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HomeMy WebLinkAbout032822ca07JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS CONSENT AGENDA REQUEST TO: Board of County Commissioners FROM: Mark McCauley, Interim County Administrator DATE: March 28, 2022 SUBJECT: Agreement: Re: American Rescue Plan Act (ARPA) Grant to Habitat for Humanity of East Jefferson County for Affordable Housing in the Amount of $500,000 STATEMENT OF ISSUE: Habitat for Humanity of East Jefferson County (Habitat), in partnership with the Jefferson Community Foundation, is exploring the feasibility of purchasing a 17-acre parcel of land in Port Hadlock to develop into 100-120 units of permanently affordable, workforce housing. Potential partners include local employers whose workers cannot afford housing in the community. Approximately one -quarter of the homes would be targeted to households making less than 80% of Area Median Income (AMI). The remainder would serve households earning 80-120% (or possibly 150%) percent of AMI. A combination of homeownership and rental housing would be built, with single family homes as well as small, multi -family units such as duplexes and townhouses. This partnership model is new for our community and holds promise to significantly increase the supply of available, affordable housing locally. Habitat's vision is a neighborhood that fits well into the surrounding community, with greenspaces, community gardens, gathering spaces, and childcare. Families in the development would be able to walk to Chimacum Creek Primary School and Jefferson County Library. In addition to their vision for this project, Habitat brings a solid track record of developing workforce housing in East Jefferson County as well as access to models and tools available more broadly via Habitat for Humanity. For this Mason Street project, Habitat will maintain ownership of the land in perpetuity; residents will own their homes and pay a small ground lease fee. In exchange for affordable housing costs, owners must agree to limit the amount of appreciation they can realize in the future, thus keeping homes affordable to future owners. The land, which Habitat has under contract for $1.24M, is at the southwest corner of Mason and Cedar Streets, behind the library and primary school. (231 Mason St, tax parcel number 901023007) It currently is the site of a private airstrip. A growing number of visionary community members have committed funds toward purchase and infrastructure development (initial rough cost estimate of $5M), but a gap remains. $500k in ARPA funds would help to bridge the gap and demonstrate further county support for addressing the lack of workforce housing in Jefferson County. Should Habitat's board of directors determine the project is not feasible and elect not to proceed with the purchase in May, the BOCC could re -allocate the funds committed to the project. ANALYSIS: The Board of County Commissioners have a demonstrated record of supporting affordable housing in Jefferson County. For example, OlyCAP's 71h & Hendricks project is the most significant affordable housing project in the county currently with more than 40 units becoming available when construction is complete and for which the county has committed close to $1,000,000. Habitat's Mason Street project will provide two or three times as many affordable housing units justifying a significant contribution from Jefferson County. The Board considered this request on March 21, 2022 and directed staff to prepare a grant agreement for the purposes described above. The proposed grant agreement is attached. FISCAL IMPACT: This grant agreement, if approved, will commit $500,000 in ARPA funding from the Grant Management Fund, Fund 123. RECOMMENDATION: That the Board of Commissioners approve the attached grant agreement. REVIEWED BY: Mark McCa , Interim "�st for Date GRANTEE AGREEMENT WITH HABITAT FOR HUMANITY OF EAST JEFFERSON COUNTY This Grantee Agreement ("Agreement") is by and between Jefferson County, a Washington political subdivision ("County") and Habitat for Humanity of East Jefferson County, ("Grantee"). WHEREAS, on March 11, 2021, President Biden signed the American Rescue Plan Act (ARPA) into law; and WHEREAS, the ARPA allows that funds appropriated for revenue sharing counties can be used for any governmental purpose; and WHEREAS, on July 31, 2017, the Jefferson County Board of Commissioners adopted Resolution No. 35-17, finding "that an emergency exists with respect to the availability of housing that is affordable to low-income households and with respect to the availability of housing that is affordable to very low-income households in Jefferson County;" and WHEREAS, the Grantee is a non-profit 501(c)(3) that specializes in providing affordable home ownership opportunities for persons with low incomes: and WHEREAS, the Grantee, in partnership with the Jefferson Community Foundation, are proposing to build 100-130 