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HomeMy WebLinkAboutReso 1985-12184 Revised 9/19/85 RESOLUTION NO. 12184 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH UNITED STATES ESCROW WITH REGARD TO THE PERFORMANCE OF SERVICES FOR THE CITY'S RENTAL REHABILITATION PROGRAM The City Council of the City of Chula Vista does hereby resolve as follows: WHEREAS, the City has received $120,800.00 from the U. S. Department of Housing and Urban Development (HUD) for a Rental Rehabilitation Program, and WHEREAS, under the program regulations, the City is required to collect and report certain information to HUD, manage and disburse funds and process loan applications, and WHEREAS, United States Escrow has the experience and expertise to perform such services at no cost to the City. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby approves an agreement with United States Escrow with regard to the performance of services for the City's Rental Rehabilitation Program, a copy of which is attached hereto, and incorporated herein as though fully set forth. BE IT FURTHER RESOLVED that the Community Development Director and/or his designee is authorized to execute any agreements or contracts necessary for the performance of this program. Prese~~ Approved as to form by ~aul G. TDos~hefs, Community Charles R. Gill, Assistant Development Director City Attorney 0806a ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this 24th d~ of September 85 19 , by the following vote, to-wit: AYES: C0uncilmembers Scott, McCandliss, Cox, Moore NAYES: Council members None ABSTAIN: Councilmembers None ABSENT: Councilmembers Malcolm Mayor (~ th~)City of Chula Vista ~/' ' City Clerk/ STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California, DO HEREBY CERTIFY that the above and foregoing is o full, true and correct copy of RESOLUTION NO. 12184 ,and that the same has not been amendedor repealed. DATED (seal) City Clerk CC-660 Please Return To: ~e M. Ful~, Ci~ Clerk p. O. Box 1087 AGREEMENT SETTING OUT TERMS AND OBLIGATIONS - Vist~m-,llfomla920Ll OF UNITED STATES ESCROW, INC. WITH REGARD TO THE PERFORMANCE OF SERVICES FOR THE CITY'S RENTAL REHABILITATION PROGRAM THIS AGREEMENT, made and entered into this 24th day of September, 1985, by and between THE CITY OF CHULA VISTA, a municipal corporation, hereinafter referred to as the "City", and UNITED STATES ESCROW, INC., a Corporation organized and existing under the laws of the State of California, hereinafter referred to as the "Contractor". W1TNESSETH WHEREAS, a Rental Rehabilitation Program, formed by the U. S. Department of Housing and Urban Development (HUD), has been ap. proved by the City to improve substandard rental units occupied by lower income families, funded with federal Rental Rehabilitation funds and private sector funds; and WHEREAS, the City is required to collect and report certain information on properties rehabilitated and tenants assisted under this program, manage and disburse grant funds and private sector funds and process loan applications; and WHEREAS, the City desires to engage the Contractor to perform those services, and WHEREAS, the Contractor represents that it is qualified to perform services under this agreement; NOW, THEREFORE, THE PARTIES HERETO DO HEREBY MUTUALLY AGREE AS FOLLOWS: SCOPE OF SERV1CES Upon City approval, the Contractor shall provide Rental Rehabilitation/ Cash Management escrow and related services for improvements to rental housing units in connection with Rental Rehabilitation loans made by the City to homeowners for these improvements. Service shall include, but shall not be limited to, the areas listed below. A. CASH MANAGEMENT DEPOSITORY SERVICES 1. The Contractor shall establish and maintain a separate Rental Rehabilitation depository account with a local financial institution of Contractor's choice for receipt and deposit of funds received from HUD. Funds shall be received via automatic transfers as required under the HUD Cash Management System and disbursed without delay by Contractor to payees upon receipt of the proper disbursement authorizations from the City. B. ACCOUNT ACTIVATION AND FUND DISBURSEMENT SERV1CES ; 1. Upon applicant approval, the City will forward to Contractor a document request memorandum containing required information to complete the preparation of deferred loan documents. Contractor will prepare in accordance with the memorandum and forward to the City the following documents: a. Promissory Note b. Notice of Recision c. Deed of Trust d. Request for Notice(s) e. Truth in Lending f. Control Instructions g. Other documents agreed by City and Contractor 2. Upon loan approval, the City shall ensure that private sector loan proceeds, completed Control Instructions, and a completed Pre-Rehabilitation Report for HUD are sent to the Contractor. The Control Instructions shall include the following data: a. Owner(s) name. b. Contractor(s) name. c. Job site address. d. Dollar amount of funds being escrowed along with the participation breakdown in dollar amounts of non-Rental Rehabilitation and Rental Rehabilitation program funds. e. Instructions on how funds are to be disbursed. f. Original signatures of owner and City representative or agent. 