HomeMy WebLinkAbout113970 SUNSHINE SCHOOL - CONTRACT - CONTRACT - 10/01/02 SUNSHINE SCHOOLRECIPIENT CONTRACT FOR
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING
THIS AGREEMENT is entered into this 1st day of October, 2002 by and
between THE CITY OF FORT COLLINS, COLORADO, a municipal corporation
(hereinafter referred to as "the City") and SUNSHINE SCHOOL, INC.
(hereinafter referred to as "the Subrecipient").
WITNESSETH:
WHEREAS, the City has applied for and received funds from the United
States Government under Title 1 of the Housing and Community Development
Act of 1974, Public law 93-383; and
WHEREAS, the City wishes to engage the Subrecipient to assist the City in
utilizing such funds.
NOW, THEREFORE, in consideration of the mutual promises of the
parties, it is agreed as follows:
I. Scope of Services/Performance Monitoring.
A. The Scope of Services to be rendered by the Subrecipient is
attached as Exhibit A hereto and made a part of this Contract.
Subrecipient agrees to perform the work described in Exhibit A,
Scope of Services, in compliance with all provisions of this
Contract. Subrecipient warrants and represents that it has the
requisite authority and capacity to perform all terms and conditions
on Subrecipient's part to be performed hereunder.
B. The City will monitor the performance of the Subrecipient against
goals and performance standards required herein. Substandard
performance as determined by the City will constitute non-
compliance with this Contract. If action to correct such
substandard performance is not taken by the Subrecipient within a
reasonable period of time after being notified by the City, contract
suspension or termination procedures will be initiated.
II. Term of Contract.
Except as provided in Section VI, H, below, this Contract shall be in effect
as long as the Subrecipient retains control over Community Development Block
Grant ("CDBG") funds, including income generated from the funds. If
Subrecipient retains control over property purchased in whole or in part with
CDBG funds, any income generated from the property, including, but not
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(unexpended program income, property, equipment, etc.) shall revert
to the City upon termination of this Contract, except as otherwise
specifically provided.
2. Applicable Standards
The Subrecipient shall procure materials in accordance with the
requirements of 24 CFR Part 84.40-48, Procurement Procedures, and
shall also follow 24 CFR Part 84.30-37, covering property utilization
and disposal.
3. Relocation, Acquisition and Displacement.
The Subrecipient agrees to comply with 24 CFR 570.606 relating to the
acquisition and disposition of all real property utilizing grant funds
and to the displacement of persons, businesses, non-profit
organizations and farms occurring as a direct result of any acquisition
of real property utilizing grant funds.
4. Property Acquired With Program Funds.
Subrecipient agrees to use all personal assets and all real property,
acquired or improved, in whole or in part, with CDBG funds, as set
forth in Exhibit A. In the event Subrecipient ceases to use a personal
asset or real property acquired or improved, with CDBG funds, in
accordance with Exhibit A, the Subrecipient shall return the personal
asset or real property to the City, or pay to the City a sum equal to its
fair market value, less any portion of the value attributable to
expenditures of non-CDBG funds for the acquisition of, or
improvement to, the asset or property. The Subrecipient shall transfer
to the City any CDBG funds on hand at the time of expiration of this
Contract and any accounts receivable of CDBG funds.
5. No Liens on Items or Property
At the time of obtaining title or possession of any personal or real
property listed in Exhibit D, attached hereto and incorporated herein
by this reference, Subrecipient agrees to provide to the City, through
an appropriate lien, deed of trust, or other security instrument, such
evidence of the security interest in said property under this Agreement
as the City may deem appropriate, based upon the nature of the
property, the Scope of Services, the potential term of the security
interest, and such other reasonable considerations as the City may
deem appropriate in protecting its interest in the funds provided
hereunder.
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VIII. Personnel and Participant Conditions.
A. Civil Rights.
1, Compliance.