affordable housing units in Port Hadlock: and WHEREAS, these housing units would provide multiple benefits to the county, including increased enrollment in the Chimacum School District, additional equivalent residential units connected to and paying for sewer service from the planned Hadlock Sewage Treatment Plant, and substantially increasing the supply of housing; NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by reference, and the terms and conditions set forth below, the parties agree as follows: 1. Grant Amount and Grantee's Use of Grant Funds. The Grant amount is $500,000. The Grant is to be used for the purposes contained in the Statement of Work at Exhibit A. 2. Reporting Requirements. Grantee will submit a report to the County on an annual basis by January 31 of each year until all grant funds are expended. The report will include information regarding the usage of the $500,000 grant amount. 3. Effective Date and Term. This Agreement shall commence on the date when last executed by the parties and remain in effect until the Grantee takes title to the project property discussed in the Statement of Work at Exhibit A. 4. Termination, The County may terminate this Agreement, for convenience or otherwise and for no consideration or damages, upon prior notice to the Grantee. 5. Independent Grantee. Each party under this Agreement shall be for all purposes an independent Grantee. Nothing contained herein will be deemed to create an association, a partnership, a joint venture, or a relationship of principal and agent, or employer and employee between the parties. The Grantee shall not be, or be deemed to be, or act or purport to act, as an employee, agent, or representative of the County for any purpose. 6. Indemnification. The Grantee agrees to defend, indemnify and hold the County, its officers, officials, employees, agents and volunteers harmless from and against any and all claims, injuries, damages, losses or expenses including without limitation personal injury, bodily injury, sickness, disease, or death, or damage to or destruction of property, which are alleged or proven to be caused in whole or in part by an act or omission of the Grantee, its officers, directors, employees, and/or agents relating to the Grantees' performance or failure to perform under this Agreement. The section shall survive the expiration or termination of this Agreement. 7. Insurance. Prior to commencing work, the Grantee shall obtain at its own cost and expense the following insurance coverage specified below and shall keep such coverage in force during the terms of the Agreement. Commercial Automobile Liability Insurance providing bodily injury and property damage liability coverage for all owned and non -owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than $500,000 each occurrence with the County named as an additional insured in connection with the Consultant's performance of his Agreement. This insurance shall indicate on the certificate of insurance the following coverage: (a) Owned automobiles; (b) Hired automobiles; and, (3) Non -owned automobiles. Commercial General Liability. Insurance in an amount not less than a single limit of $1,000,000 per occurrence and an aggregate of not less than two (2) times the occurrence amount ($2,000,000.00 minimum) for bodily injury, including death and property damage, unless a greater amount is specified in the contract specifications. The commercial general liability insurance coverage shall contain no limitations on the scope of the protection provided and include the following minimum coverage: a. Broad Form Property Damage, with no employee exclusion; b. Personal Injury Liability, including extended bodily injury; Broad Form Contractual/Commercial Liability — including coverage for products and completed operations; d. Premises — Operations Liability (M&C); Blanket Contractual Liability. The County shall be named as an "additional named insured" under all insurance policies required by this Agreement, except Professional Liability Insurance when not allowed by the insurer, and shall include a provision prohibiting cancellation of said policy except upon thirty (30) days prior written notice to the County. 