HomeMy WebLinkAboutContract CAG-14-106
Community and Economic Development Department
CITY OF RENTON
2014 HOUSING OPPORTUNITY FUND AGREEMENT
This Housing Opportunity Fund Agreement ("Agreement") is dated this 5 day
of nv ust", 2014. The parties ("Parties") to this agreement are the City of Renton,
a note-charter code city under RCW 35A, a municipal corporation of the State of
Washington, hereinafter referred to as "Renton" and the Renton Housing
Authority, a public corporation of the State of Washington, hereinafter referred to
as "RHA". Collectively, Renton and RHA are the "Parties."
WITNESSETH:
WHEREAS Renton has provided Housing Opportunity Fund ("HOF") funds to help
support certain projects that serve low and/or moderate income households and/or
special-needs populations; and
WHEREAS RHA's Kirkland Avenue Townhomes project is a new construction
project which will help increase the available supply of affordable housing in
Renton; and
WHEREAS the project will offer rental housing opportunities to households
earning no more than 60% of the King County median income as established by
the U.S. Department of Housing and Urban Development (HUD);
NOW, THEREFORE, in consideration of the mutual benefits and covenants herein
referred to, and incorporating the language above in this Agreement, it is hereby
agreed by and between the Parties as follows:
1. Project Summary: In an effort to help offer more rental housing
opportunities to qualifying households, the Parties agree that RHA shall use
Renton HOF funds to help provide eighteen (18) units of affordable rental
housing to households earning no more than 60% of the King County
median income. Project Exhibit A, "Scope of Work," is attached hereto and
incorporated herein by this reference.
2. Term. The Term of this Agreement shall be in effect as of the date of
execution of this Agreement or August 1, 2014, whichever is later, and
terminate no later than August 1, 2017, or three years from the date of
execution of the Agreement, whichever is later, unless extended to a later
date by written agreement of both Parties.
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3. Termination. Prior to the expiration of the Term, this Agreement may be
terminated or suspended immediately, with or without cause, upon written
notice by Renton. RHA may cancel this Agreement only upon thirty (30)
days' written notice to Renton. In the event Renton terminates or suspends
this Agreement, RHA will be entitled to receive compensation for any
approved costs incurred prior to the effective date of such termination or
suspension. The determination of the amount of any compensation to be
paid shall be made by the Administrator of the Community and Economic
Development Department, or any other City office, department or agency
that shall succeed to its functions with respect to this Agreement, or his or
her authorized designee. In the event of a dispute over the amount of
compensation, the dispute shall be resolved by the City's Chief
Administrative Officer and RHA's Executive Director.
4. Compensation. The total amount of HOF funds pursuant to this Agreement
shall not exceed Fifty Thousand Dollars ($50,000).
Disbursement will be made no later than forty-five (45) days after receipt of
the letter requesting disbursement subject to the letter or documentation
prerequisites noted in the Agreement. If Renton objects to any portion of
the letter or documentation, it shall notify RHA. Renton reserves the option
to disburse only that portion of HOF funds that is consistent and not in
dispute concerning RHA letter, documentation or performance
prerequisites. In that event, the Parties will immediately make every effort
to settle any disputed portion or portions.
5. Independent Contractor. RHA and Renton agree that RHA is an
independent contractor with respect to the services provided pursuant to
this Agreement. Nothing in this Agreement shall be considered to create,
and it is not the intent of the Parties to create, an employer-employee
relationship between the Parties hereto. Neither RHA nor any employee or
volunteer of RHA shall be entitled to any benefits or rights given to Renton
employees by virtue of the services provided under this Agreement.
Renton shall not be responsible for withholding or otherwise deducting
federal income tax or Social Security or contributing to the State Industrial
Insurance Program, or otherwise assuming the duties of an employer with
respect to RHA, or any employee or volunteer of RHA. Industrial or any
other insurance that is purchased for the benefit of Renton, regardless of
whether such may provide a secondary or incidental benefit to RHA, shall
not be deemed to convert this Agreement to an employment contract.
