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022304 EDA
OFFICIAL FILE COPY CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North February 23, 2004 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Mary Gwin-Lenth Commissioner Steve Sommer 1. Call to order 2. Roll call 3. Approval of regular meeting minutes of February 9, 2004 4. Resolution approving termination of section 8 housing assistance payments program contract for administrative services with Metropolitan Council and approving contract for inspection services 5. Update on potential redevelopment by Bear Creek Capital and CVS Pharmacy and motion authorizing preparation of resolution of friendly condemnation for property at 7901 Bass Lake Road (improvement project no. 754) 6. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes February 9, 2004 Regular Meeting City Hall CALL TO ORDER President Enck called the meeting of the Economic Development Authority to order at 9:11 p.m. ROLL CALL Present: W. Peter Enck, President Sharon Cassen, Commissioner Don Collier, Commissioner Mary Gwin-Lenth, Commissioner Steve Sommer, Commissioner APPROVE MINUTES Motion was made by Commissioner Collier, seconded by Commissioner Gwin- Lenth, to approve the Regular Meeting Minutes of January 26, 2004, as amended. All present voted in favor. Motion carried. IMP. PROJECT 765 President Enck introduced for discussion Item 4, Resolution approving purchase Item 4 agreement and relocation benefits - 5538 Sumter Avenue North (improvement project no. 765). President Enck noted that all items on the EDA agenda relate to the redevelopment for the East Winnetka Redevelopment area. Direction from the EDA for negotiation and purchase was provided at prior meetings. The resolutions will approve the actual purchase agreements. Commissioner Cassen questioned the closing date for the 7609 Bass Lake Road property. Mr. Steve Sondrall, City Attorney, stated staff will work with the property owner on a mutually acceptable closing date in April or May. Mr. Paul Solmon, 8321 50th Avenue North, inquired whether the purchase prices are public information. President Enck responded that the purchase prices and relocation packages are public information. He provided Mr. Solmon with the written staff reports. EDA RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption 04-07 "RESOLUTION APPROVING PURCHASE AGREEMENT AND Item4 RELOCATION BENEFITS - 5538 SUMTER AVENUE NORTH (IMPROVEMENT PROJECT NO. 765)." The motion for the adoption of .the foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, the following voted in favor thereof: Enck, Cassen, Collier, Gwin- Lenth, Sommer; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly., passed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 766 President Enck introduced for discussion Item 5, Resolution approving purchase Item 5 agreement and relocation benefits - 7609 Bass Lake Road (improvement project no. 766). EDA RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption 04-08 "RESOLUTION APPROVING PURCHASE AGREEMENT AND EDA Meeting February 9, 2004 Page 1 Item 5 RELOCATION BENEFITS - 7609 BASS LAKE ROAD (IMPROVEMENT PROJECT NO. 766)." The motion for the adoption of thc foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, thc following voted in favor thereof: Enck, Cassen, Collier, Gwin-Lenth, Sommer; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by thc president which was attested to by thc executive director. IMP. PROJECT 757 President Enck introduced for discussion Item 6, Resolution approving purchase Item 6 agreement and relocation benefits - 7643 Bass Lake Road (improvement project no. 757). EDA RESOLWrION Commissioner Collier introduced the following resolution and moved its adoption 04-09 "RESOLUTION APPROVING PURCHASE AGREEMENT AND Item 6 RELOCATION BENEFITS - 7643 BASS LAKE ROAD (IMPROVEMENT PROJECT NO. 757)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, the following voted in favor thereof: Enck, Cassen, Collier, Gwin-Lenth, Sommer; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 723 President Enck introduced for discussion Item 7, Resolution approving purchase Item 7 agreement and relocation benefits - 7615 Bass Lake Road (improvement project no. 723). EDA RESOLUTION Commissioner Collier introduced the following resolution and moved its adoption 04-10 "RESOLUTION APPROVING PURCHASE AGREEMENT AND Item 7 RELOCATION BENEFITS - 7615 BASS LAKE ROAD (IMPROVEMENT PROJECT NO. 723." The motion for the adoption of the foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, thc following voted in favor thereof: Enck, Cassen, Collier, Gwin-Lenth, Sommer; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner Sommer, seconded by Commissioner Gwin- Lenth, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:18 p.m~ ec~ly submi~ed, Valerie Leone City Clerk EDA Meeting February 9, 2004 Page 2 EDA Originating Department Approved for Agenda Agenda Section Community Development 2-23-04 EDA Item No. By: Kirk McDonald B 4 RESOLUTION APPROVING TERMINATION OF SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM CONTRACT FOR ADMINISTRATIVE SERVICES WITH METROPOLITAN COUNCIL AND APPROVING CONTRACT FOR INSPECTION SERVICES REQUESTED ACTION Staff is recommending that the Economic Development Authority approve the enclosed resolution, which terminates the current contract with Metro HRA for administrative services for the Section 8 Housing Assistance Payments Program and approves a similar contract for inspection services. POLICY/PAST PRACTICE The City Council and EDA routinely approve, modify and terminate contracts that deal with the provision of services for outside agencies. BACKGROUND The city of New Hope has contracted with the Metropolitan Housing and Redevelopment Authority/ Metropolitan Council for the past 20+ years to administer the Section 8 Housing Assistance Payments Program on a local level. The city employed a full-time Section 8 housing coordinator to administer the program, the city provided inspection services for the clients, and reimbursements from the Met Council/HUD covered all costs of the program and position(s). In 2003, the long-time Section 8 coordinator retired and the city hired a new employee for the position, and that employee has submitted a letter of resignation. With the primary focus of the Community Development Department being on redevelopment at this time, staff is advising that the administrative services portion of the contract be returned to the Met Council and that the city retain the inspection services portion of the contract. This will enable staff to spend more time on redevelopment activities, yet still maintain a close connection to the multiple family dwelling managers/owners in the city via the inspection process. To accomplish this objective, staff is recommending that the current contract with Metro HRA be terminated for administration and that a new contract for inspection services be approved. Staff has discussed this change with Metro HRA supervisory staff and they support the change. A letter has already been sent to Metro HRA advising that this recommended change would be presented to the EDA. They are prepared to take over the caseload of the New Hope Section 8 clients. Staff has also discussed these changes with the city manager, director of finance and others, who are supportive of this action. The change will have a minimal budget impact. , , hRFA\planning\Q&R Section 8 termination contract ' Request for Action Page 2 2-23-04 The existing contract, a sample inspection services contract, and miscellaneous information is attached. Staff will be available to answer questions in more detail at the meeting. Staff recommends approval of the resolution. ATTACHMENTS · Resolution · Correspondence to Metro HRA · Current Contract · Sample Inspection Contract CITY OF NEW HOPE EDA RESOLUTION NO. 2004- RESOLUTION TERMINATING SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM CONTRACT NO. C-99-66 FOR ADMINISTRATIVE SERVICES BETWEEN THE METROPOLITAN COUNCIL AND THE CITY OF NEW HOPE, AUTHORIZING ENTERING INTO A CONTRACT FOR INSPECTION SERVICES, AND AUTHORIZING PRESIDENT AND EXECUTIVE DIRECTOR TO EXECUTE AGREEMENTS WHEREAS, Minnesota Statutes Section 473.195, subdivision 1 (1994 and Supp. 1995) authorizes the Metropolitan Council to plan and administer a federal Section 8 housing assistance payments program within the seven-county metropolitan area and to exercise the functions, rights, duties, privileges, immunities and limitations as are provided for municipal housing and redevelopment authorities; and WHEREAS, the Metropolitan Council and the city of New Hope entered into Contract No. C-94-56 on September 1, 1994, under which the city agreed to perform specified Section 8 program administrative and inspection services within certain jurisdictions located in the metropolitan, area; and WHEREAS, subsequent to the approval of the initial contract, the city agreed to provide Section 8 program administrative services for the cities of Golden Valley, Edina, Maple Grove and Osseo through contract amendments and those amendments were incorporated into Contract No. C-99-66, which was approved by the EDA on January 10, 2000; and WHEREAS, the city of New Hope amended the contract in January 2002 by deleting the services for the city of Edina and that change was incorporated by an amendment to Contract No. C-99-66; and WHEREAS, the city of New Hope amended the contract again in May 2003 by deleting the services for the city of Maple Grove and that change was incorporated by a second amendment to Contract No. C-99-66; and WHEREAS, due to personnel changes at the city and due to the focus on redevelopment projects, the city has determined to return administrative services back to Metro HRA and retain inspection services for the program; and WHEREAS, in order to accomplish that objective, the city desires to terminate the existing contract with Metro HRA for both administrative and inspection services and enter into a contract for inspection services only. