16-0719_NEW TURTLE ISLAND_F13_Agenda ReportCity of San Juan Capistrano
Agenda Report
TO : Honorable Mayor and Members of the City Council
FROM: ~n Siegel, City Manager
SUBMITIED BY : Joel Rojas, Development Services Directo ~
PREPARED BY: Laura Stokes, Housing Coordinator I Assistant Planner !J:}-
DATE: July19,2016
7/19/2016
F13
SUBJECT: Consideration of Second Amendment to the Personal Services
Agreement for Grant Administration Services for the City's Owner
Occupied Rehabilitation Loan Program (New Turtle Island)
RECOMMENDATION :
By motion, authorize the City Manager to execute and approve a Second Amendment
to the Personal Services Agreement with New Turtle Island for administration of the
City's Owner Occupied Rehabilitation Loan Program funded by the State of California
HOME Program Grants, extending the term from June 30, 2016, to June 30, 2018 or
until all services required are completed, whichever occurs earlier.
EXECUTIVE SUMMARY:
On July 17, 2012, the City entered into a Personal Services Agreement with New Turtle
Island for grant administration services for the City's Owner Occupied Rehabilitation
Loan Program (Attachment 1 ). On April 7, 2015, the City approved a First Amendment
extending the term of the agreement to June 30, 2016, and increasing the not to exceed
amount to $193,800 (Attachment 2). The City's HOME and Community Development
Block Grant funds are used to provide loans to lower income households for necessary
home repairs (Owner Occupied Rehabilitation Loan Program). Since 2012, the City has
provided 31 loans. New Turtle Island has been providing excellent services including,
but not limited to; screening grant applicants, inspecting condition of homes, reviewing
construction repair proposals, conducting work completion inspections, and disbursing
grant funds. Staff has found that New Turtle Island has the experience and expertise to
administer the HOME Grants.
As of May 15, 2016, the City has a balance of approximately $508,000 in the State
HOME and Community Development Block Grant fund, derived from program income
from reimbursed loans, to continue the Owner Occupied Rehabilitation Loan Program .
City Council Agenda Report
July 19, 2016
Page 2 of 3
Staff originally anticipated the funds to be expended entirely by the end of June 2016.
However, due to some unexpected delays in a few Owner Occupied Rehabilitation
loans, the City has not completed as many loans as expected, and the City needs
additional time to continue providing the programs to City residents. As a result, staff
recommends that the City Council approve a second amendment to the New Turtle
Island personal services agreement to extend the term of the contract an additional two
years to June 30, 2018 (Attachment 3).
DISCUSSION:
New Turtle Island charges a standard administrative fee for overseeing these loans
because their scope of work and time commitment is very similar regardless of the
dollar amount of the individual rehabilitation loan. New Turtle Island provides a
comprehensive program from initial screening to final approval of the finished work
product. The services provided include working with the applicant through the loan
qualification process to insure both the home and the resident are eligible for the
project, inspecting the home to confirm the proposed rehabilitation work is eligible for
the program, working with the resident through the construction phase including
administration of payments to contractors, working with residents and contractors as
needed to resolve concerns during the construction activities, and close-out of the
construction contract. New Turtle Island does not receive their payment for
administering the loan until the construction project is complete. The amount of time and
attention a given home rehabilitation project may require is not necessarily reflected in
the loan amount. As confirmed below, New Turtle Island's per loan charge is very
competitive and represents a valuable service for the residents and the City. The State
program guidelines allow for a maximum 24% charge for administering these loans and
New Turtle Island's charges are well below that threshold.
Over the course of four years working with the City of San Juan Capistrano and
administering 31 loans, the City has received one complaint regarding New Turtle
Island's services. Staff has been in communication with the resident and investigated
her concerns. As a result, staff has added new procedural requirements to New Turtle
Island's contract, updated the City's contract template to improve the arbitration and
notification provisions and explained our actions to the resident. New Turtle Island has
indicated that they will be able to implement the policies and process the new
documents for the Owner Occupied Rehabilitation program . The policies and
documents are documented in the Second Amendment to the Professional Services
Agreement as Exhibit A.
