HomeMy WebLinkAboutJ &B CONSTRUCTION AND SERVICES INC $151,489.82
.. .,
CONTRACT
between
AUGUSTA, GEORGIA
And
J & B CONSTRUCTION AND SERVICES, INC.
in the amount of
$151,489.82
One Hundred Fifty-One Thousand Four Hundred Eighty-Nine Dollars & 82/100
for Fiscal Year 2009
Providing funding for
HOME INVESTMENT PARTNERSHIPS PROGRAM
&
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
"Pine Street Revitalization - Phase I"
TillS AGREEMENT ("Contract"), is made and entered into as of the 20th day of October, 2009
("the effective date") by and between Augusta, Georgia, acting through the Housing and Community
Development Department (hereinafter referred to as "AHCD") - with principal offices at 925 Laney
Walker Blvd., 2nd Floor, Augusta, Georgia 30901, as party of the first part, hereinafter called
"Augusta", and J & B Construction and Services, Inc., a developer, organized pursuant to the Laws of
the State of Georgia, hereinafter called "J&B" as party in the second part, and Asset Property
Disposition, as agent authorized to administer and monitor project, hereinafter called "APD" as party
in the third part.
WITNESSETH
WHEREAS, Augusta is qualified by the U. S. Department of Housing and Urban Development
(hereinafter called HUD) as a HOME Program Participating Jurisdiction, and has received HOME
Investment Partnerships Act (hereinafter called HOME or the HOME Program) funds from HUD for
the purpose of providing and retaining affordable housing for HOME Program eligible families; as
defined by HUD; and
WHEREAS, Augusta wishes to increase homeownership opportunities and preserve and increase the
supply of affordable housing for HOME Program eligible low and moderate income families through
eligible uses of its HOME Program grant funds, as described in the Augusta-Richmond County
Consolidated Plan 2005-2009, and the Year 2009 Annual Action Plan; and
WHEREAS, Augusta wishes to enter into a contractual agreement with J & B Construction and
Services, Inc. for the administration of HOME eligible affordable housing development activities; and
WHEREAS, this activity has been determined to be eligible HOME activity according to 24 CFR
92.504(c)(13), and will meet one or more of the national objectives and criteria outlined in Title 24
Code of Federal Regulations, Part 92 of the Housing and Urban Development regulations.
1
WHEREAS, this activity has been determined to be an eligible CDBG activity therefore the
developer is required to comply with the Community Development Block Grant Program regulations
at 24 CFR Part 570 and the Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970, as amended, at 49 CFR 24.
WHEREAS, J&B Construction has been selected and approved through a solicitation process for
development partners to assist in the redevelopment ofthe Laney WalkerIBethlehem communities.
WHEREAS, J & B Construction has agreed to provide services funded through this contract free from
political activities, religious influences or requirements; and
WHEREAS, J & B Construction has requested and Augusta has approved a total of $ 151,489.82 in
loan funds to perform ROME and CDBG eligible activities as described in Article T, below:
NOW, THEREFORE, the parties of this agreement for the consideration set forth below, do here and
now agree to the following terms and conditions:
ARTICLE I. SCOPE OF SERVICES
A. Scope of Services
Project Description: J&B Construction agrees to utilize approved HOME funds to support project
related costs associated with the Pine Street Revitalization Project -Phase L This project is a multi-
phased affordable }lousing effort which involves demolition, development and construction of new
single-family, scattered site, in-fill affordable housing units throughout the Pine Street Community.
Under this agreement:
~ Perform demolition and clearing of sites.
4. Perform new construction services for 2 single family homes
.. Perform all required and requested marketing and advertising activities; in accordance with
"HOME" program "Fair Housing" regulations
>it All projects are to posses the following required components:
. Evidence of Site Control
. Evidence of additional fmancing resources "Leveraging"
. At the time of sale, evidence that a qualified homebuyer has been identified, received
and completed a comprehensive home buying education course(s) and pre-purchase
housing counseling program; prior to the completion of the assigned home.
B. Use of Funds: HOME funds shall be used by J & B Construction for the purposes and
objectives stated in Article I, Scope of Services, and Exhibit "A" of this Agreement. The use
of HOME funds for any other purpose(s) is not permitted. The following summarizes the
proposed uses of ROME Program funds under this A1,,'feement:
2
1. Construction
An amount not to exceed $ 63,708.47 in a loan shall be expended by J & B Construction
from Year 2009 HOME funds for construction costs related to the development of 2
affordable single family housing units in the Pine Street Revitalization Project - Phase I. The
design and specifications must be approved by AHCD prior to construction (Exhibit A). Punds
will be used to assist with the cost of all construction related fees. These units will be
constructed by J & B Construction and sold to eligible low and very-low income homebuyers.
The address for this project
(a) 1205 Pine Street
(b) 1207 Pine Street
J & B Construction may request a change in addresses through a written request. J&B
Construction will provide 75% of the construction cost through a construction loan. Loan
estimated to be approximately $ 191,125.43.