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the city of New Hope, Hennepin County, Minnesota, that the Section 8 Housing Assistance Payments Program Contract No. C-99-66 for administrative services between the Metropolitan Council and the city of New Hope EDA is hereby terminated, authorization is approved to enter into an inspection services only contract and the president and executive director are authorized to execute said amendments. Adopted by the Economic Development Authority of the city of New Hope, Hennepin County, Minnesota, on this 23~d day of February, 2004. President Executive Director February 6, 2004 Ms. Beth Reetz Metro HRA Manager 230 East Fifth Street St. Paul, MN 55101-1626 Subject: Changes to Section 8 Administrative Services Contract Dear Beth: As you are aware, Brian Walker will be resigning his position as Section 8 coordinator with the city of New Hope effective February 27, 2004. I want to thank you and your staff for all the cooperation and support you have provided over the past six months in an effort to try and make this work for everyone. We will need your continued support as we move through the transition period. I especially want to extend my thanks to Kathy Kline for all of her help in working with Brian and keeping me informed about the status. As we discussed, I have discussed with the New Hope city manager the issue of continuing with the inspection services portion of the contract and it will be our recommendation to the City Council that the administrative services portion of the contract be returned to Metro HRA. We have already communicated this recommendation informally to the City Council and will be requesting that they take formal action on this matter at the February 23 Council meeting. You may want to consider this letter as official notice from the city, pending official City Council approval, to return administrative services back to Metro HRA. We would like to retain the inspection services portion of the contract and Kathy Kline has provided me with a sample contract. I will be coordinating a meeting in the near future with our inspector, clerical support person, and Cheryl Steeves to discuss how we can make this work. Our recommendation to the Council will include retaining inspection services. I have two questions for you regarding actions the city will be taking on February 23: 1. Administrative Contract - Should the Council simply pass a resolution rescinding the contract or is there something else that you need? 2. Inspection Contract - I have a sample contract for North St. Paul. Could you send me a contract for New Hope? CITY OF NEW HOPE 4401 Xylon Avenue North · New Hope, Minnes6ta 55428-4898 · www. ci.new-hope.mn.us City Hall: 763-531-5100 * Police (non-emergency): 763-531-5170 * Public Works: 763-592-6777 * TDD: 763-531-5109 City Hall Fax: 763-531-5136 * Police Fax: 763-531-5174 * Public Works Fax: 763-592-6776 Ms. Beth Reetz Page 2 February 6, 2004 When the Council takes action on February 23, I will follow up with written correspondence to you regarding its actions. We are fairly confident that the City Council will accept the recommendations from staff. Again, thank you for your assistance over the past several months, and thanks in advance for the cooperation that will be needed during the transition period. Please contact me if you have any questions. Kirk McDonald Director of Community Development Cc: Daniel J. Donahue, City Manager Kathy Kline, Metro I-IRA Contract No. c-9.o-66 CITY OF NEW HOPE THIS ADMINISTRATIVE SERVICES CONTRACT is made and entered tnto by the Metropolitan Council ("Council") and the Cl.ty of New Hope ("Contractor"). WHEREAS, the Council is authorized by Minnesota Statutes section g73.195 to function a~ a housing and redevelopment authority throughout the sev~n-county metropolitan ar~a and exercises its statutory authority through its Housing and Redevelopment Authority unit; and WHEREAS, the Council has entered into one or more Annual Contributions Contracts ("ACC") with the U.S. Departmen! of Housing and Urban Development ("HUD") and has federal conu=act authority to operate a federal Secuon $ housing assistance payments program ("Section 8 program") within the sewn-county "metropolitan area" as defined by Minnesota Statutes section 473.121; and WHEREAS, the City of New Hope is a public body, corporate and politic, duly organized under the laws of Minnesota and is authorized perform the admimstrative sm'vices contemplated by this contract; and WHEREAS, the City of New Hope performs certain Section8 pmgrarn admimstrative services witkin the City of New Hope and other jurisdictions on b~half of the Council under a Section 8 program admimsn'a~ve services contract ("Contract No. C-94-56"). NOW THEREFORE, in consideration of the mutual pwmises and covenants contained in this conu-act, the City of New Hope and the Council agree as follows: I. DEFINITIONS 1.01 Definition of Terms, For the purposes of this contract, the terms defined in this s~ction have the meanings given them in this section, except as otherwise provided or indicated by the context. (a) "Metropolitan Council" or "Council" means the Metropolitan Council established by Minnesota Statutes action 473.123. When expressly stated or otherwise indicated by the context of this conUact, the term "Council" means the Metropolitan Council acting through .. its Housing and Redevelopment Authority unit ("Metro HRA"). Co) "Contractor" meam the City of New Hope acting though its governing body and its duly authorized or designated employees, staff or agents. Page I of 16 Pager -Preservation assistance" means a special-.allocation of Section $ assistance mane (c) available by I-IUD to proviae rental subsidy payments on behalf of eliaible residents of properties for which federally-insured mortgages arc prepaid. (d) "Section 8 program" means an exisUng housing assistance payments program under section 8 of the United States Housing Act of 1937, title 42, Um~ed States Code. section 1437f, as amended, including the HUD Housing Choice Voucher Program II. SERVICES AND PROGRAM RESPONSIBILITIES 2.01 Basic Administrative Services. The Council a.m'ees to purchase and the Conwaetor a.m'ecs to pa-form within the jurisdiction(s) identified in Exhibit A the following "basic" Section $ program admimstrative s~rviccs. (a) Initial Lease-Up. The Contractor will perform the following lease-up activities: (1) Assist Section 8 voucher holders locate suitable dwelling units eligible for use in the Section 8 program. (2) Obtain applicant and participant files and review the files for accuracy and completeness after receipt of Request for Lease Approval forms. (3) Inspect and, as necessary, reinspect rental units identified on Request for Lease Appwval forms. (4) Complete rent reasonableness determinations-and, when appropriate, help negotiate contract rents consist~t with rent reasonableness determinations. (5) Complete computation worksheet to determine rent portions. (6) Verify rental property ownership. (7) Complete and obtain necessary lease docments for each applicant or participant family which shall include a lease, a required lease/tenancy addendum and any other required l~ase related forms, a housing assistance payments ("HAP") contract and a W-9 form, and review the documents for conformance with Section 8 program (8) Certify accuracy and completeness of all application and lease-up documents and submit compl~qu~l files to the Council for final review and payment processing. (9) Perform oth=' tasks and lease-up activities that may be reasonably needed to facilitate timely lease-ups. All init/al lease-up act/v/ties shall be performed using forms and documents provided by the Council, which may be arn=nded or modified from time to time by the Council. Upon completion of the irdtial lease-up activities, the Contractor will submit all orig/nal Page 2 of 16 Pages documents to the Council for file m~nagcment azu:l payment processing purposes. Thc Conu'actor will maintain at its offices a duplicate set of program files and records. Ongoing Program Adm~n~Srranon. Th~ Conu'~tor will p~rforrn all S~;tion admi~strativc s~rvices associated with: annuaJ and mteri~ r~ce, rtifications; r~nL income and lease changes; mutuaJ tenninauons; evictions; and por~abili~' transfers. addition to p~-forming the l~ase-up activities listed m paragraph 2.01(a), the Contractor will perform the £oliowmg ongoing prob,'am actmmistration acuvities: (1) Initiate contacts with participant families for annual r~c~rtification. (2) V~'ify fa~rdly composition, income, assets, medical expenses, child care expenses and citizrd~ip as appropriate and determine eligibility for ongoing progrm'n participation. (3) Issue S~tion 8 vouchers and provide participants with program informaxion. (4) Complete portability process if needed. (5) Complete tent re..asonablcness determinations based upon ten! reasonableness reformation and forms supplied by the Council. (6) L~tiate investigation of potential fraud or program violations and make recomm~.