HomeMy WebLinkAboutCC AG PKT 2005-03-14 #J AGENDA REPORT
DATE: March 14, 2005
TO: Honorable Mayor and City Council
THRU: June Yotsuya, Assistant City Manager
FROM: Lee Whittenberg, Director of Development Services
SUBJECT: EXECUTION OF MPROP STANDARD AGREEMENT
01 -MPROP -068 RE: SEAL BEACH TRAILER PARK
SUMMARY OF REQUEST:
Adopt Resolution Number , which will authorize the mayor to execute MPROP
Standard Agreement 01 -MPROP -068.
BACKGROUND:
The subject "Agreement" will transfer the rights and responsibilities of the Linc Housing
Corporation, Inc. and the City of Seal Beach set forth in Contract No. 00 -MPROP -068 to
Seal Beach Affordable Housing Corporation, as set forth in the subject Contract No. 01-
MPROP -068. Seal Beach, as "Assignor #2 ", agrees to "transfer and assign its rights
under Standard Agreement 00 -MPROP -068 to Seal Beach Affordable Housing
Corporation, a California nonprofit public benefit corporation (Assignee)"
The subject Agreement also states "Assignor #2 shall be relieved from any and all duties
and obligations under Standard Agreement 00- MPROP- 068." The City Attorney has
reviewed the document and has determined that the City will have no responsibilities,
duties or obligations, pursuant to the previously quoted language.
Execution of Standard Agreement 01 -MPROP -068 by both the City of Seal Beach and
Linc Housing Corporation, Inc. will allow for the MPROP loan to be funded and the
"bridge loan" from the Redevelopment Agency to be repaid.
FISCAL IMPACT:
Final execution of Standard Agreement 01 -MPROP -068 by both the City of Seal Beach
and Linc Housing Corporation, Inc. will result in the repayment of a Redevelopment
Agency "bridge loan" in the amount of $1,000,000.00 to the Redevelopment Agency
Low/Moderate Income Housing Fund.
Agenda Item .T
Z: \My Documents \TRAILERP\MPROP Agreement 01- MPROP- 068.CC Staff Report.doc \LW\03 -07 -05
Authorization to Execute MPROP Standard Agreement 01 -MPROP -068 re:
Seal Beach Trailer Park
City Council Staff Report
March 14, 2005
RECOMMENDATION:
Adopt Resolution Number , which will authorize the mayor to execute MPROP
Standard Agreement 01 -MPROP -068.
NOTED AND APPROVED:
It L /f /% Of / k
- Whittenberg A Yots la
Director of Development Servi s ssistant ity Manager
Attachments: (2)
Attachment 1: Resolution No. , A Resolution of the City
Council of the City of Seal Beach Approving MPROP
Standard Agreement 01 -MPROP -068 Regarding the Seal
Beach Trailer Park
Attachment 2: Standard Agreement 01 -MPROP -068
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MPROP Agreement 01 -MPROP-068.CC Staff Report 2
Authorization to Execute MPROP Standard Agreement 0I -MPROP -068 re:
Seal Beach Trailer Park
City Council Staff Report
March 14, 2005
ATTACHMENT 1
RESOLUTION NO. , A
RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEAL BEACH APPROVING
MPROP STANDARD AGREEMENT 01-
MPROP -068 REGARDING THE SEAL
BEACH TRAILER PARK
MPROP Agreement 01- MPROP- 068.CC Staff Report 3
Authorization to Execute MPROP Standard Agreement 01 -MPROP -068 re:
Seal Beach Trailer Park
City Council Staff Report
March 14, 2005
ATTACHMENT 2
STANDARD AGREEMENT 01 -MPROP -068
MPROP Agreement O1- MPROP- 068.CC Staff Report 4
FROM : FAX NO. :7603224501 Feb. 28 2005 08:22AM P2
STATE OF CALIFORNIA
STANDARD AGREEMENT APPROVED BY THE ATTORNEY GENERAL I • I:ONTRACT NUMBER AM. NO.
STD. 2 (REV. 5-91) CDC ELECTRONIC (1194) + 04 -MPROP -068 9
TAXPAYER'S FEDERALEMPtOYER IDENTIFICATION
NUMBER
THIS AGREEMENT, made and entered into this 22nd day of September 2004
in the State of California, by and between State of California, through its duly elected or appointed, qualified and acting
TITLE OF OFFICER ACTING FOR STATE AGENCY
Director Dept. of Housing & Community Development , hereafter called the State, and
CONTRACTORS NAME .
