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ORD 41658 - Interlocal Agmt - Omaha Municipal Land Bank for demolition of unfit and unsafe properties OF otAAFYA,^,Eg�P 4k`, 7. �s Law Department 0lt �.J i «r Omaha/Douglas Civic Center if1 =I�6 e „ C71 1819 Farnam Street,Suite 804 o.� ;3��.'=�=�"1 •— W� Omaha,Nebraska 68183-0804 oA ; �, (402)444-5115 44'D FEBR�r4 FAX:(402)444-5125 City of Omaha Paul D.Kratz Jean Stothert,Mayor µ City Attorney 1OIs 0 Honorable President and Members of the City Council, Attached is an Ordinance to approve an Interlocal Agreement between the City of Omaha and the Omaha Municipal Land Bank. This Agreement will provide for the contribution of funds from the Omaha Municipal Land Bank to support and supplement the City's efforts to demolish unfit and unsafe properties and the City law department's efforts to foreclose on demolition liens, as provided for by law, in order to return the resulting vacant properties to productive use. Your favorable consideration is requested. Respectfully submitted, pprove . ft> 11? Jenni er J. Taylor Date Paul Kratz Date City Attorney City Attorney Approved as to Funding: Approved: Step en Curtiss 14)4.1,41 to Q ''o Ande on ate Finance Director ' A - - = aiming Director ORDINANCE NO. _II) .g AN ORDINANCE to approve an Interlocal Agreement between the City of Omaha and the Omaha Municipal Land Bank for additional funding of demolition of unfit and unsafe properties and the foreclosure of demolition liens through court proceedings; and to provide for the effective date hereof. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA: Section 1. That in conformity with Interlocal Agreements Act, approval is hereby given to an Interlocal Agreement between the City of Omaha and the Omaha Municipal Land Bank, additional funding of demolition of unfit and unsafe properties and the foreclosure of demolition liens through court proceedings, for a four year term, as provided for in the Agreement. Section 2. That this Ordinance, not being of legislative character, shall be in full force and effect upon its passage. INTRODUCED BY COUNCILMEMBER S4. 64,' AMJ APPROVED BY: NOV 2 0 2018 -�. -1 1g PASSED MAYOR OF THE CITY OF MAHA DA E ACTING ATTEST: CITY CLE OF HE CITY OF OMAH ATE t)E 8 APPROVED AS TO FORM: 25/ e 44)4• CITY ATTC F�] Y DATE INTERLOCAL AGREEMENT BETWEEN THE CITY OF OMAHA AND THE OMAHA MUNICIPAL LAND BANK FOR THE DEMOLITION OF PROPERTY THIS INTERLOCAL AGREEMENT ("Agreement") is hereby made and entered into this at) day of iJOVatkr, 2018, between THE CITY OF OMAHA, a political subdivision organized and existing under the laws of the State of Nebraska located in Douglas County, Nebraska (hereinafter the "CITY"), and the OMAHA MUNICIPAL LAND BANK, formed by the CITY OF OMAHA, NEBRASKA pursuant to Neb.Rev.Stat. §§ 19-5201 through 19-5218 and constituting a public corporation acting in a governmental capacity as well as a political subdivision of the State of Nebraska located in Omaha, Douglas County, Nebraska (hereinafter "OMLB"). This Agreement does not create a separate legal entity to conduct the cooperative undertaking envisioned herein. When referring to the CITY and OMLB collectively, this Agreement shall use the term"Parties"; WHEREAS, the Omaha Municipal Code Section 48-91 requires any structure, which in the code official's judgment is so old, dilapidated or has become so out of repair as to be dangerous, unsafe, insanitary or otherwise unfit for human habitation or occupancy, and such that it is unreasonable to repair the structure, to be demolished and removed; WHEREAS, in the event the owner fails to demolish or remove a structure designated as dangerous, unsafe, insanitary or otherwise unfit for human habitation or occupancy, within the time prescribed, the City has the right to cause the structure to be demolished and removed, either through an available public agency or by contract or arrangement with private persons. The cost of such demolition and removal may be assessed as a lien against the real estate upon which the structure is located, and may be collected from the owner pursuant to a civil action, as provided by law; WHEREAS, the number of properties condemned and identified for demolition often exceed the funds and ability of the City to demolish said properties and, over time the City has undertaken the demolition hundreds of properties. However, the City is rarely able to recover the costs expended in demolition, which costs often far exceed the value of the vacant land that remains, further hampering the City's ability to demolish all such properties in a timely manner; WHEREAS, the Legislature has expressly found that Nebraska's municipalities are important to the social and economic vitality of the state, and many municipalities are struggling to cope with vacant, abandoned, and tax-delinquent properties. The Legislature also found that vacant, abandoned, and tax-delinquent properties represent lost revenue to municipalities and large costs associated with demolition, safety hazards, and the deterioration of neighborhoods and that there is an overriding public need to confront the