HomeMy WebLinkAbout1985-032
1 RESOLUTION NO. 85-32
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND
DIRECTING THE EXECUTION OF SERVICE AGREEMENT WITH UNITED STATES
3 ESCROW, INC., FOR ADMINISTRATIVE SERVICES FOR RENTAL
REHABILITATION PROGRAM.
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
5 SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Mayor of the City of San Bernardino is hereby
7 authorized and directed to execute on behalf of the City of San
8 Bernardino that certain service agreement by and between the City
9 of San Bernardino and United States Escrow, Inc., a copy of which
10 is annexed hereto as Exhibit "1" and is incorporated herein by
11 reference, with such changes thereto as may be approved by the
12 City Attorney. This service agreement provides that United States
13 Escrow, Inc., shall provide administrative services to the City of
14 San Bernardino for its rental rehabilitation program, including
15 arranging for wire transfers of funds from the United States
16 Department of Housing and Urban Development, processing vouchers
17 for disbursements to contractors for services rendered in
18 rehabilitation of housing facilities, receiving, accounting for
19 and disbursing the funds provided by the Department of Housing and
20 Urban Development, by the City of San Bernardino, and by
21 participating owners of property, for rental rehabilitation
22 programs, and filing the necessary reports and documentation with
23 the Department of Housing and Urban Development. The contractor's
24 fees under this agreement are borne by the owners whose rental
25 property is being rehabilitated under the program.
26 I HEREBY CERTIFY that the foregoing resolution was duly
27 adopted by the Mayor and Common Council of the City of San
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Bernardino at a
reaular
meeting thereof, held on
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the 21st day of
JanuAry
, 1985, by the fOllowing vote,
2 to wit:
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AYES:
Council Members Castaneda. Reilly, Hernandez.
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Marks, Ouiel. Frazier, Strickler
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NAYS:
None
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ABSENT:
None
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J~0'4/~/
,/ City Clerk
The foregoing resolution is hereby approved t' ~~~eday
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of
.Januarv
, 1985.
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13 Approved as to form:
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SERVICE AGREEMENT BY AND BETWEEN
THE CITY OF SAN BERNARDINO
AND UNITED STATES ESCROW, INC.
THIS AGREEMENT entered into as of.the
day of
6 1984, by and between City of San Bernardino
7 a public body, corporate and politic (hereinafter referred to
8 as the 'Agency') and UNITED STATES ESCROW, INC., a Corporation
9 organized and existing under the laws of the S~ate of.California
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10 (hereinafter referred to as the 'Contractor').
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12 WIT N E SSE t H
13 WHEREAS, a below market interest rate improvement loan
14 program has been created by the Agency under the HUD Rental
15 Rehabilitation Program utilizing a payback of funds provided
16 by the United States Department of Housing and Urban Development,
17 and/or the Agency Redevelopment General Fund and/or private
18 sector monies.
19 WHEREAS, a portion of these funds are allocated and advanced
20 to the Agency for redevelopment activities, and
21 WHEREAS, pursuant to such agreements, the Agency is under-
22 taking certain activities necessary for the planning or execution
23 of a number of redevelopment projects (Projects), adopted by
24 the agency, and
25 WHEREAS, the Agency desires to engage the Contractor to
26 render services in connection with loans made by the Agency for
27 improvements within the Agency, and
28 WHEREAS, the Contractor represents that it is qualified to
perform services under this contract;
1 NOW, THEREFORE, THE PARTIES HERETO DO HEREBY MUTUALLY
2 AGREE AS FOLLOWS:
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SCOPE OF SERVICES
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5 When and as requested in writing by the Agency, the Con-
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6 tractor, shall provide Rental Rehab/Cash Management escrow and
7 related services for property improvements in connection with
8 loans made by the Agency to homeowner 8?d/or property/business
9 ownera for the expansion or improvement~of their property.
10 Service sball include, but shall not be limited to, the areas
II liated below.
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CASH MANAGEMENT DEPOSITORY SERVICES
The Contractor shall establish a separate Rental Rehab
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 Agency.
ACCOUNT ACTIVATION AND FUND DISBURSEMENT SERVICES
Upon loan approval the Agency shall send private sector
loan proceeds or other non-Rental Rehab Agency funds and
completed Control Instructions to the Contractor. The
Control Instructions shall include the following data:
a. Owner{s} name.
b. Contractor{s} name.
c. Job site address.
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d. Dollar amount of funds being escrowed along with the
participation breakdown in dollar amounts of non-
Rental Rehab and Rental Rehab program funds.
e. Instructions OD how funds are to be disbursed.
f. Original signatures of owner and Agency representa-
tive or agent.