2. Developer's Fee
An amount not to exceed $38,225.08 in a grant shall be expended to J&B Construction in
support of the project development fees. Draw downs are to be requested after sale and only
in the event that a 15% developer fee cannot be collected from the sales proceeds. Developers
fees are as listed:
a. 1205 Pine Strec;:t - $ 18,673.47
b. 1207 Pine Street - $ 19,551.61
3. Construction Interest
An amount not to exceed $ 9,556.27 shall be expended to J&B Construction in support of
repayment of principal and simple interest. J & B Construction has been awarded a line of
credit with a interest rate of 5%. AHCD agrees to pay interest on loan until units are sold.
J&B Construction must submit interest payment statements in order to be reimbursed.
1205 Pine Street not to exceed $ 4,668.38
1207 Pine Street not to exceed $ 4,887.90
CDBG funds shall be used by J & B Construction for the purposes and objectives stated in
Article 1, Scope of Services, and Exhibit "A" of this Agreement. The use of CDBG funds for
any other purpose(s) is not pemlitted. The following sununarizes the proposed uses of CDBG
Program funds under this Agreement:
4. Demolition and Clearing
An amount not to exceed $40,000.00 shall be expended by J & B Construction to support the
demolition and clearing of sites to be used to construct affordable single-family housing units
to be made available for purchase by HOME program eligible low and moderate-income
home buyers. The sites for demolition and clearing are located at:
(a) 1224 Pine Street (b)1225 Pine Street
(e) 1223 Pine Street (f) 1233 Pine Street
(c) 1240 Pine Street
(g) 1237 Pine Street
(d) 1241 Pine Street
(h) 1228 Pine Street
3
Sites are to be utilized to construct affordable single-family housing units in Phases II, ill, &
IV.
**1224 Pine and 1245 Pine cannot be demolished until closing has been confirmed.**
C. Program Location and Specific Goals to be Achieved
J & B Construction shall conduct project development activities and related services in its
project area (also known as the Pine Street Community) that incorporates the following
boundaries: James Brown Blvd. on the West; lih Street 011 the East; Wrightsboro Road on
the South; and Laney Walker Boulevard on the North and its designated geographic
boundaries approved by AHCD.
D. Proiect Eligibility Determination
It has been determined that the use of HOME funds by the J & B Construction will be in
compliance with 24 CFR Part 92. Notwithstanding any other provisions of this contract, J &
B Construction shall provide activities and services as described in the description of the
project, including use of funds, its goals and objectives, tasks to be performed and a detailed
schedule for completing the tasks for this project as provided in Exhibit A of this contract.
ARTICLE n. BUDGET AND METHOD OF PAYMENT
.T & B Construction, Inc. will be compensated in accordance with this Article II, Budget and Method of
Payment, that specifically identifies the use of HOME/CDBG and other project funding as represented
in Article II. C.2 of this Agreement. J & B Construction will carry out and oversee the
implementation of projects to be funded with ROMElCDBG funds. J & B Construction agrees to
perform the required services under the general coordination of the Augusta Housing and Community
Development Department. In addition and upon approval by Augusta, J & B Construction, may
engage the services of outside professional services consultants and contractors to help carry out the
program and projects.
A. Augusta shall designate and make HOME/CDBG Project funds available in the following
manner:
1. Augusta agrees to pay J & B Construction, a maximum of $ 151,489.82 under this agreement
for project expenses incurred as outlined in ARTICLE I, Scope of Services, subject to J &
B Construction compliance with all terms and conditions of this agreement and the procedures
for documenting expenses and activities as set forth in ARTICLE V.
2. The method of payment shall be on a reimbursement basis. The Reimbursement Form can be
found in appendix B. For invoicing, J&B Construction will include documentation showing
proof of payment in the form of a cancelled check or check register and completed
reimbursement form that includes amount requested, amount remaining and specific line items
names that relate to contract budget found in Appendix A.
3. APD will monitor the progress of the project and J & B Construction performance on a
weekly basis with regards to the production of housing units and the overall effectiveness of
project.
4
4. Upon the termination of this agreement, any unused or residual funds remaining shall revert to
Augusta and shall be due and payable on such date of the termination and shall be paid no
later than thirty (30) days thereafter.
5. Funds may not be transferred from line to line item in tbe project budget without the prior
written approval of Augusta.
6. The use of funds described in this agreement is subject to the written approval of the U. S.
Department of Housing and Urban Development.
7. This Agreement is based upon the availability of HOME/CDBG Program Funds.
8. J & B Construction will make reasonable efforts to secure additional funding sources using the
$ 151,489.82 in HOME/CDBG funds awarded under this agreement as leverage to support the
"Pine Street Revitalization Project - Phase II". A copy of this letter will be attached in
Appendix D.
B. Project Financing
The AugUsta Housing and Community Development Department (AHCD) will fund no more
than twenty-five percent (25%) of the total development costs of a single project, and seeks to
provide J & B Construction with the necessary HOME/CDBG Funding Agreement upon
receipt of J & B Constructi~ financial commitment letter for 75% of the total cost of
construction from a reputable fmancial institution.
Additionally, this funding (5% non-amortizing loan) is being committed specifically for
construction related costs (permits, footings, foundation, floor framing, exterior wall framing,
plumbing, HV AC, rough electric, developer's fees, etc.) as well as for other project related
costs as described below:
. J & B Construction's construction interest will be subsidized by AHCDD via its funding
allocation at a rate not to exceed 5% for 12 months or when house sells or whichever occurs
first.
. J & B Construction developer's gap will be subsidized by AHCDD.
