City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-02546 5/16/2023 Consent Item 4.
Grant Agreement : Justice for Neighbors Emergency Home Repair Pilot Program File ID: 2022-02546
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee to: 1) establish the Justice for Neighbors Emergency Home Repair Pilot Program (I21000700); 2) transfer $304,000 from the Housing Trust Fund commitment of Measure U (Fund 2401) available fund balance to the Justice for Neighbors Emergency Home Repair Pilot Program (I21000700); 3) transfer $200,000 from the Justice for Neighbors Project (I03000100, Fund 1001) to the Justice For Neighbors Emergency Home Repair Pilot Program (I21000700); and 4) authorize the City Manager or the City Manager’s designee to execute a grant agreement with Habitat for Humanity of Greater Sacramento for the Justice for Neighbors Emergency Home Repair Pilot Program for a total not-to-exceed amount of $504,000 for a term of 48 months, or until depletion of the funding.
Contact: Peter Lemos, Code and Housing Enforcement Chief, (916) 808-8183, [email protected], Community Development Department; Michael Benner, Senior Deputy City Attorney, (916) 808-5346, [email protected], City Attorney’s Office; Axel Magallanes, Housing Analyst, (916) 808-1844, [email protected], Office of Innovation & Economic Development; Leslie Fritzsche, Economic Investment Manager, (916) 808- 5450, [email protected], Office of Innovation & Economic Development Attachments:
1-Description/Analysis
2-Resolution
3-Grant Agreement
Description/Analysis
Issue Detail: The City of Sacramento has an aging housing stock that requires continued reinvestment by homeowners. Low-income homeowners can face challenges with home repairs and preventive maintenance due to tight household budgets that leave little room for necessary repairs.
Unresolved home repairs can lead to habitability and safety issues over time and sometimes result in
File ID: 2022-02546 5/16/2023 Consent Item 4.
the loss of housing in our community. The recommended emergency home repair pilot program is being created and funded in partnership between the City Attorney’s Office, using Justice for Neighbors (JFN) funds, and the Housing Division within the Office of Innovation & Economic Development (OIED), utilizing city-held Housing Trust Fund resources. The program will be managed by the City’s Housing and Dangerous Buildings Division of the Community Development Department, in partnership with Habitat for Humanity of Greater Sacramento. City staff are recommending this grant in an effort to offer assistance to low-income households who are not able to make necessary repairs impacting the safety and habitability of their homes without assistance.
In order to qualify for the Emergency Home Repair Program households must have a gross annual income at or below 80% of the local area median income, be a single-family and owner-occupied household, and have code violations that would qualify it as a Substandard or Dangerous Building pursuant to the Sacramento City Code. This funding is anticipated to address violations that may include substandard or dangerous roof, electrical, plumbing, or HVAC systems. Eligible households may qualify for up to $15,000 in one-time funding to complete needed repairs. Habitat for Humanity will utilize other resources and partnerships, including SMUD support and other nonprofits focused on energy efficiency and accessibility to further stretch these resources and get residents the assistance they need.
Policy Considerations: The recommended program is in alignment with the City’s 2021-2029 Housing Element which includes a recommended action (Program H9) for establishment of an Emergency Repair Program which would provide grants to low income households for emergency repair. In addition, the use of the JFN resources is in keeping with the established goals of the JFN program.
Economic Impacts: This grant will serve as a remediation measure for low-income homeowners, before housing becomes substandard or dangerous, which is typically more cost-effective, and increases viable housing stock in Sacramento and ensures housing stability for local homeowners.
Environmental Considerations: The City’s establishment of a funding mechanism for the Local Projects (contracts) is not a project pursuant to CEQA Guidelines section 15378(b)(4) because it qualifies as the creation of government funding mechanisms or other government fiscal activities, which does not involve any commitment to any specific project, which may result in a potentially significant physical impact on the environment.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: There is great need in the community for addressing housing stability and condition. The recommended pilot program and corresponding grant will result in
File ID: 2022-02546 5/16/2023 Consent Item 4.
improving housing stock condition and safety as well as providing a resource to homeowners that are economically challenged to maintain their homes. The proposed program will enhance housing stability for those homeowners and serve as a deterrent for further code violations and housing deterioration. This program can serve to reduce homelessness due to unstable housing conditions.