6. Agency Indemnification. RHA represents to Renton that it has or will have
adequate supervision for those participating in the project and that all
applicable rules, regulations, statutes and ordinances will be complied with
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in their entirety. RHA agrees to indemnify, hold and defend Renton, its
elected officials, officers, employees, agents and volunteers harmless from
any and all claims, demands, losses, actions, violations and liabilities
(including costs and all attorney's fees) to or by any and all persons or
entities, including without limitation, their respective agents, licensees or
representatives, arising from, resulting from, or connected with the
Agreement to the extent caused by the negligent acts, errors or omissions
of RHA, its partners, shareholders, agents, employees, or by RHA's breach
of this Agreement. RHA waives any immunity that may be granted to it
under the Washington State Industrial Insurance Act, Title 51 RCW. RHA's
indemnification shall not be limited in any way by any limitation of the
amount of damages, compensation or benefits payable to or by any third-
party under workers' compensation acts, disability benefit acts or any other
benefits acts or federal, state or municipal benefits programs.
7. Discrimination Prohibited. In all of RHA's services, programs, or activities,
and all of RHA's hiring and employment made possible by or resulting from
this Agreement there shall be no discrimination by RHA or by RHA's
employees, agents, subcontractors, volunteers or representatives against
any person because of age (except minimum age and retirement
provisions), sex, marital status, sexual orientation, race, creed, color,
national origin, honorably discharged veteran or military status, or the
presence of any sensory, mental, or physical disability, unless based upon
a bona fide occupational qualification in relationship to hiring and
employment. Any material violation of this provision shall be grounds for
Renton to immediately terminate this Agreement.
8. Insurance. RHA shall procure and maintain for the duration of the
Agreement, insurance against claims for injuries to persons or damage to
property which may arise from or in connection with performance of the
work hereunder by RHA, their agents, representatives, employees or
subcontractors.
No Limitation: The maintenance of insurance by RHA, as required by this
Agreement, shall not be construed to limit the liability of RHA to the
coverage provided by such insurance, or otherwise limit Renton's recourse
to any remedy available at law or in equity.
RHA shall obtain insurance of the types described below shall secure and
maintain the following insurance policies, and shall not cancel or suspend
the insurance policies identified below, except after twenty (20) calendar
days' prior written notice by certified-mail to the City of Renton:
1. Automobile Liability insurance: With a minimum combined single limit
for bodily injury and property damage of $1,000,000 for each
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accident. This is required of all Consultant and professional service
providers where a vehicle will be used on the contract. Renton may
request a copy of Consultant' driving record abstract.
2. Commercial General Liability Insurance: With the minimum amounts
of $1,000,000 for each occurrence/$2,000,000 aggregate throughout
the duration of this Agreement.
3. Professional Liability Insurance: With the minimum amount of
$1,000,000 for each occurrence, shall also be secured for any
professional services being provided to Renton that are excluded in
the commercial general liability insurance.
4. Workers' Compensation: As required by the Industrial Insurance
laws of the State of Washington, shall also be secured.
5. Renton as an Additional-Insured: Primary insurance with coverage
for the City of Renton. It is agreed that on Consultant' commercial
general liability policy, the City of Renton will be named as an
Additional-Insured on a non-contributory primary basis.
6. Verification of Coverage: Subject to Renton's review and
acceptance, a certificate of insurance showing the proper
endorsements, shall be delivered to Renton before executing the
work of this Agreement.
7. Renton's Insurance. The City of Renton's insurance, self-insurance,
or insurance pool coverage shall only cover the City of Renton and
not contribute to Consultant' coverage.
8. Review of Policy: Upon request, Consultant shall give Renton a full
copy of the insurance policy for its records and for the Renton City
Attorney's or Risk Manager's review. The policy may be reviewed
and the value reassessed annually.
9. Termination: Notwithstanding any other provision of this Agreement,
the failure of Consultant to comply with the above provisions of this
section shall subject this Agreement to immediate termination
without notice to any person in order to protect the public interest.
10.Subcontractors. RHA shall ensure that each subcontractor of every
tier obtain at a minimum the same insurance coverage and limits as
stated herein for RHA.
9. Subcontracts and Purchases.
Subcontract Defined. "Subcontract" shall mean any agreement between
RHA and a subcontractor or between subcontractors that is based on
this Agreement, provided that the term "subcontract" does not include
the purchase of support services not related to the subject matter of this
Agreement, or supplies.
Writing Required: Any work or services assigned or subcontracted
hereunder shall be in writing. RHA agrees that it is as fully responsible
to Renton for the acts and omissions of its subcontractors and their
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. a
employees and agents, as it is for the acts and omissions of its own
employees and agents.
10. Debarred Contractors: RHA shall not make any award to any
contractor, which is debarred, suspended or excluded from participation
in federal assistance programs under Executive Order 12549, entitled
"Debarment and Suspension." The contractor shall certify that neither
the contractor nor any member of the contractor's development team is
debarred, suspended or otherwise ineligible to participate in Federal
Assistance programs under Executive Order 12549.