2 Such insurance coverage shall be evidenced by one of the following methods: (a) Certificate of Insurance; or, (b) Self-insurance through an irrevocable Letter of Credit from a qualified financial institution. The Grantee shall furnish the County with properly executed certificates of insurance that, at a minimum, shall include: (a) The limits of overage; (b) The project name to which it applies; (c) The certificate holder as Jefferson County, Washington and its elected officials, officers, and employees with the address of Jefferson County Risk Management, P.O. Box 1220, Port Townsend, WA 98368, and, (d) A statement that the insurance policy shall not be canceled or allowed to expire except on thirty (30) days prior written notice to the County. If the proof of insurance or certificate indicating the County is an "additional insured" to a policy obtained by the Consultant refers to an endorsement (by number or name) but does not provide the full text of that endorsement, then it shall be the obligation of the Consultant to obtain the full text of that endorsement and forward that full text to the County. Certificates of coverage as required by this section shall be delivered to the County within fifteen (15) days of execution of this Agreement. Failure of the Grantee to take out or maintain any required insurance shall not relieve the Grantee from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations concerning indemnification of the County. The Grantee's insurers shall have no right of recovery or subrogation against the County (including its employees and other agents and agencies), it being the intention of the parties that the insurance policies, with the exception of Professional Liability Insurance, so affected shall protect all the parties and shall be primary coverage for all losses covered by the above described insurance. Insurance companies issuing the Grantee's insurance policy or policies shall have no recourse against the County (including its employees and other agents and agencies) for payment of any premiums or for assessments under any form of insurance policy. All deductibles in the Grantee's insurance policies shall be assumed by and be at the sole risk of the Grantee. Any deductibles or self -insured retention shall be declared to and approved by the County prior to the approval of this Agreement by the County. At the option of the County, the insurer shall reduce or eliminate deductibles or self -insured retention, or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Any judgments for which the County may be liable, in excess of insured amounts required by this Agreement, or any portion thereof, may be withheld from payment due, or to become due, to the Grantee until the Grantee shall furnish additional security covering such judgment as may be determined by the County. Any coverage for third party liability claims provided to the County by a "Risk Fool" created pursuant to Ch. 48.62 RCW shall be non-contributory with respect to any insurance policy the Grantee shall provide to comply with this Agreement. 3 The County may, upon the Grantee's failure to comply with all provisions of this Agreement relating to insurance, withhold payment or compensation that would otherwise be due to the Grantee. The Grantee shall provide a copy of all insurance policies specified in this Agreement. Written notice of cancellation or change in the Grantee's insurance required by this Agreement shall reference the project name and agreement number and shall be mailed to the County at the following address: Jefferson County Risk Management, P.O. Box 1220, Port Townsend, WA 98368. The Grantee's liability insurance provisions shall be primary and noncontributory with respect to any insurance or self-insurance programs covering the County, its elected and appointed officers, officials, employees, and agents. Any failure to comply with reporting provisions of the insurance policies shall not affect coverage provided to the County, its officers, officials, employees, or agents. The Grantee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. The Grantee shall include all Sub -Grantees as insured under its insurance policies or shall furnish separate certificates and endorsements for each Sub -Grantee. All insurance coverage for Sub - Grantees shall be subject to all the requirements stated in this Agreement. The insurance limits mandated for any insurance coverage required by this Agreement are not intended to be an indication of exposure nor are they limitations on indemnification. The Grantee shall maintain all required insurance policies in force from the time services commence until services are completed. Certificates, insurance policies, and endorsements expiring before completion of services shall be promptly replaced. All the insurance policies required by this Agreement shall provide that thirty (30) days prior to cancellation, suspension, reduction or material change in the policy, notice of same shall be given to the County Risk Manager by registered mail, return receipt requested. The Grantee shall place insurance with insurers licensed to do business in the State of Washington and having A.M. Best Company ratings of no less than A-, with the exception that excess and umbrella coverage used to meet the requirements for limits of liability or gaps in coverage need not be placed with insurers or re -insurers licensed in the State of Washington. The County reserves the right to request additional insurance on an individual basis for extra hazardous contracts and specific service agreements. 