-ndations to Metro ~A for further action. (7) Promptly notify appropriate Metro ~ s~'f of any changes in participant status or probl~ns including, but not limited to, parficipan! evictions, mutual lease terminations, abandonment of dwelling units, lack of proper eligibility docum~ntation~ changes in household composition and income, changes in proper~y own~-rship, noncompliance with RAP conu'act provisions and noncompliance with federal housing quality standar~ ("HQS") requirements. (8) Mainta~ at its offices a duplicate set of Section 8 program film and records for r~:h Section 8 family while the family is provided services under this contract. Files and records for each family will be retained by Metro ~ for three (3) years beyond the date when services no longer are provided to that family. The Contractor will provide prior written notice to the Council before the Contr~or disposes of any duplicate files and records of families no longer provided services under this contract and will dispose of any duplicate files and records in accordance with the Mirmesota Government Data l~-actices Act. (9) Conduct aJ~-mative marketing activities such as contacting and working with rental property ownet~, community groUPs, and rental property management groups to encourage participation in and understanding of the Section 8 program. (10) Perform other work tasks that reasoxmbly may be required to facilitate effective ongoing program ad~stration. Page $ of J 6 Page~ All ongoing prom-am ~ummisu.~tive services shall be performed using forms and docurn~ms provided by the Council. which may be ~m~nd~ or modifi~l from time to time bx' the Council. Upon completion of the ongoing pro_m",tm admini,.u,~tive s~'x'lces, the Conn"actor will submit all original documen~ to the Council for file .management and pa.vment processing purpose. The Contractor will maintain at its of'/:ices a duplicate set of pro.re'am /il~s and records. (c)Inspection and ~e~nspection. The Contractor will inspect and reinspect dwelling uruts for use in the Section 8 program. Inspections and of dwelling units shall include a thorough and complete on-site inspection and certificanon of the dwelling umt sufficient to ensure conformance with federal HQS as set forth m title 24, Code o£Fcderal Regulations, section 982.401, as amended, or as required by locally established requirements which have been approved by HUD. Such inspections and reinspections shall be made at the following times: prior to initial lease by an applicant or participant family; at least annually thereafter; at other times during the term of the lease as needed to detu~ine if the unit meets HQS as required by title 24, Code of Federal Regulations, section 982.,~05, as amended; and as required by locally established requirements which have been approved by HUD. /:or the purposes of dwelling unit inspections, "annual" inspection means an inspection that occurs no later than twelve (12) months after the previous inspection. The HQS inspections shall be performed m a timely manner and inspection forms shall be completed and submined in a timely manner so the interests of Section 8 families, rental propm'W owners, and the Council are not compromised. In addition to conducting initial, annual and other HQS inspections, the Contractor will perform the-following additional inspection and rcinspcction activities: (1) Conduct damage inspections as re4uired by the Council's policies and procedures. The Contractor will conduct all damage inspections within twenty-four (24) hours after a request, or as soon thcrea/ter as is reasonably possible, so the interests of Section 8 families, rental property owners, and the Council ar~ not compromised. Damage inspections shall be conducted only on rental units covered by a HAP contract containing a damage claims pwvision. (2) Conduct special inspections as requested by program participants or landlords, and as requested or required by the Council. (3) Complete assessment of rental unit and property conditions as required for rent reasonableness determinations. (4) Perform other work tasks that reasonably may be required to facilitate required insp~ions and rcinspeaions. Repons of all inspections and reinspections shall be made by the Contractor on inspection forms provided by the Council. The Contractor will fully and accurately complete all · inspection forms and will provide timely notification of-inspection results to landlords and program participants. The Cona-actor will promptly notify the Council of any required subsidy payment abatements resulting from a landlord's or a family's fa/lure to rcrnedy within specified timelines any "failed" items identified during inspections or reinspections. t~age 4 of l 6 2,02 Enhanced Adm/nistrative Services. At the Conwactor's option but sub. icc~ to Council appwval, thc Conwactor may pm'/orm wifl'Un the jurisdiction(s) idenfifi~ m Exh/bit A the · 'enhance" Section 8 pw~arn adrmmsrra~jv¢ services described m para.m'aphs 2.02(a) or 2.02(b). (a) 2dditionat ,4dmtnistrattve Sern,tce. s. ~ addition Io performing the "basi? Section $ program adminislrative s~n-vices described m para.~'aph 2.01, the Contractor ma5' el~:t to perform the following "~-ahanced" Section 8 progx-am admiruswative services: (I) Verify income and other eligibili~ information for Section 8 applicants living within the ju'risdiction(s) idmtified in Exhibit A who have been selected by the Council/rom the CounciI's Section 8 waiting list for participation in the Section 8 program. (2) Determine applicant eligibili~ for Section 8 program assistance. (3) Conduct Section 8 program briefing sessions for applicant families selected and determined eligible for participation in the Council's S~:tion 8 program, and issue Section 8 vouchers w eligible families. (4) Receive paperwork for incoming Section 8 applicants and participants who have ex~rcised their portability option to move into a jurisdiction for which the Contraewr provides Section 8 admimstrative s~.'rvices undo' this contract. The Contractor will review the paps'work for completeness and accuracy and conduct Section 8 pmgrarn briefing sessions for families ex~,-rcising their.ponability option. The Contractor also will p~rform and complete all required activities described m paragraph 2.01. (b) Preservation/i~sistance ,4dministration. If HUD makeS Section 8 preservation assistance available to persons residing in remal properties located in jurisdictions for which the Contractor provides Section 8 admimstrative services und~ this contract, the Contractor may provide preservation assistance services. These pres~'vation assistance services shall include, but are not limited to, the following: (I) Perform initial review of resident profile information to determine preliminary resident ehgl'bility for pres~'vation assistance. (2) Pr~are and distribute imtial information to project residents. (3) Conduct resident meetings at which preservation assistance information is provided and the process for receiving preservation assistance is explained. (4) Schedule and conduct additional group and individual resident meetings as needed. (5) Determine resider eligibility for Section 8 preservation assistance by verifying household income, assets and eligible expenses. (6) Schedule and conduct client briefings and issue Section 8 voucher~ to eligible families. Page 5 of I 6 Pages (7) Complete lease-up procedures and conduct umt inspections for residents who l~.~e rental units using preservation assis~nce witlun the Contractor's area ofscmcc. (c) Eligibility to Perform Enhanced Services. The Contractor ma)' perform the "enhanced" Section $ program adrmn/swative s~'v/ces descr/bed in para.m-aphs 2.02{a) or 2.02(b) bx.' providing the Council with written notide informing the Council about the Contractor's retention to provide "enhanced" admimstrative s~'vices. Following receipt of the ~rirten notice, the Council wil] detcm,/ne the Conwactor's capacit3' to perform the requested "enhanced" administrative services and will det~tnine with the Contractor a date upon which the Contractor will beg~n providing "enhanced" Section $ program administrative services. The Council will provide written notice authorizing the Contractor to undertake and perform the "enhanced" Sect/on 8 administrative s~rvices described in para.m'aphs 2.02(a) and 2.02(b). All "enhanced" administrative services shall be pa'formed using forms and documents provided by the Council, wh/ch may be amended or mod/fled from time to time by the Council. Upon completion of "enhanced" administrative serv/ces, the Contractor will submit all ongina! docurnents to the Council for file management and payment processing purposes. The Contractor will maintain at its offices a duplicate set ofpwgram files and records. 