3. When and as requested in writing by the City, the Contractor shall provide check disbursements to parties designated by City in connection with Rental Rehabilitation loans made by the City. 4. Written instructions shall be in the form of a Disbursement Authorization containing information regarding the amount of disbursement, the parties to be paid, and shall contain original signatures of City representatives authorized to request disbursements. 5. Each Disbursement Authorization submitted by the City to the Contractor shall indicate what portion of the disbursement is to be drawn from non-Rental Rehabilitation funds and what portion to be drawn from Rental Rehabilitation funds. A copy of the HUD Rental Rehabilitation payment voucher shall be sent to Contractor by City along with the Disbursement Authorization in cases where monies are to be drawn from Rental Rehabilitation funds. -2- 6. Upon receipt of Disbursement Authorization and HUD payment voucher - (if required), the Contractor shall identify and verify the payment authorization as follows: a. Amount requested is available (including any necessary HUD automatic transfer deposits as indicated by the submitted HUD payment voucher). b. Owner's signature(s) are the same as on the original escrow instructions. c. City representative's signature(s) are the same as on the original escrow instructions or on an approved signature list of those representatives having the authority to authorize disbursements. 7. If there is a delay in the Contractor receiving HUD automatic transfers, then at the City's request, the Contractor shall draw available monies from project non-Rental Rehabilitation funds to pay without delaying Rental Rehabilitation drawdown requests. The Contractor shall then reimburse the non-Rental Rehabilitation fund those monies disbursed in covering Rental Rehabilitation fund drawdowns when HUD fund transfers are received. 8. Upon the proper verification, the Contractor shall prepare a check(s) for the amount shown on the payment authorizations to the party designated by the City on the payment voucher and shall send the check(s) to Contractor's local office for disbursement to payee. 9. At the request of the City, Contractor shall hold a retention fund for up to 35 days after recording of the Notice of Completion. Contractor shall record the Notice of Completion with the County. C. HUD RENTAL REHABILITATION/CASH MANAGEMENT COMPLIANCE ACCOUNTING 1. As required under HUD guidelines, Contractor shall maintain separate escrow accounting records of Rental Rehabilitation and non-Rental Rehabilitation funds. Separate accounting records for non-commingled non-Rental Rehabilitation and Rental Rehabilitation program funds ~ will show receipt, disbursement and running balance entries for each project. Accounting information and records will be available to the City during project rehabilitation and will be submitted to the City at project completion. 2. At the beginning of each project, the Contractor shall forward to HUD Central the project Pre-Rehabilitation Report upon completion by the City. -3- 3. Upon receipt of disbursement authorization and copy of HUD payment voucher, the Contractor shall forward voucher to HUD Central prior to next request for Rental Rehabilitation program funds. Copies of payment voucher as well as disbursement authorization will be kept by Contractor in a permanent project file. 4. Contractor shall submit copy of the monthly reconciliation of program activity to HUD Central as required under HUD Rental Rehabilitation Guidelines. 5. Contractor shall submit Project Completion Report to HUD Central wi thin 90 days of rehabilitation completion and will retain a copy of the report in a permanent project file. D. ADDITIONAL HUD RENTAL REHABILITATION ADMINISTRATIVE AND COMPLIANCE SERVICES 1. Upon receipt of Control Instructions from the City, the Contractor shall contact HUD Central Office of Administration to set up a new Rental Rehabilitation project account. The Contractor will be authorized with the proper HUD security clearance to gain access to HUD's Cash Management Information System required to set up new projects and request drawdowns. The Contractor will transmit to HUD Central the information required to have the appropriate amount of Rental Rehabilitation funds allocated for the project. 2. Upon receipt of a disbursement authorization from the City, the Contractor shall contact HUD Central to make the appropriate drawdown request of Rental Rehabilitation fund monies as authorized by the City. The Contractor shall submit the required project data (i.e. project number, voucher number, amount of request, type of draw, dates of construction, etc.) to obtain drawdown approval. 3. Approved drawdowns will be automatically transferred by HUD Central to Contractor's depository account and disbursed by Contractor upon receipt per Section B of this Agreement. 