When and as requested in writing by the Agency, the Con-
tractor shall provide check disbursements to parties
designated by Agency in connection with loans made by the
Agency or its agent for redevelopment.
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 Agency representatives authorized
to request disbursements.
Each Disbursement Authorization submitted by the Agency
to the Contractor shall indicate what portion of the dis-
bursement is to be drawn from non-Rental Rehab funds and
what'portion to be drawn from Rental Rehab funds. A copy
of the HUD Rental Rehab payment voucher shall be sent to
Contractor by Agency along with the Disbursement Authori-
zation in cases where monies are to be drawn from Rental
Rehab funds (unless item D4 of Agreement applies).
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 nec-
essary HUD automatic transfer deposits as indicated
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by the submitted HUD payment voucher).
b. Owner's signature(s) are the same 8S on the original
escrow instructions.
c. Agency representative's signature(i> are the same
as on the original escrow instructions or on an
approved signature list of those representatives
having the authority to authorize disbursements.
If there is a delay in the Contractor receiving HUD auto-
matic transfers, then at the Agency's request, the Con-
tractor shall draw available monies from" project non-
Rental Rehab funds to pay without delaying Rental Rehab
drawdown. requests. The Contractor shall'then reimburse
the non-Rental Rehab fund those monies disbursed in
covering Rental Rehab fund drawdowns when HUD fund trans-
fers are received.
Upon the proper verification, the Contractor shall prepare
a check(s) for the amount shown on the payment authori-
zations and shall send the check(s) to the Agency.
At-the: request.of the Agency, Contractor shall hold a
retention fund for up to 30 days after recroding of the
Notice of Completion. Contractor shall record the Notice
of Completion with the County.
HUD RENTAL REHAB/CASH MANAGEMENT COMPLIANCE ACCOUNTING
As required under HUD guidelines, Contractor shall main-
tain separate escrow accounting records of Rental Rehab
and non-Rental Rehab funds. Separate accounting records
for non-commingled non-Rental Rehab and Rental Rehab
program funds will show receipt, disbursement and running
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balance entries for each project. Accounting information
and records will be available to the Agency during pro-
ject rehabilitation and will be submitted to the Agency at
project completion.
At the beginning of each project, the Contractor shall
forward to HUD Central the project Pre-Rehabilitation
Report upon completion by the Agency.
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 Rehab
program funds. Copies of payment voucher as well as
disbursement authorization will be kept by Contractor
in a permanent project vile.
Contractor shall submit copy of the monthly reconciliation
of program activity to HUD Central as required under HUD
Rental Rehab guidelines.
Contractor shall submit Project Completion Report to HUD
Central within 90 days of rehab completion and will retain
a copy of the report in a permanent project file.
ADDITIONAL HUD RENTAL REHAB ADMINISTRATIVE AND COMPLIANCE
SERVICES
Upon receipt of Control Instructions from the Agency, the
Contractor shall contact HUD Central Office of Administra-
tion to set up a new Rental Rehab project account. The
Contractor will be authorized with the proper HUD security
clearance to gain access to HUD's Cash Management Infor-
mation System required to set up new projects and request
drawdowns. The Contractor will transmit to HUD Central,
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the information required to have the appropriate amount
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of Rental Rehab funds allocated for the project.
Upon receipt of a disbursement authorization ~rom the
Agency. the .Contractor ahall contact HUD Central to make
the appropriate drawdown request of Rental Rehab fund
monies as authorized by the Agency.
The Contractor shall
submit the required project data (i.e. project: number,
voucher number, amount of request. type of dr~w, dates
of construction. etc.) to obtain drawdown .pp~oval.
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Approved drawdowns will be automatically transfered by HUD
Central to Contractor'. depository account and. disbursed
by Contractor upon receipt per Section B of this Agreement.
Also upon receipt of a disbursement authorization from
the Agency, the Contractor shall prepare a payment voucher
for the amount requested from the Rental Rehab 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.
RECONCILIATION OF RENTAL REHAB DEPOSIT ACCOUNT ACTIVITY
The Contractor shall prepare a monthly reconciliation
of HUD's monthly bank disbursement report with the Rental
Rehab depository account activity for all HUD automatic
transfers and disbursements. A Rental Rehab depository
statement of account along with copies of deposit receipts,
payment vouchers, and checks will be attached to the re-
conciliation statement.
The Contractor shall submit the prepared monthly reconcil-
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1 iation to the Agency as well as HUD Central as required.
2 F. MAINTENANCE OF PERMANENT PROJECT FILE
3 1. - Contractor shall compile all pertinent project data into
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a permanent file for Agency and HUD auditing.