The Subrecipient agrees to comply with Chapter 13, Article I1, of
the City Code and Title 24, Article 34, Parts 3 through 7, C.R.S., and
with Title VI of the Civil Rights Act of 1964, as amended, Title Vill
of the Civil Rights Act of 1968, as amended, Section 109 of Title 1
of the Housing and Community Development Act of 1974, Section
504 of the Rehabilitation Act of 1973, the Americans With
Disabilities Act of 1990, the Age Discrimination Act of 1975,
Executive Order 11063, and with Executive Order 11246, as
amended by Executive Orders 11375 and 12086.
2. Nondiscrimination.
The Subrecipient will not discriminate against any employee or
applicant for employment because of race, color, creed, religion,
ancestry, national origin, sex, disability or other handicap, age,
marital status, or status with regard to public assistance. The
Subrecipient will take affirmative action to ensure that all
employment practices are free from such discrimination. Such
employment practices include but are not limited to the following:
hiring, upgrading, demotion, transfer, recruitment or recruitment
advertising, layoff, termination, rates of pay or other forms of
compensation and selection for training, including apprenticeship.
The Subrecipient agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided
by the City setting forth the provisions of this nondiscrimination
clause.
3. Land Covenants.
This contract is subject to the requirements of Title VI of the Civil
Rights Act of 1964 (P.L. 88-352) and 24 CFR 570 Part 1. In regard
to the sale, lease or other transfer of land acquired, cleared or
improved with assistance provided under this Contract, the
Subrecipient shall cause or require a covenant running with the
land to be inserted in the deed or lease for such transfer,
prohibiting discrimination as herein defined, in the sale, lease or
rental, or in the use or occupancy of such land, or in any
improvements erected or to be erected thereon, providing that the
Subrecipient and the United States are beneficiaries of and entitled
to enforce such covenants. The Subrecipient, in undertaking its
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obligation to carry the program assisted hereunder, agrees to take
such measures as are necessary to enforce such covenant and will
not itself so discriminate.
4. Section 504.
The Subrecipient agrees to comply with any federal regulations
issued pursuant to compliance with Section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 706), which prohibits
discrimination against the handicapped in any federally -assisted
program. The contracting agency shall provide the Subrecipient
with any guidelines necessary for compliance with that portion of
the regulations in force during the term of this Contract.
B. Affirmative Action.
1. Approved Plan.
The Subrecipient agrees that it shall be committed to carry out
pursuant to the Citys specifications an Affirmative Action Program
in keeping with the principles as provided in President's Executive
Order 11246 of September 24, 1965. The City shall provide
Affirmative Action guidelines to the Subrecipient to assist in the
formulation of such program. The Subrecipient shall submit a plan
for an Affirmative Action Program for approval prior to the award of
funds.
2. W/MBE.
The Subrecipient will use its best efforts to afford minority and
women -owned business enterprises the maximum practicable
opportunity to participate in the performance of this Contract. As
used in this Contract, the term "minority and female business
enterprise" means a business at least fifty-one (51) percent owned
and controlled by minority group members or women. For the
purpose of this definition, "minority group members" are Afro-
Americans, Spanish-speaking, Spanish surnamed or Spanish -
heritage Americans, Asian -Americans and American Indians. The
Subrecipient may rely on written representations by Subrecipients
regarding their status as minority and female business enterprises
in lieu of an independent investigation.
3. Access to Records.
The Subrecipient shall furnish and cause each of its
subSubrecipients to furnish all information and reports required
hereunder and will permit access to its books, records and
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accounts by the City, HUD, or its agent, or other authorized federal
officials for purposes of investigation to ascertain compliance with
the rules, regulations and provisions stated herein.
4. Notifications.
The Subrecipient will send to each labor union or representative of
workers with which it has a collective bargaining agreement or
other contract or understanding, a notice, to be provided by the
agency contracting officer, advising the labor union or workers'
representative of the Subrecipient's commitments hereunder, and
shall post copies of the notice in conspicuous places available to
employees and applicants for employment.
5. EEO/AA Statement.
The Subrecipient will, in all solicitations or advertisements for
employees placed by or on behalf of the Subrecipient, state that it
is an Equal Opportunity or Affirmative Action employer.