2.03 Program Requirements and Training. The Contractor agr~s to comply with the following administrative and training requirements dunng the performance of this contract. (a) Personnel. The Contractor will designate to the Council the person or persons who will conduct or perform the Contractor activities described in this contract. (b) Training. The Contractor will develop ,and maintain a thorough understanding of the Section 8 program regulations and the requirements and procedures set forth in manuals and other materials provided by the Council. The Contractor agrees to send a representative to all required Section 8 program training sessions and staff meetings conducted by the Council. The Council will notify the Contractor of a required training session or required meeting at least ten (10) business days prior to the training session or meeting. (c) Resources and Sta~ng. The Contractor shall provide adequate staff time and office or program space to perform the Section 8 program admimstrative services contemplated by this contract and shall make staff and office or program space available to Section 8 applicants and participants during scheduled business hours approved by Metro HRA staff. Staff and office or grogram space provided by the Contractor shall comply with all applicable state and federal accessibility standards and requirements. The Contractor shall provide adequate signs and other directional materials to inform applicants and prospective applicants about the place and manner of making application. The Contractor shall keep available for distribution adequate brochures and other information or materials as may be prep~ by the Council and shall supplement the brochures with local informational matcrials as appropriate or needed. The manner of furnishing these scrvices shall be agreed upon by the Contractor and the Council. The Contractor and the Council shall from time to time confer about the details of the furnishing of these services. The Contractor agr,av.s to Page 6 of16 Pagez comply with reasonable demands made b>' the Council conc~Wang these pram'am, 2.04 Notice of Actions and Claims. The Conwactor will unmediately nofif)' Metro t-IRA staff'b.v telephone about ar~y summons or other legal or iudiciaI notices, including' conciliation court summons or notices, revolving claUns or disputes ~lat~ to the admimswauon of th: Council's Section 8 pwgram within the jurisdiction(s) identified in Exhibit A. The Conwactor will confirm its telephone notification by wrincn notice within three (3) business days after the telephone notification. The Contractor also will notify the Council about and refer to Metro HRA su~ff within one (1) business day any contacts reiat~ to the administration of this contract or the Section S lam/lies served by the Contractor under this contract that are received fi'om legal aid representatives, legislators or legislative staff', and television, radio or newspaper media staff. 2.05 Council Program Obligations. Unless otherwise performed by the Conwactor under paragraphs 2.01 or 2.02, the Contractor and the Council understand and al~'e the Contracwr shall not be required to perform the following Section S program services and activities which are the pr/mary responsibility of the Council. (a) ,4reawide ~/~ar]~fi.g. The Council will coordinate all areawide affirmative marketing activities, such as preparing brochures and advertising, and con, ting and working w/th area community groups, rental property owners and rental pwperty management groups, (b) F/diti.g £ist .4dminislralion. The Council will develop and maintain a Section 8 appIican! waiung list and will select applicants for participation in the Section 8 program. (c) l~ec~r~ aa~t Overall Pro,ram Maaagea~eai. The Council will: create, update and maintain computer records of all active and nonactive Section 8 applicants and panic/pants; collect all areawid¢ dala and prepare all housing assistance program repons for HUD; provide overall financial program management, including budgeting, requisitions and momtofing; provide necessary equal employmen~ oppommity and affirmative action documents as required by the Consol/dated ACC bet~veen the Council and HUD. (d) t-ZiP Court, cz P~yme~s. The Council will execute housing assistance payments contracts with rental pwperty owners and will authorize and make housing assistance payments w owners, both at month-end and on a weekly basis. (e) Iafor,~! He, rial. Th~ Council will conduct informal hearings w review den/al, reduction or termination of Section 8 program assistance. The Council also will conduct informal heanngs to review and determine rental property owner and Section 8 panicipant claim matters. The Council will keep the Contractor appr/sed of the status and results of all informal hearings. . (f) Pro, ram ~'~aiaia$. The Council will prov/de necessary prot~-am waining for Contractor stuff including, but not l/mired to, HQS inspection training. The Council will perform HQS inspection monitoring activhies. Page 7 of .~ 6 J%ge~ (g) Pro, ram Materials. The Council will pr~are and provide admmistraOve pohc~es. operating brochures, forms, manuals and other Secuon $ progrm'n materials. (h) Application and Leave-up Processes. The Council will coordinate initial application processes and will serve as the cteannghouse., for and mainu~m logs of all incoming and outgoing portability lease-ups. 2.06 Area of Operation. The Cotmcil is authorized by Minnesota Statutes section 473.195 to plan and administer a Section 8 program wittun the seven-coun .ty metwpoli~an ar~a. Including the jurisdiction(s) identified in Exhibit A o£ this contract. The Section $ program admimstrativ¢ services conta, nplated by this contract shall be provided by the Contractor for Section 8 program applicants and participants residing in or moving into the jurisdiction(s) identified in Exhibit A. III. COMPENSATION AND FEE REIMBURSEMENT 3.01 Maximum Payment and Fees. The Council agrees to pay the Conu'actor on a monthly basis the reimbursable costs incurred by the Contractor in furnishing the Section 8 adminisu'ative services specified in this contract which are reimbursable to the Council by HUD. (a) Ongoing .4dmtnistrative Fee. The Council will pay to the Contractor an ongoing administrative fee on a per-unit-per-month basis, The per-unit-p~r-month fiat fee reimbursement amount will be adjusted (increased or decreased) whenever the Section 8 program administrative fees received by the Council from HIJD change, t/ffective upon written notice from the Council, the per-mt-per-month fiat fee reimbm'~nent amount will be adjusted (increased or decreased) whenever and by the same factor a~ the Council's ongoing administrative fee is adjusted (increased or decreased) by HUD. The ongoing administrative fee payable to the Contractor shall be fifty percent (50%) of the per-unit-per- month adminisuative fee received by the Council from HUD. For the purposes of this paragraph, the "per-unit-per-month administrative fee received by the Council from HUD" means the administrative fee received by the Council from HUD for the units in the Council's Section 8 programs in excess of the first 600 units (example: the "Column B" actmmistrative fee d~picted in the matrix at page 12,713 of the March 12, 1999 Federal Register). Notwith.ntanding any other pwvision of this contract, the Contractor and the Council agree that this administrative fee amount is payable for Section 8 adminizu'ative services p~,formed by the Contractor on and after June !, 1999. The Council will make a one-time lump-sum payment to the Contractor to effectuate the retroactive application of this provision. The lump sum payment will represent the diffa'enc¢ between: the payments akeady made to the Conwactor for services rendered under the terms of the previous contract from June 1, 1999 to the date upon which this contract is executed; and the per- unit-pa--month fiat fee reimbursement amount stated in this paragraph 3.01(a). Payments will be based on records d~cribed in paragraph 3.02(b). Ongoing admim.ntmtive fees are subject w portability adjtnnlraents under paragraph 3.01(d). (b) Enhanced Services Administrative Fees. If the Contractor provides the additional "enhanced" admin/.nu~v¢ services described in paragraph 2.02(a}, the Council will pay the Contractor a one-time preliminary fee of fifty dollars ($50.00) per selected applicant family and fifty dollars ($50.00) per newly ported-in family to off, et admirda'wative ~'xpmm~s Page 8 of l 6 Pages incm'rcd by the Contractor m peffo~g the "eabanced" services described in paxa.m-~ph 2.02(a). ~s one-~e p~~ ~ ~or ~c~ ~~ave s~ccs ~y ongoing ~s~tjv= ~ees payable ~d~ p~~ 3.0](a) ~d S.Ol(d), p~en~ or f~ for ~e p~o~ce of presemation ~sis~ce a~s~aon described p~h 2.02~), ~d ~y h~d-z~house fees ~dtr p~ph 3.01(c), If ~e Conveyor pm~d~ p~aaon ~sis~ce se~ices aes~bed m p~ph 2.02~), pay ~e Con~tor a one-~me prelimin~ f~ of $100 for each f~ilv detained eligible for pms~a~on ~i~ce by ~. ~e $100 one-~me pml~in~' f~ is imende~ offset a~s~ttve exp~es inched by ~e Con~ctor in pmvi~ng preset'anon ~sis~ce s~ices to eligible f~ities of eligible projec~ wi~n ~e Con~ztor~s j~sdictio~ mg~dless of ~e n~b~ of f~ilies ultimately dete~ined eligibie for such Section 8 pms~ation ~si~ce. ~is one-time p~li~ fee for pms~ation ~sist~ee semices is in addition to ~y ongoing a~ims~tive fe~ payable ~der p~phs 3.01 (a) ~d 3.0l(d), ~y pa~ or fees for ~e p~o~ce of additional admi~s~tive s~ices des~bed in p~ph 2.02(a), ~d ~y h~-t~house fees ~der p~ph 3.01(c). (c) Hard-t~Ho~e Fee. ~vided h~d-t~house fees ~ reimb~ed to ~e Co~cil by · e Council s~ll pay to ~e Con~ctor on a mon~ly b~is fo.