Staff recommends amending the New Turtle Island agreement for the following three
reasons. First, the City currently has three loan applications in process, and providing
an uninterrupted process is important for the applicants. Second, New Turtle Island has
provided excellent services to the San Juan Capistrano residences, and is an efficient
liaison between residents and the City. Finally, New Turtle Island's fee proposal was
approximately 33% lower than the next closest competitor in the 2012 RFP process,
and they agreed to maintain the same low fee through the completion of the program.
City Council Agenda Report
July 19, 2016
Page 3 of 3
FISCAL IMPACT:
The City currently has approximately $508,000 in funds for the Owner Occupied
Rehabilitation program, and it is anticipated that the City will receive a minimum of
$84,000 from previous loan pay-offs in Fiscal Year 2016-2017 which will increase the
available funding to $592,000. Staff expects approximately 21 loans will be issued
between April 1, 2016, and June 30 , 2018. The consultant's grant administration cost of
$2,800 per loan, which would total $58,800 for 21 loans, is currently covered in the
existing contract amount. Typical loans range between $15 ,000 and $20 ,000.
ENVIRONMEN TAL IMPACT:
An approval of amendment to personal services agreement is not considered a project
and therefore not subject to review under the California Environmental Quality Act
(CEQA).
PRIOR CITY CO UNCIL REVI EW :
• On April 17, 2012, the City Council approved the Request for Proposal for
administration services for the City's HOME grants on April17, 2012.
• On July 17, 2012, the City Council approved the Personal Service Agreement
with New Turtle Island for Owner Occupied Rehabilitation Loan administration
services.
• On April 7, 2015, the City Council approved of the First Amendment to the
Personal Service Agreement , extending the term of the agreement by 12 months ,
and increasing the not to exceed amount to $193,800 .
COMMISSION/BOARD REVIEW AND RECOMMENDATIONS :
Not Applicable .
NOTIFICATION:
New Turtle Island
Patricia Nigg
ATTACHMENTS:
Attachment 1 -New Turtle Island Personal Services Agreement
Attachment 2 -First Amendment to the New Turtle Island Personal Services Agreement
Attachment 3 -Second Amendment to the Personal Service Agreement
PERSONAL SERVICES AGREEMENl
THIS AGREEMENT is made and entered into this 17th day of July, 2012, by and
between the City of San Juan Capistrano (hereinafter referred to as the "City") and New
Turtle Island (hereinafter referred to as "Consultant").
RECITALS:
WHEREAS, City desires to retain the services of Consultant regarding the City's
proposal to continue grant administration of the State of California 2011 HOME Grants
Owner Occupied Rehabilitation Program as described in the scope of work; and
WHEREAS, Consultant is qualified by virtue of experience, training, education
and expertise to accomplish such services.
NOW, THEREFORE, City and Consultant mutually agree as follows:
Section 1. Scope of Work.
The scope of work to be performed by the Consultant shall consist of those tasks
as set forth in Exhibit "A," attached and incorporated herein by reference. To the extent
that there are any conflicts between the provisions described in Exhibit "A" and those
provisions contained within this Agreement, the provisions in this Agreement shalt
control.
Section 2. Term.
This Agreement shall commence on the effective date and shall terminate. and
all services required hereunder shall be completed, no later than March 31, 2015.
Section 3. Compensa t ion .
3.1 Amount.
Total compensation for the scope of services for this Project shall not
exceed One Hundred Thirty-Five Thousand Dollars ($135,000 .00).
3.2 Method of Payment
Subject to Section 3.1, Consultant shaH submit monthly invoices based on
total services which have been satisfactorily completed for such monthly period . The
City will pay monthly progress payments based on approved invoices in accordance
with this Section.
ATTACHMENT 1
3.3 Records of Expenses,
Consultant shall keep complete and accurate records of all costs and
expenses incidental to services covered by this Agreement. These records will be made
available at reasonable times to the City. Invoices shalt be addressed as provided for in
Section 16 below.