. J & B Construction funding can be used to cover project related soft costs
(architectural/engineering fees, other related professional fees, affirmative marketing and fair
housing services, other soft costs as deemed eligible)
. AHCDD will purchase 1205 and 1207 Pine Street from J&B Construction Services, Inc. if the
dwellings do not sell to qualified buyers within twelve (12) months from the date of issuance
of the Certificate of Occupancy.
. All funding is being provided at a 0% non-amortizing loan to be repaid once the house sales.
C. Timetable for Completion ofProiect Activities
1. J&B Construction shall obligate the designated HOME/CDBG funds by April 1, 2010. Based
on the budget outlined in C.2 below, J&B Construction will provide a detailed outline of
5
critical project milestones and projected expenditures during the course of the development
project as Exhibit C. These documents will become an official part of the contractual
agreement and provide the basis for overall project performance measurements.
D. Proiect Budget: Limitations
1. J&B Construction shall be paid a total consideration of $ 151,489.82 for full performance of
the services specified under this Agreement. Any cost above this amount shall be the sole
responsibility of the J&B Construction. It is also understood by both parties to this contract
that the funding provided under this contract for this specific project shall be the only funds
provided by Augusta ~ unless otherwise agreed to by Augusta and J&B Construction.
2. J & B Construction shall adhere to the following budget in the performance of this contract.
A.
Pro i ect Activity Cost
$ 151,489.82
Construction (HOME)
Construction Interest (HOME)
Developer's Fee (HOME)
Demolition & Clearing (CDBG)
63,708.47
9,556.27
38,225.08
40,000.00
TOTAL HOME/CDBG PROJECT COST:
$ 151,489.82
ARTICLE ill - RESALEIRECAPTURE PROVISIONS [24 CFR 92.254(5)]
1. The ResalelRecapture Provisions in this Article III shall ensure compliance with the HOME
Program "Period of Affordability" requirements pursuant to 24 CFR 92.254(a)(4). 24 CPR
92.254 requires that the City, its subrecipients, and CHDOs follow certain resale/recapture
restrictions with regard to its HOME-:funded homebuyer program. Each property sold to a
homebuyer will remain affordable for the duration of the affordability period or the City will
use the recapture option.
A. Recapture Provisions f24 CFR 92.254(5)(ii))
If the eligible homebuyer (who received down payment assistance [HOME Program] or other
development subsidy funds from Augusta) sells their property, then AHCD shall recapture
the HOME funds which will ensure that the recaptured HOME Program funds are reinvested
in other affordable housing in Augusta for low and moderate-income persons. This shall be
accomplished through deed restrictions, property liens, and contractual obligations, as
described in Article LB of this Agreement.
ARTICLE IV. TERM OF CONTRACT
The term of this agreement shall commence on the date when this agreement is executed by Augusta
and the J&B Construction (whichever date is later) and shall end at the completion of all program
activities, within the time specified in Article LD, or in accordance with ARTICLE IX: Suspension
and Termination.
6
ARTICLE V. DOCUMENTATION AND PAYMENT
A. This is a pay-for-performance contract and ill no event shall Augusta provide advance funding to
the J&B Construction, or any subcontractor hereunder. All payments to the J&B Construction
by Augusta will be made on a reimbursement basis.
B. J&B Construction shall maintain a separate account and accounting process for HOME/CDBG
funding sources.
C. J &B Construction shall not use these funds for any purpose other than the purpose set forth in
this Agreement.
D. Subject to J&B Construction's compliance with the provisions of this Agreement, Augusta
agrees to reimburse all budgeted costs allowable under federal, state, and local guidelines.
E. All purchases of capital equipment, goods and services shall comply with the procurement
procedures of OMB Circular A-110 "Uniform Administrative Requirements for Grant
Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit
Organizations" as well as the procurement policy of Augusta.
F. Requests by J &B Construction for payment shall be accompanied by proper documentation and
shall be submitted to HCD, transmitted by a cover memo, for approval no later than thirty (30)
calendar days after the last date covered by the request. For purposes of this section, proper
documentation includes: "Reimbursement Request" form supplied by HCD, copies of invoices,
receipts, other evidence of indebtedness, budget itemization and description of specific activities
undertaken. Invoices shall not be honored if received by Augusta later than sixty (60) calendar
days after expiration date of this Agreement. Reimbursement request form is in Appendix A.
G. J&B Construction shall maintain an adequate financial system and internal fiscal controls.
H. Developer's fee will be determined after construction is complete and the hone is sold, and the
homebuyer subsidy will be determined after the amount of the buyer's permanent mortgage has
been determined.
1. Unexpended Funds: Unexpended funds shall be retained by Augusta. Upon written request,
Augusta may consider the reallocation of unexpended funds to eligible projects proposed by the
J&B Construction.
ARTICLE
VllI ADMINISTRATIVE REQUIREMENTS
A. Conflict of Interest
J&B Construction agrees to comply with the conflict of interest provisions contained in 24
CFR 85.36, 570.611, OMB Circular A-I10 and OMB Circular A-102 as appropriate.
