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RESOLUTION (ID#3007) DOC ID: 3007 B
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Agreement/Contract Amendment
From: Allen Parker M/CC Meeting Date: 04/07/2014
Prepared by: Brandon Mims, (909) 384-5122
Dept: City Manager Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the
Execution of a First Amendment to the Vendor Services Agreement Between Municipal Housing
Solutions and the City of San Bernardino. (#3007)
Current Business Registration Certificate: Yes
Financial Impact:
Account Budgeted Amount: $2,400,000; $2,120,000
Account No. 117-100-0014-5502; 120-100-0014-5502
Account Description: Professional Contractual Services
Balance as of. March 19, 2014: $2,220,000; $2,120,000
Balance after approval of this item: $2,090,000; $1,960,000
Please note this balance does not indicate available funding. It does not include non-encumbered
reoccurring expenses or expenses incurred,but not yet processed.
Motion: Adopt the Resolution.
Background
As an entitlement community,the City of San Bernardino receives a formula allocation of
Community Development Block Grant(CDBG), Home Investment Partnership (HOME) and
Emergency Solutions Grant(ESG)programs each fiscal year from the Department of Housing
and Urban Development(HUD). The City was also a recipient of President Obama's
Neighborhood Stabilization Program (NSP 1, 2, and 3) granted in 2008, 2010, and 2011.
As part of the City's commitment for acceptance of the funds,we are required to administer the
program activities in adherence to Department of Housing and Urban Development(HUD)
regulations. Over the past several years, the City has failed to meet its obligations in some areas
with respect to management of these critical community development programs, especially
HOME and NSP. (Both programs were placed on hold during Fiscal Year 2012-2013 due to
concerns about their management.) Recently, HUD de-obligated over$1.7 million dollars of the
City's HOME program funds due to inactivity. The NSP program is slated to end in March and
from HUD's perspective, the City still has a considerable amount of dollars on the table.
Misuse/under use of either of these funding sources will have bad implications for the City.
Daysi Hernandez, Principal Consultant, Municipal Housing Solutions, is intimately aware of the
issues within the City's housing programs. She worked for HUD as an auditor assigned to the
City of San Bernardino's NSP/HOME program(2013). Prior to HUD she worked for the City of
Pico Rivera as Redevelopment/Housing Manager. Ms. Hernandez has a Master's Degree in
Updated:4/3/2014 by Linda Sutherland B I Packet Pg. 78
3007
Public Administration and Seventeen years of diversified experience in housing and community
development. She possesses extensive knowledge and understanding of the principles,processes,
standards and best work practices for the administration of federal funding and housing
programs. She would be the lead for this assignment, and manage day-to-day NSP and HOME
activities.
Both the HOME and NSP programs allow a percentage of the total grant funds to be used on
Administration. There will be no impact to the General Fund.
Account Amount
117-100-0014-5502 -Professional/Contractual Services $100,000
120-100-0014-5502 -Professional/Contractual Services $100,000
Single Source Justification
Ms. Hernandez has unique and specialized experience auditing the City of San Bernardino's
HOME/NSP programs as an employee of HUD. She is intimately aware of the issues the City
needs fixed and she possesses the resources and HUD contacts to move quickly in the process.
City Attorney Review:
Supporting Documents:
reso 3007 (PDF)
agrmt 3007 (PDF)
Proposal_amendment_ (PDF)
MHS VSA (PDF)
Updated:4/3/2014 by Linda Sutherland B Packet Pg. 79
1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A FIRST
3 AMENDMENT TO THE VENDOR SERVICES AGREEMENT BETWEEN
4 MUNICIPAL HOUSING SOLUTIONS AND THE CITY OF SAN BERNARDINO
5 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON
COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
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7 SECTION 1. The City Manager is hereby authorized and directed to execute a First *�
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Amendment to the Vendor Services Agreement between the City of San Bernardino and
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Municipal Housing Solutions, attached hereto as Exhibit "A" and incorporated herein by this a
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12 SECTION 2. The Director of Administrative Services is hereby authorized to issue a co
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13 purchase order to Municipal Housing Solutions in an amount not to exceed $200,000, to be c
14 paid from the following accounts: a
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AMOUNT ACCOUNT
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17 $100,000 120-100-0014-5502 0
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18 $100,000 117-100-0014-5502 0
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19 SECTION 3. The authorization granted hereunder shall expire and be void and of no U)
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further effect if the Agreement is not executed by both parties and returned to the Office of the
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City Clerk within sixty(60) days following the effective date of this Resolution.
