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PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made and entered into this 14 day of December, 2015, by and
between the CITY OF BOZEMAN,MONTANA,a self governing municipal corporation organized
and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street,Bozeman,
Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as
"City," and, Werwath Associates, hereinafter referred to as"Contractor."
In consideration of the mutual covenants and agreements herein contained, the receipt and
sufficiency whereof being hereby acknowledged,the parties hereto agree as follows:
1. Purpose: City agrees to enter this Agreement with Contractor to perform for City
services described in the Scope of Services attached hereto as Attachment"A" and by this reference
made a part hereof.
2. Terni/Effective Date: This Agreement is effective upon the date of its execution and
will terminate on the 28th day of February, 2016.
3. Scope of Work: Contractor will perform the work and provide the services in
accordance with the requirements of the Scope of Services. For conflicts between this Agreement and
the Scope of Services, unless specifically provided otherwise, the Agreement governs.
4. Payment: City agrees to pay Contractor the amount specified in the Scope of
Services. Any alteration or deviation from the described services that involves additional costs above
the Agreement amount will be performed by Contractor after written request by the City, and will
become an additional charge over and above the amount listed in the Scope of Services. The City
must agree in writing upon any additional charges.
5. Contractor's Representations: To induce City to enter into this Agreement,
Contractor makes the following representations:
a. Contractor has familiarized itself with the nature and extent of this Agreement, the
Scope of Services, and with all local conditions and federal, state and local laws, ordinances, rules,
and regulations that in any manner may affect cost,progress or performance of the Scope of Services.
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b. Contractor represents and warrants to City that it has the experience and ability to
perform the services required by this Agreement; that it will perform said services in a professional,
competent and timely manner and with diligence and skill; that it has the power to enter into and
perform this Agreement and grant the rights granted in it; and that its performance of this Agreement
shall not infringe upon or violate the rights of any third party,whether rights of copyright,trademark,
privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal,
state and municipal laws. The City will not determine or exercise control as to general procedures or
formats necessary to have these services meet this warranty.
6. Independent Contractor Status/Labor Relations: The parties agree that Contractor
is an independent contractor for purposes of this Agreement and is not to be considered an employee
of the City for any purpose. Contractor is not subject to the terms and provisions of the City's
personnel policies handbook and may not be considered a City employee for workers' compensation
or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in
any dealings between Contractor and any third parties.
Contractor shall comply with the applicable requirements of the Workers' Compensation Act,
Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71,
MCA. Contractor shall maintain workers' compensation coverage for all members and employees of
Contractor's business, except for those members who are exempted by law.
Contractor shall furnish the City with copies showing one of the following: (.1) a binder for
workers' compensation coverage by an insurer licensed and authorized to provide workers'
compensation insurance in the State of Montana; or (2) proof of exemption from workers'
compensation granted by law for independent contractors.
Contractor shall indemnify, defend, and hold the City harmless from any and all claims,
demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in
connection with any labor problems or disputes or any delays or stoppages of work associated with
such problems or disputes.
7. Indemnity/Waiver of Claims/Insurance: For other than professional services
rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and
hold harmless the City, its agents, representatives, employees, and officers (collectively referred to
for purposes of this Section as the City) from and against any and all claims, demands, actions, fees
and costs (including attorney's fees and the costs and fees of and expert witness and consultants),
losses, expenses, liabilities(including liability where activity is inherently or intrinsically dangerous)
or damages of whatever kind or nature connected therewith and without limit and without regard to i
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FY2015—FY2016
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the cause or causes thereof or the negligence of any party or parties that may be asserted against,
recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or
in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or(ii)
any negligent, reckless, or intentional misconduct of any of the Contractor's agents.
For the professional services rendered, to the fullest extent permitted by law, Contractor
agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and
expenses, including reasonable defense attorney fees,to the extent caused by the negligence or willful
misconduct of the Contractor or Contractor's agents or employees.
Such obligations shall not be construed to negate,abridge,or reduce other rights or obligations
of indemnity that would otherwise exist. The indemnification obligations of this Section must not be
construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s)
which would otherwise exist as to such indemnitee(s).
Contractor's indemnity under this Section shall be without regard to and without any right to
contribution from any insurance maintained by City.
Should any indemnitee described herein be required to bring an action against the Contractor
to assert its right to defense or indemnification under this Agreement or under the Contractor's
applicable insurance policies required below the indemnitee shall be entitled to recover reasonable
costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court
of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was
obligated to indemnify the indemnitee for a claim(s)or any portion(s)thereof.
