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HomeMy WebLinkAboutContract 1493 0,- ORIGINAL 1 File No.: 4.CC.07 -10 2 3 SUPPLEMENTAL AGREEMENT FOR THE USE OF 2010 -2011 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS 4 5 The COUNTY OF RIVERSIDE of the State of California, herein called, "COUNTY," 6 and the CITY OF CATHEDRAL CITY, herein called "CITY," mutually agree as follows: 7 1. GENERAL. COUNTY and CITY have executed a Cooperation Agreement, dated 8 July 2008, whereby CITY elected to participate with COUNTY, which has qualified as an 9 "Urban County" for purposes of receiving Community Development Block Grant (CDBG) 10 funds, and to assist and undertake essential community development and housing assistance 11 activities pursuant to the Housing and Community Development Act of 1974, Title 1, as 12 amended, Public Law 93 -383 hereinafter referred to as "Act ". Said Cooperation Agreement, 13 dated July 2008, is incorporated herein by reference and made a part of this Agreement as if each 14 and every provision was set forth herein. 15 2. PURPOSE. CITY promises and agrees to undertake and assist with the 16 community development activities, within its jurisdiction, by utilizing the sum of $245,417, 17 CDBG Entitlement Funds, as specifically identified in Exhibits A are attached hereto and by this 18 reference are incorporated herein, for the projects: 19 A. 4.CC.07 -10 Whitewater Neighborhood Park Project, $245,417. 20 3. TERM OF AGREEMENT. The term of this Agreement for the projects shall 21 be for a period of two (2) years from July 1, 2010 to June 30, 2012, and proceed consistent with 22 the completion schedule set forth in Exhibit A. In the event that the project is not substantially 23 completed by the time set forth in the completion schedule due to unforeseen or uncontrollable 24 causes, the COUNTY may consider extending the schedule for the completion of the project. 25 Times of performance for other activities may also be extended in writing by COUNTY. If 26 substantial progress toward completion in conformance with the completion schedule, as 27 determined by COUNTY, of the projects are not made during the term of the Supplemental 28 Page 1 of 13 1 Agreement, COUNTY may suspend or terminate this agreement by the procedures set forth in 2 the Section titled "Termination ", of this agreement and the entitlement funds associated with the 3 projects may be reprogrammed by COUNTY after appropriate notice is given. 4 4. DISPOSITION OF FUNDS. 5 A. COUNTY's Board of Supervisors shall determine the final disposition and 6 distribution of all funds received by COUNTY under the Act consistent with the provisions of 7 Paragraphs 2 and 3 of this Agreement. COUNTY, through its Economic Development Agency, 8 shall: (1) Make payment of the grant funds to CITY as designated in Exhibit A; and (2) It is the 9 CITY' s responsibility to monitor all project activities of Exhibits A to ensure compliance with 10 applicable federal regulations and the terms of this Agreement. 11 B. CITY shall comply with timely drawdown of CDBG funds by 12 expeditiously implementing and completing County- approved, CDBG- funded projects. CITY 13 acknowledges that CITY's drawdown performance directly impacts the COUNTY's overall 14 program drawdown rate. If the CITY' s unobligated CDBG fund balance, as of January 15, 2011, 15 exceeds two -times (200 %) the CITY's 2010 -2011 CDBG allocation, the COUNTY may take the 16 necessary administrative actions to reduce the CITY's CDBG fund balance. Necessary actions 17 include reprogramming the excess CDBG fund balance to other eligible activities as selected by 18 COUNTY. COUTY may authorize CITY in writing, prior to January 15, 2011, to exceed the 19 CDBG fund balance requirement. 20 C. CITY shall comply with timely drawdown of funds by submitting monthly 21 requests for reimbursement or other County- approved reimbursement schedule. All 22 disbursements of grant funds will be on a reimbursement basis and made within thirty (30) days 23 after the CITY has submitted its letter identifying payments and documentation supporting 24 expenditures. 25 D. All authorized obligations incurred in the performance of the Agreement 26 for projects eligible under the following regulations must be reported to COUNTY no later than 27 by June 15, 2011: 28 Page 2 of 13 1 1. Public Services [24 CFR 570.201 (e)] 2 2. Acquisition [24 CFR 570.201 (a)] 3 3. Clearance Activities [24 CFR 570.201 (d)] 4 4. Interim Assistance [24 CFR 570.201 (f)] 5 5. Code Enforcement [24 CFR 570.202 (c)] 6 All other eligible activities under this Agreement must be implemented, completed, and 7 obligations reported by the CITY no later than the completion schedules set forth in the Exhibits 8 to this Agreement. 