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3 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AUTHORIZING THE EXECUTION OF A FIRST
2 AMENDMENT TO THE VENDOR SERVICES AGREEMENT BETWEEN
MUNICIPAL HOUSING SOLUTIONS AND THE CITY OF SAN BERNARDINO
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5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
6 Common Council of the City of San Bernardino at a meeting
7 thereof,held on the day of , 2014, by the following vote, to wit:
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8 Council Members: AYES NAYS ABSTAIN ABSENT
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MARQUEZ E
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11 BARRIOS o
12 VALDIVIA cn°
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13 SHORETT
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14 NICKEL
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JOHNSON
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MULVIHILL
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19 Georgeann Hanna, City Clerk ,°�
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20 The foregoing resolution is hereby approved this day of , 2014.
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R. Carey Davis, Mayor
23 City of San Bernardino
24 Approved as to form:
25 Gary D. Saenz, City Attorney
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27 By:
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FIRST AMENDMENT TO VENDOR SERVICES AGREEMENT BETWEEN THE
CITY OF SAN BERNARDINO AND MUNICIPAL HOUSING SOLUTIONS
This First Amendment is made and entered into as of April 07, 2014 by and between the
City of San Bernardino, a charter city ("City"), and Municipal Housing Solutions
("Consultant"). In consideration of the mutual covenants and conditions set forth herein,the
parties agree as follows:
1. This Amendment is made with respect to the following facts and purposes:
a. On November 18, 2013, the City and Vendor entered into a "V e n d o r Services
Agreement" for a total amount of Forty-Thousand Dollars ($40,000) for the period
of November 18,2013 to June 30, 2014.
b. Since the execution of that agreement, the demands of the program combined with E
the future program planning, administration, and regulatory requirements have
required additional work beyond the scope of the original agreement. E
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c. The parties now desire to amend the Agreement to include the next twelve months v;
(April 2014 through April 2015) and to increase the amount to a total not to exceed o
$240,000.00.
2. Section 2. "COMPENSATION AND EXPENSES" o f t h e Agreement is hereby U)
amended as follows:
a. For the services delineated above, the CITY, upon presentation of an invoice,
shall pay the VENDOR up to the amount of$80.00 per hour for services provided =
0 by the Principal Consultant and $48.00 per hour for services provided by the i
Associate Consultant, $20.00 per hour services provided by the Junior Analyst. .2-
Monthly billing for this contract may not exceed $20,000. The total amount of
this Agreement shall not exceed $240,000.00.
b. No other expenditures made by VENDOR shall be reimbursed by CITY. o
3. Section 3. "Term; Termination"- of the Agreement is hereby amended as follows: M
a. The term of this Agreement is November 18, 2013 to March.31, 2015. ti
4. Except for the changes specifically set forth herein, all other terms and conditions of M
the Agreement shall remain in full force and effect.
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FIRST AMENDMENT TO VENDOR SERVICES AGREEMENT BETWEEN THE
CITY OF SAN BERNARDINO AND MUNICIPAL HOUSING SOLUTIONS
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
I executed by and through their respective authorized officers, as of the date first above
written.
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CITY OF SAN BERNARDINO
By: Date:
Allen Parker, City Manager
VENDOR =
Municipal Housing Solutions E
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By: Date: o
Daysi Hernandez, Owner 3
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Approved as to Form
Gary D. Sacnz, City Attorney o
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;33 City Attorney's Office ._
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MUNICIPAL HOUSING SOLUTIONS
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March 20, 2014
Mr. Brandon Mims
City of San Bernardino
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300 N. "D" Street, 6 Floor
San Bernardino, CA 92418 E
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RE: AMENDED PROPOSAL FOR PROFESSIONAL SERVICES FOR
ADMINISTRATION OF HUD PROGRAMS
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Dear Brandon:
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Thank you for your interest in expanding the services being provided by Municipal
Housing Solutions (MHS). It is a pleasure to submit an amended proposal to continue to
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assist the City of San Bernardino with the management and implementation of its housing
programs. 'Fa
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Since entering into the original vendor services agreement with the City, MHS staff has
made great strides toward HUD compliance and productivity. However, due the existing
challenging conditions of the programs, HUD's ongoing monitoring and capacity
concerns, and anticipated increase in program activity, there is still much work to be
done. Consequently, MHS proposes extending the term of the contract, and amending
the allowed number of work hours to enable staff to better manage and implement the
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City's programs, and make a greater impact on the community. The proposed amended M
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scope of services is tailored to meet the current conditions and needs of the programs 0)
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and HUD's recommendation for capacity building.