6. Subcontract Provisions.
The Subrecipient will include the provisions of Paragraphs Vill A,
Civil Rights, and B, Affirmative Action, in every subcontract or
purchase order, specifically or by reference, so that such provisions
will be binding upon each subSubrecipient or vendor.
C. Employment Restrictions.
1. Prohibited Activity,
The Subrecipient is prohibited from using funds provided herein or
personnel employed in the administration of the program for
political activities; sectarian or religious activities; lobbying,
political patronage and nepotism activities.
2. OSHA.
Where employees are engaged in activities not covered under the
Occupational Safety and Health Act of 1970, they shall not be
required or permitted to work, be trained or receive services in
buildings or surroundings or under working conditions which are
unsanitary, hazardous or dangerous to the participants' health or
safety.
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3. Right to Know.
Participants employed or trained for inherently dangerous
occupations, e.g., fire or police jobs, shall be assigned to work in
accordance with reasonable safety practices. The Subrecipient will
comply with all applicable "Right to Know' Acts.
4. labor Standards.
a. The Subrecipient agrees to comply with the requirements of
the Secretary of Labor in accordance with the Davis -Bacon
Act as amended, the provisions of Contract Work Hours, the
Safety Standards Act, the Copeland "Anti-Kickbacie' Act (40
U.S.C. 276, 327-333) and all other applicable federal, state
and local laws and regulations pertaining to labor standards
insofar as those acts apply to the performance of this
Contract. The Subrecipient shall maintain documentation
which demonstrates compliance with hour and wage
requirements of this part. Such documentation shall be
made available to the City for review upon request.
b. The Subrecipient agrees that, except with respect to the
rehabilitation or construction of residential property
designed for residential use for less than eight (8)
households, all contractors engaged under contracts in
excess of Two Thousand Dollars ($2,000) for construction,
renovation or repair of any building or work financed in
whole or in part with assistance provided under this
Contract, shall comply with federal requirements adopted by
the City pertaining to such contracts and with the applicable
requirements of the regulations of the Department of Labor,
under 29 CFR Parts 3, 1, 5 and 7 governing the payment of
wages and ratio of apprentices and trainees to journeymen;
provided, that if wage rates higher than those required
under the regulations are imposed by state or local law,
nothing hereunder is intended to relieve the Subrecipient of
its obligation, if any, to require payment of the higher wage.
The Subrecipient shall cause or require to be inserted in full,
in all such contracts subject to such regulations, provisions
meeting the requirements of this paragraph, for such
contracts in excess of Ten Thousand Dollars ($10,000).
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5. "Section 3" Clause.
a. Compliance.
Compliance with the provisions of Section 3 of the Housing
and Urban Development Act of 1968, as amended, 12 U.S.C.
1701, the regulations set forth in 24 CFR 135, and all
applicable rules and orders issued hereunder prior to the
execution of this Contract, shall be a condition of the federal
financial assistance provided under this Contract and
binding upon the City, the Subrecipient and any
subSubrecipients. Failure to Mfill these requirements shall
subject the City, the Subrecipient and any subSubrecipients,
their successors and assigns, to those sanctions specified by
the Contract through which federal assistance is provided.
The Subrecipient certifies and agrees that no contractual or
other disability exists which would prevent complaint with
these requirements.
The Subrecipient further agrees to comply with these
"Section 3" requirements and to include the following
language in all subcontracts executed under this Contract:
The work to be performed under this contract
is a project assisted under a program providing
direct federal financial assistance from HUD
and is subject to the requirements of Section 3
of the Housing and Urban Development Act of
1968, as amended, 12 U.S.C. 1701. Section 3
requires that to the greatest extent feasible
opportunities for training and employment be
given to lower income residents of the project
area and contracts for work in connection with
the project be awarded to business concerns
which are located in, or owned in substantial
part by persons residing in the areas of the
Project.
The Subrecipient certifies and agrees that no contractual or
other disability exists which would prevent compliance with
the requirements.
b. Notifications.
The Subrecipient agrees to send to each labor organization
or representative of workers with which it has a collective
bargaining agreement or other contract or understanding, if
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any, a notice advising said labor organization or workers'
representative of its commitments under this Section 3
clause and shall post copies of the notice in conspicuous
places available to employees and applicants for
employment or training.