The cross-discipline team comprised of the City Attorney’s Office, Community Development staff and Office of Innovation and Economic Development staff have reviewed the qualifications of Habitat for Humanity of Greater Sacramento and based upon their excellent track record, have confidence in their ability to deliver the needed services to the homeowners.
Financial Considerations: On February 2, 2021, City Council set aside a commitment of $31.5 million in the City’s General/Measure U (GF/MU) available fund balance to the City Housing Trust Fund. This report recommends establishing the Justice for Neighbors Emergency Home Repair Pilot Program (I21000700) and transferring $304,000 from the City Housing Trust Fund commitment and $200,000 from the Justice for Neighbors Project (I03000100, Fund 1001) to the Justice for Neighbors Emergency Home Repair Program (I21000700).
Habitat for Humanity of Greater Sacramento will leverage additional resources for this program through its partnership with SMUD and other community-based organizations. Should this pilot program prove to be successful, staff will be seeking a more permanent funding source for future iterations of the program.
Local Business Enterprise (LBE): Habitat for Humanity of Greater Sacramento is a local Sacramento-based organization.
RESOLUTION NO.
Adopted by the Sacramento City Council
Justice for Neighbors Emergency Home Repair Pilot Program Establishment and Grant and Budget Authority
BACKGROUND
A. Substandard and dangerous housing presents a serious and present threat to the public health and safety of the residents and businesses in Sacramento.
Substandard and dangerous housing may result in unnecessary penalties and, in the worst case, closure of the home. In these cases, additional City resources must be utilized to address owner-occupied homes which have become serious neighborhood nuisances.
B. City staff regularly observe low-income households facing habitability challenges due to a lack of resources.
C. Engaging in remediation measures, before housing becomes substandard or dangerous is typically more cost-effective and increases viable housing stock in Sacramento and ensures housing stability for local homeowners.
D. The proposed Justice for Neighbors Emergency Home Repair Pilot Program aims to assist low-income homeowners in completing home repairs that will maintain unit habitability prior to the home becoming substandard or dangerous.
E. California Labor Code Section1720(c)(4)(C) states that public funds used for rehabilitation of single family homes is not subject to prevailing wages.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or the City Manager’s designee is authorized to establish the Justice for Neighbors Emergency Home Repair Pilot Program (I21000700).
Section 2. The City Manager or the City Manager’s designee is authorized to transfer $304,000 from the Housing Trust Fund commitment of Measure U (Fund 2401) available fund balance to the Justice for Neighbors Emergency Home Repair Pilot Program (I21000700).
Section 3. The City Manager or the City Manager’s designee is authorized to transfer $200,000 from the Justice for Neighbors Project (I03000100, Fund 1001)
to the Justice for Neighbors Emergency Home Repair Pilot Program (I21000700).
Section 4. The City Manager or the City Manager’s designee is authorized to issue a grant to Habitat for Humanity of Greater Sacramento specifically for the rehabilitation of single family homes under the Justice for Neighbors Emergency Home Repair Pilot Program for a total not-to-exceed amount of $504,000 for a term of 48 months.
Section 5. The City Manager or the City Manager’s designee is authorized to perform all other actions related to the creation and implementation of the Justice for Neighbors Emergency Home Repair Pilot Project.