problems caused by vacant, 1 abandoned, and tax-delinquent properties through the creation of new tools for municipalities to use to turn vacant spaces into vibrant places; and WHEREAS, land banks such as OMLB are one of the tools that can be utilized by municipalities to facilitate the return of vacant properties to productive use; WHEREAS, it is in the best interests of and mutually advantageous to the Parties to cooperate in the demolition of structures deemed dangerous, unsafe, insanitary or otherwise unfit for human habitation or occupancy, because doing so makes the most efficient use of their powers on the basis of mutual advantage and positions the OMLB to better discharge its purpose of facilitating the return of vacant, abandoned, and tax-delinquent properties to productive use; WHEREAS, the Interlocal Cooperation Act of the State of Nebraska, §§ 13-801 et seq. (Reissue 2012), expressly enables local governmental units such as the City and OMLB to conduct a cooperative undertaking in order to make the most efficient use of their powers on the basis of mutual advantage by providing for joint undertakings, services and facilities, in a manner and pursuant to forms of governmental organization that will accord with best geographic, economic, population, and other factors influencing the needs and developments of local communities; WHEREAS, cooperation between the City and OMLB in the funding of demolition efforts and foreclosure of demolition liens through court proceedings will enable the Parties to make the most efficient and economic use of their respective powers and will accord OMLB an opportunity to begin taking measures to return vacant, abandoned, and tax-delinquent properties to vibrancy and productive use by enabling OMLB to identify these properties at an earlier stage than the current system permits; WHEREAS, it is necessary for the Parties to enter into an agreement to set forth their respective rights, duties, and obligations; and this Agreement is intended to provide the methodology for the Parties' cooperation in the funding of demolition efforts by the City and foreclosure of demolition liens through court proceedings upon vacant and abandoned properties. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND AGREEMENTS HEREIN CONTAINED, THE PARTIES DO HEREBY MUTUALLY UNDERTAKE, PROMISE, AND AGREE AS FOLLOWS: 1. Purpose: The purpose of this Agreement is to delineate the cooperative undertaking between the CITY and OMLB that is intended to support the demolition of properties designated as dangerous, unsafe, insanitary or otherwise unfit for human habitation or 2 occupancy and foreclosure of liens imposed as a result of unpaid demolition assessments in order to return these vacant properties to productive use. 2. The Parties' Obligations: The CITY Permits and Inspections Division shall continue to inspect properties and designate structures as dangerous, unsafe, insanitary or otherwise unfit for human habitation or occupancy, as provided for in Chapter 48 of the Omaha Municipal Code. The CITY shall also continue to cause the demolition or removal of any structure so designated in event the owner fails to comply with a demolition order. The CITY Permits and Inspections Division shall establish a list of structures so designated, in order of priority, and cause the structures to be demolished or removed, either through an available public agency or by contract or arrangement with private persons. The CITY shall also continue to specially assess the costs of demolition as a lien against the real estate upon which the structure is located. The City shall undertake demolition or removal of properties as allowed by law, in the order of priority established by the Permits and Inspections Division. The CITY acknowledges that it does not have sufficient funds to undertake demolition or removal of every structure designated as dangerous, unsafe, insanitary or otherwise unfit for human habitation or occupancy, as allowed by the Omaha Municipal Code. The OMLB, in an effort to further its efforts to return vacant properties to productive use, may grant funds, in an amount equal to specific costs expended by the city for demolition of structures, as evidenced by invoices submitted to the OMLB and as agreed upon by the Parties, to the CITY in support of its efforts to remove or demolish properties designated as dangerous, unsafe, insanitary or otherwise unfit for human habitation or occupancy, in order of priority as established by the City Permits and Inspections Division. The CITY Law Department shall undertake all appropriate efforts to diligently foreclose upon the liens properly assessed against real estate for the costs of such removal or demolition, in a timely manner, in order to obtain ownership or control of all such properties, as deemed necessary and appropriate by the Parties, to further their mutual goals of returning vacant and abandoned land to productive use. The Parties acknowledge and agree that all activity and action needed to draft, file, process and complete the foreclosure actions for demolition liens will be undertaken by the