SEAL BEACH AFFORDABLE HOUSING CORPORATION , hereafter called the Contractor -
WITNESSETI-t: That the Contractor for and in consideration of the covenants, conditions, agreements, and stipulations of the State hereinafter expressed,
does hereby agree to furnish to the State services and materials as follows: (Set forth service to be rendered by Contractor, amount to be paid Contractor,
time for performance or completion, and attach plans and specifications, if any)
Contract No. •00 -MPROP -068 between the Department of Housing and Community Development, and LINC Housing Corporation and
the City of Seal Beach made and entered into on December 21, 2000, is hereby amended as follows:
ZINC Housing Corporation, a California nonprofit public benefit corporation (Assignor #1) and The City of Seal Beach (Assignor
#2) agree to transfer and assign its rights under Standard Agreement 00 -MPROP -068 to Seal Beach Affordable Housing Corporation,
a California nonprofit public benefit corporation (Assignee), who agrees to assume all duties and obligations of Contractor .
hereunder. Assignor #1, as original Contractor to Agreement #00 -MPROP -068, shall not be deemed relieved from any duties or
obligations thereunder, and shall execute the Departtnent's Sponsor Operating Guaranty form (Attachment A).
Assignor #2 shall be relieved from any and all duties and obligations under Standard Agreement 00 -MPROP -068.
The State hereby consents to such assignment of rights and assumption of duties and obligations..
Paragraphs 34. Americans with Disabilities Act of 1990, 35. Union Organizing, 36. Prevailing Wage and 37. Child Support Compliance
• Act are being added. •
All other terms and conditions shall remain as set forth in the original agreement.
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CONTINUED ON SHEETS, EACH BEARING NAME OF CONTRACTOR AND CONTRACT NUMBER.
The provisions on the reverse side hereof constitute a part of this agreement.
IN WITNESS WHEREOF, this agreement has been executed by the parties hereto, upon the date first above written.
STATE OF CALIFORNIA CONTRACTOR
AGENCY CONTRACTOR (I(orher an eel/Ideal, state whether a corporatIon, partnership, etc.)
Department of Housing & Community Development Seal Beach Affordable Housing Corporation
BY (AUTHORIZED SIGNATURE) BY (AUTHORIZED SIGNATURE).
PRINTED NAME OF PERSON SIGNING , . PRINTED NAME AND TITLE OF PERSON SIGNING
Dennis L. Mont:ome See si:nature block on reverse
TITLE ADDRESS
Manager, Business Management Branch
AMOUNT ENCUMBERED BY THIS PROGRAM /CATEGORY (CODE AND TITLE) FUND TITLE Department of General Services
DOCUMENT 20 MHP Purchase Fund Use Only
$ 00 (OPTIONAL USE)
PRIOR AMOUNT ENCUMBERED FOR
THIS CONTRACT ITEM CHAPTER STATUTE - FISCAL YEAR
$1,000,000.00
TOTAL AMOUNT ENCUMBERED TO DATE 2240.620-0 1692 r 1984 04/05
OBJECT OF EXPENDITURE (CODE AND TITLE)
$1,000,000.00 2206 -40132 684731 Loans
1 hereby certify upon my own personal knowledge that budgeted funds T.B.A. NO. B.R. NO.
are available for the period and purpose of the expenditure stated above. _
SIGNATURE OF ACCOUNTING OFFICER DATE
X •
FROM : • FAX NO. :7603224501 Feb. 28 2005 08:22AM R3 •
STATE OF CALIFORNIA
'STANDARD AGREEMENT i•T
STD. 2 (REV. 5 -91) (REVERSE) CDC ELECTRONIC (1194)
Seal Beach Affordable Housing Corporation
01 -MPROP -068 Am. 1
Page 2 of4
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The undersigned, LINC HOUSING CORPORATION, a California nonprofit public benefit corporation and the City of
Seal Beach, hereby assigns all of their rights, title and interest on Standard Agreement No. 00 -MPROP -068 to SEAL
BEACH AFFORDABLE HOUSING CORPORATION, a California nonprofit public benefit corporation.
LINC HOUSING CORPORATION City of Seal Beach •
110 Pine Avenue Ste. 525 211 8 Street
Long Beach, CA 90802 -4422 Seal Beach, CA 90740
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By:
Signature of Assignor # 1 Signature of Assignor # 2 Representative
Hunter Johnson, President for the City of Seal Beach
Date Print Name & Title
Date
The undersigned, SEAL BEACH AFFORDABLE HOUSING CORPORATION, a California nonprofit corporation,
hereby accepts and assumes obligations and duties under Standard Agreement 00-MHP -068 from LINC HOUSING
CORPORATION, a California nonprofit public benefit corporation and the City of Seal Beach.