Section 4. In dependent Contractor.
It is agreed that Consultant shall act and be an independent contractor and not
an agent or employee of the City, and shall obtain no rights to any benefits which
accrue to Agency's employees.
Section 5. Lim itations U pon Subcontracting and Assignment.
The experience, knowledge, capability and reputation of Consultant, lts principals
and employees were a substantial inducemEmt for the City to enter into this Agreement.
Consultant shall not contract with any other entity to perform lhe services required
without written approval of the City. This Agreement may not be assigned, voluntarily or
by operation of law, without the prior written approval of the City. If Consultant is
permitted to subcontract any part of this Agreement by City, Consultant shall be
responsible to the City for the acts and omissions of its subcontractor as it is for persons
directly employed. Nothing contained in this Agreement shall create any contractual
relationships between any subcontractor and City. All persons engaged in the work will
be considered employees of Consultant. City will deal directly with and will make all
payments to Consultant.
Section 6. Changes to Scope of W ork .
For extra work not part of this Agreement. a written authorization frorn City is
required prior to Consultant undertaking any extra work. In the event of a change in the
Scope of Work provided for in the contract documents as requested by the City, the
Parties hereto shall execute an addendum to this Agreement setting forth with
particularity all terms of the new agreement, including but not limited to any additional
Consultant's fees.
Section 7 . Familiarity with Work and/or Construction Site.
By executing this Agreement, Consultant warrants that: (1) it has investigated the
work to be performed; (2) if app1icable, it has investigated the work site(s). and is aware
of all conditions there; and {3) it understands the facilities. difficulties and restrictions of
the work to be performed under this Agreement. Should Consultant discover any latent
or unknown conditions materially differing from those inherent in the work or as
represented by City, it shall immediately inform the City of this and shall not proceed
with further work under this Agreement until written instructions are received from the
City.
Section 8. Time of Essence.
Time is of the essence in the performance of this Agreement.
Sectio n 9. Co m plianc e with L aw.
Consultant shall comply with all applicable laws, ordinances, codes and
regulations of federal, state and local government.
Section 10. Conflicts of Interest.
Consultant covenants that it presently has no interest and shall not acquire any
interest, direct or indirect, which would conflict in any manner or degree with the
performance of the services contemplated by this Agreement. No person having such
interest shall be employed by or associated with Consultant
Section 11 . Cop i es of Work Product.
At the completion of the work, Consultant shall have delivered to City at least one
(1) copy of any final reports and/or notes or drawings containing Consultant's findings,
conclusions, and recommendations with any supporting documentation. All reports
submitted to the City shall be in reproducible format, or in the format otherwise
approved by the City in writing.
Section 12. Ownership of Documents.
All reports, information, data and exhibits prepared or assembled by Consultant
in connection with the performance of its services pursuant to this Agreement are
confidential to the extent permitted by law, and Consultant agrees that they shall not be
made available to any individual or organization without prior written consent of the City.
All such reports, information, data, and exhibits shall be the property of the City and
shall be delivered to the City upon demand without additional costs or expense to the
City. The City acknowledges such documents are instruments of Consultant's
professional services.
Section 13. Indemnity.
To the fullest extent permitted by law, Consultant agrees to protect, defend, and
hold harmless the City and its elective and appointive boards, officers, agents. and
employees from any and all claims, liabilities, expenses, or damages of any nature,
including attorneys' fees, for injury or death of any person, or damages of any nature.
including interference with use of property, arising out of, or in any way connected with
the negligence, recklessness and/or intentional wrongful conduct of Consultant,
Consultant's agents, officers, employees, subcontractors, or independent contractors
hired by Consultant in the performance of the Agreement. The only exception to
Consultant's responsibility to protect, defend, and hold harmless the City, ls due to the
negligence, recklessness and/or wrongful conduct of the City, or any of its elective or
appointive boards, officers, agents, or employees.
This hold harmless agreement shall apply to all liability regardless of whether any
insurance policies are applicable. The policy limits do not act as a limitation upon the
amount of indemnification to be provided by Consultant.
