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Home My WebLink AboutO-2008-2936-A amend contract with Harris County/Home Investment Partnership (HOME) Program (original in 2006) 7 RE UEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requeste Appropriation Source of Funds: 015 (eIP) Requested By: Department: Plannine: Account Number: 015-9892-859-5120 Report: ....K- Resolution: _Ordinance: ....x....- Amount Budgeted: $91,000.00 Amount Requested: YES Exhibits: Letter of Request for Amendment Budgeted Item: Ordinance Contract Amendment with Harris County Draft Proposal from Sheila Frye and Associates SUMMARY & RECOMMENDATION In August 2006, City Council approved a contract with Harris County to accept $457,300 in HUD funding for the construction of five (5) new affordable homes as part of the Northside Neighborhood Project. Two of the five homes are nearing completion and a notice to proceed has been issued for the remaining three homes. During initial coordination with the project managers from Harris County, it was believed that County, using their downpayment assistance program, would handle the processing of the applicants and the closing ofthe homes since the City of La Porte would only be handling the construction and marketing of the homes. As applicants were being referred to Harris County, it became apparent that additional assistance would be needed to successfully qualify families to occupy the homes in a timely manner. City Staff suggested that Harris County reallocate a portion of the required City match cash payment to allow La Porte to hire a consultant to assist with the closings. Letter of request is attached as exhibit I Staff solicited a professional services proposal from Sheila Frye and Associates to perform qualifying, educational and closing services for the five HOME project residences. Ms. Frye was instrumental in closing the first eleven homes in the PY 2002 Grant. For the sum of $12,500, Ms Frye's firm will qualify the applicants, provide the required educational instruction and manage the closings for the five homes in the PY 2006 grant. In the spirit of cooperation, Harris County has amended our contract to reduce the 25% match requirement by $12,500 in order for the City of La Porte to hire a consultant. There is, therefore, no impact to the budget since the bottom line expenditures do not change; only realigned. Staff recommends that City Council approve the ordinance to accept the amended contract provisions with Harris County to reduce the match requirement and direct the City Manager to execute a contract with Sheila Frye and Associates to process qualified applicants to complete the PY 2006 HOME grant program. The program ending date is August 31, 2008. The project addresses are: 211 North 1st Street (Lots 23-24, Block 62, La Porte), 216 North 2nd Street (Lots 3-4, Block 62, La Porte), 207 North 2nd Street (Lots 21-23, Block 63, La Porte), 210 North 6th Street (Lots 9-11, Block 66, La Porte), 224 North 6th Street (Lot 3-4, Block 66, La Porte) tt/o~ CITY OF LA PORTE 604 W. Fairmont Parkway, la Porte, TX 77571 www.ci.la-porte.tx.us Phone: (281) 471-5020 I Fax (281) 471-5005 January 10, 2008 Mr. David B. Turkel Director, Harris County Community and Economic Development Department 8410 Lantern Point Dr. IIouston, TJ( 77054 Re: CEDD Project-PY 2006, City of La Porte - Northside Neighborhood Project, Phase ll, HOME Grant # 2006-0050 Dear Mr. Turkel, Attached at enclosure 1 is a proposed amendment to the construction budget submitted with our grant proposal for the PY 2006 HOME grant program. The City of La Porte is requesting an amendment in order to fund marketing and closing efforts as the homes are completed. The justification for this proposal is as follows: The first two of the five homes are nearing completion and a notice to proceed has been issued for the remainder. It is anticipated that the project will be completed by July 31, 2008. It is an advantage to the future citizens of La Porte who will apply for these homes and for County downpayment assistance to have step-by step guidance throughout the application process. In this manner, the City of La Porte hopes to avoid some of the frustration and confusion experienced by the applicants and eventual home owners