In the event of an action filed against City resulting from the City's performance under this
Agreement, the City may elect to represent itself and incur all costs and expenses of suit.
Contractor also waives any and all claims and recourse against the City or its officers, agents
or employees, including the right of contribution for loss or damage to person or property arising
from,growing out of, or in any way connected with or incident to the performance of this Agreement
except"responsibility for his own fraud, for willful injury to the person or property of another, or for
violation of law,whether willful or negligent" as per 28-2-702, MCA.
These obligations shall survive termination of this Agreement and the services performed
hereunder.
In addition to and independent from the above, Contractor shall at Contractor's expense secure
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insurance coverage through an insurance company or companies duly licensed and authorized to
conduct insurance business in Montana which insures the liabilities and obligations specifically
assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion
for liabilities specifically assumed by the Contractor in subsection(a)of this Section.
The insurance shall cover and apply to all claims, demands, suits, damages, losses, and
expenses that may be asserted or claimed against, recovered from, or suffered by the City without
limit and without regard to the cause therefore and which is acceptable to the City and Contractor
shall furnish to the City an accompanying certificate of insurance and accompanying endorsements
in amounts not less than as follows:
• Workers' Compensation—statutory;
• Employers' Liability- $1,000,000 per occurrence; $2,000,000 annual aggregate;
• Commercial General Liability - $1,000,000 per occurrence; $2,000,000 annual
aggregate;
• Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual
aggregate; and
• Professional Liability- $1,000,000 per claim; $2,000,000 annual aggregate.
The above amounts shall be exclusive of defense costs. The City of Bozeman, its officers,
agents, and employees, shall be endorsed as an additional or named insured on a primary non-
contributory basis on both the Commercial General and Automobile Liability policies. The insurance
and required endorsements must be in a form suitable to City and shall include no less than a sixty
(60) day notice of cancellation or non-renewal. The City must approve all insurance coverage and
endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2)
business days of Contractor's receipt of notice that any required insurance coverage will be terminated
or Contractor's decision to terminate any required insurance coverage for any reason.
The City must approve all insurance coverage and endorsements prior to the Contractor
commencing work.
S. Termination for Contractor's Fault:
a. If Contractor refuses or fails to timely do the work, or any part thereof, or fails ;t
to perform any of its obligations under this Agreement, or otherwise breaches any terms or
conditions of this Agreement, the City may, by written notice, terminate this Agreement and
the Contractor's right to proceed with all or any part of the work ("Termination Notice Due
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to Contractor's Fault"). The City may then take over the work and complete it, either with its
own resources or by re-letting the contract to any other third party.
b. In the event of a termination pursuant to this Section 8, Contractor shall be
entitled to payment only for those services Contractor actually rendered.
c. Any termination provided for by this Section8
shall be in addition to any other
remedies to which the City may be entitled under the law or at equity.
d. In the event of termination under this Section 8, Contractor shall, under no
circumstances, be entitled to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature arising, or claimed to have arisen, as a result of the termination.
9. Termination for City's Convenience:
a. Should conditions arise which, in the sole opinion and discretion of the City,
make it advisable to the City to cease performance under this Agreement City may terminate
this Agreement by written notice to Contractor ("Notice of Termination for City's
Convenience"). The termination shall be effective in the manner specified in the Notice of
Termination for City's Convenience and shall be without prejudice to any claims that the City
may otherwise have against Contractor.
b. Upon receipt of the Notice of Termination for City's Convenience, unless
otherwise directed in the Notice, the Contractor shall immediately cease performance under
this Agreement and make every reasonable effort to refrain from continuing work, incurring
additional expenses or costs under this Agreement and shall immediately cancel all existing
orders or contracts upon terms satisfactory to the City. Contractor shall do only such work as
may be necessary to preserve, protect, and maintain work already completed or immediately
in progress.
c. In the event ofterminationapursuant tothis
Section 13, Contractor is entitled
to payment only for those services Contractor actually rendered on or before the receipt of the
Notice of Termination for City's Convenience. �3
d. The compensation described in Section 13(c)is the sole compensation due to
Contractor for its performance of this Agreement. Contractor shall, under no circumstances,
be entitled to claim or recover consequential, special,punitive, lost business opportunity, lost
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productivity, field office overhead, general conditions costs, or lost profits damages of any
nature arising, or claimed to have arisen, as a result of the termination.
