05-064, Community Housing for the Disabled
CAPITAL AGREEMENT BY AND BETWEEN THE
CITY OF CUPERTINO, CALIFORNIA
AND CUPERTINO COMMUNITY HOUSING FOR THE DISABLED
_ This capital agreement ("AGREEMENT"), is made and entered into on this "30 day of
Ju'ne... , 2005 ("Effective Date") by and between the CITY OF CUPERTINO,
CALIFORNIA, a municipal corporation ("CITY"), and CUPERTINO COMMUNITY
SERVICES, a non-profit housing developer ("CONTRACTOR). CITY and CONTRACTOR
may herein be referred to individually as a "Party" or collectively as the "Parties".
AGREEMENT PROVISIONS
The Parties agree as follows:
1. FUNDING AND APPROPRIATION
Pursuant to the provisions of Title I of the Housing and Community Development Act of
1974, as amended, CITY has received COMMUNITY DEVELOPMENT BLOCK GRANT
("CDBG") funds from the United States Department of Housing and Urban Development
("HUD") as an entitlement. CITY has appropriated CDBG funds in an amount not to exceed
FORTY THOUSAND DOLLARS ($40,000), for the purpose of meeting the goals and
objectives outlined in Exhibit A, titled "SCOPE OF REHABILITATION WORK"
("Project"), attached and incorporated by this reference, to benefit low and very-low income
CITY residents.
2. DEFINITIONS
Whenever used in this AGREEMENT and its attachments, the terms below, when initially
capitalized, shall have the following meanings:
A. Affordability Period: Shall mean the length of time this AGREEMENT is in effect and
housing unit rents are controlled as set forth in Exhibit B, titled "BUDGET AND
PROJECT RENTS", attached and incorporated by this reference. This period shall be for
at least thirty (30) years after final payment by CITY under this AGREEMENT or
issuance of a Certificate of Occupancy, whichever is later.
B. Annual Income: Shall mean the income of all household members as defined in Federal
regulations 24 CFR 570.3.
C. Client: A person, of very low and low income, who resides in the CDBG unit subject to
this agreement.
D. Very Low Income Household: Shall mean a household whose Annual Income does not
exceed 50% of the area median income, adjusted for household size, as determined and
made available by HUD. CITY shall provide CONTRACTOR with a current schedule of
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income limits, adjusted for household size.
E. Low Income Household: Shall mean a household whose Annual Income does not exceed
80% of the area median income, adjusted for household size, as determined and made
available by HUD. CITY shall provide CONTRACTOR with a current schedule of
income limits, adjusted for household size.
F. CDBG Rents: Shall mean the maximum rents that may be charged to Clients as defined
by the HUD for the CDBG Program. CITY will periodically revise these rents.
G. CDBG: Shall mean the federal regulations (24 CFR Part 570), which govern the CDBG
Program. This definition shall include all HUD memos and other correspondence
explaining or otherwise commenting on the CDBG program.
H. OMB: Shall mean the Federal Office of Management and Budget.
I. Proiect Property: Shall mean all buildings and grounds located at 10311 Greenwood
Court, Cupertino, California (APN 369-14-025).
J. Utilization Period: Shall mean the period during which CONTRACTOR may become
liable for costs that are eligible for reimbursement under conditions described in Exhibit
B. For this AGREEMENT, the Utilization Period is May 1,2005 to April 30, 2006.
3. PROJECT COORDINATION
A. CITY: Senior Planner (Housing Services) or his/her designee shall be the PROGRAM
MANAGER for CITY and shall render overall supervision of the progress and
performance of this AGREEMENT by CITY. All services agreed to be performed by
CITY shall be under the overall direction of the PROGRAM MANAGER.
B. CONTRACTOR: CONTRACTOR shall assign a single PROJECT DIRECTOR who
shall have overall responsibility for the progress and execution of this AGREEMENT.
Should circumstances or conditions subsequent to the execution of this AGREEMENT
require a substitute PROJECT DIRECTOR, CONTRACTOR shall notify CITY
immediately of such occurrence. PROJECT DIRECTOR and CONTRACTOR staff will
cooperate with CITY'S PROGRAM MANAGER relating to the PROJECT, areas of
concern, and the impact of PROJECT on residents of CITY.