-five doIl~ ($4~.00), or such o~ incr~ed or de~ed f~ ~o~t ~mblished by law or by ~, for each h~d- to-house f~ly acm~ly ho~ed in a diff~t ~t ~ ~e f~ily's pm-pm~ dwelling unit, ~ well ~ each ~me a h~d-t~house ~sisted f~ily mov~ to ~o~ dwelling wi~ continued Section 8 ~sis~ce. A h~d-to-house f~ily is a f~ily wi~ ~ee or more mino~. A h~d-t~ho~e f~iJy is ~ly ho~ed if bo~ a l~e ~d a ho~ing ~sis~ce pa~ con~t ~e executed. ~e h~-t~house f~ is not payable to ~e Con~ctor if a h~d-to-ho~e f~ly does not move, or if ~e ~-to-ho~e f~ly does move but moves without con~u~ S~tion 8 ~is~ce. ~is h~d-to-ho~e fee is m addition to ~y ongoing a~s~five f~s payable und~ P~phs 3.01(O ~d 3.01 (d), ~y pa~ents or fees for ~e P~o~ce of Mditional "e~ced" admi~s~tive s~ices described in a~~fionP~a~ph 2.02(a),d~b~d ~y~ P~phPa~ 2.02~).°r f~ for ~e P~ffo~ce of pres~ation ~sist~ce (d) Portabili~ ~dj~tment. ~ ~cord~ce ~ ~e po~bi]i~ Pm~sions of ~e federal laws goring ~e S~on 8 pm~, ~e Council receives ~m ~h "~tial P~" eigh~ (80) p~t of ~e ~ P~'s ongoing admi~s~tJve f~ for ~h ~t mon~ a p~icip~t f~ly r~id~ ~ ~e Co~cil's Section 8 op~ting j~sdiction ~der ~e fed~l po~bili~ pmvisiom. A~o~y, ~e Con~tor ~d ~e Co~cil a~ ~L for ~ch ~it mon~ a S~tion 8 f~ly ~g Section 8 ~i~ce ~d~ ~e f~ po~bili~ Provisions ~ides ~ ~e J~s~on(s) id~fifi~ m E~bit ~ ~e Con~tor will ~ccive ~m Co.oil fi~ p~t (5~fi) of~e ongoing a~~five f~ ~e Co.oil ~ceives ~om 3.02 Me~ ofP~yme~ Pa~m to ~ Con.tot by ~e Co~cil s~l b~ mad~ according to · e following (a) ~a~er~ 1~oi~ ~ ~o~. ~ Con--or ~l p~ ~ submit mvmc~om on f~ or ~ a fo~t ~mv~ by M~ ~ ~ ~e ~voic~o~ ~age 9 of l 6 shall describe actual admimstrative services performed during the quarter and item:ze the Contractor's reimbursable costs of performing those services during the quarter. Co) Monthly Pa. wnent$. Notwithstanding the quarterly invoices and reports, the Council will pay the Contractor the applicable fees under paragraph 3.01 on a monthly basis. Ongoing administrative fee and hard-to-house fee reimbursement pa.vments to the Conwactor will be based on the number of units, as indicated in Metro HR.A's monthly utilization and hard-to- house reports, which are administered by the Contractor within the iunsdicuonl s) identified in Exhibit A. One-time preliminary fees described in para.m"aph 3.01('o) will be paid to the Contractor based on records kept by the Council. The Contractor ,,,,'ill notif).' the Council of any fee payment or utilization issues. The Council will provide the Contractor a written response to fee payment issues raised by the Contractor. 3.03 Administrative Fee Reserve (formerly Operating Reserve). During the term of this contract, all funds received by the Contractor from the Council pursuant to this contract must be expended for Section 8 program administrative costs or held for future affordable housing related activities. The Contractor must maintain an administrative fee reserve account that must be credited with the mount by which the total of administrative fees earned and interest earned on the administrative fee reserve account exceeds the Contractor's actual administrative' expenses during the calendar year. The Contractor may accumulate in its local administrative fee reserve account up to $10,000.00 per year for future Section 8 administrative expenses or for other affordable housing related activities. IV. RECORDS, FILES, AND AUDITS 4.01 Records. The Contractor agrees to maintain accurate, complete and separate accounts and records of all expenditures of funds for which reimbursement is claimed under this contract and of all moneys received pursuant to this contract. Such accounts and records shall be kept and maintained during the term of this contract and for a period of three (3) years following the termination of this contract. 4.02 Audit and Inspection. The accounts and records maintained pursuant to this contract shall be audited in the same manner as the other accounts and records of the Contractor and may be audited or inspected on the Contractor's premises or otherwise by individuals or organizations designated and authorized by the Council at any time following reasonable notification during the term of this eontm..ct and for a period of three (3) years following the termination of this contract. The Contractor further agr,~s that HLrD and the Comptroller General of the United States, or their duly authorized representatives, .~aall have full and free access to all Contractor offices and facilities, and to all the books, documents, papers and records of the Contractor that are pertinent to the performance of this contract or pertinent to the operation and management of the Section 8 program, including the right to ~udit, and to make excerpts and transcripts from the books and records. 4.03 Data Privacy. The Contractor agrees to abide by thc Minnesota Government Data Practices Act and other applicable ~ and fed~al law governing private or confidential dam on individuals. The use or disclosure of information concerning a Section 8 pwgram applicant or participant in violation of the Minnesota Govennnent Data Practices Act or any other applicable state or federal Page 10 of l 6 Page, law or role of confidentialis' is prohibited, eXcePt on the wrinen informed consent of the appiiaam or participant, or as otherwise allowed or provided by state or federal lag'. Dam on a family that are, collected or created because of the iamily's smms a~ a Section $ applicam or participant is section I3.31. classified as pnvae benefit dam under MlIlIlesOta Statutes V. coNTRACT TERM 5.01 Period of Performance. This contract is effective on the date this conWa¢', is f/naIly executed by the Council and shall continue until the earher of the following: termmanon o£ Secnon 8 program funding by HUD; termination of this ¢ontrac! by either pan5.' pursuant to para_re'apb 5.02 of this contract; or June 1, 2004. As provided in para.re'apb 3.01, the ongoing adminlslTalive fee described in paragraph 3.01(a) shall be payable retroactive to June 1, 1999. $.02 Termination of Contract. The Council and the Contractor both shall have the ngh~ to terminate this conwact at any time and for any reason by submining written notice of termination to the other party at least ninety (90) days prior to the specified effective date of the termination. In addition, the Council shall have the right to terminate this contract on fourteen (l~l) calendar days' wnnen notice if the Conwactor's performance is not timely or is substantially unsatis£actory, or if the Conwactor has violated any of the material terms, conditions or agreements contained in this contract. In either event, on the temaination of this conwact all finished and unfinished documents, work papers, products and records prepared by the Conlractor under this contract shall become the property of the Council. On the termination of this conwact, the Conwactor will be paid for administrative services satisfactorily performed up to the date of the contract termination according to the terms slated in article III of this contract. VI. CONTRACT PERFORMANCE AND MODIFICATION 6.01 Assignment. The Conn"actor shall perform with its own organization the total work provided for under this contract arid shall not assign, subcontract or transfer any of the contract work without the prior written consent of Metro HRA staff. 6.02 Prompt Payment of SubconU'aclors. If the Conwactor receives prior wrinen consent from the Council pursuant to paragraph 6.01 of this conwact and assigns, subconuacts or transfers any of the work pwvided for under this corm'act, the Conn"actor agrees to pay any subcontractor within ten (10) days of the Contractor's receipt of payment from the Council for undisputed services provided by the subcontractor{s). The Conwactor further agrees to pay interest of one and one-half (1 ~) percent per month or any pan of a month to the subconwacto~s) on any undisputed amount not paid on time to the subconWactor(s). The Contractor agrees the minimum monthly interest penalty payment for an unpaid balance of one hundred dollars ($100.00) or more is ten dollars ($10.00). For an unpaid balance of less than one hundred dollars ($100.00), the ConWactor agrees to pay the actual penalty due w the subconuactor(s). 6.03 Amendments. The terms of this conwact may be changed or modified by mutual agreement " of the panics. Such amendments, changes, or modifications shall be effective only on the execution of written amendment(s) signed by thc Council and the Conwactor. Page 11 of l 6 Pagm 7.0I Indemnification. To the extent permitted by law, the Contractor agrees to indemrdf3', defend and save and hold the Council. its agents and employees harmless/rom any and all claims or causes of action arising from the pedorrnance of' this contract by the Contractor or the Contractor's employees and agents. This clause shall not bc construed to bar an)' legal remedies the Contractor may have for the Council's failure to per/otto its obligations under this contract. Nothing in this clause shall be construed as a waiver on the part of either the Contractor or the Council of an)' immunities or limits on liability provided by Minnesota Statutes chapter ,~66. or other applicable state or federal law. 7.02 Insurance. The Council assumes no liability with respect to bodily injurb', illness, accident. theft or any other damages or losses concerning pen'sons or property arising out of the use or maintenance of Contractor's premises, equipment or vehicles. The Contractor is responsible for providing adequate insurance coverage to protect against legal liability arising out of the Contractor's activities under this contract. Upon request from Metro HRA staff, the Contractor shall provide copies of insurance instruments or certifications from the insurance issuing agency which show the insurance coverage, the designated beneficiary, the parties .covered and the coverage amounts. 