9 5. COOPERATION WITH HOUSING ACTIVITIES. CITY shall cooperate with 10 COUNTY in undertaking essential community development and housing assistance activities, 11 specifically urban renewal and public assistance housing, and shall assist COUNTY in carrying 12 out its Strategic Plan of the Consolidated Plan and other requirements of the Community 13 Development Block Grant Program. 14 6. LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA 15 ENVIRONMENTAL QUALITY ACT (CEQA). Pursuant to Section 15051(d) of Title 14 of the 16 California Administrative Code, CITY is designated as the lead agency for the projects that are 17 the subject matter of this Agreement. 18 7. HOLD HARMLESS AND INDEMNIFICATION. In contemplation of the 19 provisions of Section 895.2 of the California Government Code imposing certain tort liability 20 jointly upon public entities solely by reason of such entities being parties to an agreement as 21 defined by Section 895 of the Code, the Parties hereto, pursuant to the authorization contained in 22 Section 895.4 and 895.6 of the Code, agree that each Party shall be liable for any damages 23 including, but not limited to, claims, demands, losses, liabilities, costs and expenses including 24 reasonable attorneys fees, resulting from the negligent or wrongful acts or omissions of their 25 employees or agents in the performance of this Agreement, and each Party shall indemnify, 26 defend and hold harmless the other Parties from such claims, demands, damages, losses or 27 liabilities for their negligence 28 Page 3 of 13 1 8. INSURANCE. Without limiting or diminishing the CITY'S obligation to 2 indemnify or hold the COUNTY harmless, CITY shall procure and maintain or cause to be 3 maintained, at its sole cost and expense, the following insurance coverage's during the term of 4 this Agreement. 5 A. Workers' Compensation: 6 If the CITY has employees as defined by the State of California, the CITY shall maintain 7 statutory Workers' Compensation Insurance (Coverage A) as prescribed by the laws of the State 8 of California. Policy shall include Employers' Liability (Coverage B) including Occupational 9 Disease with limits not less than $1,000,000 per person per accident. The policy shall be 10 endorsed to waive subrogation in favor of The County of Riverside, and, if applicable, to provide 11 a Borrowed Servant/Alternate Employer Endorsement. 12 B. Commercial General Liability: 13 Commercial General Liability insurance coverage, including but not limited to, premises 14 liability, contractual liability, products and completed operations liability, personal and 15 advertising injury, and cross liability coverage, covering claims which may arise from or out of 16 CITY'S performance of its obligations hereunder. Policy shall name the County of Riverside, its 17 18 Agencies, Districts, Special Districts, and Departments, their respective directors, officers, Board 19 of Supervisors, employees, elected or appointed officials, agents or representatives as Additional 20 Insureds. Policy's limit of liability shall not be less than $1,000,000 per occurrence combined 21 single limit. If such insurance contains a general aggregate limit, it shall apply separately to this 22 agreement or be no less than two (2) times the occurrence limit. 23 C. Vehicle Liability: 24 If vehicles or mobile equipment are used in the performance of the obligations under this 25 Agreement, then CITY shall maintain liability insurance for all owned, non -owned or hired 26 vehicles so used in an amount not less than $1,000,000 per occurrence combined single limit. If 27 such insurance contains a general aggregate limit, it shall apply separately to this agreement or 28 Page 4 of 13 1 be no less than two (2) times the occurrence limit. Policy shall name the County of Riverside, its 2 Agencies, Districts, Special Districts, and Departments, their respective directors, officers, Board 3 of Supervisors, employees, elected or appointed officials, agents or representatives as Additional 4 Insureds. 5 D. General Insurance Provisions - All lines: 6 1) Any insurance carrier providing insurance coverage hereunder 7 shall be admitted to the State of California and have an A M BEST rating of not less than A: VIII 8 (A:8) unless such requirements are waived, in writing, by the County Risk Manager. If the 9 County's Risk Manager waives a requirement for a particular insurer such waiver is only valid 10 for that specific insurer and only for one policy term. 11 2) The CITY'S insurance carrier(s) must declare its insurance self - 12 insured retentions. If such self - insured retentions exceed $500,000 per occurrence such 13 retentions shall have the prior written consent of the County Risk Manager before the 14 commencement of operations under this Agreement. Upon notification of self insured retention 15 unacceptable to the COUNTY, and at the election of the Country's Risk Manager, CITY 'S 16 carriers shall either; 1) reduce or eliminate such self - insured retention as respects this Agreement 17 with the COUNTY, or 2) procure a bond which guarantees payment of losses and related 18 investigations, claims administration, and defense costs and expenses. 