1 Rev. 4_12_2023
EMERGENCY HOME REPAIR PROGRAM GRANT AGREEMENT This grant funding agreement (“Agreement”) dated _____________, 2023, for purposes of identification, is between the CITY OF SACRAMENTO, a California municipal corporation (the “City”), and Habitat for Humanity of Greater Sacramento, a California non-profit corporation (the “Grantee”). The City and Grantee are sometimes referred to individually in this Agreement as a “Party” and collectively as the “Parties.” BACKGROUND A. Habitat for Humanity of Greater Sacramento operates a successful and well-respected home repair and home preservation program which serves low-income owner-occupied properties and residents who live in the City of Sacramento. B. The City of Sacramento wants to assist homeowners, who to no fault of their own, but due to health challenges, aging, limited income, or other legitimate circumstances are unable to maintain their property to City of Sacramento Code standards. C. The Emergency Repair Grant Program (“EHRP”) is designed to provide one-time emergency repair assistance to low-income owner-occupied properties facing impending health or safety Code violations anywhere within the City of Sacramento. D. This Agreement is intended to memorialize the City and Grantee’s obligations with respect to receipt of the grant. With these background facts in mind, the City and Grantee agree as follows: 1. Funding Amount. Subject to the terms and conditions of this Agreement, City agrees to give Grantee a grant in the amount of $504,000.00 to be used during the term of this Agreement. 2. Term. This Agreement takes effect as described in section 12 and terminates on January 1, 2027. subject to early termination under section 10. Subject to compliance with the terms of this Agreement, submission of all required reports, and appropriation of funds by the City Council for future years, this Agreement may be extended for up to two, additional two-year terms. 3. Disbursement of Funds. (a) Funds shall be distributed to Grantee as follows: Grantee shall submit invoices to the City’s Community Development Department (“CDD”) for repair work completed on owner-occupied single-family homes located in the City of Sacramento, as referred to Grantee by the City. The invoices shall contain the property address, 2 Rev. 4_12_2023
the name of the property owner, and shall specify the repairs completed on the property, separately delineating the cost of labor, the cost of materials, and the cost of administrative processing, not to exceed 5% of the project grant value per project. Grantee shall generate a separate invoice for each property on which repair work was completed within 30 days of completion of repairs. The City shall review, approve, and pay each invoice within 30 days of the date on which it was submitted. If the City reviews and denies an invoice, it shall notify Grantee within 10 days of the submittal date with specified reason for denial. Grantee may resubmit the invoice with any missing or incomplete information within 10 days. (b) The City’s obligation to disburse these funds is conditioned upon the Grantee’s satisfactory performance under this Agreement, as determined by the Director of the Community Development Department (“Director”) or the Director’s authorized designee. (c) The Grantee shall reimburse the City any overpayments and any grant reimbursements by the property owner. The parties to this agreement understand that Grantee’s typical business model operates under a repayment program. The intent of the EHRP is to not require any sort of repayment by the recipient of the home repairs. However, the money spent from the EHRP on home repairs shall be secured by a 5-year forgivable note and deed of trust. 4. Procedure for Referral and Authorized Uses. (a) Upon inspection by a CDD Building Inspector or Code Enforcement Officer (“inspector”) that a single-family, owner-occupied property is not in compliance with provisions of the California Building Code and/or the Sacramento City Code, that inspector may refer a case to CDD Management for consideration of inclusion in the Emergency Home Repair Program (“the Program”). Such referral shall include the address of the property, owner information for the property, pictures of the violations on the property, and specify the nature of the violations and corrective measures. Any information known to the inspector regarding the financial situation of the property owner shall also be given to CDD Management. (b) CDD Management shall review the referral, and if the property presumptively qualifies for the Program as described below in Section 5, CDD management shall forward an application packet to the homeowner (packet to be created by Grantee). Homeowner will be expected to complete and submit a completed application to Grantee within 30 days of receipt from CDD management. Once application is received and has been reviewed for completion and qualification, Grantee shall inform the referring CDD management personnel of Grantee’s findings, and whether Grantee will perform the needed repairs to bring the property into compliance with the law. If the repairs will take more than 30 days to 3 Rev. 4_12_2023
