HomeMy WebLinkAbout20101018 - VI-05cit of C f
City Council Memorandum
To: Mayor Hicks & City Councilmembers
From: John Hinzman, Community Development Director
Date: October 18, 2010
Item: Authorize Signature: CDBG Subrecipient Agreement
Council Action Requested:
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.
Background Information:
On December 7, 2009 the City Council approved the fiscal year 2010 CDBG Budget (July, 2010 -
June, 2011). The entire $75,285 was allocated towards the Fire Alarm Assistance Program to
install alarms on mixed -use occupancy building predominately in the downtown area.
Financial Impact:
Signature of the agreement allows for use of the $75,285 funding.
Advisory Commission Discussion:
N\A
Council Committee Discussion:
NSA
Attachments:
• Subrecipient Agreement
City rf HastIngs + 10i Fourth Street East • Hastings. MN 55033-1955 * p: &51• 2354 } f:651 -43740 w, ci , hiRr.UnG mn. LG
CDA Dakota County
Community Development Agency
0999000000406*6666046*
MEMORANDUM
TO: Dakota County CDBG Subrecipients
FROM: Dan Rogness, Director of Community Revitalization
DATE: October 7, 2010
RE: CDBG Subrecipient Agreements — Program Year 2010
Please find enclosed two copies of your Subrecipient Agreement for the Community
Development Block Grant (CDBG) program for Fiscal Year 2010 (July 1, 2010 through
June 30, 2011). This agreement is necessary for every city or township that directly
administers a CDBG- funded activity. The agreement only covers those activities that
you directly administer, so it will not necessarily include all CDBG funding that you
receive (i.e., residential rehab loans administered by the CDA). You must also execute
a similar agreement between yourself and any other organization that administers a
CDBG- funded activity on your behalf.
This time, we are going to use this agreement for the next four program years and only
change Exhibits as necessary. Therefore, you will see that the "Time of Performance"
on page one now refers to Fiscal Years 2010 through 2013. In addition, the following
changes have been made to this Agreement in order to put more emphasis on program
compliance requirements by each Subrecipient that undertakes CDBG activities:
1. Section N.C. — This has been added to address situations where corrective actions are
necessary for program compliance issues.
2. Section IV. D. — This has been added to require a Subrecipient to repay CDBG funds, if
necessary, based on certain non - compliance conditions.
3. Section VI11.6. — This has been added to allow the CDA to recapture and reallocate older
CDBG funds that are not being spent in a timely manner.
Please sign and return this agreement as soon as possible. I am including two originals
for your signature; please sign both and return one fully executed to me and keep one
for your files. CDBG cost reimbursements cannot occur until the agreement is fully
executed and received. It is up to each Subrecipient whether or not city council action
is necessary prior to execution; the CDA does not require council action. Don't hesitate
to contact me at 651 -675 -4464 if you have further questions.
Enclosure
1228 Town Centre Drive • Eagan, MN 55123 -1066
tel 651-675-4400 • fax 651-675-4444
SUBRECIPIENT AGREEMENT
DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY (CDA)
AND THE
CITY OF HASTINGS
THIS AGREEMENT entered into this day of , 2010 by and between the
Dakota County Community Development Agency (the "Grantee ") and the City of Hastings
(the "Subrecipient "), which pertains to a time period that begins and ends as identified in
Section I of this Agreement based on each year's Funding Approval /Agreement (Exhibit M)
approved by the U.S. Department of Housing and Urban Development ( "HUD "), which
identifies July 1 as the date use of funds may begin; and
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:
TIME OF PERFORMANCE Services of the Subrecipient shall start on the first day
of July 2010 and end on the last day of June 2014, which is the current Fiscal Year
2010 and the 3 -year term associated with the CDBG and HOME Cooperative
Agreement for Fiscal Years 2011 through 2013. This Agreement remains in effect
until it is replaced by a subsequent Subrecipient Agreement.
NATIONAL OBJECTIVES The Subrecipient will provide documentation to certify
that the activities carried out with funds provided under this Agreement (the
"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 B).