We look forward to continuing to provide our top quality services and expertise for 0
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efficient administration of your HUD programs. Thank you very much for your 0
consideration. a-
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ncerely, E
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Daysi�H��rna`ndez
Principal Consultant
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229 W. Oakview Dr., Azusa, CA 9 1702 ( 626 ) 253 -4
Packet Pg. 84
MUNICIPAL HOUSING SOLUTIONS
AMENDED SCOPE OF WORK
Fund and • Review/update policies and procedures to ensure compliance with regulations.
Program • Conduct internal audits for increased readiness for future federal
Administration monitoring/audits.
• IDIS and DRGR management, including reporting, project set-ups, activity update,
draw-downs, corrections, and project close-outs. c
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• Track and report expenditures, and reconcile financial records. E
• Collaborate with Finance Department to ensure compliance with financial and
record-keeping requirements. Q
• Serve as point of contact for HUD, County of San Bernardino, and sub-recipients. vi
• Respond to monitoring and audit findings. o
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• Assist with preparation of reports and plans required by HUD, including 5-year
Consolidated Plan, Action Plans, and annual performance report (CAPER). 0)
• Prepare Environmental Review Record, and process Request for Release of Funds. _
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• Assist with HOME program transition.
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• Assist City with development of affordable housing strategic plan. _
• Manage sub-recipient contracts and conduct annual monitoring. a
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• Manage loan and real estate-owned portfolio.
• Participate in internal and external meetings.
• Respond to all verbal, written, and electronic inquiries pertaining to programs.
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• Develop file maintenance and document retention system.
• Perform program close-out activities.
• Manage program income account. _
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• Perform other program administration services as required by the City. g
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Program Activities • Coordinate and implement program activities, while ensuring compliance with E�
federal regulations.
• Evaluate programs for improved performance and quality assurance. o
• Make recommendations for new projects and activities. o
• Conduct program outreach to promote program participation. a
• Complete project environmental reviews.
• Determine eligibility of potential program participants. _
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• Assess projects for applicability of labor compliance requirements. r
• Oversee projects under construction, including preconstruction conference, Q
progress inspections, progress payments, and project close-outs.
• Perform project close-out activities.
• Conduct occupancy and affordability compliance verification.
• Provide support and technical assistance to sub-recipients, contractors and staff.
• Perform other program delivery functions as required by the City.
229 W. Oakview Dr., Azusa, CA 91702 ( 626 )253 -4 �
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MUNICIPAL HOUSING SOLUTIONS
PROPOSED CONSULTING TEAM
Daysi Hernandez, Principal Consultant/Program Administrator. Ms. Hernandez has a Master's
Degree in Public Administration and Seventeen years of diversified experience in housing and
community development. She possesses extensive knowledge and understanding of the principles,
processes, standards and best work practices for the administration of federal funding and housing
programs. She will be the lead for this assignment, and manage day-to-day program operation.
Associate Consultant. Over fifteen years experience in lending and the real estate field, with
comprehensive knowledge of the principles and best work practices for property acquisition, E
housing rehabilitation, property management, and real estate sales. c
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Jr. Analyst. Provides administrative support for program delivery. Under direct supervision of Q
Principal Consultant, will assist in preparing reports and other program materials relating to 0
property portfolio management, grant and loan file maintenance, and compliance monitoring. In
addition, will conduct research and analyses, assist with internal audits, and help with other duties o
required for program execution. �
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PROPOSED FEES o
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Title Hourly Rate
Principal Consultant $80
Associate Consultant $48 0
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Jr. Analyst $20
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PROPOSED HOURS M I
MHS Staff work hours are flexible and subject to the needs of the City. MHS Staff is available to 0
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work at the City of San Bernardino Monday through Thursday, from 8:00 am to 5:00 pm, as
required by the City. Total weekly hours will depend on priorities, deadlines, and tasks at hand, a
and always subject to the approved budget. _
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It is anticipated that each MHS staff will need to work an average of 30 hours per week to
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accomplish the tasks specified in the Scope of Work. Q
I 229 W. Oakview Dr., Azusa, CA 91702 ( 626 ) 253 -4
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VENDOR SERVICES AGREEMENT BETWEEN MUNICIPAL HOUSING
SOLUATIONS AND THE CITY OF SAN BERNARDINO
This Vendor Services Agreement is entered into this 18`" day of November,by and
between Municipal Housing Services (Daysi Hernandez) ("VENDOR") and the City of San
Bernardino("CITY"or"San Bernardino").
