HomeMy WebLinkAboutPR 19812: EDC, AGREEMENT WITH LEGACY COMMUNITY DEVELOPMENT CORPORATION Interoffice
MEMORANDUM
To: Mayor, City Council, City Manager
From: Floyd Batiste, CEO
Date: June 12, 2017
Subject: P. R. No. 19812; Council Meeting of June 20, 2017
ATTACHED IS PROPOSED RESOLUTION NO. 19812. A
RESOLUTION AUTHORIZING THE FIRST RENEWAL
OF THE PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION AGREEMENT WITH
LEGACY COMMUNITY DEVELOPMENT
CORPORATION ("LEGACY CDC") TO MANAGE ITS
AFFORDABLE HOUSING PROGRAM AT A COST NOT
TO EXCEED $35,000 PER YEAR. PAEDC FUNDING
ACCOUNT NO. 120-1429-582.54-11.
P.R. NO. 19812
06/07/2017
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE FIRST
RENEWAL OF THE PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION
AGREEMENT WITH LEGACY COMMUNITY
DEVELOPMENT CORPORATION ("LEGACY CDC")
TO MANAGE ITS AFFORDABLE HOUSING PROGRAM
AT A COST NOT TO EXCEED $35,000 PER YEAR.
PAEDC FUNDING ACCOUNT NO. 120-1429-582.54-11.
WHEREAS, pursuant to Resolution No. 16-232, the Port Arthur City Council approved
the City of Port Arthur Section 4A Economic Development Corporation ("PAEDC") entering
into an agreement with Legacy Community Development ("Legacy CDC") for management of
its downtown payment assistance program for affordable housing in a target area of the City; and
WHEREAS, the citizens of the Port Arthur approved Proposition 2, allowing PAEDC to
allocate $300,000 per year of its sales and user tax for affordable housing in a target area of the
City; and
WHEREAS, on June 5, 2017, the PAEDC Board of Directors approved the first renewal
of the Agreement between PAEDC and Legacy CDC; and
WHEREAS, PAEDC desires to retain the services of Legacy CDC as its consultant to
furnish certain homeownership program services as defined in the service agreement attached
hereto as Exhibit"A".
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR, TEXAS:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the Port Arthur City Council approves PAEDC to renew its consultant
agreement with Legacy CDC for a cost not to exceed $35,000 per year with an option to renew
for one additional year.
Section 3. That a copy of the caption of this Resolution be spread upon the Minutes of
the City Council.
READ, ADOPTED AND APPROVED on this day of A.D., 2017,
at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES:
Mayor
Councilmembers
•
NOES:
Derrick Freeman, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
�
Floyd Batist•, PAED CEO
#1396197 Page 2
APPROVED , ' TO F ' :
o
Guy N. Goodson, PAEDC Atto-ney
APPROVED AS TO FORM:
Va jAl -v-vt?'
Valecia R. Tizeno ity Attorney
APPROVED AS TO AVAILABILITY OF FUNDS:
Interim Director Finance
#1396197 Page 3
c
Exhibit "A"
CONSULTANT AGREEMENT
THIS CONSULTANT AGREEMENT (the "Agreement") made and entered into
effective as of the 1st day of August, 2017 (the "Effective Date"), by and between Tender
Loving Care Center for Children d/b/a Legacy Community Development Corporation ("Legacy
CDC") and City of Port Arthur Section 4A Economic Development Corporation("PAEDC").
RECITAL
PAEDC desires to retain and engage Legacy CDC as a Consultant and Legacy CDC
desires to contract with PAEDC to furnish certain homeownership program services (the
"Services") as defined in the Proposal for Services attached hereto as Exhibit "A".
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
PAEDC hereby engages and retains Legacy CDC as an Independent Contractor:
(A) Recital: The recital set forth above and the Proposal for Services attached hereto
as Exhibit "A" are incorporated into this Agreement as if fully set forth herein,
for all purposes.