III. FEDERAL COMPLIANCE The Subrecipient agrees to perform all the tasks
enumerated below in a manner which will 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; the Dakota County Anti -
Displacement Policy; and the Subrecipient's portion of the Activity Statement included
in the annual Action Plans, copies of which are attached as Exhibits C, D, and E
respectively. The Subrecipient shall carry out each Activity in compliance with all
Federal laws and regulations described in Subpart K (Exhibit F) of the regulations
with the exceptions outlined in Section III (E) below.
Hastings 2010 - 2013 Subrecipient Agreement Page 2 of 12
A. Citizen Participation Comply with all HUD citizen participation
requirements.
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,
including 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 G).
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
Environmental 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:
Hastings 2010 - 2013 Subrecipient Agreement
Page 3 of 12
1. The Subrecipient does not assume the Grantee's environmental
responsibilities described at § 570.604; and
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 H and
1).
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 G).
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 J).
J. Recordkeeping The Subrecipient shall:
Maintain records as outlined in 24 CFR 570.506 (Exhibit 1).
2. Keep complete and accurate records of all program claims and
disbursements. The Subrecipient shall prepare a Request for
Reimbursement Form (Exhibit K) 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 1).
Hastings 2010 - 2013 Subrecipient Agreement
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5. Submit to the Grantee quarterly progress reports of any
outstanding Activities. The status report shall be submitted to
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
L. (See Exhibit I 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:
1. Used to meet one of the national objectives in 24 CFR Part
570.208 (Exhibit B) 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
1. The Grantee shall have full access to all records relating to
performance of this Agreement.
2. The Subrecipient shall submit an audit or, 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. All audits or financial statements must be submitted to
the Grantee within nine (9) months of the close of the
Hastings 2010 - 2013 Subrecipient Agreement
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Subrecipient's fiscal year. Failure of the Subrecipient to
comply with these requirements may result in the withholding of
future payments.
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.
C. A Subrecipient's failure to comply with any provision of this Agreement
may lead to corrective actions by the Grantee. The Grantee shall
provide the Subrecipient with written notice of the Subrecipient's failure
to comply with certain provisions. The Subrecipient will have fifteen
(15) days upon receipt of the notice to respond in writing as to the
corrective action that will be taken. Failure to respond to the notice
and /or to implement the proposed corrective action(s) to the Grantee's
sole and full satisfaction will cause the Grantee to take remedial action,
including, but not limited to the following:
Reimbursement requests will not be processed by the Grantee;
2. CDBG funds will be recaptured from the Subrecipient that have
already been expended or obligated; and /or
3. The Grantee will terminate this Agreement.
D. The Grantee has the right to require the Subrecipient to repay CDBG
funds if any of the following conditions occur:
1. HUD requires payback for any reason;
2. The Grantee has not been informed of a service or program
change by the Subrecipient and has expended funds for such
purposes;
3. The Grantee has decided that a cost was disallowed or
unauthorized after the Subrecipient obligated such cost; or
4. The Subrecipient receives funds, rebates or interest on CDBG
reimbursed expenses, and it has not forwarded these funds to
the Grantee.
V. ADMINISTRATION COSTS In consideration of the prompt and efficient carrying out
of the requirements of this Agreement and 24 CFR Part 570, Subpart J (Exhibit 1),
Subrecipient may request that the Grantee reimburse the Subrecipient based on
Hastings 2010 - 2013 Subrecipient Agreement
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general administration budgets identified in Section VII. Such administration costs
shall come solely from CDBG sources. Accurate records of administrative costs shall
be kept by the Subrecipient, and billing shall be made at such times as are
convenient to implement the Grantee's requisition for funds from HUD and no less
frequently than quarterly. For the purposes of this Agreement, general administration
costs are defined as follows:
A. Salary costs actually incurred by the Subrecipient for time expended by
its employees on all phases of the activity /project.
B. Mileage, supplies and publication costs.
C. Proportionate share of allowable overhead expenses figured on time
expended basis.
D. Costs incurred through attendance at applicable development
conferences within the term of this Agreement, including registration
fess and travel expenses. Conference attendance shall be for the
purpose of gaining additional information on CDBG regulations and
program implementation.