who took advantage of the PY 2002 grant. As such, the City will entertain a proposal from a consultant to render customized assistance in marketing, and for educating and qualifying the applicants for the PY 2006 homes. The resulting amendment request is for $12,500 to be transferred from the construction activities account within the match portion of the budget, to the marketing and listing account. The approval of this amendment would reduce the construction portion to $100,575 and shift the subtracted amount of $12,500 to the marketing portion of the City-match budget. The bottom line of$114,325 for the City match of25% is not affected by this amendment. need anything further, the point of contact for the City of La Porte is Wayne J. Sabo, irector, at 281-470-5056. I Enclosure: as stated Cc: Department File EXHIBIT B BUDGET ( The City of La Porte Northside Housing Affordable Single-Family New Construction Project Maximum Amount to be Paid Under this Agreement. It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed FOUR HUNDRED FIFTY SEVEN THOUSAND THREE HUNDRED DOLLARS and 00/100 ($457,300.00). Project Budget '<'i:~ '(;;:;,~t~~:'~~, :;:f~1;~8~:';:f/ ,. .;~;':'};::[tI~t;i:" Description )~hiL%:l;J~;;;[~~i~;~~I;;~:;iJi personnel Non Person nel Subtotal ( $0.00 $0.00 $0.00 $452,300.00 $5,000.00 $0.00 $0.00 $0.00 100,575.00 $1,250.00 Down Payment Assistance Acquisition Rehabilitation New Construction Developer Fee 10%) De.velopmfJnt Financing Savings Coilstmction Financing Savings Marketing & Listing $0:00 . $O.Ob $0.00 $12,500.001 . $114,325.00 $114,325.00 Subtotal .r:',\\~~Jrlt~I~~~~~eIt.i~t~~r;;)3~ri(:(~~: ~. ",~~ j~ $0,00 $0.00 $0.00 $0.00 $0.00 $457,300.00 Page 26 of 57 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $55:2; 875. 0 $0.00 $6,250.00. $0.00 $0.00 $0.00 $0:00 $0.00 $12 ,500.0 $O.QD, $571,625.00 $0.00 $571,625.00 Enclosure 1 ORDINANCE NO. 2006-2936-A AN ORDINANCE AMENDING A CONTRACT BETWEEN THE CITY OF LA PORTE AND HARRIS COUNTY COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT FOR THE HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM, BY REDUCING THE CITY'S MATCHING CONTRIBUTION BY $12,500; FROM $42,203.00 TO $29,703.00; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPUANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the agreement or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council reduces the previous appropriation of $42,203.00 by $12,500.00, for a sum of up to $29,703.00 from Capital Improvement Account Number 015-9892-859-5120, to fund said Home Investment Partnership (HOME) Program. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. ORDINANCE NO. 2006-2936-A PAGE 2 Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this j rtJ-- day of ~'Y ,2008. CITY OF LA PORTE By: ~y~ Mayor ATTEST: LjY/0JitdJd/ City Secretary APPROVED: <<~r~ City Attorney HARRISCQUNTY,TEXAS COMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENT RECEIVED Community Development Division 8410 Lantern Point Dr. Houston, Texas 77054 Tel (713) 578-2000 David B. Turkel Director February 1, 2008 Mr. Ron Bottoms, City Manager City of La Porte 604 W. Fairmont Parkway La Porte, Texas 77571 FEB U~) CITY MANAGER'S OFFICE Re: Project No. 2006-0050, Northside Neighborhood Project Contract Agreement First Amendment Dear Mr. Bottoms: Please see the enclosed First Amendment to the Agreement between Harris County and the City of La Porte for the Northside Neighborhood Affordable Housing Project. The Harris County Community and Economic Develo~ment Department seeks to have the amendment approved on Commissioners Court February 19t agenda. Upon execution, a recorded copy will be returned to you. Please sign both originals and return both to Sally Bakko by Wednesday, February 13, 2008. Your assistance is very much appreciated. Sincerely, {b~~i- Grants Management Affordable Housing Manager J:\gmshare\QAlAffordableHollsingTeam(2)\Projects\CityofLaPorte\NorthsideHollsingII\Contracts\First Amendment\City of La Porte J st Amendment Cover Letter.doc .4 IA! 1 () ft .! f'~) -'" HARJUSCQUNTY,TEXAS COMMUNITY SERVICES DEPARTMENT David B. Turkel Director Daphne Lemelle Community Development Director Office of Housing & Community Development 8410 Lantern Point Drive Houston, Texas 77054 Tel (713) 