19 3) CITY shall cause CITY'S insurance carrier(s) to furnish the 20 County of Riverside with either 1) a properly executed original Certificate(s) of Insurance and 21 certified original copies of Endorsements effecting coverage as required herein, and 2) if 22 requested to do so orally or in writing by the County Risk Manager, provide original Certified 23 copies of policies including all Endorsements and all attachments thereto, showing such 24 insurance is in full force and effect. Further, said Certificate(s) and policies of insurance shall 25 contain the covenant of the insurance carrier(s) that thirty (30) days written notice shall be given 26 to the County of Riverside prior to any material modification, cancellation, expiration or 27 reduction in coverage of such insurance. In the event of a material modification, cancellation, 28 Page 5 of 13 1 expiration, or reduction in coverage, this Agreement shall terminate forthwith, unless the County 2 of Riverside receives, prior to such effective date, another properly executed original Certificate 3 of Insurance and original copies of endorsements or certified original policies, including all 4 endorsements and attachments thereto evidencing coverage's set forth herein and the insurance 5 required herein is in full force and effect. CITY shall not commence operations until the 6 COUNTY has been furnished original Certificate (s) of Insurance and certified original copies of 7 endorsements and if requested, certified original policies of insurance including all 8 endorsements and any and all other attachments as required in this Section. An individual 9 authorized by the insurance carrier to do so on its behalf shall sign the original endorsements for 10 each policy and the Certificate of Insurance. 11 4) It is understood and agreed to by the parties hereto that the CITY'S 12 insurance shall be construed as primary insurance, and the COUNTY'S insurance and/or 13 deductibles and/or self - insured retention's or self - insured programs shall not be construed as 14 contributory. 15 5) If, during the term of this Agreement or any extension thereof, 16 there is a material change in the scope of services; or, there is a material change in the equipment 17 to be used in the performance of the scope of work which will add additional exposures (such as 18 the use of aircraft, watercraft, cranes, etc.); or, the term of this Agreement, including any 19 extensions thereof, exceeds five (5) years the COUNTY reserves the right to adjust the types of 20 insurance required under this Agreement and the monetary limits of liability for the insurance 21 coverage's currently required herein, if; in the County Risk Manager's reasonable judgment, the 22 amount or type of insurance carried by the CITY has become inadequate. 23 6) CITY shall pass down the insurance obligations contained herein 24 to all tiers of subcontractors working under this Agreement. 25 7) The insurance requirements contained in this Agreement may be 26 met with a program(s) of self - insurance acceptable to the COUNTY. 27 8) CITY agrees to notify COUNTY of any claim by a third party or 28 Page 6 of 13 1 any incident or event that may give rise to a claim arising from the performance of this 2 Agreement. 3 9. RECORDS AND INSPECTIONS. 4 A. CITY shall establish and maintain records in accordance with 24 CFR Part 5 570, Part 85, OMB Circular A -87, and 24 CFR 91.105, as applicable, and as they relate to the 6 acceptance and use of federal funds under this Agreement. 7 B. CITY shall maintain a separate account for CDBG Entitlement funds 8 received as set forth in Exhibit A. 9 C. CITY shall, during the normal business hours, make available to 10 COUNTY, the U.S. Department of Housing and Urban Development (HUD), or other authorized 11 representative, for the examination and copying, all of its records and other materials with 12 respect to matters covered by this Agreement. 13 D. CITY shall not retain any program income as defined in Section 570.500 14 of Title 24 of the Federal Code of Regulations. Said program income shall be used only for the 15 activities that are the subject of this Agreement. Further, all provisions of this Agreement shall 16 apply to such activities. 17 E. The CITY shall ensure that at least fifty -one percent (51%) of the persons 18 benefiting from all CDBG - funded activities or projects designated as serving limited clientele 19 [570.208(a)(2)(i)] are of low and moderate - income and meet the program income guidelines 20 attached as Exhibits A. The CITY and City's Sub - recipients must provide the required income 21 certification and direct benefit documentation. 