11. No Benefit to Owners and Developers of Assisted Housing: No agency,
developer or sponsor (or officer, employee, agent or consultant of the
owner, developer or sponsor) whether private, for profit or nonprofit
[including a community housing development organization (CHDO)
when acting as an owner, developer or sponsor] may apply for or obtain
assisted housing in the project unless agreed to in advance in writing by
the Administrator of the Community and Economic Development
Department, or any other City office, department or agency that shall
succeed to its functions with respect to this Agreement, or his or her
authorized designee. Nothing in this provision should be interpreted to
preclude a Renton officer, employee, agent or consultant from applying
for or obtaining assisted housing under this agreement, so long as the
person is not an officer, employee, agent, consultant, contractor or
subcontractor of RHA.
12. General Provisions.
Entire Agreement. This Agreement contains all of the agreements of the
Parties with respect to any matter covered or mentioned in this
Agreement and no prior agreements shall be effective for any purpose.
Modification. No provision of this Agreement may be amended or
modified except by written agreement signed by the Parties.
Full Force and Effect. Any provision of this Agreement which is
declared invalid or illegal shall in no way affect or invalidate any other
provision hereof and such other provisions shall remain in full force and
effect.
Assignment. Neither RHA nor Renton shall have the right to transfer or
assign, in whole or in part, any or all of its obligations and rights
hereunder without the prior written consent of the other Party.
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Successors in Interest. Subject to the foregoing subsection, the rights
and obligations of the Parties shall inure to the benefit of and may be
binding upon their respective successors in interest, heirs, and assigns.
No Waiver. Failure or delay of Renton to declare any breach or default
immediately upon occurrence shall not waive such breach or default.
Failure of Renton to declare one breach or default does not act as a
waiver of Renton's right to declare another breach or default.
Governing Law. This Agreement shall be made in and shall be
governed by and interpreted in accordance with the laws of the State of
Washington.
Authority. Each individual executing this Agreement on behalf of Renton
and RHA represents and warrants that such individuals are duly
authorized to execute and deliver this Agreement on behalf of RHA or
Renton.
Notices. Any notices required to be given by the Parties shall be
delivered at the addresses set forth below. Any notices may be
delivered personally to the addressee of the notice or may be deposited
in the United States mail, postage prepaid, to the address set forth
below. Any notice so posted in the United States mail shall be deemed
received three (3) days after the date of mailing. Written notice sent to
Renton should be addressed as follows:
Chip Vincent, Administrator
City of Renton
Community & Economic Development Department
1055 South Grady Way
Renton, WA 98057-3232
Written notice sent to RHA should be addressed as follows:
Mark Gropper, Executive Director
Renton Housing Authority
2900 NE 10th Street
Renton, WA 98056-3133
Captions. The respective captions of the Sections of this Agreement are
inserted for convenience of reference only and shall not be deemed to
modify or otherwise affect any of the provisions of this Agreement.
Performance. Time is of the essence of this Agreement and each and all
of its provisions in which performance is a factor. Adherence to the
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completion dates set forth in the description of the Services is essential
to RHA's performance of this Agreement.
Remedies Cumulative. Any remedies provided for under the terms of
this Agreement are not intended to be exclusive, but shall be cumulative
with all other remedies available to Renton at law, in equity, or by
statues.
Counterparts. This Agreement may be executed in any number of
counterparts, which counterparts shall collectively constitute the entire
Agreement.
Attorney Fees. In the event either of the Parties defaults on the
performance of any terms of this Agreement or either Party places the
enforcement of this Agreement in the hands of an attorney, or files a
lawsuit, each Party shall pay all its own attorneys' fees, costs and
expenses.
Venue. The venue for any dispute related to this Agreement shall be
Maleng Regional Justice Center, Kent, King County, Washington.
In Witness whereof, the Parties have caused this Agreement to be executed
the day and year set forth above.
City of Renton Renton Housing Authority
Phone: 425-226-1850
By: By' 'a.f'��Iw
Denis Law (Signature /
Mayor
Mark Gropper
Attest (Name)
r 4 A 5--Jason A. .et , Acting 't Clerk Executiv Director
/ (Title)
APPR D AS TO FORM:
ituur-044.4.4e714)40.-"AK___.