578-2000 Fax (713) 578-2090 March 17,2008 RECEIVED MAR 1 9 20U8 CITY MANAGER'S OFFICE . Mr. Ron Bottoms, City Manager City of La Porte 604 W. Fairmont Parkway La Porte, Texas 77571 Re: Project No. 2006-0050, Northside Neighborhood Project Contract Agreement First Amendment Dear Mr. Bottoms: Please find enclosed a recorded copy of the executed First Amendment to the Agreement between Harris County and the City of La Porte for the Northside Neighborhood Affordable Housing Project. We continue to look forward to working with you in the success of this project so please contact our office if there are any additional concerns. If you have any questions, please contact Sally Bakko at (713) 578-2211. Sincerely, Dwight Grants anagement Affordable Housing Manager o::JT HARJUSCQUNTY,TEXAS COMMUNITY SERVICES DEPARTMENT David B. Turkel Director Daphne Lemelle Community Development Director Office of Housing & Community Development 8410 Lantern Point Drive Houston, Texas 77054 Tel (713) 578-2000 Fax (713) 578-2090 February 22, 2008 County Judge Emmett and Commissioner Lee, Garcia, Radack and Eversole AGENDA LETTER Please consider the following item on the Commissioners Court Agenda for March 4, 2008: Approval of the attached First Amendment to the Agreement, prepared by the County Attorney, between Harris County and The City of La Porte for The Northside Neighborhood Single-Family Housing Project. The amendment revises the amount of match funds to be provided. The subject project is located in the City of La Porte, Harris County, Texas, in Precinct 2. Thank you for your assistance with this request. , Vote of the Court: Yes No Abstain I 0 0 ' Judge Emmett Comm. Lee 0 ~ Comm. Garcia ~ Comm. Radack Comm. Eversole (.0.."'<("......", '.f:, - (~~ C I:' \'~ l. , (,)'\ ~ David B. Turkel, Director Community and Economic Development 3: D~mm~ > :z: ):~...::t: c;> M;::;:; ~-,,:- _:..... -"-.-' ~--!{~:=; .,:''-,.. ---i (""') ,..-. t3 ;i:~ ""'''.-'.._..2 Presented to Commissioner's Court :s -<' c; M (J) <:;:) C:> -... f"" cn f\,) -.I DBT/erw/dw/sb \.t 'S. et} ~ \? "'- \ &.\:, 1\ ,-,('"J .:c. ~...s;: -, (j J "....:7{,..,"/ MAR 0 4' '2008 APPROVE 1--1. ~ Recorded' Vol- Page <:'9 w 0'\ ,~G cl ... 0Ui~ HARRIS COUNTY COMMUNITY SERVICES DEPARTMENT EXECUTIVE SUMMARY FIRST AMENDMENT TO AGREEMENT March 4, 2008 On August 22, 2006, Commissioners Court approved an agreement between Harris County and The City of La Porte for the Northside Neighborhood Single-Family New Construction Project which will consist of five (5) single-family homes for low- and very low-income citizens located at 211 North 15t Street, 207 and 216 North 2nd Street, and 210 and 224 North 6th Street in the City of La Porte, Harris County, Texas, in Precinct 2, utilizing $457,300.00 in HOME funds. The Harris County Community Services Department (CSD) and The City of La Porte now desire to amend the August 22, 2006 agreement to reduce the amount of required match provided by the City of La Porte by $12,500.00 which will allow the City to retain marketing and listing services. Due to current housing market conditions, CSD recommends this match reduction in favor of marketing efforts to reduce the days on the market and improve the chances the homes are sold within a reasonable timeframe. Attached for Commissioners Court review and approval is the First Amendment to the Agreement between Harris County and the City of La Porte for the this project. J :\gmshare\QA \AtfordableHousingT eam(2)\Projects\CityotLaPorte\NortbsideHousingII\Contracts\First Amendment\NortbsideExecutive Summary First Amendment 1-16-08.doc FIRST AMENDMENT TO AGREEMENT BETWEEN HARRIS COUNTY AND THE CITY OF LA PORTE FOR THE NORTHSIDE NEIGHBORHOOD SINGLE-F AMIL Y NEW CONSTRUCTION PROJECT RECITALS WHEREAS, HARRIS COUNTY, a body corporate and politic under the laws of the State of Texas, hereinafter referred to as "Grantee," and the City of La Porte, a Texas body politic and corporate under the laws of the State of Texas, herein called the "Subre<;ipient", entered into an Agreement on August 22, 2006 to administer a HOME Investment Partnerships (HOME) Program project in a manner satisfactory to the County and consistent with any standards required as a condition of providing these funds. Such project includes the