4. Also upon receipt of a disbursement authorization from the City, the Contractor shall prepare a payment voucher for the amount requested from the Rental Rehabilitation fund. Payment vouchers required by HUD as a written follow-up document to the drawdown request will be assigned a document number and submitted to HUD in sequential order for accountability. E. RECONCILIATION OF RENTAL REHABILITATION DEPOSIT ACCOUNT ACTIVITY 1. The Contractor shall prepare a monthly reconciliation of HUD's monthly bank disbursement report with the Rental Rehabilitation depository account activity for all HUD automatic transfers and disbursements. A Rental Rehabilitation depository statement of account along with copies of deposit receipts, payment vouchers, and checks will be attached to the reconciliation statement. -4- 2. The Contractor shall submit the prepared monthly reconciliation to the City for signature of an authorized representative and shall forward it to HUD Central as required. F. MAINTENANCE OF PERMANENT PROJECT FILE 1. Contractor shall compile all pertinent project into a permanent file for City and HUD auditing. Each project file shall contain copies of all deposits, checks, payment vouchers, disbursement authorizations, pre-rehabilitation and project completion reports and separate accounting statements of non-Rental Rehabilitation and Rental Rehabilitation fund activity. 2. As required by HUD, project files will be prepared to show that: a. At no time was there a commingling of Rental Rehabilitation funds with private funds. b. At no time did draws on Rental Rehabilitation funds exceed draws on non-Rental Rehabilitation funds. G. COMPUTER ACCOUNTING SERVICES 1. The Contractor shall supply to the City a monthly computer print-out of all transactions completed to date and the balance remaining in each account. H. MAINTENANCE OF FILES AND AVAILABILITY OF DATA 1. Contractor shall maintain records of all accounts established under the provisions of this agreement for a period of five {5) years after the closing of each account. Contractor shall, upon request and within thirty {30) days of such request, make available all records, financial and otherwise, dealing with its activities performed pursuant otherwise to the provisions of this Agreement to authorized auditors and monitors of the City and HUD. I. FEE SCHEDULE FOR PROGRAM SERVICE In return for the services provided by the Contractor, the Borrower shall pay fees to the Contractor based on a percentage of the loan amount, with a minimum fee of $225.00 and a maximum fee of $2,096.00. J. EQUAL OPPORTUNITY 1. The Contractor shall not discriminate against loan applicants in the delivery of services nor against any employee because of their race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or sexual preference. The Contractor shall take affirmative action to ensure that employees are treated during employment without regard to their race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or sexual preference. Such action shall include, but not limited to the following: employment, upgrading, demotion, or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. 2. The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or sexual preference. 3. The Contractor will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this contract so that such provisions will be binding upon each subcontractor, provided that the foregoing provisions shall not apply to contracts or subcontracts for standard commercial supplies or raw materials. K. REPRESENTATIONS As an inducement to the execution of this Agreement, the Contractor represents and agrees that it has and will continue to have adequate and proper facilities and personnel to perform the services and work agreed to be performed by it hereunder; that it is duly qualified by law to perform such services and work, and that it has not employed any person to solicit or procure this Agreement, and has not made and will not make, any payment or any agreement for the payment of any conmission, percentage, brokerage, contingent fee or other compensation in connection with the procurement of this Agreement. L. TERMINATION OF SERVICES 1. In the event of breach of any condition or provision hereof, the City shall have the right, by prior written notice to the Contractor, to terminate its employment hereunder and cancel this Agreement and have the work called for hereby otherwise performed, without prejudice to any other rights or remedies of the City. The City shall have the benefit of such work as may have been completed up to the time of such termination and with respect to any part which shall have been delivered to and accepted by the City, there shall be an equitable adjustment of compensation. 2. Irrespective of any default hereunder, the City may also, at any time at its discretion, terminate this Agreement, in whole or in part, by giving the Contractor thirty (30) days written notice thereof and in such event, the Contractor shall be entitled to receive compensation specified herein for all work completed and accepted prior to such thirty (30) days notice of termination or cancellation; an equitable adjustment shall be made, as compensation to the Contractor to the date of such termination or cancellation, but not yet delivered to the City. The Contractor at its discretion may terminate this Agreement, in whole or in part, by giving the City thirty (30) days written notice. 3. The term of the Agreement shall commence upon execution of this Agreement by both parties and shall continue for one year thereafter. This Agreement shall automatically renew for successive one year terms. IN WITNESS HEREOF, the City and the Contractor have executed this Agreement as of the date first hereinabove set forth. Approved as to form by Date Septe~d~er 24, 1985 Thomas d. Harron, City Att6~ ' Da~e [~/~! WPC 1769H -7-