(B) Term: The term of this Agreement shall begin effective August 1, 2017 and shall
continue July 31, 2018, for completion of Services, or until earlier terminated
pursuant to paragraph D below. The term of this Agreement may be extended by
PAEDC on or before the termination date of any term of this Agreement for such
time periods to correspond with the ballot proposition approved by the City of
Port Arthur under an affordable housing program ballot proposition dated on the
7th day of May 2016.
(C) Compensation: During the term of this Agreement, Legacy CDC shall be paid
compensation as defined in the Budget incorporated within Exhibit "A", and as
verified by PAEDC. Legacy CDC shall submit invoices to PAEDC for such
services as identified in Task Order One, and said invoices shall be payable within
ten(10) business days of receipt.
(D) Services: Legacy CDC agrees to provide Services to PAEDC as set forth in
Exhibit "A" provided that such services may be modified from time to time by
written agreement of both parties.
(E) Termination: PAEDC shall be entitled to terminate this Agreement in the event
that Legacy CDC fails or refuses to perform its obligations. In addition, PAEDC
may also terminate this agreement upon thirty (30) days written notice for
convenience or in the event of the termination or lack of funding.
(F) Independent Contractor: Nothing in this Agreement shall be construed to create
the relationship of employer and employee or a joint venture or partnership
agreement. Legacy CDC shall be at all times and for all purposes an Independent
Contractor and, accordingly, PAEDC will not make any deductions for taxes or
other deductions from compensation. As an Independent Contractor, Legacy
CDC will pay its own taxes and be responsible for securing its own vehicle
insurance and shall fully indemnify PAEDC for any such liability. Legacy CDC
recognizes and agrees that it has no authority to bind or commit PAEDC except as
expressly authorized by PAEDC.
(G) Performance: Legacy CDC agrees that it will to the best of its ability and
experience perform all of the duties which may be required pursuant to this
Agreement, and will exercise the same degree of skill and care in performing said
services as normally employed by persons performing the same or similar
services.
(H) Insurance: Legacy CDC shall, at its own expense, maintain liability insurance on
any personal automobile used for business purposes with a minimum of
$1,000,000 combined single limit. Legacy CDC shall further maintain, at its own
expense, general liability insurance in the amount of$2,000,000 each occurrence,
and Workers Compensation coverage as required by law. Proof of insurance shall
be furnished to PAEDC upon request, and shall list PAEDC as an additional
insured upon request.
(I) Outside Activities: This Agreement is not intended to prohibit Legacy CDC from
accepting other employment or providing services to its own clients provided that
such employment does not compete with or substantially interfere with the
business of PAEDC and does not create a conflict with PAEDC partners including
the City or PAEDC incentive recipients.
(J) Confidentiality: Any information, including client information, which PAEDC
may disclose to Legacy CDC in connection with this Agreement will be
considered confidential and Legacy CDC will not disclose said confidential
information to any person unless expressly authorized by PAEDC. Legacy CDC
shall not at any time or in any manner, either directly or indirectly, divulge,
disclose or communicate to any person, firm, or corporation in any manner
whatsoever any information concerning any matters affecting or relating to the
business of PAEDC, including its manner of operation, its plans, processes, data
or any other information not generally known in the practice but which has been
disclosed to LEGACY CDC or become known by it as a consequence of this
engagement by PAEDC. All documents, records, word papers and
correspondence prepared by Independent Contractor while in the engagement of
PAEDC are the property of PAEDC and after termination of this Agreement shall
remain with PAEDC.
(K) No Assignment: Legacy CDC acknowledges that the services to be performed
hereunder are unique and personal. Accordingly, Legacy CDC may not assign
any of his rights or delegate any of his duties or obligations hereunder without the
prior written consent of PAEDC.
(L) Mutual Limitation of Liability: Notwithstanding any other provision of this
Agreement, neither party hereto, including their respective officers, agents,
servants, and employees, shall be liable to the other party for lost profits or
punitive damages or for any special, indirect, incidental, or consequential
damages in any way arising out of this Agreement however caused or based on
any theory of liability (including, but not limited to: contract, tort, or warranty)
even if advised about the possibility of such damages.