C. NOTICES: All notices or other correspondence required or contemplated by this
AGREEMENT shall be sent to the Parties at the following addresses:
CITY:
Senior Planner (Housing Services)
Community Development Department
10300 Torre Avenue
Cupertino, CA 95014
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CONTRACTOR:
Executive Director
Cupertino Community Services
10104 Vista Drive
Cupertino, CA 95014
4. OBLIGATION OF CONTRACTOR
A. Organization of CONTRACTOR: CONTRACTOR shall:
1) Provide to CITY in writing, prior to the request for payment of the funds under this
AGREEMENT or, thereafter during the Affordability Period, within thirty (30) days
of a change in the status of any of the following:
a) A copy of Articles of Incorporation under the laws of the State of California;
b) A copy of the current Bylaws of the CONTRACTOR;
c) Verification and documentation of Internal Revenue Service nonprofit status
under Title 26, section 501(c) of the Internal Revenue Code of 1986;
d) Verification and documentation of State of California Franchise Tax Board tax
exempt status under Section 23701(d), of the California Revenue and Taxation
Code;
e) Names and addresses of current Board of Directors of CONTRACTOR;
f) A copy of the adopted personnel policies and procedures including an Affirmative
Action Plan if staff exceeds fifteen (15) employees;
g) An organizational chart and staffing profile; and
h) Any other documents required by HUD to verify compliance with the CDBG
program.
2) Abide by the conflict of interest provisions in 24 CFR 85.36 and OMB Circular A-
110. In all cases not governed by these documents, 24 CFR 570.611 shall apply.
These rules apply to any person currently being compensated by the CONTRACTOR
for services rendered to it within the previous twelve (12) months, whether as a full or
part time employee, officer, independent contractor or otherwise. Any such persons
who have exercised or exercise any decision-making functions or responsibilities with
respect to CITY'S administration of CDBG or gain inside information with regard to
that process, are prohibited from obtaining any financial interest or benefit for
themselves or those with whom they have family or business ties during their tenure
with CONTRACTOR and for one year thereafter.
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3) Include on the Board of Directors representatives from a broad cross section of the
community, including, those with expertise and interest in the CONTRACTOR'S
services, including, as appropriate, representatives from community organizations
interested in CONTRACTOR'S services, and users of CONTRACTOR'S services.
4) Open to the public all meetings of the Board of Directors, except meetings, or
portions thereof, dealing with personnel or litigation matters or instruct negotiators.
5) Keep minutes, approved by the Board of Directors, of all regular and special
meetings.
6) Encourage public participation in planning and implementing services provided under
this AGREEMENT.
7) Utilize minority and/or female owned businesses, vendors, suppliers, and contractors
to the maximum extent feasible for items funded under this AGREEMENT, in
accordance with CITY policy as set forth in the Minority Female Business Enterprise
Statement and Procedural Guide available through the CITY'S PROGRAM
MANAGER.
B. Proiect Performance of CONTRACTOR: During
CONTRACTOR shall:
the
Affordability
Period,
1) Submit to CITY all documentation required by CITY to assure compliance with
CDBG Affordability Period requirements of the Project as described in Exhibits A
andB;
2) Submit to CITY by July 31 of each year an annual report, that summarizes the
number of Clients Served, including their monthly rent, annual income, household
size, race/ethnic heritage, and whether they are a senior, disabled, or female head of
household family for the previous Fiscal Year (defined herein as the annual period
July 1 through the next June 30).
3) Maintain all required insurance coverage as specified in Exhibit B, titled
"INSURANCE REQUIREMENTS", attached and incorporated by this reference;
4) Maintain the appearance of Project Property consistent with surrounding properties;
5) Include an acknowledgment of CITY funding and support on all appropriate Project
publicity and publications using words to the effect that the Project is funded by the
City of Cupertino; and,
6) Upon reasonable notice, implement any changes required by CITY, HUD, or CDBG
to maintain compliance with CDBG requirements and any other applicable statutes or
regulations. CITY and CONTRACTOR will seek remedies to address any changes
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that impact the financial viability of the project.