C. Subcontracts.
The Subrecipient will include this Section 3 clause in every
subcontract and will take appropriate action pursuant to the
subcontract upon a finding that the Subrecipient is in
violation of regulations issued by the City. The Subrecipient
will not subcontract with any subSubrecipient where it has
notice or knowledge that the latter has been found in
violation of regulations under 24 CFR 135 and will not let
any subcontract unless the subSubrecipient has first
provided it with a preliminary statement of ability to comply
with the requirements of these regulations.
D. Conduct.
1. Assignability.
The Subrecipient shall not assign or transfer any interest in this
Contract or any property obtained using the funds provided under
this Contract without the prior written consent of the City thereto;
provided, however, that claims for money due or to become due to
the Subrecipient from the City under this Contract may be assigned
to a bank, trust company or other financial institution without such
approval. Notice of any such assignment or transfer shall be
furnished promptly to the City.
2. Hatch Act.
The Subrecipient agrees that no funds provided, or personnel
employed under this Contract, shall be in any way or to any extent
engaged in the conduct of political activities in violation of Chapter
15 of Title V, United States Code.
3. Conflict of Interest.
The Subrecipient agrees to abide by the provisions of 24 CFR
570.611 with respect to conflict 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 Contract. The Subrecipient further covenants that in the
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performance of this Contract, no person having such a financial
interest shall be employed or retained by the Subrecipient
hereunder. These conflict of interest provisions apply to any
person who is an employee, agent, consultant, officer or elected
official or appointed official of the City, or of any designated public
agencies or subrecipients which are receiving funds under the
CDBG Entitlement program.
4. Subcontracts.
a. Approvals.
The Subrecipient shall not enter into any subcontracts with
any agency or individual in the performance of this Contract
without the written consent of the City prior to the
execution of such contract.
b. Monitoring.
The Subrecipient will monitor all subcontracted services on
a regular basis to assure compliance with both this Contract
and the applicable subcontract. Results of monitoring
efforts shall be summarized in written reports and
supported with documented evidence of follow-up actions
taken to correct areas of noncompliance.
C. Content.
The Subrecipient shall cause all of the provisions of this
Contract in its entirety to be included in and made a part of
any subcontract executed in the performance of this
Contract.
d. Selection Process.
The Subrecipient shall undertake to ensure that all
subcontracts let in the performance of this Contract shall be
awarded in a fair and open competition basis. Executed
copies of all subcontracts shall be forwarded to the City,
along with documentation concerning the selection process.
5. Copyright.
If this Contract results in any copyrightable material, the City
reserves the right to royalty -free, non-exclusive and irrevocable
license to reproduce, publish or otherwise use and to authorize
others to use, the work for government purposes.
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6. Religious Organization.
The Subrecipient agrees that funds provided under this Contract
will not be utilized for religious activities, to promote religious
interests, or for the benefit of a religious organization in
accordance with the federal regulations specified in 24 CFR
570.2000).
IX. Environmental Conditions.
A. Air and Water.
The Subrecipient agrees to comply with the following laws and
regulations, along with any other environmental or public health related
laws or regulations, insofar as they apply to the performance of this
Contract:
Clear Air Act, 42 U.S.C., 1857, et seq.;
Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251,
et seq., as amended 1318 relating to inspection, monitoring, entry,
reports and information, as well as other requirements specified in
said Section 114 and Section 308, and all regulations and
guidelines issued thereunder;
Environmental Protection Agency (EPA) regulations pursuant to 40
CFR, Part 50, as amended;
National Environmental Policy Act of 1969; and
HUD Environmental Review Procedures (24 CFR Part 58).
B. Flood Disaster Protection.
The Subrecipient agrees to comply with the requirements of the Flood
Disaster Protection Act of 1973 (P.L. 2234) in regard to the sale, lease or
other transfer of land acquired, cleared or improved under the terms of
this Contract, as it may apply to the provisions of this Contract.