By: SEAL BEACH AFFORDABLE
HOUSING CORPORATION • '
110 Pine Avenue, Ste. 525
_ Long Beach, CA 90802 -4422
By:
Hunter Johnson, President Date •
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FROM : . • FAX NO. :7603224501 Feb. 28 2005 08:23AM P4
J
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Seal Beach Affordable Housing Corporation •
Contract No. 01 -MPROP -068 Am. #1
Page 3 of 4
Paragraphs 34., 35. and 36 are added to read as follows: -
34. Americans with Disabilities Act of 1990 _
By signing this contract, Borrower assures the State that it complies with the Americans
with Disabilities Act (ADA) of 1990, (42 U.S.C. 12101 et seq.), which prohibits
discrimination on the basis of disability, as well as all applicable regulations and
guidelines issued pursuant to the ADA.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized officers.
35. Union Organizing
The Contractor, by signing this agreement, hereby acknowledges the applicability of
Government Code Section 16645 through Section 16649 to this agreement. Furthermore,
Contractor, by signing this agreement, hereby certifies that:
a. No state funds received under this agreement will be used to assist, promote or •
deter union organizing.
b. Contractor shall account for state funds disbursed for a specific expenditure by
this loan, to show those funds were allocated to that expenditure.
c. Contractor shall, where state funds are not designated as described in (b) above, .
allocate, on a pro -rata basis, all disbursements that support the loan program.
If Contractor makes expenditures to assist, promote or deter union organizing,
Contractor will maintain records sufficient to show that no state funds were used
for those expenditures, and that Recipient shall provide those records to the
Attorney General upon request.
36. Prevailing Wage
•
Where funds provided through this Agreement are used for construction work, or in
support of construction work, Contractor shall ensure that the requirements of Chapter 1
(commencing with section 1720) of Part 7 of the Labor Code (pertaining to the payment
of prevailing wages and administered by the California Department of Industrial
Relations) are met:
For the purposes of this requirement "construction work" includes, but is not limited to
rehabilitation, alteration, demolition, installation or repair done under contract and paid
for, in whole or in part, through this Agreement. All construction work shall be done
through the use of a written contract with a properly licensed building contractor
FROM : • FAX NO. :7603224501 Feb. 28 2005 08:23AM P5
Seal Beach Affordable Housing Corporation
Contract No. 01 -MPROP -068 Am. #1
Page 4 of 4
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incorporating these requirements (the "construction contract "). Where the construction
contract will be between the Contractor and a licensed building contractor, Contractor
shall serve as the "awarding body" as that term is defined in the Labor Code. Where
Contractor will provide funds to a third party that will enter into the construction contract
with a licensed building contractor, the third party shall serve as the "awarding body."
The. construction contract and any amendments thereto shall be subject to the prior
written approval of the Department. Prior to any disbursement of funds, including but
not Iimited to release of any final retention payment, the Department may require a
certification from the awarding body that prevailing wages have been or will be paid.
•
37. Child Support Compliance Act: "For any Agreement in excess of $100,000, the
Contractor acknowledges in accordance with, that:
a). The Contractor recognizes the importance of child and family support obligations
and shall fully comply with all applicable state and federal laws relating to child
and family support enforcement, including, but not limited to, disclosure of
information and compliance with earnings assignment orders, as provided in
•
Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family
Code; and . _
b) The Contractor, to the best of its knowledge is fully complying with the earnings
assignment orders of all employees and is providing the names of all new
employees to the New Hire Registry maintained by the California Employment
• Development Department."
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FROM : . FAX NO. :7603224501 Feb. 28 2005 88:24AM P6
Sea: Beach Affordable Housing
Contract No. 00 -MPROP -068, Am. 1
Attachment A
Page 1 of 3
ATTACHMENT A
SPONSOR OPERATING GUARANTY
LOAN NUMBER 00 -MPROP -068
This Sponsor Operating Guaranty (the "Guaranty ") is made as of the date indicated below, by
LINC Housing Corporation, a California non -profit public benefit corporation (the "Sponsor ")
for the benefit of the Department of Housing and Community Development, a public agency of
. the State of California, its successors and assigns (the "Department ").
RECITALS:
A. Through that Standard Agreement No. 00 -MPROP -068, dated December 21, 2000, by
and between Sponsor and the Department (the "Standard Agreement "), the Department
has awarded Sponsor a conditional loan commitment from the Mobilehome Park
Resident Ownership Program (the "Program ") in the amount of One Million and no /100
Dollars ($1,000,000.00) (the "Loan ") for the acquisition and/or conversion of a
mobilehome park known as Seal Beach Trailer Park and located at 42 River Sea Drive,
Seal Beach, California 90740 (the "Development).