C. Fiscal Responsibilities of CONTRACTOR: CONTRACTOR shall:
1) Appoint and submit the name of a Fiscal Officer who shall be responsible for the
financial and accounting activities of the CONTRACTOR, including the receipt and
disbursement of CONTRACTOR funds;
2) Establish and maintain a system of accounts that shall be in conformance with
generally accepted principles of accounting for budgeted funds;
3) Document all costs by maintaining complete and accurate records of all financial
transactions, including, but not limited to, contracts, invoices, time cards, cash
receipts, vouchers, canceled checks, bank statements, and/or other official
documentation evidencing in proper detail the nature and proprietary of all charges.
4) Perform an independent fiscal audit at least every year, in conformance with the
generally accepted standard accounting principles. Such audits must identify the total
funds received and disbursed and funds granted and expended relating to this
AGREEMENT. The costs for such audits shall be at CONTRACTOR'S expense,
unless otherwise provided for in this AGREEMENT. Copies of the completed audits
must be provided to the CITY; and,
5) Assure that all accounts and documentation of fiscal activities shall be consistent with
the requirements of Exhibit B.
D. Records. Reports and Audits of CONTRACTOR
1) CONTRACTOR shall comply with all applicable federal Uniform Administrative
Requirements as delineated in 24 CFR 570.489.
2) Establishment and Maintenance of Records: CONTRACTOR shall maintain records,
including but not limited to books, financial records, supporting documents, statistical
records, personnel, property and all other pertinent Records sufficient to reflect
properly (a) all direct and indirect costs of whatever nature claimed to have been
incurred and anticipated to be incurred to perform this AGREEMENT, and (b) all
other matters covered by this AGREEMENT.
3) Preservation of Records: CONTRACTOR shall preserve and make available its
records:
4) Examination of Records and Facilities: At any time during normal business hours
and as often as may be deemed necessary, with at least five working days notice by
CITY, CONTRACTOR agrees that CITY, and/or any duly authorized representatives
shall, until expiration of (a) five years after the conclusion of the Affordability Period,
or (b) such longer period as may be prescribed, have access to and the right to
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examine its offices and facilities engaged in performance of this AGREEMENT and
all its records with respect to all matters covered by this AGREEMENT, excepting
those falling within the attorney-client privilege, provided that in the event of a
dispute regarding the applicability of the attorney work-product privilege to specific
records, the Parties agree to submit the dispute to an impartial arbitrator agreeable to
both Parties. Agreement regarding the arbitrator shall not be withheld unreasonably.
Parties shall equally divide costs of such arbitration.
CONTRACTOR also agrees that the CITY, or any duly authorized representatives,
have the right to audit, examine and make excerpts or transcripts of and from, such
records, and to make audits of all contracts and subcontracts, invoices, payrolls,
records of personnel, conditions of employment, materials and all other data relating
to matters covered by this AGREEMENT.
5) City Audits: The CITY may require an independent audit. Such audits may cover
Project compliance as well as fiscal matters. CONTRACTOR will be notified in
advance that an audit will be conducted. CONTRACTOR will be afforded an
opportunity to respond to any audit findings, and have the responses included in the
final audit findings, and have the responses included in the final audit report. Cost of
such audits will be borne by the CITY.
E. Faith Based Activities: In addition to, and not in substitution for, other provisions of this
AGREEMENT regarding the provision of services with funds, pursuant to Title I of the
Housing and Community Development Act of 1974, as amended, the CONTRACTOR:
1) Represents that it may not use the CDBG funds to engage in inherently religious
activities, such as worship, religious instruction, or proselytization; and
2) If the organization engages in inherently religious activities, the activities must be
offered separately, in time and location, from the CDBG funded activities; and
3) Agrees that, in connection with such services:
a) It will not discriminate against any employee or applicant for employment on the
basis of religion and will not limit employment on the basis of religion and will
not limit employment or give preference in employment to persons on the basis of
religion;
b) It will not discriminate against any person applying for housing on the basis of
religion and will not limit such services or give preference to persons on the basis
of religion;
c) CDBG funds may not be used for the acquisition, construction or rehabilitation of
structures to the extent that those structures are used for inherently religious
activities, such as worship, religious instruction, or prayer;
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5. CONTRACT COMPLIANCE
A. Monitoring and Evaluation ofProiect: Evaluation of the Project performance shall be the
mutual responsibility of both Parties. CONTRACTOR shall furnish all Client and
service data, statements, records, information and reports necessary for PROGRAM
MANAGER to monitor, review and evaluate the performance of CONTRACTOR with
respect to the Project and its components. CITY shall have the right to request the
services of an outside agent to assist in any such evaluation. Such services shall be paid
for by the CITY.