C. Lead -based Paint.
The Subrecipient agrees that any construction or rehabilitation of
residential structures with assistance provided under this Contract shall be
subject to HUD Lead -based Paint Regulations at 24 CFR 570.608, and 24
CFR Part 35, and in particular Subpart B thereof. Such regulations pertain
to all HUD -assisted housing and require that all owners, prospective
owners, and tenants or properties constructed prior to 1978 be properly
notified that such properties may include lead -based paint. Such
notification shall point out the hazards of lead -based paint and explain the
symptoms, treatment and precautions that should be taken when dealing
with lead -based paint poisoning.
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D. Historic Preservation.
The Subrecipient agrees to comply with the Historic Preservation
requirements set forth in the National Historic Preservation Act of 1966, as
amended (16 U.S.C. 470) and the procedures set forth in 36 CFR Part 800,
Advisory Council on Historic Preservation Procedures for Protection of
Historic Properties, insofar as they apply to the performance of this
Contract.
In general, this requires concurrence from the State Historic Preservation
Officer for all rehabilitation and demolition of historic properties that are
fifty (50) years or older or that are included on a federal, state or local
historic property list.
X. Entire Agreement/Governing Law.
The provisions set forth in Items I-XVIII, and all attachments of this
Contract constitute the entire agreement between the parties hereto and
no statement, promise, conditions, understanding, inducement or
representation, oral or written, express or implied, which is not contained
herein shall be binding or valid. This Contract shall be governed under
the laws of the State of Colorado.
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limited to, rental income or income derived from the sale of the property, shall
be deemed program income and promptly remitted to the City. The CiWs
obligation to provide funding under this Contract shall be from October 1, 2002,
to September 30, 2003, and shall be contingent upon full compliance by
Subrecipient with all terms and conditions set forth herein.
III. Payment.
If the Subrecipient is not in default hereunder, and subject to the City s
receipt of the Department of Housing and Urban Development CDBG funds, and
provided that the Contract and Scope of Services are eligible expenditures of
CDBG funds, the City agrees to pay the Subrecipient FOURTEEN THOUSAND
SIX HUNDRED SII YTHREE DOLLARS ($14,663). Payment shall be made
upon presentation of invoices which Subrecipient certified are true and correct
copies of payments due on behalf of the Subrecipient, for an activity covered by
this Contract and made in accordance and compliance with the Scope of
Services. In no event shall the City�s obligation to make payment to the
Subrecipient hereunder exceed FOURTEEN THOUSAND SIX HUNDRED
SIXTY THREE DOLLARS ($14,663). Payments may be made during the term of
this Contract once a month in cases covering reimbursement for operation costs,
otherwise upon presentation of vouchers. Payment may be suspended by the
City in the event of nonperformance of Subrecipient. Payments may also be
contingent upon certification of the Subrecipient's financial management system
in accordance with the standards specified in Title 24, CFR, Part 84.
IV. Notices.
Communications and details concerning this Contract shall be directed to
the following Contract representatives:
City
CDBG Program
Advance Planning Department
City of Fort Collins
P.O. Box 580
Fort Collins, CO 80522-0580
(970) 221-6758
V. Special Conditions.
Subrecipient
Holly Hevelone, Executive Director
Sunshine School, Inc.
906 East Stuart Street
Fort Collins, CO 80525
(970) 493-5311
The Subrecipient agrees to comply with the requirements of Title 24 Code
Of Federal Regulations, Part 570, of the Housing and Urban Development
regulations concerning Community Development Block Grants and all federal
regulations and policies issued pursuant to these regulations. The Subrecipient
further agrees to utilize funds available under this Contract to supplement rather
than supplant funds otherwise available.
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IN WITNESS WHEREOF, the parties have executed this Contract as of the
date first written above.
D
APPRO AS TO FORM:
Deputy City Attorney
ATTEST:
Secretary
(Seal, if appropriate)
THE CITY OF FORT COLLINS, COLORADO
A Municipal Corporation
By:. (24�- � 0 LI
City M aager
SUNSHINE SCHOOL, INC.