(M) Governing Law: This Agreement is deemed to be effective in and shall be
construed in accordance with the laws of Texas, and shall not be modified or
amended except in writing signed by all parties. Jurisdiction shall be in a court of
competent jurisdiction in Jefferson County, Texas.
EXECUTED this the day of , 2017.
City of Port Arthur Section 4A
Economic Development Corporation
By:
EXECUTED this the day of , 2017.
Tender Loving Care Center for Children
d/b/a Legacy Community Development
Corporation
By:
t,
RECEIVED
JUL 05 2016
i
LagLEGACY
COMMUNITY
DEVELOPMENT CORP
PROPOSAL FOR CONSULTANT SERVICES
Overview
Legacy CDC is pleased to submit this proposal for consultant services to support the Port Arthur EDC in
achieving its Downtown Homeownership Program goals.
The Objective
The purpose of the program is to develop a homeownership program that will achieve the goals of the
PAEDC:
Goal#1: Certification of prospective buyers
Goal#2: Declare prospective tenants as"mortgage ready"
Goal#3: Research financing mechanisms for the purchase
Goal#4: Foster the develop of affordable houses
- Goal#5: Close on sales
Our Proposal
Legacy Community Development Corporation is dedicated to providing housing opportunities, education,
supportive services and referrals to create stable, self-sufficient families.
Vision Statement
Because of Legacy Community Development Corporation's holistic approach to helping families achieve
stability and self-sufficiency, our community will be empowered, safe and sustained.
Legacy CDC is a nonprofit organization whose primary focus is the development of affordable housing.
Legacy was established in 2006 to assist low to moderate income families overcome challenges with at-
risk children and housing stability.
Over the past ten (10) years, hundreds of families of have received homeownership counseling services,
credit counseling and home buyer certification.
The purpose of the Home Buyer Education Certification is to educate prospective homebuyers in the
principals of homeownership. Buying a house represents one of the greatest financial commitments a
family can make. At the same time, owning a home comes with a sense of accomplishment and pride.
While we can expect to experience mixed emotions and high stress at times, this class has been
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developed to educate those who have no experience in the home buying process. In taking this class,
attendees will have the opportunity to learn about the following topics during a very interactive class
session: renting vs. owning, steps in the home buying process, understanding the role of real estate and
mortgage professionals, determining affordability, creating a budget, understanding credit, types of
affordable mortgage products, finding the right home, maintaining a home and taking care of finances.
At the completion of the class, attendees will be able to determine their position in the home buying
process and the steps they should take to attain the goal of a smooth process with the help of their
purchasing team.
This class is the first step that takes prospective home buyers closer to the"American Dream."
Legacy will work with each client to address credit or other obstacles to achieving their goal of
homeownership.
Technical Expertise
Legacy CDC has administered homebuyer assistance programs since 2009. Legacy's staff has over 29
years of experience in the operation of affordable housing and homebuyer assistance programs. The
Executive Director served as the Housing program director for the City of Port Arthur, Irving and the
Beaumont Housing Authority. She and her staff are certified to instruct homebuyer education courses,
provide credit, post purchase and foreclosure prevention counseling.
Legacy is currently funded by the cities of Beaumont and Port Arthur to operate homebuyer assistance
programs. Legacy is the only Certified Housing Development Organization (CHDO) in Port Arthur. Our
organization works with the citizens of Port Arthur on a daily basis preparing them for homeownership.
We currently have a client pool of over 60 families. At this time, five(5) families have been pre-qualified
for mortgages and are waiting for the first homes to be constructed.
Legacy has developed long term relationships with local realtors and bankers who understand the buyer's
needs and market in Port Arthur. Our realtor and lender partners have worked in this type of program for
decades. They have been trained on the basics of fair housing through participation in the Fair Housing
Coalition. The Legacy ED was a founding member of the Coalition. We have reached out to our partners
and we are ready to proceed with the program immediately.
Management Expertise
Legacy CDC is continually proven to be a leader in the field of affordable housing. Legacy CDC has
served as a certified Community Housing Development Organization for the cities of Port Arthur,
Beaumont and TDHCA.