complete, Grantee shall provide a monthly status report to CDD on the status of the repairs.5. Qualifications for Inclusion into the Emergency Home Repair Program. (a) The property shall be a single-family, owner-occupied home within the City of Sacramento. (1) Property owner/resident cannot own other real or residential property.(2) Property owner/resident must meet all other Grantee program requirements. (b) The property shall have violations present that would qualify it as a Substandard or Dangerous Building pursuant to Sacramento City Code chapters 8.96 and/or 8.100. The violations shall be of a nature, that unless repaired, the occupants of the property would be displaced. Such violations may include, but are not limited to, substandard or dangerous roof, electrical, plumbing, or HVAC systems. (c) The property owner and household shall have a gross annual income at or below 80% of the local area median income. (d) The property shall need no more than $15,000.00 in repairs (including both labor and materials) to bring it into compliance with the law. (1) If the property requires no more than $15,000.00 in repairs to bring it into compliance with Code, but has a need for other health, safety, or habitability repairs, Grantee will address as they are able with other, non-City funds. (e) Each parcel has a lifetime limit of $15,000.00 in repairs. (f) A property owner receiving grant funds pursuant to this Agreement shall enter into a separate agreement with Grantee that if the property is sold or transferred within five years of the repairs being completed, the grant must be repaid to the Grantee by the property owner. Repayments would be deposited into a reinvestment account managed in accordance with the covenants of this grant agreement to be used on future Code referral repairs. 6. Books, Records, and Reports. The Grantee shall keep appropriate books, records, and accounts in connection with the funds received and activities performed under this Agreement for a period of no less than five years following expiration or termination of this Agreement. (a) Books and Records. The Grantee shall make its books, records, and accounts relating to this Agreement available to the Director or the Director’s designee at all reasonable times so that the Director or designee may audit the records to determine whether the Grantee has complied with this Agreement. Grantee 4 Rev. 4_12_2023
acknowledges and agrees that the Director may use the City’s Accounting Manager, City Auditor, or other authorized representative to conduct an audit and review of the records. This section 6(a) will survive the termination of this Agreement.(b) Annual Final Report. No later than February 28thof each year, the Grantee shall provide the City with a Final Report of all expenditures made during the previous grant year. The report must include a statement explaining how the Grantee used the funds for Authorized Uses; the report must also include any other information the City may request. The Grantee shall attach to the report a certificate that the funds received under this Agreement were used only for Authorized Uses. The Grantee’s failure to provide a Final Report and certificate as required may result in the cancellation of this Agreement by the City. (c) Unallowable Costs. Any costs that are determined by subsequent audit to be unallowable are subject to repayment by the Grantee to the City within 60 days unless the City approves in writing an alternative repayment plan. Reimbursement shall be by check payable to the City and delivered to the City at the address shown in the “Notice” section below. This section 6(d) will survive the termination of this Agreement. 7. Grantee’s Additional Responsibilities. (a) Review for Program Inclusion. Grantee shall take completed applications from CDD referrals and review them for program inclusion within 15 days receiving the completed application. Such review shall include the nature and extent of violations, verifying the property owner of the property, and verifying the household income of the property. (b) Licensed contractors. Grantee shall only utilize contractors that have an active and valid license from the California State Licensing Board for performing any needed repairs on properties accepted into the Program. 8. Grantee Office. The Grantee shall maintain its offices at the address shown in section 11 during the term of this Agreement, except as follows: the Grantee may relocate its offices and establish one or more additional offices with the City’s prior written consent. 9. Proprietary Information. The definitions of “public record” and “writing” in the California Public Records Act apply in this section 9. (a) All writings the Grantee delivers to the City in connection with this Agreement will be public records that are subject to disclosure under the California Public Records Act or through discovery in litigation unless exempted by law from disclosure. 5 Rev. 4_12_2023
The Grantee may designate writings it believes qualify as proprietary information exempt from disclosure under the California Public Records Act otherwise by setting those writings apart and clearly marking them “proprietary information” or “trade secret” when the writings are provided to the City. The City will follow the following procedures when handling requests for disclosure of proprietary information: (1) The City shall give notice to Grantee of any request for the disclosure of such information within five business days of receipt of a California Public Records Act request or if the City is served with a legal or administrative demand for disclosure (i.e., a subpoena) so that the Grantee may seek an appropriate protective order or may consent in writing to disclosure. Failure by the City to provide notice within the time set forth in this section shall not constitute a waiver or default under the terms of this section. If the City is not served with a valid protective order before the time disclosure is required, then the City may disclose the proprietary information.