B. Contract Noncompliance: With receipt by CITY of any information that evidences a
failure or deficiency by CONTRACTOR to comply with any provision of this
AGREEMENT, the CITY shall have the right to require corrective action to enforce
compliance with such provision. Corrective action shall be taken if any of the following,
as examples only, occur:
1) If CONTRACTOR (with or without knowledge) has made any material
misrepresentation of any nature with respect to any information or date furnished to
CITY in connection with the Project;
2) If there is pending litigation with respect to the performance by CONTRACTOR or
any of its duties or obligations under this AGREEMENT which may materially
jeopardize or adversely affect the undertaking of or the carrying out of the Project;
3) If the CONTRACTOR shall have taken any action to pertaining to the Project which
requires CITY approval without having obtained such approval;
4) If CONTRACTOR is in material default under the provisions of this AGREEMENT;
5) If CONTRACTOR makes improper use of CDBG funds and Project income;
6) If CONTRACTOR fails to comply with any of the terms and conditions of this
AGREEMENT in such a manner as to constitute material breach thereof; or,
7) If CONTRACTOR submits to CITY any reports which are incorrect or incomplete in
any material respect.
C. Corrective Action: After all administrative remedies have been exhausted, CITY shall
have the right to require the presence of any of CONTRACTOR'S officers at any hearing
or meeting called for the purpose of considering corrective action not less than seven (7)
and not more than thirty (30) calendar days of issuing such notice. CONTRACTOR will
be informed of and have an opportunity to participate fully in corrective action
deliberations.
CITY shall forward to CONTRACTOR a set of specific corrective action
recommendations relative to Project noncompliance and a timetable for implementing the
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specified corrective action recommendations; such timetable shall allow CONTRACTOR
not less than seven (7) working days to comply with the specified corrective action
recommendations. Following implementation of the corrective actions, CONTRACTOR
shall forward to CITY, within the time specified by CITY, any documentary evidence
required by CITY to verify that the corrective actions have been taken. In the event
CONTRACTOR does not implement the corrective action timetable, CITY may:
disallow all or part of the cost of the activity or action in noncompliance; provide notice
of intent to terminate this AGREEMENT as specified in Section 15; and/or take other
remedies that may be legally available.
6. OBLIGATIONS OF CITY
A. Contract Compliance: City Staff shall provide assistance to CONTRACTOR m
connection with:
1) Obtaining conformity of the Project with the CITY'S policies and procedures and all
CITY codes, ordinances, directives and laws; and
2) Obtaining conformity of Project with CDBG requirements; and
3) Review of AGREEMENT for compliance purposes and evaluating Project based on
annual reports received from CONTRACTOR and on-site monitoring of Client and
Project Property data.
B. Method of Pavrnent: CITY shall pay a portion of the actual cost for construction of
improvements on Project Property, a total sum not to exceed, FORTY THOUSAND
DOLLARS ($40,000).
C. Utilization of Funds: Funds shall be paid by CITY under this AGREEMENT shall only
be eligible expenses incurred during the Utilization Period. The Utilization Period of this
AGREEMENT shall begin on May 1, 2005 and terminate on April 30, 2006.
D. Final Payment Request: CITY must receive all payment requests under this
AGREEMENT prior to May 31, 2006. CITY shall have no repayment liability under this
AGREEMENT after that date, and CITY may reprogram any unspent amount of the
capital grant without prior notice CONTRACTOR.
7. PROJECT INCOME
A. All rents or other payments collected from Project Clients during the Affordability Period
shall be retained by the CONTRACTOR. These rents shall be used to further program
activities at Project.