10. Limitation on Contractor's Damages; Time for Asserting Claim:
a. In the event of a claim for damages by Contractor under this Agreement,
Contractor's damages shall be limited to contract damages and Contractor hereby expressly
waives any right to claim or recover consequential, special, punitive, lost business
opportunity, lost productivity, field office overhead, general conditions costs, or lost profits
damages of any nature or kind.
b. In the event Contractor wants to assert a claim for damages of any kind or
nature, Contractor shall provide City with written notice of its claim, the facts and
circumstances surrounding and giving rise to the claim, and the total amount of damages
sought by the claim, within ten (10) days of the facts and circumstances giving rise to the
claim. In the event Contractor fails to provide such notice, Contractor shall waive all rights
to assert such claim.
11. Representatives:
a. Citv's Representative: The City's Representative for the purpose of this
Agreement shall be Wendy Thomas, Director of Community Development or such other
individual as City shall designate in writing. Whenever approval or authorization from or
communication or submission to City is required by this Agreement, such communication or
submission shall be directed to Wendy Thomas as the City's Representative and approvals or
authorizations shall be issued only by such Representative; provided, however,that in exigent
circumstances when City's Representative is not available, Contractor may direct its
communication or submission to other designated City personnel or agents as listed above and
may receive approvals or authorization from such persons.
b. Contractor's Representative: The Contractor's Representative for the
purpose of this Agreement shall be Daniel Werwath or such other individual as Contractor
shall designate in writing. Whenever direction to or communication with Contractor is
required by this Agreement, such direction or communication shall be directed to Contractor's
Representative; provided, however, that in exigent circumstances when Contractor's
Representative is not available, City may direct its direction or communication to other
designated Contractor personnel or agents.
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FY 2015—FY 2016 ;3
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12. Permits: Contractor shall provide all notices, comply with all applicable laws,
ordinances,rules,and regulations, obtain all necessary permits,licenses,including a City of Bozeman
business license, and inspections from applicable governmental authorities, and pay all fees and
charges in connection therewith.
13 Laws and Regulations: Contractor shall comply fully with all applicable state and
federal laws, regulations, and municipal ordinances including, but not limited to, all workers'
compensation laws, all environmental laws including, but not limited to, the generation and disposal
of hazardous waste, the Occupational Safety and Health Act (OSHA), the safety rules, codes, and
provisions of the Montana Safety Act in Title 50, Chapter 71,MCA, all applicable City, County, and
State building and electrical codes, the Americans with Disabilities Act, and all non-discrimination,
affirmative action, and utilization of minority and small business statutes and regulations.
14. Nondiscrimination: The Contractor will have a policy to provide equal employment
opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations,
and contracts. The Contractor will not refuse employment to a person,bar a person from employment,
or discriminate against a person in compensation or in a term, condition, or privilege of employment
because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual
or perceived sexual orientation, gender identity, physical or mental disability, except when the
reasonable demands of the position require an age, physical or mental disability, marital status or sex
distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of
1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. The
Contractor shall require these nondiscrimination terms of its sub-Contractors providing services under
this agreement.
15. Intoxicants;DOT Drug and Alcohol Regulations/Safety and Training: Contractor
shall not permit or suffer the introduction or use of any intoxicants,including alcohol or illegal drugs,
by any employee or agent engaged in services to the City under this Agreement while on City property
or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of
and shall comply with its responsibilities and obligations under the U.S.Department of Transportation
(DOT)regulations governing anti-drug and alcohol misuse prevention plans and related testing. City
shall have the right to request proof of such compliance and Contractor shall be obligated to furnish
such proof.
The Contractor shall be responsible for instructing and training the Contractor's employees
and agents in proper and specified work methods and procedures. The Contractor shall provide
continuous inspection and supervision of the work performed. The Contractor is responsible for
instructing his employees and agents in safe work practices.
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16. Modification and Assignability: This Agreement may not be enlarged, modified or
altered except by written agreement signed by both parties hereto. The Contractor may not
subcontract or assign Contractor's rights, including the right to compensation or duties arising
hereunder,without the prior written consent of City. Any subcontractor or assignee will be bound by
all of the terms and conditions of this Agreement.
17. Reports/Accountability/Public Information: Contractor agrees to develop and/or
provide documentation as requested by the City demonstrating Contractor's compliance with the
requirements of this Agreement. Contractor shall allow the City, its auditors, and other persons
authorized by the City to inspect and copy its books and records for the purpose of verifying that the
reimbursement of monies distributed to Contractor pursuant to this Agreement was used in
compliance with this Agreement and all applicable provisions of federal, state, and local law. The
Contractor shall not issue any statements, releases or information for public dissemination without
prior approval of the City.