CITY and from time to time the OMLB will provide additional information or assistance to the CITY Law Department, as appropriate and beneficial to the Parties. At such time as the CITY obtains legal title, ownership or control of properties pursuant to the foreclosure of demolition liens, such properties shall be available to the OMLB at fair market value pursuant to Omaha Municipal Code Chapter 27, Article III. 3 3. Financing: This Agreement does not require the levying, collecting, or accounting of any additional tax authorized under Neb. Rev. Stat. Sections 13-318 to 13-326 or 13-2813 to 13- 2816. Each Party shall finance its performance of its obligations in the ordinary course of its respective business and no separate budget shall be prepared with respect to the cooperative undertaking described herein. 4. Administration: This Agreement does not establish a separate legal entity. The CITY Permits and Inspections Director shall provide the Executive Director of OMLB a list of properties designated as dangerous, unsafe, insanitary or otherwise unfit for human habitation or occupancy, in order of priority, upon request. OMLB shall refer to this list when making a determination as to whether to contribute funds to the CITY's demolition efforts. 5. Property: The cooperative undertaking shall not require the acquisition of real or personal property separate and apart from real and personal property, except as provided for in Chapter 27, Article III of the Omaha Municipal Code, and then only to the extent the OMLB makes application the CITY to acquire available property. 6. Term and Termination: This Agreement shall become effective upon November 15, 2018. This Agreement will terminate on December 31, 2022, unless extended as provided for herein. Prior to the natural expiration of this Agreement, any Party may give the other Party thirty (30) days written notice of the notifying Party's desire to renegotiate this Agreement. During the pendency of these negotiations, this Agreement will remain in full force and effect. A Party may terminate this Agreement for convenience at any time for any reason by giving the other Parties three (3) months written notice. Each Party shall be responsible for performing its obligations as set forth above until the effective date of the termination. This Agreement may also be terminated for a material breach not cured within a reasonable time following written notice to the Party committing the material breach. Such notice, to be effective must describe the breach or breaches complained of and provide a reasonable time to cure which time may not be less than forty-five (45) days following receipt of notice, unless such length of time is impracticable (for example, in the case of a breach relating to performance of a duty for which Nebraska statutes proscribe specific dates or timeframes for performance), in which case such time may be 7 (seven) days. Following a failure to cure, the breaching Party may notify the other Party in writing that the Agreement is terminated as to the breaching Party effective in one (1) year following the receipt of such notice. Each Party shall be liable for performance of its obligations as set forth above until the effective date of the termination. 4 7. Amendment: The Parties herein reserve the right, by written request sent by registered mail from the notifying Party to the other Party, to amend or extend the term, as provided herein, any provision of this Agreement. To be effective, all amendments hereto must be in writing and must be executed by an authorized representative of each Party. If on or after one hundred and eighty(180) days of such amendment notice, amendment negotiations fail, then a Party may notify the other Party in writing of that Party's intent to withdraw and that the notifying Party's participation in this Agreement is terminated following 180 days after the withdrawal notice. All such notices, provided for in this section, shall be sent by registered mail as follows: TO CITY City Attorney Omaha/Douglas Civic Center 1819 Farnam Street, Suite 804 Omaha,NE 68183 (402) 444-5150 TO OMLB Executive Director Omaha Municipal Land Bank 1141 North 11 th Street, FL 1 Omaha NE 68102 402-800-1240 8. Nondiscrimination: The Parties, in the performance of this Agreement, shall not discriminate in violation of Federal or State law or local ordinances. In accordance with state and federal law, the Parties shall not discriminate against any employee or applicant for employment, to be employed in the performance of this Agreement, with respect to hire, tenure, terms, conditions, or privileges of employment because of race, color, age, religion, sex, disability, national origin or similar protected status of the employee or applicant. 