WITNESSETH:
WHEREAS, the Mayor and Common Council has determined that it is advantageous
and in the best interest of the CITY to contract for program administration of the City of San
Bernardino's federally funded programs, Neighborhood Stabilization Prorgam (NSP) and Home
Investment Partnership Program (HOME); and
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WHEREAS, during the Spring of 2013 both of the aforementioned programs were
monitored (audited)by the Department of Housing and Urban Development (HUD), Community E
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Planning and Development Office(CPD); and v;
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WHEREAS,that monitoring(audit) was conducted by HUD Staff,including the primary
principal of Municipal Housing Services,Daysi Hernandez as a"term"employee of HUD; and in
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WHEREAS, based on the facts above (consultant was a term employee of HUD that o
participated in our last monitoring/audit), the City Manager has determined that the supplies or =
services to be acquired are unique to this firm and the timeline for resolution of issues related to a
the management of the two programs will not allow for competitive recruitment. .2
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NOW,THEREFORE, the parties hereto agree as follows:
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1. SCOPE OF SERVICES.
For the remuneration stipulated, San Bernardino hereby engages the services of N
VENDOR to provide those products and services as set forth on Exhibit"A,"attached hereto and >
incorporated herein.
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2. COMPENSATION AND EXPENSES.
a. For the services delineated above, the CITY, upon presentation of an invoice, shall s
pay the VENDOR up to the amount of$80.00 per hour for services provided by the w
Principal Consultant and $48.00 per hour for services provided by the Associate Q
Consultant. Monthly billing for this contract may not exceed $5,000 per month.
b. City agrees to make one(1) initial payment of$5,000 as a retainer.
c. No other expenditures made by VENDOR shall be reimbursed by CITY.
3. TERM; TERMINATION.
The term of this Agreement is November 18, 2013 to June 30,2013.
Municipal Housing Services Vendor Services Agreement
Packet Fig.87
This Agreement may be terminated at any time by thirty (30) days' written notice by
either party. The terms of this Agreement shall remain in force unless mutually amended. The
duration of this Agreement may be extended with the written consent of both parties.
4. INDEMNITY.
Vendor agrees to and shall indemnify and hold the City, its elected officials, employees,
agents or representatives, free and harmless from all claims, actions, damages and liabilities of
any kind and nature arising from bodily injury, including death, or property damage, based or
asserted upon any actual or alleged act or omission of Vendor, its employees, agents, or
subcontractors, relating to or in any way connected with the accomplishment of the work or
performance of services under this Agreement, unless the bodily injury or property damage was
actually caused by the sole negligence of the City, its elected officials, employees, agents or *�
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representatives. As part of the foregoing indemnity, Vendor agrees to protect and defend at its a
own expense, including attorney's fees, the City, its elected officials, employees, agents or Ea
representatives from any and all legal actions based upon such actual or alleged acts or a
omissions. Vendor hereby waives any and all rights to any types of express or implied Q
indemnity against the City, its elected officials, employees, agents or representatives, with c
respect to third party claims against the Vendor relating to or in any way connected with the o
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accomplishment of the work or performance of services under this Agreement. '
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5. INSURANCE.
While not restricting or limiting the foregoing, during the term of this Agreement, o
ff IL VENDOR shall maintain in effect policies of comprehensive public, general and automobile =
liability insurance, in the amount of$1,000,000.00 combined single limit, and statutory worker's Q.
compensation coverage, and shall file copies of said policies with the CITY's Risk Manager
prior to undertaking any work under this Agreement. CITY shall be set forth as an additional
named insured in each policy of insurance provided hereunder. The Certificate of Insurance
furnished to the CITY shall require the insurer to notify CITY at least 30 days prior to any g
change in or tennination of the policy.
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6. NON-DISCRIMINATION. >
In the performance of this Agreement and in the hiring and recruitment of employees, X
VENDOR shall not engage in, nor permit its officers, employees or agents to engage in,
discrimination in employment of persons because of their race, religion, color, national origin, CD
ancestry, age, mental or physical disability, medical condition, marital status, sexual gender or
sexual orientation, or any other status protected by law.
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7. INDEPENDENT CONTRACTOR.
