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HomeMy WebLinkAbout20080915 - VI-05VI-5 Memo To: Mayor Hicks and City Council From: John Hinzman, Planning Director Date: September 15, 2008 Subject: Authorize Signature -CDBG Subrecipient Agreement REQUEST The City Council is asked to authorize signature of the attached Subrecipient Agreement between the City of Hastings and Dakota County CDA for administration of federal Community Development Block Grant (CDBG) funds. ATTACHMENTS • Subrecipient Agreement SUBRECIPIENT AGREEMENT DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY (CDA) AND THE CITY OF HASTINGS THIS AGREEMENT entered into this "day of , 2008 by and between the « „ Dakota County Community Development Agenc (the rantee) and the City of Hastings (the "Subrecipient"). WHEREAS, the Grantee is the administering agency for funds received from the United States Government under Title I of the Housing and Community Development Act of 1974, Public Law 93-383, to Dakota County as an Urban Entitlement County under the Community Development Block Grant (CDBG) Program; and WHEREAS, the Grantee wishes to engage the Subrecipient to assist the Grantee in utilizing such funds. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the Grantee and Subrecipient agree as follows: I. TIME OF PERFORMANCE. Services of the Subrecipient shall start on the first day of July 2008 and end on the last day of June 2009. However, this Agreement remains in effect until it is replaced by a subsequent Subrecipient Agreement. II. NATIONAL OBJECTIVES. The Subrecipient will provide documentation to certify that the activities carried out with funds provided under this Agreement (thee "Activities") will meet one or more of the CDBG program's national objectives, including: (1) benefit low/moderate income persons, (2) aid in the prevention or elimination of slums and blight, and (3) meet community development needs having a particular urgency, all as defined in 24 CFR Part 570.208 (Exhibit A). ill. FEDERAL COMPLIANCE. The Subrecipient agrees to perform all the tasks enumerated below in a manner which wilt meet or exceed the terms and conditions imposed upon the Grantee in administering the CDBG program and in the terms and conditions stated in the Authority to Use Grant Funds effective June 25, 2008; the Dakota County Anti-Displacement Policy; and the Subrecipient's portion of the Activity Statement included in the annual Action Pians, copies of which are attached as Exhibits B and C, and D respectively. The Subrecipient shall carry out each Activity in compliance with all Federal laws and regulations described in Subpart K (Exhibit E) of the regulations with the exceptions outlined in Section III (E) below. A. Citizen Participation. Comply with all HUD citizen participation requirements. Hastings 2008 Subrecipient Agreement Page 2 of 10 B. Federal Regulation Compliance. Ensure program compliance with the following federal regulations: Historic properties (the National Historic Preservation Act of 1966). 2. Noise (HUD Handbook 1390.2 Noise Abatement and Control, Department Policy, responsibilities and standards, 1971). 3. Flood Plain (Flood Disaster Protection Act of 1973). 4. Coastal Zones and Wetlands. 5. Air Quality (Clean Air Act). 6. Water Quality (Federal Water Pollution Control Act}. 7. Wildlife Act (Fish and Wildlife Coordination Act). 8. All other Federal Acts or Regulations and requirements of HUD, _ inc{uding but not limited to Executive Order 11246 prohibiting discrimination in employment contracts, and directing government contracts to establish and maintain affirmative action. C. Acquisition and Relocation. Ensure that all Activities comply with all aspects of Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (as amended} and the Dakota County Anti-Displacement Policy. D. Compliance with Federal Labor Standards. Ensure compliance on all applicable Activities with Davis-Bacon and Related Acts, the Contract Work Hours and Safety Standards Act, the Copeland Act and the Fair Labor Standards Act as outlined in 29 CFR Parts 1, 3, 5, 6, and 7 (Exhibit F). E. Environmental Review.. The Grantee shall insure that all Activities comply with environmental review requirements, unless otherwise stated herein. This would include the Grantee's completion of a study and assessment of each Activity in conformance with the National Environmenta! Policy Act of 1967. The Subrecipient shall furnish the Grantee a copy of any updated environmental report. The Subrecipient shall carry out each Activity in compliance with all Federal laws and regulations described in Subpart K of the regulations, except that: 1. The Subrecipient does not assume the Grantee's environmental responsibilities described at § 570.604; and Hastings 2008 Subrecipient Agreement Page 3 of 10 2. The Subrecipient does not assume