This conflict of interest provision applies to any person who is an employee, agent, consultant,
officer, or elected official or appointed official of J&B Construction. No person described
above who exercises, may exercise or has exercised any functions or responsibilities with
respect to the HOME activities supported under this contract; or who are in a position to
participate in a decision-making process or gain inside information with regard to such
activities, may obtain any financial interest or benefit from the activities, or have a fmancial
7
interest in any contract, sub-contract, or agreement with respect to the contract activities,
either for themselves or those with whom they have business or family ties, during their tenure
or for one year thereafter. For the purpose of this provision, "family ties", as defmed in the
above cited volume and provisions of the Code of Federal Regulations, include those related
as Spouse, Father, Mother, Father-in-law, Mother-in-law, Step-parent, Children, Step-
children, Brother, Sister, Brother-in-law, Sister-in-law, Grandparent, Grandchildren of the
individual holding any interest in the subject matter of tbis Agreement. J&B Construction in
the persons of Directors, Officers, Employees, Staff, Volunteers and Associates such as
Contractors, Sub-contractors and Consultants shall sign and submit a Conflict of Interest
Mfidavit. (Affidavit form attached as part in parcel to this Agreement)
B. Augusta may, from time to time, request changes to the scope of this agreement and
obligations to be performed hereunder by J &B Construction. In such instances, J&B
Construction shall consult with HCD/ Augusta on any changes that will result in substantive
changes to this Agreement. All such changes shall be made via written amendments to this
Agreement and shall be approved by the governing bodies of both Augusta and J &B
Construction.
C. Statutes, regulations, guidelines and forms referenced throughout this Agreement are listed in
Appendix A and are attached and included as part in parcel to thi~ Agreement.
ARTICLE
IX. OTHER REQUIREMENTS
A. Fair Housing
J&B Construction agrees that it will conduct and administer HOME activities in conformity
with Pub. L. 88-352, "Title VI of the Civil Rights Act of 1964", and with Pub. L. 90-284 "Fair
Housing Act", and that it will affinnatively further fair housing. One suggested activity is to
use the fair housing symbol and language in J&B Construction's publications and/or
advertisements. (24 CFR 570.601).
B. Ownership Interest
J&B Construction agrees that the ownership in the housing assisted units must meet the
definition of "homeownership" in S92.2.
C. Non-Discrimination
J&B Construction. agrees to comply with 24 CFR Part I, which provides that no person shall
be excluded from participation in this project on the grounds of race, color, national origin, or
sex; or be subject to discrimination under any program or activity funded in whole or in part
with federal funds made available pursuant to the Act.
D. Labor Standards
1. General: J&B Construction agrees that in instances in which there is construction
work over $2,000 financed in whole or in part with HOME funds under this
Agreement, J&B Construction will adhere to the Davis-Bacon Act (40 USC 276), as
amended, which requires all laborers and mechanics working on the project to be paid
not less than prevailing wage-rates as determined by the Secretary of Labor. By
reason of the foregoing requirement, the Contract Work Hours and Safety Standards
8
Act (40 USC 327 et seq.) also applies. These requirements apply to the rehabilitation
of residential property only if such property contains eight or more units. (24 CFR
570.603)
2. Labor Matters: No person employed in the work covered by this contract shall be discharged
or in any way discriminated against because he or she has filed any complaint or instituted or
caused to be instituted any proceeding or has testified or is about to testify in any proceeding
under or relating to the labor standards applicable hereunder to his or her employer. (24 CFR
570.603)
E. Environmental Standards
J&B Construction agrees that in accordance with the National Environmental Policy Act of
1969 and 24 CFR part 58, it will cooperate with AugustalHCD in complying with the Act and
regulations, and that no activities will be undertaken until notified by AugustalHCD that the
activity is in compliance with the Act and regulations. Prior to beginning any project
development activity, an environmental review must be conducted by the Augusta-Richmond
County Planning Department pursuant to (24 CFR 570.604).
F. Flood Insurance
Consistent with the Flood Disaster Protection Act of 1973 (42 USC 4001-4128), J&B
Construct agrees that HOME funds shall not be expended for acquisition or construction in an
area identified by the Federal Emergency Management Agency (FEMA) as having special
flood hazards (representing the 100-year floodplain). Exceptions will be made if the
community is participating in the National Flood Insurance Program or less than a year has
passed since FEMA notification and flood insurance has been obtained in accordance with
section 102(a) of the Flood Disaster Protection Act of 1973.
G. Displacement and Relocation
J&B Construction agrees to take all reasonable steps to minimize displacement of persons as a
result of HOME assisted activities. Any such activities assisted with HOME funds will be
conducted in accordance with the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA) and the Housing and Community Development Act
of 1974 (24 CFR 570.606).
H. Non-Discrimination in Employment
J&B Construction agrees to comply with Executive Order 11246 and 12086 and the
regulations issued pursuant thereto (41 CPR 60) which provides that no person shall be
discriminated against on the basis of race, color, religion, sex or national origin. J&B
Construction will in all solicitations or advertisements for employees placed by or on behalf of
J&B Construction, state that all qualified applicants will receive consideration for employment
without regard to race, color, religion, sex, national origin or familial status.
I. Employment and Business Opportunities
J&B Construction. agrees that low and moderate income persons residing within Augusta-
Richmond County; and that contracts for work in connection with the project be awarded to
9
eligible business concerns which are located in or owned in substantial part by persons
residing in Augusta~Richmond County - (24 CPR 570.697).