construction of five (5) single-family houses for very low and low-income families, which is known as the Northside Neighborhood Single-Family New Construction Project (hereinafter, the "Project"). WHEREAS, the Grantee and the Subrecipient desire to amend said Agreement in order to authorize the County to reduce the required amount of match received from the Subrecipient by an amount of $12,500.00. NOW, THEREFORE, the Grantee and the City of La Porte do mutually agree as follows: I. Exhibit A, Scope of Services, section III. ACTIVITIES, subsection D. MatchinQ Funds Requirement, of the original Agreement, which reads as follows: D. Matchinq Funds Requirement HOME Program funds used for Subrecipient construction activities are required to be matched according to 24 C.F.R. 3 92.218. The matching contribution must total not less than twenty-five percent (25%) of HOME funds expended. Eligible forms of matching contributions must be met in accordance with 24 C.F.R. 3 92.220. The Subrecipient's required matching contribution for this Project shall equal no less than $114,325.00. Is hereby amended to read as follows: D. MatchinQ Funds Requirement HOME Program funds used for Subrecipient construction activities are required to be matched according to 24 C.F.R. 3 92.218. Eligible forms of matching contributions must be met in accordance with 24 C.F.R. 3 92.220. The Subrecipient's required matching contribution for this Project shall equal no less than $101,825.00. II. EXHIBIT B, BUDGET The City of La Porte Northside Housing Affordable Single-Family New Construction Project Maximum Amount to be Paid Under this Agreement It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed FOUR HUNDRED FIFTY SEVEN THOUSAND THREE HUNDRED DOLLARS and 00/100 ($457,300.00). Project Budget Budget Summary Description HCCEDD Match Other Total Project Delivery Costs Personnel $0 $0 $0 $0 Non Personnel $0 $0 $0 $0 Subtotal $0 $0 $0 $0 Project Costs Down Payment Assistance $0.00 $0.00 $0.00 $0.00 Acquisition $0.00 $0.00 $0.00 $0.00 Rehabilitation $0.00 $0.00 $0.00 $0.00 New Construction $452,300.00 $113,075.00 $0.00 $565,375.00 HCPID Inspection $5,000.00 $1,250.00 $0.00 $6,250.00 Subrecipient Reserve Funds Developer Fee(10%) $0.00 $0.00 $0.00 $0.00 Development Financing Savinas $0.00 $0.00 $0.00 $0.00 Construction Financing Savinas $0.00 $0.00 $0.00 $0.00 Marketina & Listing $0.00 $0.00 $0.00 $0.00 Subtotal $0.00 $114,325.00 $0.00 $571,625.00 Project Budget Total $457,300.00 $114,325.00 $0.00 $571,625.00 2 Is hereby amended to read as follows: EXHIBIT B. BUDGET The City of La Porte Northside Housing Affordable Single-Family New Construction Project Maximum Amount to be Paid Under this Agreement It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed FOUR HUNDRED FIFTY SEVEN THOUSAND THREE HUNDRED DOLLARS and 00/100 ($457,300.00). Project Budget Budget Summary Description HCCEDD Match Other Total Project Delivery Costs Personnel $0 $0 $0 $0 Non Personnel $0 $0 $0 $0 Subtotal $0 $0 $0 $0 Project Costs Down Payment Assistance $0.00 $0.00 $0.00 $0.00 Acquisition $0.00 $0.00 $0.00 $0.00 Rehabilitation $0.00 $0.00 $0.00 $0.00 New Construction $452,300.00 $100,575.00 $0.00 $552,875.00 HCPID Inspection $5,000.00 $1,250.00 $0.00 $6,250.00 Subrecipient Reserve Funds Developer Fee(10%) $0.00 $0.00 $0.00 $0.00 Development Financinq Savinqs $0.00 $0.00 $0.00 $0.00 Construction Financinq Savinqs $0.00 $0.00 $0.00 $0.00 Marketinq & Listinq $0.00 $0.00 $0.00 $0.00 Subtotal $0.00 $101,825.00 $0.00 $559,125.00 Project Budget Total $457,300.00 $101,825.00 $0.00 $559,125.00 III. All other conditions of said original Agreement shall remain in full force and effect as originally written. 