Fed. I.D. # �g—C)ZT r kS
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U
E%IIIBIT A
SCOPE OF SERVICES
Sunshine School, Inc. will provide sliding scale tuition assistance in accordance
with Childcare Collaborative's CDBG FY02-03 Proposal as amended and
approved by City Council on May 7, 2002.
It is anticipated that Sunshine School, Inc. will serve approximately 12 clients
over the course of this 12-month contract.
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EXHIBIT C
PROJECT BUDJET
Sunshine School Inc.
Sliding scale tuition assistance serving 12 childre: 14,663
TOTAL $ 14,663
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No item or property will be liened under this Agreement.
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VI. General Conditions.
A, General Compliance.
The Subrecipient agrees to comply with all applicable federal, state and
local laws and regulations governing the funds provided under this
Contract.
B. Independent Contractor
Nothing contained in this Contract is intended to, or shall be construed in
any manner, as creating or establishing the relationship of
employer/employee between the parties. The Subrecipient shall at all
times remain an independent contractor with respect to the services to be
performed under this Contract. The City shall be exempt from payment
of all Unemployment Compensation, FICA, retirement, life and/or medical
insurance and Workers' Compensation insurance as the Subrecipient is an
independent Subrecipient.
C. Liability.
As to the City, Subrecipient agrees to assume the risk of all personal
injuries, including death resulting therefrom, to persons, and damage to
and destruction of property, including loss of use therefrom, caused by or
sustained, in whole or in part, in connection with or arising out of the
performance or nonperformance of this Contract by Subrecipient or by
the conditions created thereby. Subrecipient further agrees to indemnify
and save harmless the City, its officers, agents and employees, from and
against any and all claims, liabilities, costs, expenses, penalties and
attorney fees arising from such injuries to persons or damages to property
or based upon or arising out of the performance or nonperformance of
this Contract or out of any violation by Subrecipient of any statute,
ordinance, rule or regulation.
D. Workers' Compensation.
The Subrecipient shall provide Workers' Compensation insurance
coverage for all employees involved in the performance of this Contract.
E. Insurance and Bonding.
The Subrecipient shall carry sufficient insurance coverage to protect
Contract assets from loss due to theft, fraud and/or undue physical
damage, and as a minimum, shall purchase blanket fidelity bond covering
all employees in an amount equal to cash advances from the City.
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F. Grantor Recognition.
The Subrecipient shall ensure recognition of the role of the City in
providing services through this Contract. All activities, facilities and items
utilized pursuant to this Contract shall be prominently labeled as to
funding source. In addition, the Subrecipient will include a reference to
the support provided herein in all publications made possible with funds
made available under this Contract. Such labeling and/or reference shall
include the following credit line: "This project is partially supported by a
Community Development Block Grant from the City of Fort Collins."
G. Amendments.
The City or Subrecipient may amend this Contract at any time, provided
that such amendments make specific reference to this Contract and are
executed in writing, signed by a duly authorized representative of both
organizations. Such amendments shall not invalidate this Contract, nor
relieve or release the City or Subrecipient from its obligations under this
Contract, except as expressly provided therein.
The City may, in its discretion, amend this Contract to conform with
federal, state or local governmental guidelines, policies and available
funding amounts, or for other reasons. If such amendments result in a
change in the funding, the Scope of Services, or schedule of the activities
to be undertaken as part of this Contract, such modifications will be
incorporated only by written amendment signed by both the City and
Subrecipient.
H. Suspension or Termination.
1. Either parry may terminate this Contract at any time by giving
written notice to the other party of such termination and specifying
the effective date thereof at least thirty (30) days before the effective
date of such termination. Partial terminations of the Scope of
Service in Paragraph I above may only be undertaken with the prior
approval of City.
2. The City may also suspend or terminate this Contract, in whole or
in part, if Subrecipient materially fails to comply with any term of
this Contract, or with any of the rules, regulations or provisions
referred to herein; and the City may declare the Subrecipient
ineligible for any further participation in City CDBG contracts, in
addition to other remedies as provided by law. In the event there is
probable cause to believe the Subrecipient is in noncompliance
with any applicable laws, rules, or regulations, the City may
withhold up to one hundred (100) percent of said Contract funds
until such time as the Subrecipient is found to be in compliance by
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the City or is otherwise adjudicated to be in compliance, or to
exercise the City's rights under any security interest of the City
arising hereunder.