7.03 Independent Contractor Status. The Contractor acknowledges that thc Contractor and the Contractor's agents and employees are independent contractors under the terms and conditions of this conwact. The Contractor is responsible for the employment, discharge, compensation, benefit coverage and supervision of all Contractor persormcl, employees and agents. The Contractor expressly acknowledges that the Contractor and the Contractor's personnel, employees and agents shall not ass~ any clams against the Council for reemployment, workers' compensation or other employee benefits of any type related to the performance of this conu'act. VIII. EQUAL EMPLOYMENT; NONDISCRIMINATION 8.01 Equal Employment Opportunity. The Contractor agrees to provide equal employment opportunities. (a) Nondiscrimination and.4.t~rmative Action. The Contractor shall not discriminate against any employee or applicant for crnployment because of race, color, crc'cd, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation or age. The Contractor shall take affirmative action to ensure that applicants are ernployed, and that ca~ploy~s arc treated during employment, without regard ~o race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sea-ual orientation and age. Such action includes, but is not limited to, the following: ~ploymcnt, upgrading, demotion, or transfer; recruitment or recruitment adv~nismg; layoff or m'mination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Co) Notice Posting. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the nondiscrimination provisions of paragraph 8.01(a) of this conu'aat. The Contractor will in all solicitations or Page 12 of 16 Pages advertisements for employees placed by or on behalf of the Contractor state that all qualified agplicants will receive consideration for emtolo.vrn~nt without regard to race. color. creed, religion, national on,n, sex. mantal status, status with regard to public assistance, disability, sexual orientation and age. (c) Subcontract. The Contractor a~ees to ihCorporate the provisions of paragraph S.01 in an)' subcontracts for project work. 8.02 Equal Oppormain.' Compliance Reviews. The Conwactor shall cooperat,-' with the Council and HUD in conducting compliance reviews and complainI investlgations pursuant to applicable federal and sate civil rights statutes, executive orders, and related rules and regulauons. 8.03 Nondiscrimination in Housing. The Contractor a~m'ees to comply with federal and state laws prohibiting discrimmation in housing. (a) Federa! Zaws. The Contractor shall comply with the nondiscrimination requirements of Title VI of the Civil Rights Act or 1964 prohibiting discrimination based on race, color, or national origin and Executive Order 11063 with respect to those provisions prohibiting discrimination based on religion or sex, and with implementing HUD regulations. The Contractor shall comply with Title VIII of the Civil Rights Act of 1968 which prohibits discnmination in the sale, rental or financing ofhousing on the basis of race, color,~religion, sex, handicap, familial status, or national origin and with any implementing regulations. The Contractor shall comply with Section $04 of the Rehabilitation Act of 1973, as amended, which prohibits discrimination against handicapped p~rsons who would otherwise qualify to panicipate in Section 8 programs and, where applicable, the Age Discrimination Act of 1975, as amended, which prohibits discrimination on the basis of age. Unwed parents, families with children bom out of' wedlock, and recipients of public assistance shall not be excluded fi'om participation in or be denied the benefit of the Section 8 programs because of such slams. (b) Sza~e £aws. The Conl~actor shall comply with all applicable provisions of the Minnesota Human Rights Act. IX. GENERAL PROVISIONS 9.01 Conflict oflnterest. The Contractor agrees to abide by federal and state conflict ofinteres! laws pertaining to the performance of this corm'act. (a) Federal Conflict Provisions. (I) In accordance with title 24, Code ot'Fedcral Regulations, section 982.161(a}, neither the Council nor any of its contractors or subcontractors may enter into any contract, subconu-act or arrangement in connection with the Section 8 tenant- based programs in which any of the following classes of persons has any interest, direct or indirect, during tenure or for one year thereafter: (i) Any present or former member or officer of the Council, except a "participant commissioner"; Page 13 of 16 Pages (ii) Any employee of th-~ Council. or any contractor, subcontractor or agent of the Council, who formulates policy or who m.fluences decisions with respect to the Section 8 (iii) Any public official, member of a governing body. o~' state or local le.~,islator, who exercises functions or'responsibilities with respect to the Section $ pml~'m'ns; or (iv) Any member of the Con.mess of the United States. (2) Any member of the classes described in para.graph 9.01(a)(1) must disclose their interest or prospective interest to the Council and HUD. (3) The conflict of interest proh/bitions under paragraph 9.01 (a)(1) may be waived by the HUD field office for good cause. (b) Stnt~ Co~jTict Pr~isio~s. The members, officers and employees of the Contractor will comply with all applicable state statutory and regulatory conflict of'interest laws, including Minnesota Statutes sec*ions 10A.0? and 469.009, as amended. 9.02 Feder-I Certification Regarding Lobbying. Pursuant to title 24, Code of ]:ederal Regulations, part 87, the Contractor certifies, to the best ofits knowledge and belief, that: (a) Usc ~fFe~ernl Fu~. No federal appropriated funds have been paid or will be paid, by or on behalf' of the Contractor, to any person for influencing or atternptmg to influence an officer or employee of an agency, a member of Congress, an officer or employee of Congress, or an employee ora member of Congress in connection with the awarding of any federal contract, the making of' any federal grant, the m~lcing of any federal loan, the entermff into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. (b) Disclosure. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencin~ or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this contract or its funding, the Contractor shall complete and submit Standard Form-LLL, "Disclosure l:orm to Report Lobbying," .in accordance with its insmsctions. (c) Cen/fic,',tio~. This certification is a material representation of.fact upon which reliance was placed when this mm,sac*ion was made or entered into. This certification is a prerequisite for making or entering into this transaction imposed by title 31, United States Code, section 1352. Any p~son who fa/Is to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 9.03 Federal Regulations; HUD and Metro HRA Policies. The Contractor agrees to porform the Section 8 program administrative services contemplated under this contract in compliance with: parts 897 and 982 and other applicable provisions of title 24, Code of' l:ederal Regulations, and Page 14 of 16 Pag~ other applicable provisions of the fed~n'a] r~gularions governing the Section $ pro.re'am: appltcable provisions of the HUD Handbook; the Administrative Plan for the Mem~pohtan Council Housing and Redevelopment Authont3', as amended or r~vised; curren! procedures, letters and forms provided by the Council in policy/procedural memoranda; HUD's Housing ]yl~ection ]~tanual for the Section $ Existing Housing Program: and all o..ther applicable procedures and policies as ma.',' be provided to the Contractor. 9.04 Prohibition of Service Charges. The Contractor shall not charge an.,,' fee to an)' Section $ program applicant or participant or charge an)' fee to any remal propens.' owner for any Section t; program admimstrative services provided under this contract. 9.05 Prior Contracts. The Contractor and the Council agree this contrael supersedes and replaces Contract No. C-94--56, and any amendments to Contr~t No. C-9.¢-56, and any other prior Section $ program administrative services contracts entered into between the Council and the Contractor. Contract No. C-9~56 is terminated upon final execution of this contract. 