3 IN WITNESS WHEREOF, the Parties have executed this First Amended Agreement as of the _ day of MAR 0 4 ZOga ' 2008. Harris County By: f'& Cn.t~5 L- ED EMMETT County Judge ;JJ~ DAVID TURKEL Director Harris County Community and Economic Development Department APPROVED AS TO FORM: MIKE STAFFORD :u~eY afl2 Q DO~P.RAY Assistant County Attorney Attest: Name: Title: THE STATE OF TEXAS ~ ~ COUNTY OF HARRIS ~ The Commissioners Court of Harris County, Texas, convened at a meeting of said Court at the Harris County Administration Building in the City of Houston, Texas, on the day of ~ 0 4 lllDl , 2008, with the following members present, to-wit: Ed Emmett EI Franco Lee Sylvia R. Garcia Steve Radack Jerry Eversole County Judge Commissioner, Precinct No. I Commissioner, Precinct No.2 Commissioner, Precinct No.3 Commissioner, Precinct No.4 and the following members absent, to-wit: ~ quorum, when among other business, the following was transacted: , constituting a ORDER AUTHORIZING EXECUTION OF THE FIRST AMENDMENT TO AGREEMENT BETWEEN HARRIS COUNTY AND THE CITY OF LA PORTE FOR THE NORTHSIDE NEIGHBORHOOD SINGLE-FAMILY NEW CONSTRUCTION PROJECT Commissioner introduced an order and made a motion that the same be adopted. Commissioner seconded the motion for adoption of the order. The motion, carrying with it the adoption ofthe order, prevailed by the following vote: Yes No Abstain Judge Emmett 0 0 Comm. Lee 0 0 Comm. Garcia 0 0 Comm. Radack 0 0 Comm. Eversole 0 0 The County Judge thereupon announced that the motion had duly and lawfully carried and that the order had been duly and lawfully adopted. The order thus adopted follows: R E C I TAL S: WHEREAS, HARRIS COUNTY, a body corporate and politic under the laws of the State of Texas, hereinafter referred to as "Grantee," and the City of La Porte, a Texas body politic and corporate under the laws of the State of Texas, herein called the "Subrecipient", entered into an Agreement on August 22,2006 to administer a HOME Investment Partnerships (HOME) Program project in a manner satisfactory to the County and consistent with any standards required as a condition of providing these funds. Such project includes the construction of five (5) single-family houses for very low and low-income families, which is known as the Northside Neighborhood Single-Family New Construction Project (hereinafter, the "Project"). Presented to Commissioner's Court 2 MAR 042008 APPROVE Recorded Vol- Page WHEREAS, the Grantee and the City of La Porte desire to amend said Agreement in order to authorize the County to extend the time of performance for a period of one year. NOW, THEREFORE, BE IT ORDERED BY THE COMMISSIONERS COURT OF HARRIS COUNTY, TEXAS THAT: Section 1: The recitals set forth in this order are true and correct. Section 2: The Director of Harris County Community and Economic Development is authorized to execute an amendment to the Agreement on behalf of Harris County between Harris County and the City of La Porte to construct five (5) single-family homes located at 211 North 1st Street, 207 and 216 North 2nd Street, and 210 and 224 North 6th Street in the City of La Porte, Harris County, Texas, in Precinct 2. The First Amendment is attached hereto and made to part hereof for all purposes. Section 3: The Community and Economic Development Department and its director or his designee are authorized to take such actions and execute such other documents as they deem necessary or convenient to carry out the purposes of this order. 3 SHEILA FRYE & ASSOCIATES Housing Consultants 2208 Blodgett 8t. Houston, Texas 77004 January 9, 2007 Mr. Wayne Sabo Director of Planning City of LaPorte 604 W. Fairmont Parkway LaPorte, Texas 77571 Dear Mr. Sabo: Sheila Frye & Associates are pleased to submit our proposal for consideration to provide Housing to the city of LaPorte. We believe we can assist your city in enhancing your vision to provide quality services to the community you serve. With over 19 years in the affordable housing arena, there is no doubt that Sheila Frye & Associates(SF A) can make this happen. SF A proposes to provide our initial professional services for a fee not to exceed $12500. Additional services not identified in this proposal can be modified to meet your needs at no additional cost. I have attached for your information a description of my services that will be provided by my firm. If you have any questions or modifications, please do not hesitate to contact me at 713-521-3502. I truly look forward to working with you and your city to make dreams of homeownership for families come true that step through the doors of the City of LaPorte, Texas Sincerely, ~<-cY-~ Consultant Attachments City of LaPorte Professional Services SHEILA FRYE & ASSOCIATES (SFA) proposes to work with your organization team, in the following areas: · Develop appropriate marketing