(2) The City is not obligated to defend against any litigation brought to compel disclosure of Grantee’s proprietary information, but the Grantee may defend against the litigation as the real party in interest, subject to the following: the Grantee shall indemnify, defend, protect, and hold harmless the City and the City’s members , employee, officials, and agents against all liabilities, claims, demands, damages, and costs related to the litigation arising out of it, including reasonable attorney’s fees (whether for outside counsel of the City Attorney’s Office) and litigation costs through final resolution on appeal. (3) The Parties understand and agree that any failure by Grantee to respond to the notice provided by the City in accordance with this section shall constitute a complete waiver by Grantee of any rights regarding the information designated “proprietary information” by Grantee, and such information shall be disclosed by the City pursuant to applicable procedures required by the Public Records Act or other applicable legal or administrative process. (b) This section will survive the termination of this Agreement. 10. Termination or Suspension. (a) City’s Right to Suspend Performance. The City has the right at any time to temporarily suspend Grantee’s performance hereunder, in whole or in part, by giving a written notice of suspension to Grantee. If the City gives such notice of suspension, Grantee shall immediately cease expending any unused grant funds, as specified in such notice. Grantee shall not spend any unused grant funds until the City has provided written notice that the temporary suspension has been lifted. 6 Rev. 4_12_2023
(b)City’s Right to Terminate. The City may terminate this agreement if it is determined that:(1) The Grantee has improperly used the grant funds; (2) The Grantee has failed to submit a final report on time and in proper form; (3) The Grantee has made (with or without knowledge) any material misrepresentation of any nature with respect to any information or statements furnished to City in connection with this Agreement;(4) There is pending litigation with respect to the performance by the Grantee of any of its duties or obligations under this Agreement that may materially jeopardize or adversely affect the undertaking of or the carrying out of the activities or any acceptable use of grant funds; (5) The Grantee has failed to perform, or has performed unsatisfactorily, any term of this Agreement; or (6) In the City’s sole discretion, it is in the best interest of the City to terminate this Agreement. (7) Grant funds have been expended 11. Notices. Any notice, request, report, or demand under this Agreement must be in writing and will be considered properly given and effective only when mailed or delivered in the manner provided by this section to the persons identified below or their successors. A mailed notice, application, request, report, or demand will be effective or will be considered to have been given on the third calendar day after it is deposited in the United States Mail (certified mail and return receipt requested), addressed as set forth below, with postage prepaid. A notice, application, request, report, or demand sent in any other manner will be effective or will be considered properly given when actually delivered. Either Party may change its address for these purposes by giving written notice of the change to the other Party in the manner provided in this section.: To City: To Grantee: City of Sacramento Habitat for Humanity of Greater SacramentoCommunity Development Department Attn: Leah Miller, President/CEO Attn: Peter Lemos 819 N. 10th Street 300 Richards Blvd., 3rd Floor Sacramento, CA 95811Sacramento, CA 95811 916-440-1215 x1138 916-808-8183 7 Rev. 4_12_2023
12. Effective Date. This Agreement is effective on the date that both Parties have signed it, as indicated by the dates in the signature blocks below. 13. Indemnity. Grantee shall defend, hold harmless and indemnify the City, its officers and employees, and each and every one of them, from and against any and all actions, damages, costs, liabilities, claims, demands, losses, judgments, penalties, costs and expenses of every type and description, including, but not limited to, any fees and/or costs reasonably incurred by the City’s staff attorneys or outside attorneys and any fees and expenses incurred in enforcing this provision (collectively, “Liabilities”), including but not limited to Liabilities arising from personal injury or death, damage to personal, real or intellectual property or the environment, contractual or other economic damages, or regulatory penalties, arising out of or in any way connected with the performance or failure to perform this Agreement by Grantee, any sub-consultant, subcontractor or agent, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, whether or not (i) such Liabilities are caused in part by a party indemnified hereunder or (ii) such Liabilities are litigated, settled or reduced to judgment, except that the foregoing indemnity does not apply to liability for any damage or expense for death or bodily injury to persons or damage to property to the extent arising from the sole negligence or willful misconduct of the City, its agents, servants, or independent contractors who are directly responsible to City, except when such agents, servants, or independent contractors are under the direct supervision and control of Grantee. Grantee’s maintenance of any insurance policies shall not limit the liability of Grantee hereunder. The provisions of this section shall survive any expiration or termination of this Agreement. 14. Insurance. During the term of this Agreement, Grantee shall maintain insurance coverage as follows: (a) Commercial General Liability Insurance providing coverage at least as broad as ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of one or more persons, property damage, and personal injury, arising out of activities performed by or on behalf of Grantee, its subcontractors, products and completed operations of Grantee, its subcontractors, and premises owned, leased, or used by Grantee, its subcontractors, with limits of not less than one million dollars ($1,000,000) per occurrence. The policy must provide contractual liability and products and completed operations coverage for the term of the policy. (b) The minimum limits of insurance required by section 14(a) may be satisfied by a combination of primary and umbrella or excess insurance coverage; provided that any umbrella or excess insurance must contain, or be endorsed to contain, a provision that it applies on a primary basis for the benefit of the City, and any insurance or self-insurance maintained by the City, its officials, employees, or 8 Rev. 4_12_2023