Each project
5 file shall contain copies of 811 deposits, checks, payment
_ vouchers, disbursement authorizations, pre-rehabilitation
and project completion reports and separate accounting
statements of non-Rental Rehab & Rental Rehab fund activity.
As required by HUD, project files will be prepared to
show tha t :
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a. At no time was there a commingling of Rental Rehab
funds with private or other Agency funds.
b. At no time did draws on Rental Rehab funds exceed
draws on non-Rental Rehab funds.
COMPUTER ACCOUNTING SERVICES
The Contractor shall supply to the Agency a monthly computer
print-out of all transactions completed to date and the
. balance remaining in each account.
MAINTENANCE OF FILES AND AVAILABILITY OF DATA --
Contractor shall maintain records of all accounts estab-.
lished 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 (3)0 days
. of such request, make available all records, financial and
otherwise, dealing with its activities performed pursuant
to the provisions of this Agreement to authorized auditors
and monitors of the Agency of the U.S.Department of Housing
and Urban Development.
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FEE SCHEDULE FOR PROGRAM SERVICES
In return for tile services provided by the Contractor,
the Borrower shall pay fees ~o the Contractor accor~ing
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to the following schedule:
Service Program: Service includes all: items specified
within Agreement. Contractor services' will be comp~nsated
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with 8 fee of 1/2 of 1 percent of the ~oan amount per loan.
with 8 minimum fee of $,200.00 and a maximum of $1,000.00.
EQUAL OPPORTUNITY
The Contractor will not discriminate against any employee
or applicant for employemnt because of ' their race, reli-
gious creed, color, national origin, ancestry, physical.
handicap, medical condition, marital status, or sex. The
Contractor will take affirmative action to ensure that
the applicants are employed, and that employees are treated
during employment without regard to their race, religious
creed, color, national origin, ancestry, physical handicap,
medical condition, marital status, or sex. Such action
shall include, but not limited to the following: employ~
ment, upgrading, demotion, or transfer, recruitment or
recruitment advertising, layoff or termination, rates
of payor other forms of compensation and selection for
training, including apprenticeship. The Contractor agrees
to post in conspicuous places, available to e~ployees and
applicants for employment, notices to be provided by the
Local Public Agency setting forth the provisions of this
nondiscrimination clause.
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The Contractor will, in .11 solicitations or advertisements
for ~mployees placed by or on behalf of the Contractor,
stat~ that all qualified applicants will receive consid-
eration for employment wIthout recard to race, religious
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creed, color, national origin, ancestry, ,hyaical handicap,
.edical condition, .arital status, or sex.
The Contractor will cause the foregoing provisions to be
inserted in all subcontracts for any work covered by this
cont~act so that such pr~visions will be bJnding upon
each "subcontractor, provided that the foregoing provisions
shall not apply to contracts or subcontracts for standard
commercial supplies or raw .aterials.
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 per-
sonnel to perform the services and work agreed to be
perfQrmed 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 commission, percentage,
brokerage, contingent fee or other compensation in conn-
ection with the procurement of this Agreement.
TERMINATION OF SERVICES
In the event of breach of any condition or provision hereof,
the Agency shall have the right, by prior written notice
to the Contractor, to terminate its employment hereunder
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and cancel this Agreement and ~ave the work called for
hereby otherwise performed, without prejudice to any other
rights or remedies of the Agency. The Agency ahall have _
the benefit of such work as may have been completed up
to the time of such termination and with reapect to any
part which shall have been delivered to and accepted by
the Agency, there shall be an ~quitable adjustment of
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campenaation.
Irreapective of any default hereunder, th~ Agency may also,
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at any time at its discretion,: terminate this A&reement,'
in whole or in part, by &ivingthe Contractor thirty (30):
days written notice thereof an~ in such event, the Con-
tractor shall be entitled to receive compensation speci-
fied herein for all work completed and accepted prior
to such thirty (30) days notice of termination or cancell-
ation; an equitable adjustment shall be made, as compen-
sation to the Contractor to the date of such termination
or cancellation, but not yet delivered to the Agency. The
Contractor at --i ts discretion mayt;erminate thh; ..Agreement,
in whole or in part, by giving the Agency thirty (30)
days written notice.
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.
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J IN WITNESS HEREOF, the Alency and the Contractor have
2 executed this Agreement as of the date first hereinabove aet
3 forth. -
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. ATlrFlST:
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6 City Clerk
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7 PPROVED AS TO FQ'U1:
CITY OF SAN BERNARDINO
Iy
~1ayor
Date
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g City Attorney
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