9,06 Warranty of Legal Capacity. The individual signing this corm'act on behalf of the Contractor represents and wawants on the Contractor's behalf that the individual is duly authorized to execute this contr~t on the Contractor's behalf, and that this contract constitutes the Contractor's valid, binding, and enforceable agreements. IN' WITNESS WHEREOF, the Contractor and the Council have caused this contract to be executed by their duly authorized representatives. Approved as to form: ME__TROPOLITA1N COUNCIL -- Associate ~ Cour~el Jam~ J. So~,'~'bnal Administrator CITY OF I~],Ew HOPE By: ~ Its: President (EDA) Date: January 10, 2000 IlS: Executive Director (EDA) Date: January 11, 2000 C~ Page 15 of 16 Page~ E~IT A CITY OF NEW HOPE The Conn-~:tor sh,~l perform the Section ~ pmgr~n contr~t s~c~ ~ ~ Ci~' o~w Hope. M~o~ ~d ~ ~ follo~j~sdic~io~ lo~t~ m H~in Co~~, Edina Gold~ V~l~y Maple Grove Osseo The Council will perform Section 8 inspection and reinspection services for dwelling units located within the cities of'P-dina, Golden Valley, Maple Grove and Osseo. Page 16 of l 6 Page. v METROPOLITAN COUNCIL Suite 300 Metro Square Building, St. Paul, Minnesota 55101 CONTRACT NO. M-88-12 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM CONTRACT FOR INSPECTION SERVICES THIS-AGREEMENT is effective the 1st day of January, 1988, between the Metropolitan Council, hereinafter referred to as the "Council," and the City of North St. Paul , hereinafter referred to as the "City." WITNESSETH: WHEREAS~ the Council is engaged.in a program to provide rent assistance payments to low-income fmm~lies and to the elderly, disabled, and handicapped to assist them in obtaining adequate housing; and WHEREAS, the Council has received fundingfrom .the United. States Departmen~ . of Housing and Urban Development (,HUD") under a HUD Section 8 Existing Housing Assistance Payments Program, Master Annual Contributions Contract ("Master Contract") to act as a public housing agency to implement the program; and WHEREAS, the City has by resolution indicated its desire to participate in' this program and to assist eligible individuals and families to obtain decent, safe, and sanitary'housing in the City at prices they can afford; and WHEREAS, the Council desires to purchase certain necessary inspection services from the City in connection with carrying out the program; and WHEREAS, p~rsuant to Minnesota Statutes Section 473.195 the Council is authorized to execute an agreement for the purchase of inspection and reinspection services and to take all actions specifically authorized or contemplated herein. NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows: I. SCOPE OF SERVICES 1.01 pro~ram Oblisations of the City. The Council agrees to purchase and the City agrees to furnish the following inspection and reinspection services: A. Housing Quality Insoections. Housing quality inspections and reinspections shall include a thorough and complete on-site inspection and certification of the housing unit sufficient to ensure conformance with Housing Quality Standards ("HQS") as set forth in 24 C.F.R. Section 882.109, as amended. Such inspections and reinspections shall be made at the following times: - prior to initial lease by a participating family; - prior to annual recertification of a family; and - during the lease term as directed by the Council. B. Damage Inspections. Damage inspections shall be conducted by the City as directed by Council staff. Reports of all inspections and reinspections shall be made by the City on forms provided by theCouncil, and the City agrees to fully and accurately complete all forms. The msnner of furnishing these services shall be agreed upon by the City and the Council. The parties shall from time to time confer concerning the details of the furnishing of the services, and the City agrees to comply with reasonable demands of the Council concerning the same. 1.02 Prosram Oblisations of Council. The parties understand that the City shall not be required to provide thefollowingprogram~ services and activities which are the sole responsibility of the Coun'cil: - performing all ZreaWideafFirmative marketing a~tivities, suc~ as preparation of brochures and advertising, and.contacting and working with area commUnity groups, rental property · owners, and management grOups;' - maintaining a waiting list; - selecting applicants for participation; - making housing assistance payments to owners; - conducting hearings pursuant to applicable federal regulations; - training local program staff and preparing operating brochures, forms, manuals, and other program related materials; - collecting all areawide data and preparing all housing assistance program reports for HUD; and - performing all other matters contained in the Master Contract. II. COMPENSATION, METHOD OF PAYMENT, AND RECORDS 2.01 Compensation. The Council agrees to pay to the City an inspection fee of $24.00 per unit for each inspection or reinspection required pursuant to Section 1.01. 2.02 Method of Payment. A. Invoices. The City shall prepare and submit periodic (not more frequently than monthly) invoices on forms or in a format approved by Council staff. The invoices shall include a listing of the inspections or reinspections conducted during the period covered by the invoice. B. Payment. The Council shall pay the City for services rendered within 30 days follow, Lug receipt and approval by Council staff of an invoice. 2.03 Records. The City agrees to maintain accurate and complete records of all inspections or reinspections for which payment is claimed under this agreement and of all moneys received pursuant to this agreement. Such accounts and records shall be kept and maintained for a period of three (3) years following the termination of this agreement. 2.04 Audit and Inspection. The accounts and records maintained pursuant.to this agreement shall be audited in the same manner as the other accounts and records of the City and may be audited or inspected on the City's premises or otherwise by individuals or organizations designated and authorized by the Council at any time following reasonable notification during the contract period and for a period of three years thereafter. III. GENERAL PROVISIONS 3.01- Term of Agreement. The services to be purchased by the Council and furnished by the City under this agreement shall commence on January 1, 1988 and shall continue until the earlier of the following: (1) termination of program funding by HUD; or (2) termination of the agreement by either party. The Council and the City shall both have .the right to terminate.this ag~.eemen$. at any time by submitting written notice of the intention to.do so to the other party at. least ninety (90) days prior to the specified effective date of such termination. Cancellation or termination of this agreement by eithe~ the Council or the City shall not affect the rights.of participating f~m~lies within the City during the terms of their leases. In addition~'the City will be paid for services performed up to the date of contract termination on the basis set forth in Section 2.01. 3.02 ~ompliance with Federal Laws. The parties shall oomply with all requirements imposed by Titles VI of the Civil Rights Act of 1964,~as amended, and the regulations of HUD issued thereunder, 24 C.F.R. Subtitle A, Part 1; Title VIII of t~e Civil Rights Act of 1968, as amended, and the rules and regulations issued pursuant thereto; Section 504 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. Section 794 et seQ.; the Age Discrimination Act of 1975, as amended, 42 U.S.C. Section 6101, et seq.; Section B of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. Section 1701u; Office of Federal Contract Compliance Regulations, 41C.F.R. Part 60-2; and Executive Order 11063, as 'amended,' to the end that, in accordance with the Act, the Executive Order, the regulations, and the requirements, no person shall, on'the grounds of race, color, creed, religion, national origin, or sex, be excluded from participation in or be denied the benefits of the housing assistance payments program or be subject to discr~m~uation in employment because of membership in a class such as u~m~-ried mothers, recipients of public assistance, etc. These provisions are included pursuant to the regulations of HUD and the requirements of HUD pursuant to the regulations; and the obligations of the City to comply therewith inures to the benefit of the United States, HUD, and the Council, any of which shall be entitled to invoke any remedies available by law to redress any breach thereof until compliance therewith by the City. 3.03 Safeguard of Client Information. The use or disclosure by any party of information concerning an applicant or participant in the program in violation of the Minnesota Government Data Practices Act or any other applicable law or rule of confidentiality is prohibited, except on the written, informed consent of the applicant or participant. B.04 No Charge for Services. All services furnished under this agreement.shall be without charge to any applicant, participating family, or owner. 