Section 14 . Insurance.
On or before beginning any of the services or work called for by any term of this
Agreement. Consultant, at its own cost .and expense, shall carry, maintain for the
duration of the agreement, and provide proof thereof that is acceptable to the City, the
insurance specified below with insurers and under forms of insurance satisfactory in all
respects to the City. Consultant shall not allow any subcontractor to commence work on
any subcontract until all insurance required of the Consultant has also been obtained for
the subcontractor. Insurance required herein shall be provided by Insurers in good
standing with the State of California and having a minimum Best's Guide Rating of A-
Class VII or better.
14.1 Comprehensive General Liability.
Throughout the term of this Agreement. Consultant shall maintain in full
force and effect Comprehensive General Liability coverage in an amount not less than
one million dollars per occurrence ($1,000,000.00}, combined single limit coverage for
risks associated with the work contemplated by this agreement. If a Commercial
Genera! Liability Insurance form or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to the work to be performed
under this agreement or the general aggregate limit shall be at least twice the required
occurrence limit.
14.2 Comprehensive Automobile Liability .
Throughout the term of this Agreement, Consultant shall maintain in full
force and effect Comprehensive Automobile Liability coverage, including owned, hired
and non-owned vehicles in an amount not less than one million dollars per occurrence
($1 ,000,000.00).
14.3 Workers' Compensation .
If Consultant intends to employ employees to perform services under this
Agreement. Consultant shall obtain and maintain, during the term of this Agreement,
Workers' Compensation Employer's Liability Insurance in the statutory amount as
required by state law.
14.4 Proof of Insurance Requirements/Endorsement.
Prior to beginning any work under this Agreement, Consultant shall submlt
the insurance certificates, including the deductible or self-retention amount, and an
additional insured endorsement naming City, its officers, employees, agents, and
volunteers as additional insured as respects each of the following: Liability arising out of
activities performed by or on behalf of Consultant, including the insured's general
supervision of Consultant; products and completed operations of Consultant; premises
owned, occupied or used by Consultant; or automobiles owned, leased, hired, or
borrowed by Consultant. The coverage shall contain no special limitations on the scope
of protection afforded City, its officers, employees, agents, or volunteers.
14.5 Errors and Omissions Coverage [FOR PROFESSIONS/WORK
EXCLUDED FROM GENERAL UABILITY]
Throughout the term of this Agreement, Consultant shall maintain Errors
and Omissions Coverage (professional Uability coverage) in an amount of not less than
One Million Dollars ($1,000,000). Prior to beginning any work under this Agreement,
Consultant shall submit an insurance certificate to the City's General Counsel for
certification that the insurance requirements of this Agreement have been satisfied.
14.6 Notice of Cancellation/Termination of Insurance.
The above policy/policies shall not terminate, nor shall they be cancelled,
nor the coverages reduced, until after thirty (30) days' written notice is given to City,
except that ten (10) days' notice shall be given if there is a cancellation due to failure to
pay a premium.
14.7 Terms of Compensation.
Consultant shall not receive any compensation until all insurance
provisions have been satisfied.
14.8 Notice to Proceed.
Consultant shall not proceed with any work under this Agreement until the
City has issued a written "Notice to Proceed" verifying that Consultant has complied
with aH insurance requirements of this Agreement.
Section 15. Termination.
City shall have the right to terminate this Agreement without cause by giving
thirty {30) days' advance written notice of termination to Consultant
Jn addition, this Agreement may be terminated by any party for cause by
providing ten (1 0) days' notice to the other party of a material breach of contract. If the
other party does not cure the breach of contract, then the agreement may be terminated
subsequent to the ten ( 1 0) day cure period.
Section 16. N0tfce.
All notices shalf be personally delivered or mailed to the below lfsted addresses,
or to such other addresses as may be designated by written notice. These addresses
shall be used for delivery of service of process:
To City:
To Consultant:
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Development Services-Housing
New Turtle Island
951 West Princeton St
Ontario, CA 92762
Attn: Patrick Piatt
Section 17. Attorneys' Fees.
