Loading...
HomeMy WebLinkAboutContract CAG-20-162 G t Y Oa QFNTOt Community and Economic Development Department CITY OF RENTON SUNSET NEIGHBORHOOD CENTER CAPITAL GRANT AGREEMENT This Sunset Neighborhood Center Capita Gra t Agreement ("Agreement") is dated for reference purposes as the l day of , 2020. The parties ("Parties") to this agreement are the City of Renton, a non-charter code city under RCW 35A, a municipal corporation of the State of Washington, hereinafter referred to as the "City" or "Renton" and 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 the Sunset Area is an ethnically diverse, low-income neighborhood in the Renton Highlands that has been a high-priority redevelopment and community revitalization area for the City since 2000; and WHEREAS in 2014 the City and RHA completed a Community Needs Assessment for Human Services and Housing for Renton, along with an addendum specific to the Sunset Area, (the "Needs Assessment"); and WHEREAS the Needs Assessment identified significant unmet human service needs in the Sunset Area, including economic opportunity, basic needs and health and wellness; and WHEREAS the proposed use of the former Renton Highlands Library located at 2902 NE 12th Street, Renton,Washington (the "Property")for the Sunset Multi-Service & Career Development Center, which is also now referred to as the Sunset Neighborhood Center (the "Center") was envisioned as an integral part of the Sunset Area Transformation Plan created in 2015-2016; and WHEREAS the City, RHA, and Neighborhood House (a 115-year old non-profit organization that partners with diverse individuals and families in King County to build community and achieve their goals for health, education and self-sufficiency) have been working since 2015 with multiple regional and community organizations on a plan to acquire, renovate, and use the Property to provide services at the Center; and WHEREAS the Property was sold by the City to RHA for the fair market value of$885,000, on March 16, 2018,for the planned purpose of creating the Center; and WHEREAS RHA, Neighborhood House, HealthPoint and the St.Vincent de Paul Society (Centro Rendu) currently plan to provide services at the Center; and WHEREAS the services envisioned for the Center include: child and/or adult learning, tutoring and mentoring; employment counseling and services and/or job training; integrated health services, including behavioral health counseling and services, health education and health and/or dental care services; case management; and/or legal assistance, and WHEREAS the total acquisition and renovation budget for the Center is approximately$4 million, including the $885,000 for acquisition and the balance for architectural, engineering, construction, legal fees and other soft costs; and WHEREAS, as to RHA's$885,000 acquisition of the Property, RHA paid $85,000 to City at closing and executed a promissory note to the City for the balance of$800,000 with an interest rate of 1.70%annual percentage rate,to be paid off by RHA at$160,000 per year plus applicable accrued interest on the anniversary date of closing for five years (the "Property Loan"); and WHEREAS, in addition to the$885,000 committed by RHA to purchase the property,the project was awarded $1,412,000 by the Washington State legislature, $600,000 from the Bill & Melinda Gates Foundation and $20,000 from the First Financial Northwest/Renton Regional Community Foundation, plus the $400,000 grant from the City referenced in this agreement. The balance of the projected costs will be paid for by RHA and/or with the receipt of other grant funds secured by RHA; and WHEREAS, RHA and the City entered into an Interlocal Agreement on November 22, 2016, for payment of demolition costs of properties owned by RHA, by which RHA agreed to reimburse the City pursuant to the terms of a promissory note ("Demolition Loan"); and WHEREAS the City's$400,000 capital grant will help RHA effectively renovate the Property so that the Center can be used to provide needed human services for the community; and WHEREAS the City wants to support the renovation and use of the Property for the Center with a goal of beginning to provide services at the Center in late-2020; and WHEREAS on June 25, 2018,the Renton City Council passed a motion to "(i) award a $400,000 capital grant to the Renton Housing Authority to help renovate the former Renton Highlands Library for use as the Sunset Multi-Service &Career Development Center, subject to an acceptable agreement to be approved by Council established between the City and the Renton Housing Authority; and (ii) authorize the Mayor to enter into and execute the Letter of Intent with the Renton Housing Authority for the$400,000 City capital grant;" and WHEREAS on July 11, 2018,then-Mayor Law and RHA signed the Letter of Intent that was referenced in the Renton City Council's June 25, 2018 motion; and Capital Grant Agreement—Sunset Neighborhood Center Page 2 of 9 WHEREAS the Letter of Intent required RHA to pay to the City$400,000 toward the remaining balance of the Property Loan at least 30 (thirty) days in advance of when RHA needs the City to provide the $400,000 capital grant for the Center, and the City's records mark receipt of such payment by RHA on July 1, 2020; and WHEREAS the Letter of Intent further required RHA to pay the City the remaining balance of the Demolition Loan in the amount of$325,957 plus accrued interest by December 31, 2019, and the City's records mark receipt of such payment by RHA on December 31, 2019; and WHEREAS the Letter of Intent further required RHA to use the Property for the Center for a period of at least 10 (ten) years, commencing from the opening of the Center after renovations; and WHEREAS the City and RHA intend that this Agreement fulfill the Renton City Council's June 25, 2018 authorization to proceed with negotiating a $400,000 capital grant agreement and also implement the Parties' remaining obligations as set forth in the July 11, 2018 Letter of Intent. 