3.05 Disputes. All problems or disputes between the parties hereto shall be subject to review and resolution by the Metropolitan Housing and Redevelopment Authority Advisory Committee or other committees subsequently designated by the Council. B.06_. Independent Contractor. The City acknowledges its status as an independent contractor under this agreement and agrees that it will conduct itself consistent with such status and that it will not hold itself out or claim that its officers and employees are employees of the Council. By reason . hereof, it will make no claim, demand, or application to or for any right or privilege applicable to any officer or employee of the Council including, but not l~m~ted to, workers' compensation coverage, unemployment insurance benefits, social security coverage, or retirement membership or credit, and shall defend the Council and hold it harmless from any such claims brought by employees or agents of the City. 3.07 Master Contract. The City understands that the program is subject to the terms and conditions of the Master Contract and to HUD's current and future rules and regulations, and the City agrees to abide by the same and to cooperate with the Council in its compliance therewith. 3.08 Conflict of Interest. All members, officers, and employees of the parties hereto shall comply with applicable provisions of state conflict of interest law contained in Minnesota Statutes Section 469.009 and with federal guidelines contained in Section 2.13, FOrm HUD 52520E (Annual Contributions Contract P~rt II). 3.09 Prior Contract Superseded. This contract supersedes prior Section 8 Housing Assistance Payments Program Contracts for Inspection Services, if any, entered into between the parties. 3.10 Amendment. The terms of this contract may be changed or modified by mutual agreement of the parties hereto. Such amendments, changes, or modifications shall be effective only upon execution of written amendment(s) signed by the Council and the City. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their duly authorized representatives on the day and year first above written. David Renz, Executive Dz~ctor KKOTTA-CHLGL2 EDA II j. . REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development ,,'m 2-23-04 EDA ! . Item No. By: Kirk McDonald By: 5 UPDATE ON POTENTIAL REDEVELOPMENT BY BEAR CREEK CAPITAL AND CVS PHARMACY AND MOTION AUTHORIZING PREPARATION OF RESOLUTION OF FRIENDLY CONDEMNATION FOR PROPERTY AT 7901 BASS LAKE ROAD (IMPROVEMENT PROJECT NO. 754) REQUESTED ACTION Staff requests to give the EDA another brief update on the progress of the potential redevelopment by Bear Creek Capital and CVS Pharmacy at the southwest quadrant of Bass Lake Road and Winnetka Avenue and is requesting that the EDA authorize the preparation of a resolution of friendly condemnation for the property at 7901 Bass Lake Road. POLICY/PAST PRACTICE Staff routinely presents updates to the City Council or EDA on the progress or status of potential redevelopment projects and the City Council has approved similar resolutions in the past when businesses are acquired on a voluntary basis for redevelopment purposes. BACKGROUND The city has been coordinating with Bear Creek Capital/CVS Pharmacy over the past eight months regarding a potential redevelopment at the southwest quadrant of Bass Lake Road and Winnetka Avenue. The redevelopment would be in two phases, with the first phase involving the construction of a CVS Pharmacy store and ancillary retail development. The first phase would include the acquisition by CVS of three parcels in the area: a residential property at 5539/5549 Winnetka and a commercial property at 7901 Bass Lake Road. Appraisals of all three parcels were completed in October 2003, and at the October 27 EDA meeting, the EDA authorized staff to meet with the developers and the property owners to facilitate in the potential property acquisition. At the January 26, 2004, EDA meeting, staff updated the EDA on the status of the project and reported that the acquisition of the residential property by CVS was moving forward, but that there had not been any progress made on the Sinclair site at 7901 Bass Lake Road. Subsequent to that meeting, CVS and Sinclair have been negotiating directly with one another and Sinclair has agreed to a sales price, subject to certain conditions. One of the conditions is that the city approve a resolution of friendly condemnation for the Sinclair site for monetary reinvestment purposes. If the development would move forward, the resolution would be presented for approval at a later date. Per the attached correspondence from Bear Creek Capital, staff is requestin9 that the EDA authorize the preparation,of such a resolution. MOTION BY SECOND BY ,I~ rfa~plannin~liv comm. ~ 9-9VS update 2-23-04 I I Request for Action Page 2 2-23-04 Other issues that staff continues to work on with the developer related to this development include: 1. Preparing a more detailed site plan and addressing storm water issues. 2. Future meeting with School District officials regarding a potential minor land swap. 3. Developer responsible for all costs, including relocation of existing tenant and soil cleanup issues. 4. Coordination on potential creation of TIF district to benefit other development projects in the area. Staff requests apProval of a motion authorizing the preparation of a resolution, which would be presented for approval at a later date if the development proceeds. ATTACHMENTS · 2/9 Bear Creed Correspondence · 2/6 City Attorney Correspondence · Aerial Site Plan · Please refer to other attachments previously distributed Feb 08 ~00~ I~:3GPM BESRCREEK 74~74! p. ! 513.793.1500 513.793.58~ f~ ~r C~ Capi~i, LLC 8~.583.8956 9549 Montgo~ Road Cinc~nad, Ohio 45242 February 9, 2004 FAX: (763) Kirk McDonald City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Subject: Fric-ndly Conde_mnation of the New HOl~ Sinclair Property 7901 Barn Lak© Road New Hope, 1VIN Dear Mr. McDonald: As a/bllow-up to our meetin~ last we~k, Bear Creek Capital, the proposed developer of the Winnetka West retail d~velopment requests that the City of]qew Hope be~in friendly condemnation proceedings for the 40,434 ~.f. property currently occupied by New Hope Sinclair at 7901 Bass Lake Road. As you are aware, Bear Creek Capital intends to enter into a Purchase and Sale Agreement with Sinclair Oil Company for the property in order to fiwilitat~ development o£ the Winnetka West retail development. As per our discussions, it would be Bear Creek Capital's preference to have New Hope City Council pass its resolution at its regularly scheduled m~tin8 on March I~, 2004. Please ~all if you have any questions. Sincerely, Stevon So~dml.I. New Hope City Attorney P~er Coyl~ Tim B~ird JENSEN & SONDRALL, P.A. Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193 e-mail law~jensen-sond rail.corn DOUGLAS J. DEBNERz GolmON L. JENSEN~ Writer's Direct Dial No.: (763) 201-0211 GLEN A. NORTON e-mail sas@jensen-sondrall, com STEVEN A. SONDRALL STACY A. WOODS February 6, 2004 Ov Cotr~s~ I~NS Q. BR~_SrA~ VIA FACSIMILE TO (651) 450-7384 AND REGULAR U.S. MAIL Daniel J. Beeson Attorney at Law LeVander, Gillen & Miller, P.A. 633 South Concord Street, Suite 400 South St. Paul, MN 55075 Re: Sale of Sinclair Service Station 7901 Bass Lake Road, New Hope, Minnesota Your File No.: 18d75.13000 Our File No.: 99.11289 Dear Dan: This letter will confirm our recent telephone conversation concerning a proposed sale of the Sinclair Service S~ation located at 7901 Bass Lake Road in New Hope, Minnesota to CVS Pharmacy/Bear Creek Capital Corporation. In our conversation, you informed me Sinclair would be willing to sell this property for $750,000.00. Further, you indicated this would be an "as is" sale. Sinclair would not be responsible for any environmental issues, removal of the fuel r~lks currently located on the property or demolition of the existing service s~ation structure. You also indicated acquisition of the property would need to be under "a threat of condemnaiion" to enable Sinclair to receive the maximum tax deferral benefits under existing IRS regulations. It is my understanding you have communicated in some fashion this offer to a Ms. Sandy Bradshaw of Bear Creek Capital. You further indicated Sinclair would not be willing to pay any sales commission to Sandy Bradshaw or Bear Creek Capir~l in connection with the sale of this property to CVS Pharmacy. I have communicaied this information to Kirk McDonald, the New Hope Community Development Coordinator and Mr. William Tippmann of Bear Creek Capital in a recent meeting I had with them on February 4, 2004. If this letter does not correctly indicate our conversation concerning the proposed sale of this property by your client, or if there are any other conditions which need to be addressed, please let me know as soon as possible. The City would like to 'Real Property Law move this project forward as soon as possible and the Community Development Director is Specialist Certified By hoping to discuss your offer with the City Council at its February 23, 2004 Council meeting. -- The Mi.esota State Bar Association :Admitted in Iowa February 6, .2004 Page 2 Thank you for your consideration in this matter. I will wait to hear from you. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope cc: .zl~irk McDonald, Community Development Director, City of New Hope [Via E-Mail and U.S. Mail ] William J. Tippmann, Vice President, Bear Creek Capital [Via E-Mail and U.S. Mail] P:\Attomey\SAS\ 1 Client Files\2 CJvj of New Hope\99-11289\CNH99.11289.006-Atty Beeson Lu'.floc Winnetka West Retail Development A *' / Boundary Site Plan /',,/ N / '~ / v 100 0 100 Feet III III ~11 ' , Property Land Transfered to - ~ Development And~r's°n -E';ngi 'n' ~r'i '~g °f ~ "nn¢s'0'ta" 'LLC N Building , , I Land Transfered ,o $¢hoo,