volunteers is in excess of such umbrella or excess coverage and does not contribute with it.(c) The City, its officials, employees, and volunteers must be covered by policy terms or endorsement as additional insureds as respects general liability arising out of: activities performed by or on behalf of Grantee and its subcontractors; products and completed operations of Grantee and its subcontractors; and premises owned, leased, or used by Grantee and its subcontractors. (d) The policies must contain, or be endorsed to contain, the following provisions: (1) Grantee’s insurance coverage, including excess insurance, is primary insurance as respects the City, its officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officials, employees, or volunteers is in excess of Grantee’s insurance and does not contribute with it. (2) Any failure to comply with reporting provisions of the policies does not affect coverage provided to the City, its officials, employees, or volunteers. (3) Coverage must state that Grantee’s insurance applies separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. (e) Grantee shall provide the City with 30 days’ written notice of cancellation or material change in the policy language or terms. (f) Insurance must be placed with insurers with a Bests’ rating of not less than A:VI. Self-insured retentions, policy terms, or other variations that do not comply with the requirements of this section must be declared to and approved by the City in writing prior to execution of this agreement. (g) Grantee shall furnish the City with certificates and required endorsements evidencing the insurance required. The certificates and endorsements must be forwarded to the City representative named in section 11. Copies of policies must be delivered to the City on demand. Certificates of insurance must be signed by an authorized representative of the insurance carrier. (h) For all insurance policy renewals during the term of this agreement, Grantee shall send insurance certificates reflecting the policy renewals directly to: City of Sacramento c/o EXIGIS LLC P.O. Box 947 Murrieta, CA 92564 9 Rev. 4_12_2023
Insurance certificates also may be faxed to (888) 355-3599, or e-mailed to: [email protected](i) The City may withdraw its offer of contract or terminate this Agreement if the certificates of insurance and endorsements required have not been provided prior to execution of this Agreement. The City may withhold payments to Grantee or terminate the Agreement if the insurance is canceled or Grantee otherwise ceases to be insured as required by this section. (j) Any available insurance proceeds in excess of the specified minimum limits and coverages must be made available to the City. (k) Grantee’s liability to the City is not in any way be limited to or affected by the amount of insurance coverage required or carried by Grantee in connection with this agreement. 15. Conflicts of Interest. Grantee, its officers, directors, employees, agents, and subcontractors shall not have or acquire any interest, directly or indirectly, that creates an actual or apparent conflict with the interests of the City or that in any way hinders Grantee’s performance this Agreement. 16. Assignment. Grantee may not assign its rights or obligations under this Agreement, in whole or in part, without City’s prior written consent, which City may withhold in its sole discretion. Any attempted or purported assignment without City’s written consent shall be void and of no effect. 17. Successors and Assigns. This Agreement binds and inures to the benefit of the heirs, administrators, successors, and assigns of the Parties. This section 17 does not constitute the City’s consent to any assignment of this Agreement or any interest in this Agreement. 18. No Agency. Nothing in this Agreement should be deemed or construed to create between the Parties a joint venture, partnership, or any other relationship of association other than that of grantor (the City) and grantee (Grantee). Grantee and its personnel shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent. Grantee and its personnel shall have no authority, express or implied, to bind the City to any obligations whatsoever. 19. Attorney Fees. Except as required by section 13 above, the Parties shall bear their own costs and attorneys’ fees incurred in connection with this Agreement. 20. No Third-Party Beneficiaries. The Parties agree that this Agreement is made and entered into for the sole protection and benefit of the Parties, and no other person or entity is a third-party beneficiary of, or has any direct or indirect cause of action or claim in 10Rev. 4_12_2023