18. Non-Waiver: A waiver by either party any default or breach by the other party of any
terms or conditions of this Agreement does not limit the other party's right to enforce such term or
conditions or to pursue any available legal or equitable rights in the event of any subsequent default
or breach.
19. Attorney's Fees and Costs: That in the event it becomes necessary for either Party of
this Agreement to retain an attorney to enforce any of the terms or conditions of this Agreement or to
give any notice required herein, then the prevailing Party or the Party giving notice shall be entitled
to reasonable attorney's fees and costs,including fees, salary, and costs of in-house counsel to include
City Attorney.
20. Taxes: Contractor is obligated to pay all taxes of any kind or nature and make all
appropriate employee withholdings.
21. Dispute Resolution:
a. Any claim, controversy, or dispute between the parties, their agents,
employees, or representatives shall be resolved first by negotiation between senior-level
personnel from each party duly authorized to execute settlement agreements. Upon mutual
agreement of the parties,the parties may invite an independent,disinterested mediator to assist
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in the negotiated settlement discussions.
b. If the parties are unable to resolve the dispute within thirty(30)days from the
date the dispute was first raised, then such dispute may only be resolved in a court of
competent jurisdiction in compliance with the Applicable Law provisions of this Agreement.
22. Survival: Contractor's indemnification shall survive the termination or expiration of
this Agreement for the maximum period allowed under applicable law.
23. Headings: The headings used in this Agreement are for convenience only and are not
be construed as a part of the Agreement or as a limitation on the scope of the particular paragraphs to
which they refer.
24. Severability: If any portion of this Agreement is held to be void or unenforceable, the
balance thereof shall continue in effect.
25. Applicable Law: The parties agree that this Agreement is governed in all respects by
the laws of the State of Montana.
26. Binding Effect: This Agreement is binding upon and inures to the benefit of the heirs,
legal representatives, successors, and assigns of the parties.
27. No Third-Party Beneficiary: This Agreement is for the exclusive benefit of the
parties, does not constitute a third-party beneficiary agreement, and may not be relied upon or
enforced by a third party.
28. Counterparts: This Agreement may be executed in counterparts, which together
constitute one instrument.
29. Integration: This Agreement and all Exhibits attached hereto constitute the entire
agreement of the parties. Covenants or representations not contained therein or made a part thereof
by reference, are not binding upon the parties. There are no understandings between the parties other
than as set forth in this Agreement. All communications, either verbal or written, made prior to the
date of this Agreement are hereby abrogated and withdrawn unless specifically made a part of this
Agreement by reference.
30. Extensions: this Agreement may, on mutual agreement, be extended for a period
of one year by written agreement of the Parties. In no case, however, may this Agreement run longer
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FY 2015—FY 2016
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than January 1, 2017.
**** END OF AGREEMENT EXCEPT FOR SIGNATURES ****
IN WITNESS WHEREOF,the parties hereto have executed this instrument the day and year
first above written.
CITY OF BOZEMAN, MONTANA Werwath Associates
CONTRACTOR (Typ Name Above)
By
` IIBy � y IC6(1.4- c(-1/N,
Chris Kukulski, City Manager
Print Name: Daniel H. Werwath
Print Title: Principal
APPROVED AS TO FORM:
By_
GregSbllivan,Bozeman City Attorney
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FY 2015—FY 2016
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Scope of Professional Services
Administrative Manual for Bozeman's Affordable Housing Ordinance
1. Definitions
2. Applying for affordable housing incentives
3. Pricing of affordable homes
4. Timing of delivery of affordable homes.
5. Minimum design and construction standards for affordable homes.
6. Submission of affordable housing plan; approval.
7. Qualifying, applying for, buying and occupying lower-priced affordable homes.
8. Marketing, sales and occupancy of lower-cost affordable homes.
9. Recordations and subsidy recapture for lower-priced homes
10. Marketing and selling moderate-priced affordable homes
11. Requirements for Providing Affordable Homes (if and when these become effective)
12. Alternative Means of Compliance
13. Administration,Monitoring and Enforcement by the City
EXHIBITS
A: Template for Maximum Home Price Schedule
B: Template for Affordable Housing Plan and Application for Incentives ;.
C: Template for Maximum Buyer Income Schedule
D: Application to Buy a Lower-Cost Affordable Home
E: Disclosure Statement for Buyers of Lower-Priced Homes
F: Homebuyer Certification Checklist
G: Form of Affordability Lien
H: Disclosure Statement for Buyers of Lower-Priced Homes
I: Deed Covenant Requiring Owner Occupancy
J: Template for In-Lieu Fee Schedule
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Expanded Outline
Administrative Manual for Bozeman's Affordable Housing Ordinance
1. Definitions
— Same as in the ordinance. Add definition of"Housing Counseling Agency" roles.