Lawrence J. Warren, City Attorney
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CITY OF RENTON
2014 HOUSING OPPORTUNITY FUND AGREEMENT
PROJECT EXHIBIT A
SCOPE OF WORK
Project Title: Kirkland Avenue Townhomes Start Date: 8/1/20141
City Contact: Mark Santos-Johnson, Community Development End Date: 8/1/2017
Project Manager
Telephone: (425) 430-6584 Fax: (425) 430-7300
E-mail: msantosjohnson @rentonwa.gov
RHA Contact Person: Mark Gropper, Executive Director Telephone: 425-226-1850
E-mail: mrg @rentonhousing.org Fax: 425-271-8319
1) Work Statement
The Renton Housing Authority (hereinafter referred to as "RHA") shall utilize Housing
Opportunity Fund ("HOF") funds to perform the activities specified below. Such services shall
be provided in a manner that fully complies with all applicable federal, state and local laws,
statutes, ordinances, rules and regulations, as are now in effect or may be hereafter amended.
2) Project Description
The Kirkland Avenue Townhomes project includes eighteen (18) new townhouse units in three
buildings. Fourteen (14) of the units are two-bedroom units and four (4) units are three-
bedroom units. RHA shall use Renton HOF funds to help provide, for a minimum period of ten
(10) years, affordable rental housing opportunities for the eighteen (18) units to households
earning no more than 60% of the King County median income. HOF funds will be used to help
pay for construction costs of the townhouse buildings.
The project is located at 1141 and 1147 Glennwood Avenue NE, Renton, Washington. The legal
description for the property is:
Lots 1, 2 and 4 of Block 7, Corrected Plat of Renton Highlands No. 2, recorded in
Volume 57 of Plats, pages 92 through 98, records of King County, Washington;
All situate in the Southwest quarter of Section 4, Township 23 North, Range 5 East,
W.M. in the City of Renton, King County, Washington.
3) Compensation and Method of Payment
RHA shall apply the HOF funds to the project in accordance with the Line Item Budget Summary
below. The total amount of the HOF funds pursuant to this Exhibit shall not exceed Fifty
Thousand Dollars ($50,000).
1 See paragraph 2 of the Agreement for additional details regarding the Term of the Agreement.
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C
A. City of Renton Funds
HOF Funds $50,000
B. Line Item Budget
Personnel Services (detail below) $
Office or Operating Supplies $
Construction Contracts $50,000
Communications $
Travel and Training $
Other (specify below): $
Total $50,000
C. Invoicing
Criteria for Compensation. In June, 2014, RHA had the eighteen (18) modular-built units
delivered to and set on the site. As a result, RHA may request up to $50,000 of the HOF funds
upon execution of the Agreement.
Method of Payment. RHA will submit a letter requesting HOF funds including copies of
supporting documents, such as a modular builder invoice and certification or a general
contractor invoice and certification, to:
Mark Santos-Johnson
Community Development Project Manager
City of Renton
Department of Community& Economic Development
1055 S. Grady Way; 6th Floor
Renton, WA 98057
Promise to Repay: Funding is contingent upon RHA obtaining a Certificate of Occupancy by
August 1, 20172, and ensuring that for a minimum period of ten (10) years, the eighteen (18)
units remain affordable to households earning no more than 60% of the King County median
income. RHA will provide a copy of the Certificate of Occupancy for the townhome buildings to
the City of Renton to "close out"the contract. If the Certificate of Occupancy is not obtained by
the deadline, or rental housing opportunities are not restricted to households at 60% of King
County median income or below, or the units are not used as affordable housing for a
minimum period of ten (10) years, RHA agrees to repay the entire $50,000, with interest (unless
otherwise waived by the Renton City Council), upon receipt of repayment request by the City of
Renton. The ten-year repayment provision related to rental housing affordability shall survive
the Term of this Agreement. In the event of repayment, the $50,000 shall bear interest at the
rate of twelve percent (12%) per annum from the date of the execution of the Agreement. The
repayment of the $50,000 with interest shall not excuse or cure any default by RHA under the
Agreement. If the interest rate specified in this Exhibit A is higher than the rate then permitted
by law, the interest rate shall be decreased to the maximum legal interest rate then permitted
by law.
2 See paragraph 2 of the Agreement for additional details regarding the Term of the Agreement.
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h.
4) Records
A. Project Files
RHA shall maintain files for this project containing the following items:
1. Notice of Grant Award.
2. Motions, resolutions, or minutes documenting Board or Council actions.
3. A copy of this Scope of Work.
4. Correspondence regarding budget revision requests.
5. Copies of all invoices and reports submitted to the City of Renton for this project.
6. Bills for payment.
7. Copies of approved invoices and warrants.
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