VENDOR shall perform work tasks provided by this Agreement, but for all intents and
purposes VENDOR shall be an independent contractor and not an agent or employee of the
CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment of
Income Tax, Social Security, State Disability Insurance Compensation, Unemployment
Compensation, and other payroll deductions for VENDOR and its officers, agents, and
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Municipal Housing Services Vendor Services Agreement
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employees, and all business license, if any are required, in connection with the services to be
performed hereunder.
8. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
VENDOR warrants that it possesses or shall obtain, and maintain a business registration
certificate pursuant to Chapter 5 of the Municipal Code, and any other licenses, permits,
qualifications, insurance and approval of whatever nature that are legally required of VENDOR
to practice its business or profession.
9. NOTICES.
Any notices to be given pursuant to this Agreement shall be deposited with the United
States Postal Service,postage prepaid and addressed as follows:
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TO THE CITY: TO THE VENDOR: m
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Allen Parker, City Manager Municipal Housing Services v;
300 North "D" Street 229 Oakview Drive g
San Bernardino, CA 92418 Azusa,CA 91702 0
Telephone: (909) 384-5122 Telephone: (626) 384-253-4534 0
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10. ATTORNEYS' FEES
In the event that litigation is brought by any party in connection with this Agreement, the =
prevailing party shall be entitled to recover from the opposing party all costs and expenses, a
including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its .2
rights or remedies hereunder or the enforcement of any of the terms, conditions or provisions
hereof. The costs, salary and expenses of the City Attorney and members of his office in
enforcing this Agreement on behalf of the CITY shall be considered as "attorneys' fees" for the c
purposes of this paragraph.
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11. ASSIGNMENT. >
VENDOR shall not voluntarily or by operation of law assign, transfer, sublet or
encumber all or any part of the VENDOR's interest in this Agreement without CITY's prior
written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void d
and shall constitute a breach of this Agreement and cause for the termination of this Agreement. s
Regardless of CITY's consent, no subletting or assignment shall release VENDOR of
VENDOR's obligation to perform all other obligations to be performed by VENDOR hereunder a
for the term of this Agreement.
12. VENUE.
The parties hereto agree that all actions or proceedings arising in connection with this
Agreement shall be tried and litigated either in the State courts located in the County of San
Bernardino, State of California or the U.S. District Court for the Central District of California,
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Riverside Division. The aforementioned choice of venue is intended by the parties to be
mandatory and not permissive in nature.
13. GOVERNING LAW.
This Agreement shall be governed by the laws of the State of California.
14. SUCCESSORS AND ASSIGNS.
This Agreement shall be binding on and inure to the benefit of the parties to this
Agreement and their respective heirs,representatives, successors, and assigns.
15. HEADINGS.
The subject headings of the sections of this Agreement are included for the purposes of
convenience only and shall not affect the construction or the interpretation of any of its
provisions. -�
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16. SEVERABILITY. Q
If any provision of this Agreement is determined by a court of competent jurisdiction to
be invalid or unenforceable for any reason, such determination shall not affect the validity or °
' enforceability of the remaining terms and provisions hereof or of the offending provision in any o
other circumstance, and the remaining provisions of this Agreement shall remain in full force Cn
and effect.
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17. REMEDIES; WAIVER. _
All remedies available to either party for one or more breaches by the other party are and c.
shall be deemed cumulative and may be exercised separately or concurrently without waiver of
any other remedies. The failure of either party to act in the event of a breach of this Agreement
by the other shall not be deemed a waiver of such breach or a waiver of future breaches, unless
such waiver shall be in writing and signed by the party against whom enforcement is sought. °o
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18. ENTIRE AGREEMENT; MODIFICATION. N
This Agreement constitutes the entire agreement and the understanding between the >
parties, and supersedes any prior agreements and understandings relating to the subject matter of =
this Agreement. This Agreement may be modified or amended only by a written instrument
executed by all parties to this Agreement.
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day y
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and date set forth below. a
Dated: ]*ctiMgEe 3 , 2013 VENDOR.
By:
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VENDOR SERVICES AGREEMENT BETWEEN MUNICPAL HOUSING SOLUTIONS
AND THE CITY OF SAN BERNARDINO
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day
and date set forth below.
Dated: DE[tMBE Q. A , 2013 VENDOR.
By: I
Its: PRIKIC&At� k--3
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Dated 2013 CITY OF SAN BERNARDINO a
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By: in
Allen Parker, City Manager
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Approved as to Form: o
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Gary Saenz, Citv Attorney
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Municipal Housing Solutions Vendor Services Agreement
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