9. No Waiver: The failure of either Party to insist on strict performance of any covenants or conditions, or to exercise any option herein conferred on any one or more instances, shall not be construed as a waiver or relinquishment of any such covenant, condition, right, or option, but the same shall remain in full force and effect. For a waiver of a right or power to be effective, it must be in writing signed by the waiving Party. An effective waiver of a right or power shall not be construed as either a future or continuing waiver of that same right or power, or the waiver of any other right or power. In addition, any act by any Party which is it not obligated to do hereunder shall not be deemed to impose any obligation upon any Party to do any similar act in the future or in any way change or alter any of the provisions of this Agreement. 5 10. Applicable Law / Venue: This Agreement shall be construed and all of the rights, powers, and liabilities of the Parties hereunder shall be determined in accordance with the laws of the State of Nebraska. Venue for any action under this Agreement shall be in Omaha, Nebraska, Douglas County District Court or for any federal action, it shall be in Omaha, Nebraska, the United States District Court for the State of Nebraska. 11. Severability: If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or otherwise unenforceable, that provision will be severed and the remainder of this Agreement will remain in full force and effect. The Parties further recognize that this Agreement shall be subject to amendments in laws and regulations and to new laws and regulations. Any law or regulation that invalidates, or is otherwise inconsistent with the terms of this Agreement or that would cause one or both Parties to be in violation of the law or regulation, shall be deemed to have superseded the terms of this Agreement, provided, however, that the Parties shall exercise their best efforts to accommodate the terms and intent of this Agreement to the greatest extent possible. Any law or regulation that supplements the abilities of either Party to perform its obligations under this Agreement shall be deemed incorporated within this Agreement if such incorporation may be accomplished without amendment to this Agreement. 12. Third Party Rights: This Agreement does not create any third-party rights for those who are not a Party to this Agreement. 13. Assignment: This Agreement may not be assigned or transferred, whether voluntarily or by operation of law, nor may any of the duties and responsibilities be assigned or transferred, whether voluntarily or by operation of law, without prior written consent of the non- assigning Party. 14. Entire Agreement: This Agreement contains the whole understanding of the Parties and supersedes all prior oral or written representations and statements among the Parties. 15. Indemnification: Each Party will indemnify, defend and hold harmless the other Party from any and all liability, expense, cost, attorney's fees, claim, judgment, suit and / or cause of action (whether or not meritorious), settlement, or demand for personal injury, death or damage to tangible property which may accrue against the other Party to the extent it is caused by the negligent acts or omissions of the Indemnifying Party, its officers, employees, agents, or subcontractors while performing their duties under this Agreement, provided that the other Party gives the Indemnifying Party prompt, written notice of any such claim, suit, demand or cause of action. The other Party shall cooperate in the defense or settlement negotiation of such claim, suit, demand or cause of action. This indemnification provision is 6 not the equivalent of purchasing liability insurance and it is not intended to be a waiver of either Party's sovereign immunity under Nebraska law. 16. No Joint Entity: It is agreed that nothing contained herein is intended or should be construed in any manner as creating or establishing a partnership or joint venture between the Parties. Any and all acts that the Parties or their personnel, employees, agents, contractors, or servants perform pursuant to the terms of this Agreement shall be undertaken not as employees of the other Party. The Parties shall, except as provided herein, act in their individual capacities and not as agents, employees, partners, joint ventures or associates of the other. An employee or agent of one shall not be deemed or construed to be the employee or agent of the other for any purpose whatsoever. None of the Parties nor its personnel, employees, agents, contractors, or servants shall be entitled to any benefits of the other. The Parties shall not provide any insurance coverage to the other or their employees including, but not limited to, workers' compensation insurance. Each Party shall pay all wages, salaries and other amounts due its employees and shall be responsible for all reports, obligations, and payments pertaining to social security taxation, income tax withholding, workers' compensation, unemployment compensation, group insurance coverage, collective bargaining agreements or any other such similar matters. Neither Party shall have any authority to bind the other by or with any contract or agreement, nor to impose any liability upon the other. All acts and contracts of each shall be in its own name and not in the name of the other. 