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. Scope and Obligations Incorporated from Letter of Intent. a. Scope of Work: In an effort to help offer more human services to residents in the Sunset Area neighborhood and the surrounding Renton Highlands community, the Parties agree that RHA shall use the City's capital fund grant described in Section 4 of this Agreement to help renovate the Property for use as the Center to provide services to low- and moderate income Renton households. Project Exhibit A, "Scope of Work," is attached hereto and incorporated herein by this reference. RHA shall comply with Exhibit A. b. Duration of Center's Use. As set forth in Exhibit A, RHA shall use the Property for the Center for a period of at least 10 (ten) years, and RHA shall be subject to repayment obligations for failure to timely open the Center or for failure to operate for the minimum 10 (ten)years. c. Revised Promissory Note on Property Loan. The City agrees to return the original Property Loan promissory note to RHA, and RHA agrees to provide the City with a revised Property Loan promissory note with the same terms and conditions, but adjusted to reflect the remaining balance of the Property Loan at that time. Capital Grant Agreement—Sunset Neighborhood Center Page 3 of 9 2. Term. This Agreement shall be in effect as of the date of execution of this Agreement or August 1, 2020, whichever is later, and terminate on August 1, 2023, or three years from the date of execution of the Agreement, whichever is later (the "Term"), unless extended to a later date by written agreement of both Parties. 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, or his/her designated representative, and RHA's Executive Director, or his/her designated representative. 4. Compensation. The total amount of funds pursuant to this Agreement shall not exceed Four Hundred Thousand Dollars ($400,000). Subject to the additional requirements set forth in Exhibit A, 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 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. Capital Grant Agreement—Sunset Neighborhood Center Page 4 of 9 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 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. Hold Harmless. Contractor shall indemnify, defend and hold harmless Renton, its elected officials, officers, agents, employees and volunteers, from and against any and all claims, losses or liability, or any portion of the same, including but not limited to reasonable attorneys' fees, legal expenses and litigation costs, arising from injury or death to persons, including injuries, sickness, disease or death of Contractor's own employees, agents and volunteers, or damage to property caused by Contractor's negligent act or omission, except for those acts caused by or resulting from a negligent act or omission by Renton and its officers, agents, employees and volunteers. Should a court of competent jurisdiction determine that this agreement is subject to RCW 4.24.115, (Validity of agreement to indemnify against liability for negligence relative to construction, alteration, improvement, etc., of structure or improvement attached to real estate...)then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the contractor and Renton, its officers, officials, employees and volunteers, Contractor's liability shall be only to the extent of Contractor's negligence. Capital Grant Agreement—Sunset Neighborhood Center Page 5 of 9 It is further specifically and expressly understood that the indemnification provided in this Agreement constitute Contractor's waiver of immunity under the Industrial Insurance Act, RCW Title 51, solely for the purposes of this indemnification.The Parties have mutually negotiated and agreed to this waiver.The provisions of this section shall survive the expiration or termination of this Agreement. 9. 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 secure and maintain: a. Commercial general liability insurance in the minimum amounts of$1,000,000 for each occurrence/$2,000,000 aggregate for the Term of this Agreement. b. Professional liability insurance, in 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. c. Automobile Liability insurance: With a minimum combined single limit for bodily injury and property damage of$1,000,000 for each accident. This is required of all RHA and professional service providers where a vehicle will be used on the contract. Renton may request a copy of Consultant' driving record abstract. d. Workers' compensation coverage, as required by the Industrial Insurance laws of the State of Washington, shall also be secured. e. It is agreed that on RHA's commercial general liability policy,the City of Renton will be named as an Additional Insured on a non-contributory primary basis. Renton's insurance policies shall not be a source for payment of any RHA Contractor liability. f. 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. g. RHA shall provide Renton with written notice of any policy cancellation, within two (2) business days of their receipt of such notice. Capital Grant Agreement—Sunset Neighborhood Center Page 6 of 9 h. 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. i. 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. 10. 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 employees and agents, as it is for the acts and omissions of its own employees and agents. 11. 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. 12. General Provisions. a. 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. b. Modification. No provision of this Agreement may be amended or modified except by written agreement signed by the Parties. c. 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. d. 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. Capitol Grant Agreement—Sunset Neighborhood Center Page 7 of 9 e. 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. f. 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. g. 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. h. 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. i. 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 St Renton, WA 98056 j. 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. k. 