22 10. COMPLIANCE WITH LAWS. CITY shall comply with all applicable federal, 23 state, and local laws, regulations, and ordinances and any amendments thereto and the federal 24 regulations and guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY 25 is to comply with those regulations found in Part 85 and Part 570 of Title 24 of the Code of 26 Federal Regulations. CITY is to comply with OMB Circular A -87, or any subsequent 27 replacement. CITY is to abide by the provisions of the Community Development Block Grant 28 Page 7 of 13 1 Manual, prepared by COUNTY and cited in the above - mentioned Cooperation Agreement. 2 CITY will comply with Section 3 of the Housing & Urban Development Act of 1968, as 3 amended, attached hereto as Exhibit "S ". CITY will comply with the provisions of 24 CFR Part 4 570.200 (j), attached as Exhibit "R," pertaining to inherently religious activities. 5 11. INDEPENDENT CONTRACTOR. CITY and its agents, servants, and employees 6 shall act at all times in an independent capacity during the term of this Agreement, and shall not 7 act as, shall not be, nor shall they in any manner be construed to be agents, officers, or 8 employees of the COUNTY. 9 12. TERMINATION. 10 A. CITY. CITY may not terminate this Agreement except upon express 11 written consent of COUNTY. 12 B. COUNTY. Notwithstanding the provisions of Paragraph 12a, COUNTY 13 may suspend or terminate this Agreement upon a thirty (30) day written notice to CITY of action 14 being taken and the reason for such action: 15 (1) In the event CITY fails to perform the covenants herein contained 16 at such times and in such manner as provided in this Agreement; and 17 (2) In the event there is a conflict with any federal, state or local law, 18 ordinance, regulation or rule rendering any of the provisions of this Agreement invalid or 19 untenable; or 20 (3) In the event the funding from the Department of Housing and 21 Urban Development referred to in Paragraphs 1 and 2 above is terminated or otherwise becomes 22 unavailable. 23 C. Upon suspension of this Agreement, CITY agrees to return any 24 unencumbered funds which it has been provided by COUNTY. In accepting said funds, 25 COUNTY does not waive any claim or cause of action it may have against CITY for breach of 26 this Agreement. 27 D. Reversion of Assets 28 Page 8 of 13 1 1. Upon expiration of this Agreement, the CITY shall transfer to the 2 COUNTY any CDBG funds on hand at the time of expiration of the Agreement as well as any 3 accounts receivable held by CITY which are attributable to the use of CDBG funds awarded 4 pursuant to this Agreement. 5 2. Any real property under the CITY'S control that was acquired or 6 improved in whole or in part with CDBG funds (including CDBG funds provided to the 7 SPONSOR in the form of a loan) in excess of $25,000 is either: 8 (i) Used to meet one of the National Objectives in Sec. 9 570.208 until five years after expiration of this agreement, or for such longer period of time as 10 determined to be appropriate by the COUNTY; or 11 (ii) Not used in accordance with Section (i) above, in which 12 event the SPONSOR shall pay to the COUNTY an amount equal to the current market value of 13 the property less any portion of the value attributable to expenditures of non -CDBG funds for the 14 acquisition of, or improvement to, the property. 15 13. NONDISCRIMINATION. CITY shall abide by Sections 570.601 and 570.602 of 16 Title 24 of the Federal Code of Regulations which requires that no person in the United States 17 shall on the grounds of race, color, national origin, or sex, be excluded from participation in, be 18 denied the benefits of, or be subjected to discrimination under any program or activity funded in 19 whole or in part with Community Development funds. 20 14. PROHIBITION AGAINST CONFLICTS OF INTEREST 21 A. CITY and its assigns, employees, agents, consultants, officers and elected 22 and appointed officials shall become familiar with and shall comply with the CDBG regulations 23 prohibiting conflicts of interest contained in 24 CFR 570.611, attached hereto as Exhibit "CI" 24 and by this reference incorporated herein. 25 B. CITY and its assigns, employees, agents, consultants, officers, and elected 26 and appointed officials shall become familiar with and shall comply with Section A -11 of the 27 County's CDBG Policy manual, attached hereto as Exhibit "CI" and by this reference 28 Page 9 of 13 1 incorporated herein. 2 C. CITY understands and agrees that no waiver of exception can be granted 3 to the prohibition against conflict of interest except upon written approval of HUD pursuant to 4 24 CFR 570.611 (d). Any request by CITY for an exception shall first be reviewed by COUNTY 5 to determine whether such request is appropriate for submission to HUD. In determining whether 6 such request is appropriate for submission to HUD, COUNTY will consider the factors listed in 7 24 CFR 570.611 (e). 