B. All rents or other payments that are collected from Project Clients during the
Affordability Period and that remain unspent at the conclusion of the Affordability Period
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shall be used by CONTRACTOR solely to further program activities at Project Property.
C. Rents received subsequent to the Affordability Period shall not be subject to this
AGREEMENT.
8. DISCLOSURE OF CONFIDENTIAL TENANT INFORMATION
To the extent allowed by law, CITY agrees to maintain the confidentiality of any information
regarding Clients or applicants for residency under this Project, or their immediate families,
pursuant to this AGREEMENT, which may be obtained through application forms,
interviews, tests, reports, from public agencies.
9. ASSIGNABILITY AND INDEPENDENT CONTRACTOR REQUIREMENTS
A. The relationship of CONTRACTOR to CITY is that of an independent contractor.
CONTRACTOR has full rights to manage its employees, Tenants, and Clients, subject to
the requirements of the law. All persons employed by CONTRACTOR in connection
with this AGREEMENT shall be employees of CONTRACTOR and not employees of
CITY in any respect. CONTRACTOR shall be responsible for all employee benefits,
including, but not limited to, statutory worker's compensation benefits.
B. None of the work or services to be performed hereunder shall be delegated or
subcontracted to third parties without prior written CITY approval.
C. No subcontractor of CONTRACTOR will be recognized by CITY as having any
employment relationship with the CITY.
D. It is the understanding of the CITY that Bay Area Repipes of San Jose, California, has
been hired by CONTRACTOR to provide construction of the PROJECT. CITY has
received a copy of the Consulting Agreement between CONTRACTOR and Bay Area
Repipes and consents to Bay Area Repipes role in the PROJECT.
10. COMPLIANCE WITH LAW
A. Compliance: CONTRACTOR shall become familiar and comply with and cause all its
subcontractors and employees, if any, to become familiar and comply with all applicable
federal, state and local laws, ordinances, codes, regulations and decrees, including, but
not limited to, those federal rules and regulations outlined in Exhibit D, titled
"ASSURANCES", attached and incorporated by this reference.
B. Assurances: Failure of CONTRACTOR, in any manner, to observe and adhere to law
as described herein or as amended shall in no way relieve CONTRACTOR of its
responsibility to adhere to same and CONTRACTOR herein acknowledges this
responsibility. CONTRACTOR shall hold CITY, its City Council, officers, employees
and boards and commissions harmless from CONTRACTOR'S failure(s) to comply with
any requirement imposed on CONTRACTOR by virtue of the utilization of CITY funds.
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CONTRACTOR shall reimburse CITY for any disallowed costs and/ or penalties
imposed on CITY because of CONTRACTOR'S failure to comply with all applicable
federal, state and local laws, ordinances, codes, regulations and decrees.
11. TERMS AND AMENDMENTS
Amendments to the terms and conditions of this AGREEMENT shall be requested in writing
by the Party desiring such revision, and any such adjustment to this AGREEMENT shall be
determined and effective only upon the mutual agreement in writing of the Parties hereto
unless the amendments are made by HUD, in which case they will be adopted as ordered.
12. INTEGRATED DOCUMENT
This AGREEMENT embodies the agreement between CITY and CONTRACTOR and its
terms and conditions. No verbal agreements or conversations with any officer, agent or
employee of CITY prior to execution of this AGREEMENT shall affect or modify any of the
terms or obligations contained in any documents comprising this AGREEMENT. Any such
verbal agreement shall be considered as unofficial information and in no way binding upon
CITY.
13. HOLD HARMLESS
CONTRACTOR hereby releases and agrees to protect, defend, hold harmless and indemnify
CITY, its City Council, its officers, employees and elected officials, boards and
commissions, from and against all claims, injury, liability, loss, cost and expense, or damage,
however same may be caused, including all cost and reasonable attorney's fees in providing
the defense to any claim arising therefrom, for any loss of or damage to property (real and/or
personal) or for personal injury to or death of any person or persons arising out of, occurring
by reason of, or in any way connected with CONTRACTOR'S Project activities, or in
consequence thereof, expect to the extent such claims arise from the grossly negligent or
willful misconduct of the CITY, its City Council, officers, employees and elected officials,
boards and commissions.