3. In the event of any termination, all finished or unfinished
documents, data, studies, surveys, maps, models, photographs,
reports or other materials prepared by Subrecipient under this
Contract shall, at the option of the City, become the property of the
City, and Subrecipient shall be entitled to receive just and equitable
compensation for any satisfactory work completed on such
documents or materials prior to the termination.
4. This Contract, and the Citys obligations under it, will automatically
terminate in the event of suspension or non -receipt of CDBG funds
by the City.
VII. Administrative Requirements.
A. Financial Management.
1. Accounting Standards
The Subrecipient agrees to comply with 24 CFR Part 84 and agrees
to adhere to the accounting principles and procedures required
therein, utilize adequate internal controls and maintain necessary
source documentation for all costs incurred.
2. Cost Principles.
The Subrecipient shall administer its program in conformance with
OMB Circulars A-122, "Cost Principles for Non -Profit
Organizations", or A-21, "Cost Principles for Educational
Institutions", or A-87, "Cost Principles for State, Local, and Indian
Tribal Governments", as applicable; for all costs incurred whether
charged on a direct or indirect basis.
B. Documentation and Record -keeping.
1. Records to be Maintained.
The Subrecipient shall maintain all records required by the Federal
Regulations specified in 24 CFR Part 570.506 and that are pertinent
to the activities to be funded under this Contract. Such records
shall include but not be limited to:
a. Records providing a full description of each
activity undertaken;
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b. Records demonstrating that each activity
undertaken meets one of the National
Objectives of the CDBG program;
C. Records required to determine the eligibility of
activities;
d. Records required to document the acquisition,
improvement, use or disposition of real
property acquired or improved with CDBG
assistance;
e. Records documenting compliance with the fair
housing and equal opportunity components of
the CDBG program;
f. Financial records as required by 24 CFR Part
570.502, and 24 CFR Part 84; and
g. Other records necessary to document
compliance with Subpart K of 24 CFR 570.
2. Retention.
The Subrecipient shall retain all records pertinent to expenditures
incurred under this Contract for a period of three (3) years after the
termination of all activities funded under this Contract, or after the
resolution of all Federal audit findings, which ever occurs later.
Records for non -expendable property acquired with funds under
this Contract shall be retained for three (3) years after final
disposition of such property. Records for any displaced person
must be kept for three (3) years after he/she has received final
payment.
3. Client Data.
The Subrecipient shall maintain client data demonstrating client
eligibility for services provided. Such data shall include, but not be
limited to: client name, address, income level or other basis for
determining eligibility, and description of service provided. Such
information shall be made available to City monitors or their
designees for review upon request.
4. Property Records.
The Subrecipient shall maintain real property inventory records
which clearly identify properties purchased, improved or sold.
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Properties retained shall continue to meet eligibility criteria and
shall conform with the "changes in use" restrictions specified in 24
CFR Parts 570.503(b)(8).
5. National Objectives.
The Subrecipient agrees to maintain documentation that
demonstrates that the activities carried out with funds provided
under this Contract meet one or more of the CDBG program's
national objectives: (1) benefit low/moderate income persons as
Exhibit B attached hereto and incorporated herein by this reference
(2) aid in the prevention or elimination of slums or blight, or (3)
meet community development needs having a particular urgency,
as defined in 24 CFR Part 570.208.
6. Close-outs.
Subrecipient obligation to the City shall not end until all close-out
requirements are completed. Activities during this close-out period
shall include, but are not limited to: making final payments,
disposing of program assets (including the return of all unused
materials, equipment, unspent cash advances, program income
balances, and receivable accounts to the City), and determining the
custodianship of records.
7. Audits and Inspections.
a. All Subrecipient records with respect to any matters covered
by this Contract shall be made available to the Subrecipient,
the City, their designee or the Federal Government, at any
time during normal business hours, as often as the
Subrecipient or City deems necessary, to audit, examine and
make excerpts or transcripts of all relevant data. Any
deficiencies noted in audit reports must be fully cleared by
the City within thirty (30) days after receipt by the City.