J. Lead-Based Paint
In accordance with Section 92.355 of the HOME Regulations and Section 570.608 of the
CDBG Regulations, J&B Construction ab'fees to comply with the Lead Based Paint Poisoning
Prevention Act pursuant to prohibition against the use of lead-based paint in residential
structures and to comply with 24 CFR 570.608 and 24 CPR 35 with regard to notification of
the hazards oflead-based paint poisoning and the elimination oflead-based paint hazards.
K. Debarred, Suspended or Ineligible Contractor
J&B Construction. agrees to comply with 24 CFR 570.609 with regards to the direct or
indirect use of any contractor during any period of debarment, suspension or placement in
ineligibility status. No contract will be executed until such time that the debarred, suspended
or ineligible contractor has been approved and reinstated by HCD.
L. Drug Free Workplace
In accordance with 24 CFR part 24, subpart F, J&B Construction agrees to administer a policy
to provide a drug-free workplace that is free from illegal use, possession or distribution of
drugs or alcohol by its beneficiaries as required by the Drug Free Workplace Act of 1988.
M. Publicitv
Any publicity generated by J&B Construction for the project funded pursuant to this
Agreement, during the term of this Agreement or for one year thereafter, will make reference'
to the contribution of Augusta-Richmond County in making the project possible. The words
"Augusta-Richmond County Department of Housing and Community Development" will be
explicitly stated in any and all pieces of publicity; including but not limited to flyers, press
releases, posters, brochures, public service announcements, interviews, and newspaper
articles.
N. Timely Expenditure of Funds
In accordance with 24 CFR 85.43, if J&B Construction fails to expend its grant funds in a
timely manner, such failure shall constitute a material failure to comply with this Agreement
and invoke the suspension and tennination provisions of ARTICLE X. For purposes of this
Agreement, timely expenditure of funds means J&B Construction shall obligate and expend
its funds as designated under ARTICLE II. (B).
O. Compliance with Laws and Permits
J&B Construction shall comply with all applicable laws, ordinances and codes of the federal,
state, and local governments and shall commit no trespass on any public or private property in
performing any of the work embraced by this contract. J&B Construction agrees to obtain all
necessary permits for intended improvements or activities.
10
P. Assignment of Contract
J&B Construction shall not assign any interest in this contract or transfer any interest in the
same without the prior written approval of Augusta.
Q. Equal Employment Opportunity
J&B Construction agrees to comply with the prohibitions against discrimination on the basis
of age under the Age Discrimination Act of 1975 (42 V.S.C. 6101-07) and implementing
regulations at 24 CFR part 146 and the prohibitions against otherwise qualified individuals
with handicaps under section 504 of the Rehabilitation Act of 1973 (29 D.S.C. 794) and
implementing regulations at 24 CPR part 8. For purposes of the emergency shelter grants
program, the term dwelling units in 24 CPR part 8 shall include sleeping accommodations.
R. Affirmative Action
J&B Construction will not discriminate against any employee or applicant for employment
because of race, color, religion, sex, national origin, or familial status. J&B Construction will
take affIrmative action to insure that applicants are employed, and that employees are treated
during employment, without regard to their race, color, religion, sex, national origin, or J&B
Construction social status. Such action shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; recruitment or advertising; lay-off or
termination, rates of payor other forms of compensation; and selection for training, including
apprenticeship. J&B Construction agrees to post in conspicuous places, available to employees
and applicants for employment, notices to be provided by Augusta setting forth the provisions
of this nondiscrimination clause. J&B Construction agrees to make efforts to encourage the
use of minority and women-owned business enterprises in connection with HOME supported
activities.
S. Religious Influence
J&B Construction will not discriminate against any employee or applicant for employment on
the basis of religion and will not give preference of persons on the basis of religion. J &B
Construction will not discriminate against any person applying for shelter on the basis of
religion. J&B Construction will provide no religious instruction or counseling, conduct no
religious worship or services, engage in no religious proselytizing and exert no religious
influence in the provision of shelter and other eligible activities funded by this grant.
T. Indirect Costs
Indirect costs will only be paid if J &B Construction has indirect cost allocation plan approved
by the Department of Housing and Urban Development prior to the execution of this Contract.
U. Travel
If applicable, J&B Construction shall obtain prior written approval from the Grantee for any
travel outside the State of Georgia with funds provided under this contract. All Federal Travel
Regulations are applicable (41 CFR Part 301).
11
V. Construction Requirements - SEE APPE1\1])!X C
All housing units [rehabilitated, reconstructed or newly constructed] and assisted with HOME
Program funds must, before occupancy, meet the Property Standards specified at 25 CFR
92.251 [the HOME Program Regulations]. The Property Standards at 24 CFR 92.251 require
that the homes receiving HOME Program funds must meet all local codes for new
construction. In the absence of local codes, properties must meet the HUD Section 8 Housing
Quality Standards [HQS]. All housing assisted under this Agreement is "new construction"
by HOME Program defInition and therefore must meet the local building codes for new
housing in Augusta-Richmond County, as applicable.
ARTICLE
X.
SUSPENSION AND TERMINATJON
A. In the event J&B Construction materially fails to comply with any terms of this agreement,
including the timely completion of activities as described in the timetable and/or contained in
ARTICLE I, Scope of Services, Augusta may withhold cash payments until J&B
Construction, Inc. cures any breach of the agreement. If J&B Construction fails to cure the
breach, Augusta may suspend or terminate the current award of HOME funds for the J&B
Construction program.