2. Applying for affordable housing incentives
— Overview of application and affordable housing plan preparation. Flow chart of action
steps required to earn the incentives.
3. Pricing of affordable homes
— Formulas used to determine maximum home prices; process and timing of updates
— Refer to Exhibit A: Template for Maximum Home Price Schedule.
— How pricing schedule updates apply to specific affordable homes offered for sale (i.e.,
the then—current price must be used).
4. Timing of delivery of affordable homes.
— Keep short. Show and explain the Delivery Schedule template, which is part of the
Affordable Housing Plan template (Exhibit B). Note that affordable home lots or condo
units must be identified on the recorded plat.
5. Minimum design and construction standards for affordable homes.
— Interpret the ordinance language for examples of home design scenarios.
6. Submission of affordable housing plan; approval.
— Keep short. Refer to Exhibit B: Template for Affordable Housing Plan and Application
for Incentives. Per the ordinance, this will include an application for specific incentives
applicable to the development.
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— Question: Would the City be willing to make forward commitments of down payment
assistance attached to one or more low-cost homes?
7. Qualifying, applying for, buying and occupying lower-priced affordable homes.
— Intro to explain difference between lower-priced and moderate-priced homes
— Refer to Exhibit C: Template for Maximum Buyer Income Schedule
— Refer to Exhibit D: Application to Buy a Lower-Cost Affordable Home
— Other buyer requirements and responsibilities
— Roles and responsibilities of Housing Counseling Agency intended also to serve as a
guide to the contract scope of work.
— Refer to Exhibit E: Disclosure Statement for Buyers of Lower-Priced Homes
— Refer to Exhibit F: Homebuyer Certification Checklist
8. Marketing, sales and occupancy of lower-cost affordable homes.
— Marketing guide for builders and sales agents, Include process flowchart showing all
steps to be taken by builder and agency regarding marketing, counseling and certification
process. Include critical time intervals.
— The two sections above should be published separately as a guide to builders, sales
agents, and counseling agency staff
9. Recordations and subsidy recapture for lower-priced homes
-- Include formula for calculating amount of lien. Put lien formula in separate spreadsheet.
— Exhibit G: Form of Affordability Lien. Will include owner occupancy requirements and
failure to follow them as a default requiring the lien to be repaid. �!
10. Marketing and selling moderate-priced affordable homes
-- Brief marketing guide explaining compliance with price caps requirement for owner-
occupancy
— Refer to Exhibit H: Disclosure Statement for Buyers of Lower-Priced Homes
--- Refer to Exhibit I: Deed Covenant Requiring Owner Occupancy.
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--- Method of certifying that home sale prices did not exceed the maximums. Refer back to
Exhibit
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11. Requirements for Providing Affordable Homes (if and when these become effective)
- Applicability of requirements to construct affordable homes.
- The two options and their respective percentage requirements.
- Calculating the required number of affordable homes(rounding etc.)
- Include a chart that illustrates examples of numbers of lower-priced and moderate-priced
homes in several "mixed" scenarios.
- Refer back to Exhibit B: Template for Affordable Housing Plan and Application for
Incentives. This will be designed to accommodate the"required homes" option.
12. Alternative Means of Compliance
- Providing fees in lieu of building and selling affordable homes
- Providing land donations in lieu of building and selling affordable homes. Refer to
Exhibit J: Procedures for Analyzing, Accepting, and Valuing Land Donations
- Timing of in-lieu contributions
- Formula for calculating in-lieu fees and timing of updates
- Refer to Exhibit I: Template for In-Lieu Fee Schedule
13. Administration, Monitoring and Enforcement by the City
- Authority, roles and responsibilities of City Staff.
o Recite the various points in this part of the ordinance and fill in any gaps.
o Add specifics about annual and other periodic updates of qualifying incomes and
maximum home riceschanges to Exhibits in the Manual that are solely
(i.e.
based on formulas in the ordinance, which do not require Commission approval).
- Requirements for periodic studies of affordable housing needs including an analysis of
the effectiveness of the ordinance and the appropriateness of the percentage requirements
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for lower-priced and moderate-priced homes. The ordinance requires on pp 17 and 38
that these items be included in the manual.
-- Method of monitoring for compliance with owner-occupancy requirements.
— Responding to noncompliance; notices and sanctions
Fee for work outlined above shall not exceed $7,500.00. Additional fee for site visit shall be
$2500.00 per visit of up to 24 hours.
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