17. New Employee Work Eligibility Status: The Parties hereby agree to use a federal immigration verification system to determine the work eligibility status of new employees physically performing services within Nebraska. A federal immigration verification system means the electronic verification of the work authorization program authorized by the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. 1324a, known as the E-Verify Program, or an equivalent federal program designated by the United States Department of Homeland Security or other federal agency authorized to verify the work eligibility status of a newly hired employee. 18. Captions: The captions used in this Agreement are for convenience and are not used in the construction of this Agreement. 19. Force Majeure: Except as may be otherwise specifically provided in this Agreement, no Party shall be in default under this Agreement if and to the extent that any failure or delay in such Party's performance of one or more of its obligations hereunder is caused by any of the following conditions, and such Party's performance of such obligation or obligations shall be excused and extended for and during the period of any such delay: act of God; fire; flood; fiber, cable, conduit or other material failures, shortages or unavailability or other 7 delay in delivery not resulting from the responsible Party's failure to timely place orders therefore; lack of or delay in transportation; changes to any of the following: government codes, ordinances, laws, rules, regulations or restrictions, as to which either Party's compliance is necessary to carry out the terms and conditions of this Agreement; war or civil disorder; or any other cause beyond the reasonable control of such Party. The Party claiming relief under this section shall promptly notify the other Parties in writing of the existence of the event relied on and the cessation or termination of said event. 20. Joint Work Product: This Agreement is the joint work product of both Parties; accordingly, in the event of any ambiguity, no presumption shall be imposed against or in favor of any Party by reason of document preparation. 21. Dispute Resolution: Any dispute which, in the judgment of a Party to this Agreement, may affect the performance of such Party shall be reduced to writing and delivered to the other Parties. As soon as possible thereafter, the Parties authorized representatives shall schedule a face to face meeting to resolve the dispute in a mutually satisfactory manner. Prior to the institution of any formal legal proceeding, the Parties must meet in this manner to resolve the dispute. This meeting must take place within ten (10) business days after service of the written statement of dispute. During the pendency of negotiations, the Parties shall act in good faith to perform their respective duties described herein. If the Parties are unable to resolve their dispute using the process described above, a Party may commence a legal action against the other Party. 22. Authorized Representatives and Notice: Except as provided in paragraph 7, above, the following named authorized representatives for each Party are available as a point of contact for any inquiries related to the performance of this Agreement. The Parties hereto expressly agree that for purposes of notice, during the term of this Agreement and thereafter, the following named individuals shall be the authorized points of contact of the Parties: TO CITY Mayor Omaha/Douglas Civic Center 1819 Farnam Street, Suite 300 Omaha,NE 68183 (402) 444-5555 TO OMLB Executive Director Omaha Municipal Land Bank 1141 North 11 th Street, FL 1 Omaha NE 68102 402-800-1240 8 THE UNDERSIGNED HEREBY WARRANTS THAT SHE IS POSSESSED OF FULL AND ACTUAL AUTHORITY TO SIGN THIS AGREEMENT ON BEHALF OF THE CITY OF OMAHA,DOUGLAS,NEBRASKA. L%-/ ACT IN(MAYOR to STATE OF NEBRASKA ) ) ss: COUNTY OF DOUGLAS ) The foregoing i trum t was acknowle ed�,�( efore me on this o<U�'1 day of �If,�a ,2018,by bLV) trg{ , A`'';'1V1'AYOR of the City of Omaha. GENERAL NOTARY-State of Nebraska KIMBERLY PUL.LIAM Notary Publ. �*"+_ My Comm.Exp.Dec.14,2021 THE UNDERSIGNED HEREBY WARRANTS THAT HE IS POSSESSED OF FULL AND ACTUAL AUTHORITY TO SIGN THIS AGREEMENT ON BEHALF OF THE OMAHA MUNICIPAL LAND BANK. VICE CHAIRPERSON, OMAHA MUNICIPAL Date LAND BANK BOARD OF DIRECTORS STATE OF NEBRASKA ) ) ss: COUNTY OF DOUGLAS ) cloo;i1Akle fore oin ins nt w acknowledged before me on this 5 day of (1,foregoing by vice Ch son of the Omaha Municipal Land Bank Board of Directors. GENERAL NOTARY-State of Nebraska m LISA A KINGSBURY Notary Bublic My Comm.Exp.July 27,2019 ""`� 9 ORDINANCE NO. LEI (1 5g Item Submitted By: Jennifer Taylor Department: Law Council Meeting Dates: First Reading: October 30, 2018 Second Reading and Public Hearing: November 6, 2018 Third Reading: November 20, 2018 An ordinance to approve an Interlocal Agreement between the City of Omaha and the Omaha Municipal Land Bank for additional funding of demolition of unfit and unsafe properties and the foreclosure of demolition liens through court proceedings. PUBLICATIONS t Ja PUBLICATION OF HEARING: I )l — PUBLICATION OF PASSAGE: Presented to City Council November 20, 2018 APPROVED 7-0 tlizabeth Butler City Clerk