8. Worker's Coml2ensation (Industrial Insurance). If and only if the Consultant employs any person(s) in the status of employee or employees separate from or in addition to any equity owners, sole proprietor, partners, owners or shareholders of the Consultant, the Grantee shall maintain workers' compensation insurance at its own expense, as required by Title 51 RCW, for the term of this Agreement and shall provide evidence of coverage to Jefferson County Risk Management, upon request. 4 Worker's compensation insurance covering all employees with limits meeting all applicable state and federal laws. This coverage shall include Employer's Liability with limits meeting all applicable state and federal laws. This coverage shall extend to any Sub -Grantee that does not have their own worker's compensation and employer's liability insurance. The Grantee expressly waives by mutual negotiation all immunity and limitations on liability, with respect to the County, under any industrial insurance act, disability benefit act, or other employee benefit act of any jurisdiction which would otherwise be applicable in the case of such claim. If the County incurs any costs to enforce the provisions of this subsection, all cost and fees shall be recoverable from the Grantee. 9. Compliance with Laws. Guidelines, The Grantee shall comply with all federal, state, and local laws and all requirements (including certifications and audits), to the extent applicable, when seeking Reimbursement. 10. Maintenance and Audit of Records. The Grantee shall maintain records, books, documents, and other materials relevant to its performance under this Agreement. These records shall be subject to inspection, review and audit by the County or its designee, the Washington State Auditor's Office. If it is determined during the course of the audit that the Grantee was reimbursed for unallowable costs under this Agreement or any, the Grantee agrees to promptly reimburse the County for such payments uponrequest. 11. Notices. Any notice desired or required to be given hereunder shall be in writing, and shall be deemed received five (5) days after deposit with the U.S. Postal Service, postage fully prepaid, certified mail, return receipt requested, and addressed to the party to which it is intended at its last known address, or to such other person or address as either party shall designate to the other from time to time in writing forwarded in like manner: Grantee Jamie Maciejewski Executive Director Habitat for Humanity of East Jefferson County PO Box 658 Port Townsend, WA 98368 Jefferson County Mark McCauley Interim County Administrator Jefferson County Courthouse 1820 Jefferson Street Port Townsend, WA 98368 12. Imi2rgoer Influence, Each party warrants that it did not and will not employ, retain, or contract with any person or entity on a contingent compensation basis for the purpose of seeking, 5 obtaining, maintaining, or extending this Agreement. Each party agrees, warrants, and represents that no gratuity whatsoever has been or will offered or conferred with a view towards obtaining, maintaining, or extending this Agreement. 13. Conflict of Interest, The elected and appointed officials and employees of the parties shall not have any personal interest, direct or indirect, which gives rise to a conflict of interest. 14. Time. Time is of the essence in this Agreement. 15. Survival, The provisions of this Agreement that by their sense and purpose should survive expiration or termination of this Agreement shall so survive. Those provisions include without limitation Indemnification and Maintenance and Audit of Records. 16. Amendment. No amendment or modification to this Agreement will be effective without the prior written consent of the authorized representatives of the parties. 17. Governing Law: Venue, This Agreement will be governed in all respects by the laws of Washington state, both as to interpretation and performance, without regard to conflicts of law or choice of law provisions. Any action arising out of or in connection with this Agreement may be instituted and maintained only in a court of competent jurisdiction in Jefferson County, Washington or as provided by RCW 36.01.050. 18. Non -Waiver. No failure on the part of the County to exercise, and no delay in exercising, any right hereunder shall operate as a wavier thereof, nor shall any single or partial exercise by the County of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedy available to the County at law or in equity. 19. Binding Effect, This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors. 20. Assignment. Neither party shall assign or transfer any of its interests in or obligations under this Agreement without the prior written consent of the other party. 21. Entire Agreement. This Agreement constitutes the entire agreement between the County and the Grantee for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between the parties with respect to this Agreement. 