If any action at law or in equity is necessary to enforce or interpret the terms of
this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs
and necessary disbursements in addition to any other relief to which he may be entitled.
Section 18. Dispute Resolution .
In the event of a dispute arising between the parties regarding performance or
interpretation of this Agreement, the dispute shall be resolved by binding arbitration
under the auspices of the Judicial Arbitration and Mediation Service (''JAMS").
S e ction 19 . Entire Agree ment.
Thfs Agreement constitutes the entire understanding and agreement between the
parties and supersedes all previous negotiations between them pertaining to the subject
matter thereof.
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, the parties hereto have executed thls Agreement.
Larry Kramer, Mayor
CONSULTANT
1 By: __ -Jt=~=-----
. f
A T)~f\. i
.\·)\w~
Ma ri a· lrrls, aty Clerk \S
APPROVED AS TO FORM:
FIRST AMENDMENT TO
PERSONAL SERVICES AGREEMENT
THIS FIRST AMENDMENT TO THE PERSONAL SERVICES AGREEMENT between
the CITY OF SAN JUAN CAPISTRANO ("City") and New Turtle Island, ("Consultant") is made
and entered into, to be effective the 31st day of March, 2015, as follows:
RECITALS
WHEREAS, the City and Consultant have entered into that Personal Services
Agreement dated June 171h, 2012, for grant administration of the State of California 2011
HOME Grants Owner Occupied rehabilitation Program (the "Agreement"); and
WHEREAS, the City and Consultant desire to amend the terms of the Agreement as
provided hereunder.
AMENDMENT
NOW, THEREFORE, in consideration of the promises and mutual covenants contained
therein, City and Consultant agree to amend the following Sections of the Agreement as
follows:
Section 2. Term.
The term of the agreement shall be extended from Marcrt 31. 2015 until the date all
services required hereunder are completed or untll June 30, 2016, whichever 1s earlier
Section 3. Com pe n sation .
Total compensation for the scope of services for this Project shall be increased by Fifty-
Eight Thousand Eight Hundred Dollars ($58,800) from an amount not to exceed One Hundred
Thirty-Five Thousand Dollars ($135,000) to an amount not to exceed One Hundred Ninety-
Three Thousand Eight Hundred Dollars ($193,800).
All other provisions of the Agreement not amended hereunder shall remain in full force
and effect.
[SIGNATURE PAGE FOLLOWS]
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ATTACHMENT 2
APPROVED AS TO FORM:
BY: ;",:{\L.:...~---------~'t Attorney
-2-
CITY OF SAN JUAN CAPISTRANO
By: --:-:---=-~~k~~----
Derek Reeve, Mayor
CONSULTANT
SECOND AMENDMENT TO
PERSONAL SERVICES AGREEMENT
THIS SECOND AMENDMENT TO THE PERSONAL SERVICES AGREEMENT
between the CITY OF SAN JUAN CAPISTRANO ("City") and NEW TURTLE ISLAND
("Consultant") is made and entered into, to be effective the 191h day of July, 2016, as
follows:
RECITALS
WHEREAS, the City and Consultant have entered into that Personal Services
Agreement dated July 17, 2012, for grant administration services for the City's Owner
Occupied Rehabilitation Loan Program (the "Agreement"); and
WHEREAS, on April 7, 2015, the City and Consultant entered amended the term
and compensation of the Agreement (the "First Amendment"); and
WHEREAS, the City and Consultant now desire to amend the Agreement to extend
the term, revise the scope of work, and modify the indemnity and insurance provisions of
the Agreement (the "Second Amendment").
SECOND AMENDMENT
NOW, THEREFORE, in consideration of the promises and mutual covenants
contained therein, the City and Consultant agree to amend the Agreement as follows:
Section 1. Section 1 "Scope of Work" of the Agreement is hereby amended to
include the administrative policies provided as Exhibit "A" to this amendment.
Section 2. Section 2 "Term" of the Agreement is hereby amended in its entirety to
read as follows:
"This agreement shall commence on the effective date and shall terminate, and all services
required hereunder shall be completed, no later than June 30, 2018."