materials, flyers for distribution in both English and Spanish · Development and distribution of the flyer for all Homebuyer Education classes scheduled · Provide staff for the upcoming event in both English and Spanish to assist potential buyers and participant of the event · Market all 5 homes to community residents and community residents that attend the Homebuyer education class administered by SHEILA FRYE & ASSOCIATES affiliate ofNID-Housing Counseling Agency(HUD approved organization) · Assist each buyer with the purchase agreement with the seller/city or builder and selection of home · Work closely with the builder to determine purchase amounts, start of construction and end of construction · Provide Homebuyer education program at no cost to the buyer. Each buyer will be given a certificate that will allow access to Harris County Down Payment Assistance program. These classes will be at a minimum of 8 hours, all materials are Fannie Mae and HUD approved and will be provided by SF A · Provide access to credit counseling agencies for potential buyers in need of long term counseling services · Work closely with FRYE's Homeownership Center lenders to pre-screen clients before the selected lender takes loan application i,e. Capital One Bank, Liberty Bank and Wachovia Bank.....all Banks are on Harris County approved lenders lists · Provide monthly status report · Attend meeting concerning the agency development on an as needed basis · Work closely with the Director of Planning and Project/Program manager and Builders in the Development · Coordinate closing between City of LaPorte, Harris County, buyer and lender · Walk all closing documents to city for City manager or authorized party to sign and return to appropriate parties i.e., Harris county, title, etc. · Maintain copy of applicant file for City of LaPorte, Harris county and Frye & Associates to be handed over at the time of Project completion SHEILA FRYE & ASSOCIATES Housing Consultants 2208 Blodgett 8t. Houston, Texas 77004 CONSUL TING AGREEMENT THIS CONSULTING AGREEMENT ("Agreement") is entered into and by City of LaPorte and SHEILAFRYEASSOCIATES ("SFA "). NOW, THERFORE, together the parties hereto agree as follows: 1. Provision of Services. Subject to the terms of this Agreement, City of LaPorte herby engages SF A to perform the services ("Services") set forth in Exhibit A attached hereto. SFA may, at SFA's discretion and at SFA's own expense, use employees or consultants to perform the Services under Agreement. 2. Term of Engagement. This Agreement shall be effective for ten months (10) as of February 14,2008 (the "Effective Date") and shall automatically terminate (the "Termination Date") on December 14,2008. 3. Termination. a. If for any reason SFA is unable to provide the Services, City of LaPorte may, at its option, terminate this Agreement by delivering thirty (30) days written notice in advance of the termination date. b. City of LaPorte and SF A each have the right to terminate this Agreement for any reason upon thirty (30) days written notice to the other party. c. This Agreement terminates automatically upon the occurrence of any of the following events: (i) Bankruptcy or insolvency of either party; or (ii) sale of the business. d. If this agreement is terminated by either party for any reason, City of LaPorte shall have no further obligation to make any payments, except for appropriate fees and expenses incurred by Consultant pursuant to Section 4 but unpaid prior the date of termination. 4. Compensation. a. The compensation for the Services to be performed hereunder is $12500.00. b. SF A will maintain complete books and records with reasonable detail of revenues and expenditures for inspection at reasonable times if deemed necessary by City of LaPorte s. Expenses. SF A will incur all reasonable out-of-pocket expenses while performing the Services for the City of LaPorte. 