VI. BUDGET. This Agreement replaces all previous Subrecipient Agreements and is
applicable to prior fiscal year(s) Activities which are not yet completed and to new
Activities programmed for CDBG Grant Fiscal Years 2010 through 2013.
It is understood that the Funding Approval/ Agreement (HUD 7082) which is
attached hereto as Exhibit L is based upon program budgets reflecting actual
receipt of CDBG Funds from HUD of which a designated portion is allocated to the
Subrecipient as the maximum amount available for each Fiscal Year. The annual
allocation amount is based on a formula allocation provided by HUD and approved
by the Dakota County Board of Commissioners. Some or all of the Subrecipient's
total annual allocation will be administered by the Subrecipient and is covered by
this Agreement.
VII. SCOPE OF SERVICES As required in 24 CFR 570.503 (Exhibit J), the
Subrecipient will be responsible for the administration of Activities indentified in
Exhibit A, which shall be amended each Fiscal Year according to those Activities
approved for and undertaken by the Subrecipient, including ongoing Activities from
previous fiscal years.
VIII. 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.
Hastings 2010 - 2013 Subrecipient Agreement
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B. Reallocation & Recapture Reallocation of funds, if necessary, will be
done according to the CDBG Contingency Plan attached in Exhibit N,
as amended. The Grantee has the right to recapture unexpended or
unobligated funds that are older than three (3) years prior to the
current Fiscal Year. Recaptured CDBG funds will be added to an
approved county -wide CDBG Activity.
C. 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.
D. 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
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.
E. 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.
F. 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.
G. 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
Hastings 2010 - 2013 Subrecipient Agreement
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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.
H. Liability 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.
Entire Agreement This Agreement, as well as Exhibits A through N,
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.
J. 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.
K. 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.
L. Discrimination The Subrecipient agrees to comply with all 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.
M. Applicable Laws The Subrecipient further agrees to comply with all
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.
N. State Law This Agreement shall be interpreted and construed
according to the laws of the State of Minnesota.
O. Suspension and Termination In accordance with 24 CFR 85.43,
(Exhibit H), 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
Hastings 2010 - 2013 Subrecipient Agreement
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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.
IX. 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
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.
Hastings 2010 - 2013 Subrecipient Agreement Page 10 of 12
X. 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 4 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 (�' V\-/�
Mark Ulfers
Its Its Executive Director
Date of Signature Date of Signature 1a 1 7 1abl k:3
Hastings 2010 - 2013 Subredpient Agreement
EXHIBITS
A. CDBG Activities and Budgets
B. 24 CFR Part 570.208
C. Authority to Use Grant Funds
D. Dakota County Anti - Displacement Policy
E. Activity Statement -FY 2009 Action Plan
F. 24 CFR Part 570.600 -614 (Subpart K)
G. 29 CFR Parts 1, 2, 5, 6, and 7
H. 24 CFR Part 85
I. 24 CFR 570.500 -507
J. Federal Register Vol. 69, No. 131
K. Request for Reimbursement Form
L. Program Income and Reuse Policy
M. Funding Approval /Agreement (HUD 7082)
N. Contingency Plan/Timeliness of Expenditures
Page 11 of 12
Hastings 2010 - 2013 Subrecipient Agreement Page 12 of 12
EXHIBIT A TO SUBRECIPIENT AGREEMENT
DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY (CDA)
AND THE
CITY OF HASTINGS
CDBG funds will be committed to Activities after July 1, 2010 to the following
Activities; this Exhibit A will be amended as needed on an annual basis through the
term of this Agreement. The date of the balance of remaining funds for each activity
is June 30, 2010.
Activity 1- Acquisition & Clearance
A. Description
Acquisition and clearance of blighted properties in various locations to
eliminate safety hazards.
B. Budqet
Activity Budget of $884.00
Remaining FY 2005 Funding: $584.00
Remaining FY 2004 Funding: $300.00
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 $107,750.44
FY 2010 Funding: $76,300.00
Remaining FY 2009 Funding: $10,105.00
Remaining FY 2004 Funding: $21,345.44
