall become effective August 1, 1977, and the services herein contracted shall begin as of that date, on a month to month basis and terminate on July 31, 1978. Executed in DUPLICATE ORIGINALS, this the day of . 1977. ATTEST: CITY OF CORPUS CHRISTI By City Secretary R. Marvin Townsend, City Manager APPROVED: COMMUNITY DEVELOPMENT DAY OF 1977: CORPORATION OF CORPUS CHRISTI J. BRUCE AYCOCK, CITY ATTORNEY By By . Roland Wol itz, President Assistant City Attorney Director of Finance Director of Planning and Urban Development K. D. Bradshaw. Vice President Raymond Rodriguez, Secretary Joy Yates, Treasurer John H. Forehand, III, Executive Director ARTICLE IV from ARTICLES OF INCORPORATION of CO ?AIUNITY DEVELOPMENT CORPORATION OF CORPUS CURISTI 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 1454 (or the corresponding provision of any future United States Internal Revenue Law).. In this regard, Xts --purpose's will be to furnish assistance to projects and undertakings for the improvement of the public peace health acid 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 adequbte housing and elimination of alum conditions for persons with low and moderate income, and in connection therewith to do the following: ' (a) Acquire, improve, bold, or dispose of'land and real property and any interest therein; - (b) Acquire, bold 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 necessar, or incidental to the purposes above stated, including the construction of improvements upon real property of the corporation or of others and the rentin4 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 purposes. Exhibit "A" { - No part of the net•earn6gs 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)'ov (b) by a corporation, contribu- tions to which are deductible under section 170(c)(2)-of the Internal Revenue - -Ws of 1954 (or the corresponding provision of any future United States Interns Revenue Law). _ ti • I . COMMUNITY DEVELOPHENT'CORPORATION OF CORPUS CHRISTI Budget August 1, 1977 through July 31, 1978 1. Salaries 2. Auto Allowance 3. Employee Benefits 4. Office Space 5. Supplies S Dup. 6. Postage 7. Telephone 8. Dues, Sub., Conv. 6 Travel 9. Printing 10. Legal, Audit, Bond b Ins. 11. Equipment Total $28.800.00 2,500.00 3,200.00 1.800.00 700.00 200.00 600.00 550.00 250.00 1.000.00 400.00 $40,000.00 • P Corpus Christi, Texas Mk day of da. ", 19= 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 suspension 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 ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, KI--, �:� MAYOR THE CITY OF CORPUS CHRISTI, TEXAS The Charter rule was suspended by the following vote: Jason Luby Eduardo de Ases David Diaz Ruth Gill Bob Gulley Gabe Lozano, Sr. Edward L. Sample The above ordinance was passed by the ollowing vote: Jason Luby Eduardo de Ases David Diaz Ruth Gill Bob Gulley Gabe Lozano, Sr. Edward L. Sample 13987