the Grantee's responsibility for initiating the review process under the provisions of 24 CFR Part 52. F. Compliance with Equal Opportunity Regulations. The Subrecipient shall maintain compliance with Section 3 of the Housing and Community Development Act Women and Minority Business requirements, Federal Equal Employment Opportunity Act, Executive Orders and Civil Rights Act of 1964 as specified in 24 CFR 135.20. G. Compliance with Common Rule and Uniform Administrative Requirements. The Subrecipient shall comply with all applicable requirements at 24 CFR Part 85 and 24 CFR 570.502. (Exhibits G and H). H. Conflict of Interest. The Subrecipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement. (Exhibit F). Conditions for Religious Organizations. In accordance with 24 CFR 5.109 and Federal Register Volume 69, Number 131 published July 9, 2004, faith-based organizations are eligible, on the same basis as any other organization, to participate in CDBG programs and activities, provided that the organizations do not engage in any inherently religious activities, such as worship, religious instruction, or proselytization, as part of the programs or services supported by direct CDBG funds. (Exhibit I). J. Recordkeeping. The Subrecipient shall: Maintain records as outlined in 24 CFR 570.506 (Exhibit H). 2. Keep complete and accurate records of all program claims and disbursements. The Subrecipient shall prepare a Request for Reimbursement Form (Exhibit J) listing all claims certified and paid by the Subrecipient for Activities and submit this Form to the Grantee. 3. Ensure compliance with 3-day rule requirements once funds are received by the Subrecipient from the Grantee. 4. Provide the Grantee with information necessary to submit reports as outlined in 24 CFR 570.507 (Exhibit H). 5. Submit to the Grantee quarterly progress reports of any outstanding Activities. The status report shall be submitted to Hastings 2008 Subrecipient Agreement Page 4 of 10 the Grantee by or before the thirtieth day of October, January, April, and July. 6. Maintain records in accordance with its retention schedule or for three years after the completion of the Activity, whichever is longer. Such records shall be made available for audit or inspection at any time upon request of the Grantee or its authorized representative. K. Program Income. Program income is defined in 24 CFR 570.500(a) with requirements set forth in 24 CFR 570.504 (c). The Subrecipient shall return all program income immediately to the Grantee except for revolving accounts approved by the Grantee. Program income will be disbursed according to the Program Income Policy attached as Exhibit K. (See Exhibit H for 24 CFR 570.500 and 570.504) L. Reversion of Assets. Upon the expiration of this agreement, the Subrecipient shall transfer to the Grantee any CDBG funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG funds. Any real property under the Subrecipient's control that was acquired or improved in whole or in part with CDBG funds in excess of $25,000 shall be: Used to meet one of the national objectives in 24 CFR Part 570.208 {Exhibit A) until five years after the Subrecipient no longer participates in the CDBG Entitlement Program; or 2. Disposed of in a manner that results in the Grantee's being reimbursed in the amount of the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. (Reimbursement is not required after the period of time specified in paragraph III (L)(1) of this section) M. Audit. The Grantee shall have full access to all records relating to performance of this Agreement. 2. The Subrecipient shall submit an auditor, upon prior approval by the Grantee, a copy of their financial statements for the fiscal years the grant is in effect. Audits must be performed by a Certified Public Accountant in accordance with generally accepted auditing principles and if applicable, OMB Circular A- 133. Ail audits or financial statements must be submitted to the Granfee within 9 months of the close of the Subrecipient's fiscal year. Failure of the Subrecipient to comply with these requirements may result in the withholding of future payments. Hastings 2008 Subrecipient Agreement Page 5 of 10 IV. OBLIGATIONS AND RESPONSIBILITIES. The Subrecipient agrees to assume and carry out the Grantee's obligations and responsibilities under: A. The Cooperation Agreements entered into between Dakota County and the Subrecipient concerning the Dakota County CDBG Program; and B. The Supplemental Agreements to the aforementioned Cooperation Agreements entered into between Dakota County and the Subrecipient. V. BUDGET. This Agreement replaces all previous Subrecipient Agreements and is applicable to prior fiscal year Activities which are not yet completed and to new Activities programmed for CDBG Grant Year 2008. It is understood that the Funding