B. Notwithstanding the above, J&B Construction shall not be relieved of its liability to Augusta
for damages sustained as a result of any breach of this agreement. In addition, to any other
remedies it may have at law or equity, Augusta may withhold any payments to J&B
Cons1ruction for the purposes of set off until such time as the exact amount of damages is
determined.
C. In the best interest of the program and to better serve the people in the target areas and fulfill
the purposes of the Act, either party may terminate this Agreement upon giving thirty (30)
days notice in writing of its intent to terminate, stating its reasons for doing so. In the event
Augusta tenninates the Agreement, Augusta shall pay J&B Construction for documented
committed eligible costs incurred prior to the date of notice of termination.
D. Notwithstanding ~l11y termination or suspension of this Agreement, J&B Construction shall not
be relieved of any duties or obligations imposed 011 it under ARTICLES V, VI, VII, VIII, IX,
XI, and xn of this agreement with respect to HOME funds previously disbursed or income
derived therefrom.
ARTICLE XL NOTICES
Whenever either party desires to give notice unto the other, such notice must be in writing, sent by
certified United States mail, return receipt requested, addressed to the party for whom it is intended, at
the place last specified, and the place for giving of notice shall remain such until it shall have been
changed by written notice.
Augusta will receive all notice at the address indicated below:
Office of the Administrator
Municipal Building
530 Green Street, Suite 801
Augusta, Georgia 30911
12
With copies to:
Augusta Housing and Community Development Department
925 Laney Walker Blvd., 2nd Floor
Augusta, Georgia 30901
J&B Construction and Services, Inc. will receive all notices at the address indicated below:
J & B Construction and Services, Inc.
3550 Gordon Hwy
Grovetown, GA 30813
ARTICLE XIL
INDEMNIFICATION
J &B Construction will at all times hereafter indemnify and hold harmless Augusta, its officers, agents
and employees, ,against any and all claims, losses, liabilities, or expenditures of any kind, including
court costs, attorney fees and expenses, accruing or resulting from any or all suits or damages of any
kind resulting from injuries or damages sustained by any person or persons, corporation or property,
by virtue of the performance of this Agreement. By execution of this agreement, J&B Construction
specifically consents to jurisdiction and venue in the Superior Court of Richmond County, Georgia
and waives any right to contest jurisdiction or venue in said Court.
Should it become necessary to determine the meaning or otherwise interpret any work, phrase or
provision of this Agreement, or should the tenns of this Agreement in any way be the subject of
'litigation in any court of laws or equity. It is agreed that the laws of the State of Georgia shall
exclusively control same.
The parties hereto do agree to bind themselves, their heirs, executors, administrators, trustees,
successors and assigns, all jointly and severally under the terms of this Agreement.
ARTICLE XllL
INSURANCE AND BONDING
J&B Construction shall acquire adequate insurance coverage to protect all contract assets from loss or
damage resulting from theft, fi-aud or physical damage. All policies and amounts of coverage shall be
subject to approval by Augusta. Additionally, J&B Construction shall procure and provide for
approval by Augusta a blanket fidelity bond in the amount of at least $100,000.00 covering all
personnel of J&B Construction handling or charged with the responsibility for handling funds and
property pursuant to this contract. J&B Construction shall procure and provide, for approval by the
Augusta, comprehensive general liability insurance in the amount of at least $1,000,000.00 insuring
the Grantee and adding as named insured the City of Augusta, the Mayor, Commissioners, and
Augusta's officers, agents, members, employees, and successors.
Additionally, J&B Construction shall procure officers and directors liability insurance under policies
to be approved by the Augusta. All of the above policies shall provide that no act or omission of the
grantee, its agents, servants or employees shall invalidate any insurance coverage for other named
insured. No insurance policy providing insurance coverage required to be provided by J&B
Construction hereunder shall be cancelable without at least fifteen days advance written notice to the
Grantee. All insurance policies required hereunder or copies thereof shall be promptly submitted for
approval by the Augusta.
13
ARTICLE XIV.
PRIOR AND FUTURE AGREEMENTS
This document incorporates and includes all prior negotiations, correspondence, conversations,
agreements or understandings applicable to the matters contained herein and the parties agree that
there are no commitments, agreements, or understandings concerning the subject matter of this
agreement that are not contained in this document. Accordingly, it is agreed that no deviation from
the terms hereof shall be predicated upon any prior representations or agreements whether oral or
written. Augusta is not obligated to provide funding of any kind to J&B Construction beyond the tenn
of this Agreement.
#
ARTICLE XV.
LEGAL PROVISIONS DEEMED INCLUDED
Each and every provision of any law or regulations and clause required by law or regulation to be
inserted in this Agreement shall be deemed to be inserted herein and this Agreement shall be read and
enforced as though it were included herein and if, through mistake or otherwise, any such provision is
not inserted or is not correctly inserted, then upon application of either party this Agreement shall
forthwith be amended to make such insertion.
14
ARTICLE XVI.
COUNTERPARTS
This agreement is executed in two (2) counterparts ~ each of which shall be deemed an original and
together shall constitute one and the same Agreement with one counterpart being delivered to each
party hereto.