14. WHEN RIGHTS AND REMEDIES WAIVED
In no even shall any payment by CITY or any acceptance or payment by the
CONTRACTOR hereunder constitute or be construed to be a waiver by CITY or
CONTRACTOR of any breach of covenants or conditions of this AGREEMENT or any
default which may exist on the part of CITY or CONTRACTOR, and the making of any such
payment while any such breach or default shall exist shall in no way impair or prejudice any
right or remedy available to CITY or CONTRACTOR with respect to such breach or default.
15. TERMINATION
A. Termination for Cause: Subject to the terms of Paragraph 5C, CITY may terminate this
AGREEMENT for cause if the CONTRACTOR fails to perform or comply with the
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conditions listed below and such failure having continued incurred for thirty (30) days
after receipt of written notice thereof from CITY to the CONTRACTOR:
1) CONT ACTOR fails to comply with material existing conditions of the
AGREEMENT; or
2) CONTRACTOR refuses to accept any additional conditions that may be imposed by
the Federal government; or
3) CONTRACTOR fails to implement required corrective actions III a timely and
sufficient fashion.
B. Termination for Convenience: CITY or CONTRACTOR may terminate or suspend this
AGREEMENT in whole or in part when both Parties agree that the continuation of the
Project would not produce beneficial results commensurate with the further expenditure
of funds. Both Parties shall agree upon the termination conditions, including the
Effective Date and, in the case of partial terminations, the portion to be terminated.
C. Upon termination, CONTRACTOR shall not incur new obligations and shall cancel as
many outstanding obligations as possible;
D. Termination does not impair the CITY'S right to subsequently require repayment by
CONTRACOTR for disallowed costs or other adjustments determined by audit findings.
16. MISCELLANEOUS PROVISIONS
A. The Captions: The captions of the various sections, paragraphs, and subparagraphs of the
AGREEMENT are for convenience only and shall not be considered nor referred to for
resolving questions of interpretation.
B. No Third Party Beneficiary: This AGREEMENT shall not be construed or deemed to be
an agreement for the benefit of any third party or parties, and no third party or parties
shall have any claim or right of action hereunder for any cause whatsoever.
C. Severability Clause: In case anyone or more of the provisions contained herein shall, for
any reason, be held invalid, illegal, or unenforceable in any respect, it shall not affect the
validity of the other provisions which shall remain in full force and effect.
D. No Pledging of CITY'S Credit: Under no circumstances shall CONTRACTOR have the
authority or power to pledge the credit of CITY or incur any obligation in the name of
CITY. CONTRACTOR shall save and hold harmless CITY, its City Council, its officers,
employees, and boards and commissions for expenses arising out of this AGREEMENT.
E. Venue: In the event that suit shall be brought by any Party to this AGREEMENT, the
Parties agree that venue shall be exclusively vested in the state courts of the County of
Santa Clara, or where otherwise appropriate, exclusively in the United States District
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Court, Northern District of California, San Jose, California.
F. Corporation Financial Disclosure Requirements: CONTRACTOR services to be
rendered under the provisions of this AGREEMENT are excluded from the requirement
of filing a Financial Disclosure Statement by Title 2, California Code of Regulations,
918,700(2)(A) and (B).
REMAINDER OF P AGE INTENTIONALLY BLANK
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The Parties to this AGREEMENT hereby indicate their acknowledgment and acceptance of the
terms and conditions stated herein as evidenced by the following signatures of their duly
authorized representatives. It is the intent of the Parties that this AGREEMENT shall become
operative on the Effective Date as set forth on page 1.
CITY OF CUPERTINO, CALIFORNIA
a California Municipal Corporation
By:
~.){jwL..~
DAVID W. KNAPP
City Manager
-1-. c. uS
CHARLES KILIAN
City Attorney
ATTEST:
Address:
10300 Torre Avenue
Cupertino, CA 95014
Telephone: (408) 777-3200
Facsimile: (408) 777-3333
"CITY"
-----~
CUPERTINO COMMUNJTY'SERVlCES\
a non-profit,eatjfetfiJa Corporation
" /~
B // L' / /~, ---::::?--------.--.,
y: {~ ;-;'., -~~-----~--
--" -'--::::;.