Approval/ Agreement (HUD 7082) which is attached hereto as Exhibit L is based upon a 2008 program budget reflecting receipt of $1,695,704 in CDBG Funds from HUD of which $73,500 is allocated to the Subrecipient as the maximum amount available for Fiscal Year 2008. The Subrecipient's total 2008 allocation will be administered by the Grantee. Unspent prior year funds are covered by this Agreement. VI. SCOPE OF SERVICES. As required in 24 CFR 570.503 (Exhibit H), the Subrecipient will be responsible for the administration of the following Activities under this Agreement, including ongoing Activities from previous fiscal years and Activities programmed with 2008 CDBG funds. FY 2008 funds will be committed to Activities after July 1, 2008. All funds will be expended to meet timeliness requirements specified in Section VII (A) and Exhibit M of this Agreement. Activity 1-Acquisition & Clearance A. Description Acquisition and clearance of blighted properties in various locations to eliminate safety hazards. B. Budget Activity Budget of $10,259.06 Remaining FY 2005 Funding: $584.00 Remaining FY 2004 Funding: $9.675.06 Activity 2- Fire Protection Rehabilitation Assistance A. Description Assistance for fire protection improvements to residential rental units in downtown mixed-use buildings. B. Budget Activity Budget of $32,211.44 Remaining FY 2004 Funding: $32,211.44 Hastings 2008 Subrecipient Agreement Page 6 of 10 VII. GENERAL CONDITIONS. The following shall apply to the Subrecipient and this Agreement: A. Timeliness. HUD requires that sixty (60) days prior to the end of the Grantee's program year, the amount of non-disbursed CDBG funds be no more than 1.5 times the entitlement grant for its current program year. The penalties for failing to meet the 60-day spend- down requirement potentially affect all jurisdictions in the county. Reallocation of funds, if necessary, will be done according to the CDBG Contingency Plan attached in Exhibit M. As of July 1, 2008, the Subrecipient has a 1.58 ratio of non-disbursed funds (based on the FY08 entitlement allocation). Therefore, the following expenditure targets shall apply to current and past year fund balances: For FY08 fund balances identified in Section VI of this Agreement, the Subrecipient should expend no less than 25 percent of its activity budget(s) by the end of the second quarter (December 31); no less than 35 percent of its activity budget(s) by the end of the third quarter (March 31); and no less than 50 percent of its activity budgets} by the end of-the fourth quarter (June 30). 2. For FY07 balances identified in Section VI of this Agreement, the Subrecipient should expend no less than 60 percent of its activity budget(s) by the end of the second quarter (December 31); and no less than 75 percent of its activity budget(s) by the end of the fourth quarter (June 30). 3. For FY06 and earlier balances identified in Section VI of this Agreement, the Subrecipient should expend no less than 100 percent of its activity budget(s) by the end of the second quarter (December 31). B. Independent Contractor. For the purpose of this Agreement, the Subrecipient shall be deemed an independent contractor, and not an employee of the Grantee. Any and all employees of the Subrecipient or other persons, while engaged in the performance of any work or services required by the Subrecipient under this Agreement, shall not be considered employees of the Grantee; and any and all claims that may or might arise on behalf of said employees or other persons as a consequence of any act or omission on the part of said employee or the Subrecipient shall in no way be the obligation or responsibility of the Grantee. C. Hold Harmless. It is further agreed that the Subrecipient shall defend and save the Grantee harmless from any claims, demands, actions, or causes of action arising out of any act or omission on the part of the Subrecipient, its agents, servants, or employees in performance of, or Hastings 2008 Subrecipient Agreement Page 7 of 10 with relation to, any of the work or services performed or furnished by the Subrecipient under the terms of the Agreement. It is further agreed that the Subrecipient shall notify the Grantee of any actual or potential claims against the Grantee that may arise as a consequence of any of the work or services performed or furnished by the Subrecipient under the terms of this Agreement. D. Transfer. The Subrecipient shall not assign any interest in this Agreement and shall not transfer any interest in the same, whether by assignment or subcontract, without the prior written consent of the Grantee. E. Amendments. Any alteration, variation, modification, or waiver of the provision of this Agreement shall be valid only after it has been reduced to writing and duly signed by both parties, with the exception of Administrative