IN WiTNESS WHEREOF, the palties have set their hands and seals as of the date first written
above:
SEAL /i!Jlgj~
By:
AUGUST A. GEORGIA
(Augusta)
~x1,~
David S: openhaver
As Its Mayor 1\
ArrEST:
Clerk of Commission
ATTEST:
J & B CONSTRUCTION AND SERVICES. INC.
(Grantee)
SEAL
t,d~cJ ~4 fh~h"/)
(Plain Witness) ~
15
APPENDIX A
Statutes: (Available on Request)
24 CFR Part 92, HOME Investment Partnerships Program ("HOME")
OMB Circular A-II0 - Uniform Administrative Requirements for Grants and Agreement with
Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations
OMB Circular A- 122 - Cost Principles for Non-Profit Organizations
OMB Circular A-133 - Audits of Institutions of Higher Education & other Non-Profit Institutions
40 USC 276 Davis-Bacon Act
40 USC 327 Contract Work Hours and Safety Standard Act
Uniform Relocation Assistance and Real Property Acquisition Policies Act
Lead Based Paint Poisoning Prevention Act
24 CFR 35 - HUD Requirements for Notification, Evaluation and Reduction of Lead-Based Paint
Hazards in Housing Receiving Federal Assistance and Federally-Owned Residential Property being
sold, Final Rule
Augusta-Richmond County Procurement Policy
Conflict of Interest Affidavit
Forms:
Reimbursement Form
16
I
1=
-
I
a;
-
ftS
C
...... ~ a;
tJ) I- 1U
U1 c
(I) l1.I
::l
a
::s w
0:::
tT ~
(1) i:i
(l)
>
I:t: 0
'-
c.
c.
<(
.... .....
J:
c: ::J
0
~
(1)
E t=-=
z
::l
(I) o.
~
U) I-
Z
L.. ~
:3 c: C)
0
.c ;:;
(,)
::J
...
E ii)
c:
0
(J
. - CD
(1) IllS
"")
I:t: ....
<I'l
Cl.l
Cl.l 6-
-ti S I- Cl.l Q;
0 C) en ~N
;t: ...
oj:; tj l1.I .~ ~ ::J
Q) = ::::> -=.s .....
Q. !oo( a .......l ftS ..:
.... c:
; W lo< '" Q)
Ol Cl.l ::I C) ~
.. J: :it "'" a:: ;:: I:l en
- t ;:0: .-
J: I- C) en Cl.l~ II) .S:
(l) 0 CJ "'" ~ ~.... ~... ell
C. Co ~ ....;t:
II) w ... OJ 0 r:t::
"0 II) ell .., Cl ;:0: III U
- I Q) r:t:: 0 -;~ Q
II (l) ... 0 Ci.':! (I) W
... "C ... EX: ...
= .Q "C 0 a.. I- is J:
::J <( U.
en
APPENDIX B
REPORTING REQUIREMENTS
APD shall submit to the Grantee the following reports for the term of this agreement.
1. Weekly Status Reports
Due by 10:00 a.m. Monday morning for the previous week. Report will contain
actual/estimated costs/date, issues and concerns. MS Project schedule will be
manually updated so that APD can input data to master schedule.
2. Monthly/Quarterly Progress & Financial Reports
Due the 15th of the new quarter.
3. Annual Progress Report (January 16, 2009)
4. Audit/Financial Report
5. Grantee shall maintain files on each person assisted. Each file shall contain, but is not
restricted to, income data and verification for each person assisted; application for
services; record of services provided; amount of services provided; documentation of
costs for which assistance is pi'ovided; transportation log; documentation of medical
need regarding prescriptions; and any other document that will provide proof of
needed service(s) and subsequent provision of such service(s) as allowed under this
contract. .
17
APPENDIX C
CONSTRUCTION REQUIREMENTS
1. All construction projects shall comply with Federal, State, and local codes and ordinances,
including, but not limited to, the following:
A. "Standard Building Code", 2000 Edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
B. "Standard Plumbing Code", latest edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
C. Standard Mechanical Code, latest edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
D. '~ational Electric Code", latest edition, National Fire Protection Association, Quincy,
Massachusetts.
E. Model Energy Code, 1997, Council of American Building Officials.
F. "ADA Accessibility Guidelines for Buildings and Facilities", Department of Justice,
American with Disabilities Act of 1990".
G. Williams-Steiger Occupational Safety and Health Act of 1970, Public Law 91-596.
H. Part 1910 - Occupational Safety and Health Standards, Chapter XVII of Title 29, Code of
Federal Regulations (Federal Register, Volume 37, Number 202, October 18, 1972).
1. Part 1926 - Safety and Health Regulations for Construction, Chapter XVII of Title 29, Code
of Federal Regulations (Federal Register, Volume 37, Number 243, December 16, 1972.
J. Section 106 of the National Historic Preservation Act (16 D.S.C. 470f).
2. Bidding:
A. Only contractors included on the Augusta-Richmond County Housing & Community
Development Department Approved Contractor List may bid on construction projects
funded with CDBG funds
B. All bids will be awarded to the lowest bidder submitting an accurate and qualified bid.
C. All bidding documents and procedures will be made available for HCD review upon request
3. Eligible Contractors: Any contractor desiring to bid on HOME or CDBG projects may apply for
inclusion on the AHCD Approved Contractor List. Applications will be processed and either
approved or disapproved within 10 working days. Under no circumstances will barred,
disapproved, or otherwise ineligible contractors be allowed to bid on CDBG funded projects.