Section 3. Section 13 "Indemnity" of the Agreement is hereby amended in its
entirety to read as follows :
"a. To the fullest extent permitted by law, Consultant shall defend (with
counsel reasonably approved by the City), indemnify and hold the City, its
officials, officers, employees, agents and volunteers free and harmless from any
and all claims, demands, causes of action, suits, actions, proceedings, costs,
expenses, liability, judgments, awards, decrees, settlements, loss, damage or
injury of any kind, in law or equity, to property or persons, including wrongful
death, (collectively, "Claims') in any manner arising out of, pertaining to, or
incident to any alleged acts, errors or omissions, or willful misconduct of
Consultant, its officials, officers, employees, subcontractors, consultants or
agents in connection with the performance of the Consultant's services, the
540028 .1
61147.00000\28694736.3
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Project or this Agreement, including without limitation the payment of all
consequential damages, expert witness fees and attorneys' fees and other
related costs and expenses. Notwithstanding the foregoing, to the extent
Consultant's services are subject to Civil Code Section 2782.8, the above
indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to
Claims that arise out of, pertain to, or relate to the negligence, recklessness, or
willful misconduct of the Consultant. Consultant's obligation to indemnify shall
not be restricted to insurance proceeds, if any, received by the City, its officials,
officers, employees, agents or volunteers.
b. Additional Indemnity Obligations. Consultant shall defend, with
counsel of City's choosing and at Consultant's own cost, expense and risk, any
and all Claims covered by this section that may be brought or instituted against
the City, its officials, officers, employees, agents or volunteers. Consultant shall
pay and satisfy any judgment, award or decree that may be rendered against the
City, its officials, officers, employees, agents or volunteers as part of any such
claim, suit, action or other proceeding. Consultant shall also reimburse City for
the cost of any settlement paid by the City, its officials, officers, employees,
agents or volunteers as part of any such claim, suit, action or other proceeding.
Such reimbursement shall include payment for the City's attorney's fees and
costs, including expert witness fees. Consultant shall reimburse the City, its
officials, officers, employees, agents and volunteers, for any and all legal
expenses and costs incurred by each of them in connection therewith or in
enforcing the indemnity herein provided. Consultant's obligation to indemnify
shall not be restricted to insurance proceeds, if any, received by the City, its
officials, officers, employees, agents and volunteers."
Section 4. Section 14.4 "Proof of Insurance Requirements/Endorsement" of the
Agreement is hereby amended in its entirety to read as follows:
"Prior to beginning any work under this Agreement, Consultant shall submit the
insurance certificates, including the deductible or self-retention amount, and an additional
insured endorsement naming City, its officers, employees, agents, and volunteers as
additional insured as respects each of the following: Liability arising out of activities
performed by or on behalf of Consultant, including the insured's general supervision of
Consultant; products and completed operations of Consultant; premises owned, occupied
or used by Consultant; or automobiles owned, leased, hired, or borrowed by Consultant.
The coverage shall contain no special limitations on the scope of protection afforded City,
its officers, employees, agents, or volunteers. The Commercial General Liability Policy
and Automobile Policy shall each contain a provision stating that Consultant's policy is
primary insurance and that any insurance, self-insurance or other coverage maintained by
the City or any named insureds shall not be called upon to contribute to any loss."
Section 5. Remaining Provisions. All other provisions of the Agreement not
amended hereunder shall remain in full force and effect.
[Signatures on following page]
61147.00000\28694736.3 -2-
SIGNATURE PAGE TO SECOND AMENDMENT TO
PERSONAL SERVICES AGREEMENT BETWEEN
CITY OF SAN JUAN CAPISTRANO AND NEW TURTLE ISLAND
ATTEST:
By: ______________________ __
City Clerk
APPROVED AS TO FORM :
BY : ------------------------City Attorney
61147.00000\28694736.3 -3-
CITY OF SAN JUAN CAPISTRANO
By : __ ~--------------------
Benjamin Siegel,
City Manager
NEW TURTLE ISLAND
By: ______________________ __
Name: Patrick Paitt
Title: New Turtle Island Owner
OWNER OCCUPIED REHABILITATION PROGRAM
ADMINISTRATIVE POLICIES AND DOCUMENTS
The City will implement the following policies regarding consultant activity to ensure all
future interaction remains clear and avoids conflict. These operational policies will be in
addition to the requirements established in the Owner Occupied Rehabilitation Program
guidelines.