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 completion dates set forth in the description of the Services is essential to RHA's performance of this Agreement. Capital Grant Agreement—Sunset Neighborhood Center Page 8 of 9 I. 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. m. Counterparts. This Agreement may be executed in any number of counterparts, which counterparts shall collectively constitute the entire Agreement. n. 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. o. 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 enter into this Agreement by signing below. CITY OF RENTON RENTON HOUSING AUTHORITY By: By m ndo Pavone Signatur Mayor Mark Gropper Name(print) Executive Director Title Date Date ,1111111111111111111//1 r Attes +C.O��'`''�FE�To. , * _ SERE J onA. S ity Cler ,,0�Pp 4'41 1111%00 Approved as to Legal Form �rrri,,�RATEDS�Q;0`\'�� Shane Moloney City Attorney Capital Grant Agreement—Sunset Neighborhood Center Page 9 of 9 CITY OF RENTON SUNSET NEIGHBORHOOD CENTER CAPITAL GRANT AGREEMENT EXHIBIT A SCOPE OF WORK Project Title: Sunset Neighborhood Center Start Date: 8/1/2020 City Contact: Mark Santos-Johnson, Community Development and Housing Manager End Date: Telephone: (425)430-6584 8/1/2023 Fax: (425)430-7300 E-mail: msantosjohnson@rentonwa.gov Renton Housing Authority Contact: Mark Gropper, Executive Director Telephone: 425-226-1850 x 223 E-mail: mrg@rentonhousing.org 1) Work Statement The Renton Housing Authority(hereinafter referred to as"RHA")shall utilize the City of Renton's capital grant 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 and Obligations RHA completed the design for the renovation of the former library and started renovations for the Center in February, 2020. The rehabilitation is projected to be completed in September, 2020, with occupancy of the Center scheduled for late-2020. Once completed,the Center will serve as an anchor facility for education, training, health and/or human services for public housing and other low-and moderate-income residents who live in the Sunset Area neighborhood and the surrounding Renton Highlands community. Services will be provided by a variety of local and regional service providers. As of July 2020, the following partners are scheduled to provide services at the Center when it opens: • Renton Housing Authority • Neighborhood House • HealthPoint • St.Vincent de Paul Society(Centro Rendu) Additional service providers may participate in the project in the future, depending upon the community's needs, available resources and available space at the Center. The centralized space will serve as a catalyst for community-based, multi-agency collaboration. 1 See paragraph 2 of the Agreement for additional details regarding the Term of the Agreement. Capital Grant Agreement—Sunset Neighborhood Center—Exhibit A Page 1 of 3 RHA shall provide services at the Center to respond to needs of residents in the Sunset Area neighborhood and surrounding Renton Highlands community, including, for example, child and/or adult learning, tutoring and/or mentoring; employment counseling and services and/or job training; integrated health services, including behavioral health counseling and services, health education and health and/or dental care services; case management; and/or legal assistance ("Services"). However, the actual services to be provided will be determined based on the regional and community partners who participate in the Center,the community's evolving needs and the available funds for various services over a minimum of 10(ten)years. RHA shall use the City's$400,000 grant to help renovate the former Renton Highlands Library for use as a placed-based multi-service center. As noted in (3) below, the funds shall be used for construction costs of the Center, including general construction and/or LEED construction- related work. 3) Compensation and Method of Payment RHA shall apply the City's capital grant for the Center project in accordance with the Line Item budget below. The total amount of the funds pursuant to this Exhibit shall not exceed Four Hundred Thousand Dollars ($400,000). General Fund Capital Funds City of Renton Funds $400,000 Line Item Budget Personnel Services (detail below) $0 Office or Operating Supplies $0 Architectural & Engineering $0 Construction Contracts $400,000 Communications $0 Travel and Training $0 Other(specify below): $0 Total $400,000 4) Invoicing and Repayment Criteria for Compensation. RHA may request the$400,000 capital grant upon submittal of the architect's certificate of payment for the contractor's construction work demonstrating that at least seventy-five percent (75%) of the original construction contract work for the project has been completed. Capital Grant Agreement—Sunset Neighborhood Center—Exhibit A Page 2 of 3 Method of Payment. RHA will submit a letter requesting General Fund capital funds, including copies of supporting documents, such as the architect's certificate of payment,to: Mark Santos-Johnson, Community Development& Housing 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 for the Center by August 1, 2023, and ensuring that for a minimum period of ten (10)years after its first date of opening, the Center is used to provide Services to residents of the Sunset Area neighborhood and surrounding Renton Highlands community. RHA will provide a copy of the Certificate of Occupancy for the Center to the City of Renton to "close out" the contract. If the Certificate of Occupancy is not obtained by the deadline, or the Center is not used to provide Services for the minimum period of ten (10)years, RHA agrees to repay to the City the entire Four Hundred Thousand Dollars ($400,000), with interest at the maximum statutory rate (12% per annum as of the date of this Agreement) (unless otherwise waived by the Renton City Council), upon receipt of repayment request by the City of Renton. The repayment of the Four Hundred Thousand Dollars ($400,000)with interest shall not excuse or cure any default by RHA under the Agreement. This paragraph shall survive the expiration or termination of the Agreement. 5) Records 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. Capital Grant Agreement—Sunset Neighborhood Center—Exhibit A Page 3 of 3