As previously mentioned, our Executive Director is a certified State and Federal Grant Administrator and
certified HUD Community Housing Development Organization Manager. She has over 29 years of
affordable housing experience(including 3 years experience as Executive Director of Beaumont Housing
Authority). Staff members are all Neighborworks or HUD certified to provide credit and homebuyer
certification counseling.
Legacy believes that staff training is the key to a successful program. Legacy was the first CHDO in
Texas to participate in HUD's CHDO Management and Planning certification course. The course consists
of three 5-week courses, spanning approximately 5 months, covering a wide range of management and
affordable housing topics, focusing on strategic planning, operations management and financial
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management.
The course assists CHDOs in increasing their effectiveness by refining their skills and increasing their
knowledge of the federal HOME Program regulations. To participate in the program, Legacy received
letters of support from the City of Port Arthur and Beaumont. (See attached certificate)
In addition, Legacy's Executive Director is a certified Grant Administrator. She has year of experience in
grant compliance, reporting and monitoring activities. She revamped and redeveloped the City of Irving's
Homeownership Program during her six (6) year tenure.
Legacy has been funded as a CHDO for the past 8 years through the cities of Beaumont, Orange and
Port Arthur and has never received a poor review or loss funding due to lack of performance. Legacy
also participates in the Texas State Affordable Housing Corporation's homeownership program.
Project Scope of Work/Deliverables
Following is a complete list of all project deliverables:
Deliverable Description
Certification of 100 Each participant will participate in 8 hours of pre-purchase homebuyer
applicants certification course
Contracts for Purchase Each participant will execute an earnest money contract and deposit
earnest money.
Occupation of units Participants shall acquire and close on units
Timeline for Execution
Key project dates are outlined below. Dates are best-guess estimates and are subject to change until a
contract is executed.
Description Start Date End Date Duration
Contract Negotiation and Execution July 15, 2016 July 14, 2017 1 year
Marketing and Acceptance of Applications August 1, 2016 July 14, 2017
One on One Counseling and Assessment August 1, 2016 July 14, 2017 1 hour per client,
of Participants. 2 sessionser
P
client
Homebuyer Certification Classes August, 2016 July, 2017 8 hours per class
Credit Counseling August, 2016 July, 2017 Monthly sessions
Quarterly Reporting October, 2016 July, 2017
Selection of Home and Contract Signing August, 2016 July, 2017
Project completion July 14, 2017
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Pricing
The following table details the pricing for delivery of the services outlined in this proposal. This pricing is
valid for<30 days> from the date of this proposal. The Fee Schedule is $2,500 per month for twelve
months.
Services Cost<Category#1> Price
Homebuyer Certification Class($75 per participant, includes training materials) $7500.00
Counseling Sessions and Meetings $22,500.00
Tbtal S30,000.00
Insurance Requirements
Legacy maintains General Liability Insurance, Board Indemnity Insurance, Errors and Omissions
Insurance and coverage for all properties owned. If awarded, Legacy will present the requested
throughout the duration of the contract period.
References
Contract Contact Person Email Phone
HOME Program Beverly Freeman, bfreeman@portarthur.net 409-983-8283
Administration Director of City of Port
Arthur Housing
Program
HOME Program Joann Patillo, jpatillo@ci.beaumont.tx.us 409-832-3178
Administration Director of City of
Beaumont Housing
Program
TSHAC Affordable Jo Keene, Housing jkeene@tshac.org 512-334-21550
Housing Program. Manager
We look forward to working with the Port Arthur Economic Development Corporation. We are confident
that we can meet the challenges ahead, and stand ready to partner with you in delivering an effective
homeownership program.
If you have questions on this proposal, feel free to contact Vivian Ballou at your convenience by email at
legacycdc@yahoo.com or by phone at 409-365-9850. Thank you for your consideration,
//
ivian allow /1#
Executive Dire or
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U.S. Department of Housing and Urban Development
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In recognition of the successful completion of the
requisite course of study and on nomination of
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Training & Development Associates, Inc.
HUD hereby confers upon
Vivian L. Bailou
this certificate in
CHDO Management and Planning
Given on the 21st of March in the year two thousand and thirteen
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