OOR Policy 1: All communication between the City's Owner Occupied Rehabilitation
consultant and the home owner or contractor is to be in writing, or followed up by the
City's Owner Occupied Rehabilitation consultant with a written summary of the
communication within 24 hours from the meeting. If any person has a discrepancy in
the written summary, they will need to respond with their recollection of the
communication within 24 hours of receiving the written summary, and request to
clarify. If the discrepancy cannot be remedied in writing, a meeting will be set up to
clarify the communication, and the clarification will be written up by the City's Owner
Occupied Rehabilitation consultant and redistributed within 24 hours from the
meeting .
OOR Policy 2: The City's Owner Occupied Rehabilitation consultant will reply to any
communication within five working days of receiving the communication. A reply
acknowledging receipt of the communication is sufficient if more time is required for
a more thorough reply. However, if more time is necessary, the Owner Occupied
Rehabilitation consultant shall provide a timeframe for when additional information
will be provided.
OOR Policy 3: Contract documents will not be prepared or signed by any participant
of the City's Owner Occupied Rehabilitation program (home owner, contractor, or
consultant) until final authorization to expend funds is received by the state.
OOR Policy 4: All contract and loan documents will be delivered or mailed to the
home owner and contractor within 24 hours of full execution by both parties.
OOR Policy 5: Upon receiving an invoice from a contractor, the City's Owner
Occupied Rehabilitation consultant will prepare a Payment Authorization form and
mail the form to the home owner within 72 hours of receiving the invoice. The Owner
Occupied Rehabilitation consultant will prepare a written explanation with each form
regarding the process necessary for the specific authorization form. For example, a
form may solely need to be signed by the homeowner, if satisfied with the work and
submitted to the City for payment, while others may require an inspection which
requires a meeting be arranged between the home owner, the contractor, and the
City's Owner Occupied Rehabilitation consultant.
The City will provide the following new documents regarding consultant activity to
ensure all future interaction remains clear and avoids conflict. These documents will be
in addition to the documents provided and signed by the homeowner and/or contractor
EXHIBIT A
when participating in the Owner Occupied Rehabilitation Program and in accordance
with the approved guidelines, including, but not limited to the Deed of Trust or
Certificate of Title Authorization for a Lien, Waiver and Indemnification, Notice of Right
to Cancel, Truth in Lending Disclosure, Escrow Instructions, Hazard Insurance naming
the City as Additionally Insured, and Promissory Note.
OOR Document 1: An updated contract template, offered to contractors and home
owners for reference or to use at their discretion, will contain all appropriate state
regulations when required.
OOR Document 2: An acknowledgement form will be drafted for all homeowners and
contractors to sign stipulating that Change Orders are necessary for additional work
or changes in the scope of the work due to conditions discovered during the course
of the project. All discoveries are to be communicated in accordance with OOR
Policy 1.
OOR Document 3: An acknowledgement form will be drafted for all home owners to
sign stipulating that the City's Owner Occupied Rehabilitation program requires a
homeowner to enter into a contract with a single contractor to complete the items on
the work write-up (unless a specialty trade is required which a sub-contractor cannot
be used), and the contract agreement between the homeowner and contractor will
need to be terminated prior to changing contractors for the program.
OOR Document 4: An acknowledgement form will be drafted for all home owners to
sign stipulating that the City's Owner Occupied Rehabilitation consultant ensures the
contractors complete home improvements in accordance with state and local code
requirements; and therefore, if the local or state inspector finalizes a permit, the
consultant will support payment for the permitted and approved work.