4. Project Review. All plans, specifications, work write-ups, projected cost estimates, punch lists or
other means of outlining work on a particular project will be submitted in writing to AHCD for
18
review and approval prior to bidding. AHCD Construction and Rehabilitation Inspectors will
review these items for compliance with new construction and/or rehabilitation standards and
materials use.
5. Rehabilitation Standards. All rehabilitation work will comply with the ''Uniform Physical
Condition Standards for Ht.JD Housing." Workmanship and material standards will comply with
the Augusta-Richmond County Housing & Community Development Department Contractors
Manual and Performance Standards. A copy of this manual is provided to every contractor when
included on the AHCD Approved Contractors List. A copy is enclosed for inclusion.
6. Inspections. All projects will be inspected and approved by an AHCD Constl1.lction and
Rehabilitation fuspector prior to release of the funds for that project.
19
EXHlBIT "A"
PROJECT DEVELOPMENT AND MANAGEMENT PROCEDURES
1. Augusta through the Housing and Community Development Department agrees to provide up
to $ 151,107.71 in Year 2009 HOME Investment Partnerships funds to J & B Construction.
These funds will support new construction with the production of approximately 2 affordable
single family residential units in connection with the continuation of the Pine Street.
Revitalization Project - Phase 1. It will all support the demolition and clearing of 10 sites
utilizing Community Development Block Grant funds. See attached construction plans.
2. ABCD must review and approve all residential design plans, project specifications and total
development cost for each residential development project before work is commenced and
before funds can be released for payment reimbursement. Construction payments will be
released to J&B Construction in accordance with the attached draw down schedule and budget.
3. ABCD will provide the lots on which all new affordable homes are to be built under this
agreement and in connection with the Pine Street Revitalization Project.
4. With AHCD approval, J&B Construction may use HOME funds under this agreement for the
following purposes:
a. To support development costs as outlined in Item 6 below.
5. Completion Delays, Remedies, and Penalties
A. If the Contractor fails to complete the work within the time frame specified in the
contract, plus any authorize delays, AHCD may:
1. Terminate the contractor in accordance with the "Provisions for Augusts Housing and
Community Development Department (AHCD)" clause of this contract.
2. Assess liquidated damages of fifty dollars ($100.00) per working day from the
schedule of completion to the date of final acceptance of the project. The total
amount of liquidated damages will be deducted from the total contract price, plus any
change order amounts.
B. The Contractor shall not be charged with liquidated damages for allY delays in the
completion of the work due:
1. To any acts of the Federal, State, or City/County Government; including
controls or restrictions upon or requisitioning of materials, equipment, tools or
labor by reason of war, National Defense, or any other National, State, or
City/County emergency.
2. To any acts of the Owner that hinder the progress of the work;
3. To causes not reasonable foreseeable by the parties to this contract at the time
of the execution of the contract which are beyond the control and without the
fault or negligence of the Contractor; including but not restricted to acts of
God; acts of the public enemy; acts of another contractor in the performance
20
of some other contract with the owner; fires; floods; epidemics; quarantine
restrictions; strikes; freight embargoes; and weather of unusual severity such
as hurricanes, tornadoes, cyclones, and other extreme weather conditions; and
4. To any delay of the subcontractor occasioned by any other causes specified in
subparagraphs A and B above. Provided, however, that the contractor
promptly (within 10 days) notifies AHCD and APD in writing of the cause of
the delay. If the facts show the delay to be properly excusable under the
terms of this contract, AHCD shall extend the contract time by a period
commensurate with the period of authorized delay to the completion of the
work as whole; in the form of an amendment tothis contact. c
6. Construction Costs and Requirements
a. The amount that can be used to pay for development costs will be identified on a project-
by-project basis in EXHIBIT B. In no case will this amount exceed the maximum per unit
amount as defined at 24 CFR 92.250.
b. J&B Construction will provide construction management for the project to ensure that
construction work is being carried out in accordance with plans, specifications and the
project budget.
c. J&B Construction must make sure contractor obtains and posts all permits on job site.
Prior to rc1easing final payment on each house, J&B Construction must also secure a
Certificate of Occupancy from the contractor that has been issued by the Department of
Licenses and Inspection.
d. J&B Construction must collect progress and final lien releases from the contractor,
subcontractors and material suppliers prior to making a payment to a contractor.
e. .AHCD or its agent may continually inspect each house for contract compliance and to
determine the percent of completion prior to processing a draw request and releasing
payment. AHCD may choose not to release payments if the work being performed is not
of acceptable quality to AHCD and if the house is not being built or rehabilitated in
accordance with plans and specifications, or if project is not on schedule.
7. Permanent Financing and Sales Prices
a. The sales price of each home sold in accordance with this agreement must be based on a
formal appraisal. Unless otherwise agreed to by .AHCD, the sales price of each house shall
not exceed the appraised value of the house.
b. The purchasers of houses constructed with HOME funds must meet HOME and City of
Augusta program requirements.
c. Buyers will be required to borrow no less than 75% of the sale price of the house from a
private lending institution unless otherwise agreed to by AHCD.
21