Amendments defined as any revision to the original annual budget that 1. Does not create a new Activity; - - - 2: - Does not delete an existing Activity in its entirety prior to any expenditure; and 3. Does not involve the reallocation of more than $75,000 per Activity. F. Waiver. The waiver of any of the rights and/or remedies arising under the terms of this Agreement on any one occasion by either party hereto shall not constitute a waiver of any rights and/or remedies in respect to any subsequent breach or default of the terms of this Agreement. The rights and remedies provided or referred to under the terms of the Agreement are cumulative and not mutually exclusive. G. I_iabili .Notwithstanding any other provision of this Agreement to the contrary, the Subrecipient shall not be relieved of liability to the Grantee for damages sustained by the Grantee by virtue of any breach of this Agreement by the Subrecipient, and the Grantee may withhold any payments to the Subrecipient for the purpose of set-off until such time as the exact amount of damages due the Grantee from the Subrecipient is determined. H. , Entire Agreement. This Agreement, as well as Exhibits A through M, which are attached hereto and incorporated herein by reference, shall constitute the entire agreement between the parties and shall supersede all prior oral or written negotiations. I. HUD Approval. It is expressly understood between the parties that this Agreement is contingent upon the approval of HUD and its authorization of grant monies to the Grantee for the purpose of this Agreement. Hastings 2008 Subrecipient Agreement Page 8 of 10 J. Violation of Law. Should any of the above provisions be subsequently determined by a Court of competent jurisdiction to be in violation of any Federal or State Law or to be other wise. invalid, both parties agree that only those provisions so adjudged shall be invalid and that the remainder of this Agreement shall remain in full force and effect. K. Discrimination. The Subrecipient agrees to comply with al( Federal, State and local laws and ordinances as they pertain to unlawful discrimination on account of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, or age. L. Applicable Laws. The Subrecipient further agrees to comply with ail Federal, state, and local laws or ordinances, and all applicable rules, regulations, and standards established by any agency of such governmental units, which are now or hereafter promulgated insofar as they relate to the Subrecipient performance of the provisions of this Agreement. ___ _ _ M. State Law.. This Agreement shall be interpreted and construed according to the laws of the State of Minnesota. N. Suspension and Termination. In accordance with 24 CFR 85.43, (Exhibit G), suspension or termination may occur if the Subrecipient materially fails to comply with any of the provisions hereof, and the award may be terminated for convenience in accordance with 24 CFR 85.44. Such termination shall occur thirty (30) days after receipt by the Subrecipient of written notice from the Grantee specifying the grounds therefore, unless, prior to such date, the Subrecipient has cured the alleged nonperformance of the provisions of this agreement. VIII. CERTIFICATION FOR CONTRACT, GRANTS, LOANS AND COOPERATIVE AGREEMENTS. The Subrecipient certifies, to the best of its knowledge and belief, that: A. No .Federal appropriated funds have been paid or will be paid, by or on behalf of the Subrecipient to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, and officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. B. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or Hastings 2008 Subrecipient Agreement Page 9 of 10 employee of Congress, or an employee of a Member of Congress, in connection with this Federal contract, grant, loan, or cooperative agreement, the Subrecipient shall complete and submit Standard Form - LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. C. The Subrecipient shall. require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this agreement was made or entered into. Submission of this certification is a prerequisite for making or entering into this agreement imposed by section 1332, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. IX. NOTICE. Written notice to be provided under this Agreement shall be provided as follows: For the Grantee: For the Subrecipient: Mark Ulfers, Executive Director Dakota County CDA 1228 Town Centre Drive Eagan, MN 55123 Dave Osberg, City Administrator City of Hastings 101 4t" Street East Hastings, MN 55033 IN WITNESS WHEREOF, the Grantee and the Subrecipient have executed this Subrecipient Agreement on the date indicated below. City of Hastings Dakota County CDA The Subrecipient The Grantee BY By Mri Mark Ulf rs Its Date of Signature Its Executive Director Date of Signature v ~L