Name: Lkiyn Fal5fe--'-'---"-- ",---
Title: Executive Director
Address:
10104 Vista Drive
Cupertino, CA 95014
Telephone: (408) 255-8033
Facsimile: (408) 366-6090
"CONTRACTOR"
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Exhibit A
SCOPE OF WORK
This project encompasses the rehabilitation of an existing apartment complex providing
transitional housing for the low and very-low income. Greenwood Court Transitional Housing is
a 4-plex located at 10311 and 10321 Greenwood Court, Cupertino, CA. Below is a list of the
work to be accomplished in the rehabilitation.
1. Abandon galvanized hot and cold water system.
2. Replace galvanized pipes with type L copper pipes.
3. Provide shut-off valves, SS flex risers and hose bibs on exterior wall of complex.
4. Open walls where needed for repipe, tape, texture and make ready for paint.
5. Secure building permits with the City of Cupertino
6. Replace shower valves with Delta single handle control chrome.
7. Install 1 1;4" Type L copper pipe from meter to both units and tie into existing irrigation.
8. Install new 1 Yi" shut off valve.
Exhibit B
BUDGET AND PROJECT RENTS
PROJECT CONSTRUCTION:
Repipe of existing 4-plex
$40,000
Rents:
Calculation of rent: 30% of each resident's income
(2) 2-bedroom units
Unit #1: $960.03
Unit #2: $906.40
(2) 3-bedroom units
Unit #1: $424.80
Unit #2: $345.60
EXHIBIT D
ASSURANCES
CORPORATION hereby assures and certifies that it will comply with all regulations, policies,
guidelines and requirements applicable to the acceptance and use of Federal funds for this Federally-
assisted program and will be responsible for implementing and complying with all relevant future
changes to Federal Regulations or OMB Circulars. Specifically CORPORATION gives assurances and
certifies with respect to the PROGRAM that it is in compliance with the following Regulations as
defined by 24 CFR, Part 570, Subpart J; 24 CFR, Part 570, Subpart K; and will be conducted and
administered in conformity with "Public Law 88.352 and Public Law 90-284.
1. 570.601. Public Law 88-352 and Public Law 90-284; affirmatively furthering fair housing;
Executive Order 11063, as amended by Executive Order 12259 addresses discrimination. HUD
regulations implementing Executive Order 11063 are contained in 24 CFR, Part 107.
2. 570.602. Section 109 of the Act addresses discrimination.
3. 570.603. Labor Standards.
4. 570.604. Environmental Standards.
5. 570.605. National Flood Insurance Program.
6. 570.606. Relocation, Displacement and Acquisition.
7. 570.607. Employment and Contracting Opportunities.
8. 570.608. Lead-Based Paint.
9. 570.609. Use of Debarred, Suspended, or Ineligible Contractors or Subrecipients.
10. 570.610. Uniform Administrative Requirement and Cost Principles. The CITY, its
Subrecipients, agencies or instrumentalities, shall comply with the policies, guidelines, and
requirements of24 CFR Part 85 (Common Rule), and OMB Circulars A-IlO (Grants and
Agreements with Non-Profit Organizations), A-122 (Cost Principles for Non-Profits), A-128
(Audits of State and Local Governments-implemented at 24 CFR, Part 24), and A-133 (Audits
of Institutions of Higher Education and Other Non-Profit Institutions), as applicable, as they
relate to the acceptance and use of Federal funds under this part. The applicable sections of24
CFR, Part 85 and OMB Circular A-I 00 are set forth at 570.502.
11. 570.611. Conflict of Interest.
12. 570.612. Executive Order 12372 allows States to establish its own process for review and
comment on proposed Federal financial assistance programs, specifically the use ofCDBG
funds for the construction or planning of water or sewer facilities.
EXHIBIT D - ASSURANCES
1
REVISED lJ/15/00
PROJECT COORDINATION
PROJECT DIRECTOR
Kim Ferm
(408) 255-8033 xl02
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Mary Bushman
(408) 255-8033 x302