22. No Third Party Beneficiaries. Nothing herein shall or be deemed to create or confer any right, action, or benefit in, to, or on the part of any person or entity that is not a party to this Agreement. This provision shall not limit any obligation which either party has to the Washington State Department of Commerce of these grant funds, including the obligation to provide access to records and cooperate with audits as provided in this Agreement. 23. Severability. In the event that one or more provisions of this Agreement shall be determined to be invalid by any court of competent jurisdiction or agency having jurisdiction thereof, the remainder of this Agreement shall remain in full force and effect and the invalid provisions shall be deemed deleted. 2 24. Countcrnarts, This Agreement may be executed in counterparts, any of which shall be deemed an original but all of which together shall constitute one and the same instrument. 25. Authorization. Each party warrants to the other party, that the person executing this Agreement on its behalf has the full power and authority to do so. 26. Publig Records Act, Notwithstanding any provisions of this Agreement to the contrary, to the extent any record, including any electronic, audio, paper or other media, is required to be kept or indexed as a public record in accordance with the Washington Public records Act, Chapter 42.56 RCW (as may be amended), the Grantee agrees to maintain all records constituting public records and to produce or assist the County in producing such records, within the time frames and parameters set forth in state law. The Grantee also agrees that upon receipt of any written public record request, Grantee shall, within two business days, notify the County by providing a copy of the request per the notice provisions of this Agreement. (SIGNATURES APPEAR ON THE NEXT PAGE) 7 IN WITNESS WIJEREOF, this Agreement is t�vecuted and shall become 4 .1&,tive as of the last data signed below. JEFFERSON COUNTY BOARD OF COMMISSIONERS M. Heidi Eiscnhour, Chair DATE SEAL: ATTEST: Carolyn Galloway Clerk of the Board Approved as to form only: NOW March 22, 2022 Philip C. Hunsucker DATE Chief Civil Deputy Prosecuting Attorney HABITAT FOR HUMANITY OF EAST JEFFERSON COUNTY Ln Jamie Maciejewski DATE Executive Director 1 :i.ii:�tlllQ. "ICIUVI "kill Its] W1,0634 � Habitat for Humanity of East Jefferson County (Habitat), in partnership with the Jefferson Community Foundation, is exploring the feasibility of purchasing a 17-acre parcel of land in Port Hadlock to develop into 100-120 units of permanently affordable, workforce housing. The land, which Habitat has under contract for $1.24M, is at the southwest corner of Mason and Cedar Streets, behind the library and primary school. (231 Mason St, tax parcel number 901023007) It currently is the site of a private airstrip. A growing number of visionary community members have committed funds toward purchase and infrastructure development (initial rough cost estimate of $5M), but a gap remains. $500k in ARPA funds would help to bridge the gap and demonstrate further county support for addressing the lack of workforce housing in Jefferson County. The $500,000 in ARPA funds shall be applied specifically to the purchase of the property. Habitat expects to raise the remaining funds from other private and public sources. Should Habitat's board of directors determine the project is not feasible and elect not to proceed with the purchase in May, the BOCC could re- allocate the funds committed to the project. Potential partners for the development of the project include local employers whose workers cannot afford housing in the community. Approximately one -quarter of the homes would be targeted to households making less than 80% of Area Median Income (AMI). The remainder would serve households earning 80-120% (or possibly 150%) percent of AMI. A combination of homeownership and rental housing would be built, with single family homes as well as small, multi -family units such as duplexes and townhouses. This partnership model is new for our community and holds promise to significantly increase the supply of available, affordable housing locally. Habitat's vision is a neighborhood that fits well into the surrounding community, with greenspaces, community gardens, gathering spaces, and childcare. Families in the development would be able to walk to Chimacum Creek Primary School and Jefferson County Library. In addition to their vision for this project, Habitat brings a solid track record of developing workforce housing in East Jefferson County as well as access to models and tools available more broadly via Habitat for Humanity. For this Mason Street project, Habitat will maintain ownership of the land in perpetuity; residents will own their homes and pay a small ground lease fee. In exchange for affordable housing costs, owners must agree to limit the amount of appreciation they can realize in the future, thus keeping homes affordable to future owners.