B. The Department's decision to enter into the Standard Agreement and the Loan was based
in part on the Sponsor's ability to successfully own, operate and manage the
Development in compliance with that certain Regulatory Agreement required to be
entered into by the Department and the Borrower as identified below, which governs the
maintenance, use and occupancy of the Development (the "Regulatory Agreement ").
C. Sponsor has formed Seal Beach Affordable Housing Corporation, a California nonprofit
public benefit corporation (the "Borrower ").
D. In order to ensure that the Borrower has sufficient resources and expertise to successfully
operate the Development for the term of the Regulatory Agreement consistent with the .
requirements contained therein, the Department requires that the Sponsor provide this
Guaranty as a condition to the Department's consent to the assignment of the Loan and
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Standard Agreement to Borrower.
FROM : FAX NO. :7603224501 Feb. 28 2005 08 :24AM Q7
Seat .Beach Affordable Housing
Contract No. 00- MPROP -068, Arn. 1
Attachment A
Page 2 of 3
NOW, THEREFORE, IN CONSIDERATION OF Department's Loan to Borrower, Sponsor
covenants, agrees and guaranties to the Department as follows:
1. Recitals. The foregoing recitals are a part of this Guaranty.
2. Sponsor Operating Guaranty. In order to assure. that the Borrower has the skill,
knowledge and experience necessary for the Borrower to own, operate and manage the
Development pursuant to the terms of the Regulatory Agreement, Sponsor guaranties to
the Department that during any period that Borrower is obligated under the terms of the
Regulatory Agreement:
a. Sponsor shall provide general oversight of the Borrower's operation and
management of the Development, and hereby guaranties to the Department that it
shall cause Borrower to perform its duties under the Regulatory Agreement with
the skill, knowledge and experience of a party with sufficient ability to own,
operate and manage the Development.
b. Upon any notice to Sponsor by the. Department that the Borrower does not have
sufficient staff or equipment • to perform its duties under the Regulatory
Agreement, including, but not limited to, its obligation to perform under the
Management Plan described in paragraph 6 of the Regulatory Agreement (the
"Management Plan "), Sponsor shall provide sufficient staff or equipment, as
needed, to the Borrower to enable it to perform such duties. Such staff or
equipment shall be provided at either no cost to the Borrower or at a cost
approved in writing by -the Department.
c. Sponsor shall exercise its rights of control so as to assure that the Borrower
perform its duties under the Regulatory Agreement, including, but not limited to,
its obligation to perform under the Management Plan.
d. Neither Borrower nor Sponsor shall be relieved of any of their responsibilities
under- the Regulatory Agreement or under the Management Plan by the
Department's approval of an agreement between Borrower and a management
agent for'the Development. .
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e. Sponsor agrees that any breach, violation or default of Borrower under the
Regulatory Agreement shall constitute breach, violation or default of Sponsor
under this Guaranty, and such breach shall give rise to the remedies available to
the Department against the Sponsor hereunder.
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FROM : • . -^ FAX NO. :7603224501 Feb. 28 2005 08:24AM P8
• Sear Beach Affordable Housing
Contract No. 00 -MPROP -068, Am. 1
Attachment A
Page 3 of 3
3. Department's Remedies Against Sponsor.
a. Sponsor agrees that in the event of a breach, violation or default as described in
paragraph 2(e) above, all the Department's remedies under this Guaranty and
. under law or equity shall be available to the Department upon failure of Sponsor
to perform its obligations and guaranties under this Guaranty after the expiration
of any applicable cure period for the underlying breach, violation or default.
b. If Sponsor is in default under this Guaranty, but the Borrower is not in default
under the Regulatory Agreement, Department may take any one or more of the
following actions:
i. Apply to any court of competent jurisdiction for specific performance of
this Guaranty, or for such other relief against Sponsor as may be
appropriate. It is agreed by the Sponsor that the injury to the Department
arising from a default of the Sponsor under this Guaranty may be
irreparable and- that the amount of the compensation that would provide
adequate relief to the Department in light of the purposes and
,requirements of the Program may be impossible to ascertain.
ii. Seek such other appropriate remedies against the Sponsor, including
money-damages, as may be available against the Sponsor under law.
Dated:
SPONSOR:
LINC Housing Corporation,
a California nonprofit public benefit corporation
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By:
Hunter Johnson, President
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