6. Independent Contractor a. SF A enters into this Agreement as, and shall continue to be, an independent contractor. SF A is not an employee, partner, principal or agent of City of LaPorte, nor shall SF A possess any right of authority to bind City of LaPorte in any manner without the consent of City of LaPorte. SF A shall not be entitled to any benefits that may be accorded to City of LaPorte employees, including workers' compensation, employee benefit plans, disability insurance, vacation or sick pay. 7. Indemnification. a.SFA hereby agrees to indemnify, defend and hold harmless City of LaPorte officers and directors from and against any and all claims, including without limitations any claims by employees, consultants, sub- contractors, or agents of SF A, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest and penalties, and reasonable attorneys' fees and costs, that City of LaPorte may incur or suffer and that result from, or are related to, any breach of any representation or warranty in this Agreement or breach or failure of SF A, its employees, consultants or subcontractors, to perform any covenant or agreement contained in this Agreement. 8. General Provisions. a. Entire agreement; Modification. This Agreement contains the entire agreement between the parties with respect to the subject matter ofthis Agreement and supersedes all prior oral or written understanding and agreements. No provision of this Agreement may be changed, extended, waived, modified, discharged or terminated, except by a written instrument executed by the parties hereto. b.Notice. Any notice, payment, report or any other communication required or permitted to be given by one party to the other party by this Agreement shall be in writing, shall be deemed effective upon receipt and shall be either (a) served personally on the other party or by facsimile to the facsimile number indicated below, (b) sent by express, registered or certified first-class mail, postage prepaid, addressed to the other party by like notice, or (c) delivered by commercial courier to the other party, at the following address: TO City of LaPorte Mr. Ron Bottoms City Manager 604 W. Fairmont Parkway LaPorte, Texas 77571 FROM: Sheila Frye and Associates 2208 Blodgett St. Houston, TX. 77004 713-521-3502 Phone 713-523-4660 Fax IN WITNESS WHEREOf this Consulting g eement has been executed by each of the parties e cti the / day of , 2008. Name: City ms, City Manager BY: Title: SHEILAFRYEASSOCIATES By: ct;dd~ c?-~ Name: !5'hej/a, Fry-f? Title: /J~ i ~ Exhibit A City of LaPorte Professional Services SHEILA FRYE & ASSOCIATES (SF A) proposes to work with your organization team, in the following areas: · Develop appropriate marketing materials, flyers for distribution in both English and Spanish . Development and distribution of the flyer for all Homebuyer Education classes scheduled . Provide staff for the upcoming event in both English and Spanish to assist potential buyers and participant of the event · Market all 5 homes to community residents and community residents that attend the Homebuyer education class administered by SHEILA FRYE & ASSOCIATES affiliate ofNID-Housing Counseling Agency(HUD approved organization) · Assist each buyer with the purchase agreement with the seller/city or builder and selection of home · Work closely with the builder to determine purchase amounts, start of construction and end of construction · Provide Homebuyer education program at no cost to the buyer. Each buyer will be given a certificate that will allow access to Harris County Down Payment Assistance program. These classes will be at a minimum of 8 hours, all materials are Fannie Mae and HUD approved and will be provided by SF A · Provide access to credit counseling agencies for potential buyers in need of long term counseling services · Work closely with FRYE's Homeownership Center lenders to pre-screen clients before the selected lender takes loan application i,e. Capital One Bank, Liberty Bank and Wachovia Bank.....all Banks are on Harris County approved lenders lists · Provide monthly status report · Attend meeting concerning the agency development on an as needed basis · Work closely with the Director of Planning and Project/Program manager and Builders in the Development · Coordinate closing between City of LaPorte, Harris County, buyer and lender · Walk all closing documents to city for City manager or authorized party to sign and return to appropriate parties Le., Harris county, title, etc. · Maintain copy of applicant file for City of LaPorte, Harris county and Frye & Associates to be handed over at the time of Project completion