connection with, this Agreement or any other related document to which that person or entity is not a party.21. Tax Implications and Consequences. The City makes no representations as to the tax consequences associated with the payment of funds related to this Agreement, and any determination related to this issue is the sole responsibility of the Grantee. Grantee acknowledges consulting with its own tax advisors regarding this transaction or having had an opportunity to do so prior to signing this Agreement. Grantee acknowledges the City cannot provide advice regarding the tax consequences or implications of funding provided to Grantee under the terms of this Agreement. 22. Licenses, Permits, Etc. Grantee represents and warrants that it has all licenses, permits, City business operations tax certificates, qualifications, and approvals of whatsoever nature that are legally required for it to practice its profession and fulfill any obligations under this Agreement. Grantee represents and warrants that it will, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, and approvals that are legally required for it to practice its profession and fulfill any obligations under this Agreement. Grantee agrees to obtain all necessary permits for any repair work done on any property included in the Program. 23. Compliance with Applicable Laws. Grantee shall do all things necessary to conduct its affairs and carry on its business and operations in such manner as to comply with any and all applicable laws, including all federal, state, city, county, or government agency laws, and to duly observe and conform to all valid orders, laws, or regulations of any governmental authority relative to the conduct of its business. 24. Enforcement of Agreement. This Agreement shall be governed, construed, and enforced in accordance with the laws of the State of California. Venue of any litigation arising out of or connected with this Agreement shall lie exclusively in the state trial court or federal district court located in Sacramento County, California, and the Parties consent to jurisdiction over their persons and over the subject matter of any such litigation in such courts, and consent to service of process issued by such courts. 25. Non-Discrimination. Grantee agrees that it shall not discriminate against any person on account of their sex, race, color, religious creed, ancestry, national origin, disability, medical condition, marital status, age, gender, military or veteran status, genetic information, or sexual orientation in violation of the Fair Employment and Housing Act or the Unruh Civil Rights Act. Upon a final determination by a court of competent jurisdiction that Grantee has violated either of these Acts, City may, at its option, deem this Agreement void. 26. Waiver. A Party’s failure to insist on strict performance of this Agreement or to exercise any right or remedy upon breach of this Agreement will not constitute a waiver of the performance, right, or remedy. A Party’s waiver of another Party’s breach of any 11Rev. 4_12_2023
provision in this Agreement is not a continuing waiver or a waiver of any later breach of the same or any other provision. No waiver will be effective unless it is in writing and signed by the waiving Party.27. Severability. In the event that any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or is rendered invalid by any provision of state or federal law, the remainder of this Agreement shall remain in full force and effect. 28. Counterparts. The Parties may sign this Agreement in counterparts, each of which is considered an original, but all of which constitute the same agreement. Facsimiles, pdfs, and photocopies of signature pages of the Agreement have the same binding effect as originals.29. Time is of the Essence.Time is of the essence in the performance of this Agreement. 30. Headings. The titles to the sections of this Agreement are for convenience only and shall have no effect upon the construction or interpretation of any part of this Agreement, and any rule of construction to the effect that ambiguities are to be resolved against the drafting parties shall not apply in the interpretation of this Agreement. 31. Entire Agreement. This Agreement, which includes all attachments and all documentsthat are incorporated by reference, contains the entire agreement between the Parties and supersedes whatever oral or written understanding they may have had prior to the execution of this Agreement. No amendment, alteration, or modification to the terms of this Agreement shall be valid unless approved in writing by both Parties. 32. Authority. The person signing this Agreement for each Party represents and warrants that he/she has accessed and read all contract documents and is fully authorized to sign this Agreement on its respective Party and to bind said Party to the performance of the Agreement. The City shall have no obligations whatsoever under this Agreement, unless and until this Agreement is approved by the City Manager or the City Manager’s authorized designee, or by the Sacramento City Council, as required by the Sacramento City Code. 12Rev. 4_12_2023
CITY OF SACRAMENTOA Municipal Corporation By: ___________________________________Peter LemosCode and Housing Enforcement ChiefDate: _________________________________ For: Howard Chan, City Manager APPROVED AS TO FORM: _____________________________________ Senior Deputy City Attorney ATTEST: ____________________________________ City Clerk GRANTEETYPE OF BUSINESS ENTITY (check one):_____ Individual/Sole Proprietor_____ Partnership_____ Corporation (may require 2 signatures)_____ Limited Liability Company _____ Other (please specify: ______________) ______________________________________ Signature _____________________________________ Print Name and Title _____________________________________ Date ______________________________________ Additional Signature (only if required) ______________________________________ Print Name and Title _____________________________________ Date ______________________________________ Federal I.D. No. ______________________________________ State I.D. No. ______________________________________ City of Sacramento Business Op. Tax Cert. No.