Failure of the Subrecipient to comply with the above
requirements will constitute a violation of this contract and
may result in the withholding of future payments.
b. Subrecipient acknowledges that the federal funds
subgranted to it are subject to the Single Audit of the City.
The City, the U.S. Department of Housing and Urban
Development, the Comptroller General of the U.S. or any of
their duly authorized representatives or auditors, shall have
access to any books, documents, papers and records of the
Subrecipient or its auditors which are directly pertinent to
the Contract for the purpose of the Citys Single Audit. All
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financial records pertaining to this Contract upon
completion shall remain the property of the City.
C. If Subrecipient expends $300,000 or more of federal awards
(including, but not limited to funds received from the City
pursuant to this Agreement), within any of its fiscal years
during which this Agreement is in force, Subrecipient agrees
to have a Single Audit performed, at no cost to the City, in
accordance with the Single Audit Act Amendments of 1996
and OMB Circular A-133. In the event that the expenditures
of $300,000 or more indicated above are all pursuant to this
Agreement, Subrecipient may elect to have a program -
specific audit conducted in accordance with said Act and
Circular. Said audit shall be submitted to the City's
Accounting and Finance Reporting Manager within nine (9)
months after the end of Subrecipient's fiscal year for which
the audit is performed.
C. Monitoring and Evaluation.
The City reserves the right to monitor and evaluate the progress and
Performance of the Subrecipient to assure that the terms of this Contract
are being satisfactorily met in accordance with City and other applicable
monitoring and evaluating criteria and standards. Subrecipient shall
cooperate with City relating to such monitoring and evaluation, and make
available to the City any documents or other information requested by the
City or relevant to the City's monitoring and evaluation.
D. Reporting and Payment Procedures.
1. Budgets.
A detailed contract budget for Subrecipient's proposed project, as
described in Exhibit C, and the specific use of the funds provided
to Subrecipient under this and other City grant programs, is
included as Exhibit A, attached hereto and incorporated herein by
this reference. The City and the Subrecipient may revise the budget
from time to time in accordance with existing City policies, by
amendment of this Agreement.
2. Program Income.
The Subrecipient shall report yearly all program income, as defined
at 24 CFR 570.500(a) generated by activities carried out with CDBG
funds made available under this Contract, including, but not
limited to, any rental income or income derived from the sale of
the property. The use of program income by the Subrecipient shall
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comply with the requirements set forth at 24 CFR 570.504. By way
of further limitations, the Subrecipient may use such income
during the Contract period for activities described in the attached
Scope of Services and shall report any such income received and
allocated to the Work to the City and reduce requests for additional
funds by the amount of any such program income balances on
hand. All program income not used in accordance with this
Section shall be returned to the City at the end of the Contract
period. Any interest earned on cash advances from the U.S.
Treasury is not program income and shall be remitted promptly to
the City.
3• Indirect Costs.
If indirect costs are charged, the Subrecipient will develop an
indirect cost allocation plan for determining the appropriate City
share of administrative costs and shall submit such plan to the City
for approval prior to submission of requests for any payments for
the same.
4. Payment Procedures
The City will pay to the Subrecipient funds available under this
Contract based upon information submitted by the Subrecipient
and consistent with any approved budget and City policy
concerning payments. With the exception of certain advances,
payments will be made for eligible expenses actually incurred by
the Subrecipient, and not to exceed actual cash requirements.
Payments will be adjusted by the City in accordance with advance
fund and program income balances available in Subrecipient
accounts. In addition, the City reserves the right to liquidate funds
available under this Contract for costs incurred by the City on
behalf of the Subrecipient.
5. Progress Reports.
The Subrecipient shall submit regular Progress Reports to the City
in the form, content and frequency as required by the City.
E. Procurement.
1. Compliance
The Subrecipient shall comply with current City policy concerning
the purchase of equipment and shall maintain an inventory record
of all non -expendable personal property as defined by such policy
as may be procured with funds provided herein. All program assets
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