8 D. Prior to any funding under this Agreement, CITY shall provide COUNTY 9 with a list of all employees, agents, consultants, officers and elected and appointed officials who 10 are in a position to participate in a decision making process, exercise any functions or 11 responsibilities, or gain inside information with respect to the CDBG activities funded under this 12 Agreement. CITY shall also promptly disclose to COUNTY any potential conflict, including 13 even the appearance of conflict that may arise with respect to the CDBG activities funded under 14 this Agreement. 15 E. Any violation of this section shall be deemed a material breach of this 16 Agreement, and the Agreement shall be immediately terminated by the COUNTY. 17 15. PROJECT ELIGIBILITY. As to CITY or its claimants, COUNTY shall bear no 18 liability for any later determination by the United States Government, the Department of 19 Housing and Urban Development or any other person or entity that CITY is or is not eligible 20 under 24 CFR Part 570 to receive CDBG funds. 21 16. USE OF PROPERTY. Whenever federal CDBG funds or program income are 22 used, in whole or in part, for the purchase of equipment or personal property, the property shall 23 not be transferred from its originally funded use, by CITY or sub - recipient, for a period of five 24 (5) years from the close -out date of the grant from which CDBG assistance was provided. The 25 CITY shall maintain a current inventory for COUNTY monitoring and review. 26 17. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY 27 agrees to notify and to require any lessee or assignee to notify Riverside County Workforce 28 Page 10 of 13 1 Development Center of any and all job openings that are caused by this project. 2 18. PUBLICITY. Any publicity generated by CITY for the project funded pursuant to 3 this Agreement, during the term of this Agreement, will make reference to the Contribution of 4 the County of Riverside, the Economic Development Agency, and the Community Development 5 Block Grant Program in making the project possible. 6 19. PROGRAM MONITORING AND EVALUATION. CITY and its sub - recipients 7 shall be monitored and evaluated in terms of its effectiveness and timely compliance with the 8 provisions of this Agreement and the effective and efficient achievement of the Program 9 Objectives. Quarterly reports shall be due on the last day of the month immediately following the 10 end of the quarter being reported. The quarterly written reports shall include, but shall not be 11 limited to, the following data elements: 12 A. Title of program, listing of components, description of 13 activities /operations. 14 B. The projected goals, indicated numerically, and also the goals achieved 15 (for each report period). In addition, identify by percentage and description, the progress 16 achieved towards meeting the specified goals and identify any problems encountered in meeting 17 goals. 18 C. If the CDBG- funded Activity meets a National Objective under 24 CFR 19 570.208 (a)(2)(i), CITY will report the following: 20 1) Total number of direct beneficiaries (clientele served) with 21 household incomes at: 22 • Above 80% MHI 23 • Between 50% and 80% MHI (Low- Income) 24 • Between 30% and 50% MHI (Very Low - Income) 25 • Less than 30% MHI (Extremely Low - Income) 26 2) Total number and percent ( %) of the clientele served that have 27 household incomes at or below 80% MHI 28 Page 11 of 13 1 3) Racial ethnicity of clientele 2 4) Number of Female- Headed Households 3 D. CITY and its sub - recipients shall report beneficiary statistics monthly to 4 EDA on the pre- approved Direct Benefit Form and Self - Certification Form (certifying income, 5 family size, and racial ethnicity) as required by HUD. Updated forms are to be provided to CITY 6 by EDA should HUD implement changes during the term of this agreement. CITY and sub- 7 recipients will collect and provide all necessary data required by HUD pertaining to the Specific 8 Outcome Indicators as identified in the CPD Outcome Performance Measurement System. 9 20. SOURCE OF FUNDING. CITY acknowledges that the source of funding 10 pursuant to this Agreement is Community Development Block Grant (CFDA 14.218). 11 21. ENTIRE AGREEMENT. It is expressly agreed that this Agreement together with 12 the cooperation Agreement between the parties, embodies the entire agreement of the parties in 13 relation to the subject matter thereof, and that no other Agreement or understanding, verbal or 14 otherwise, relative to this subject matter, exists between the parties at the time of execution. 15 22. MINISTERIAL ACTS. The Assistant County Executive Officer /EDA or 16 designee(s) are authorized to take such ministerial actions as may be necessary or appropriate to 17 implement the terms, provisions, and conditions of this Agreement as it may be amended from 18 time to time by COUNTY. 19 23. PRIOR AUTHORIZATION. CITY shall obtain COUNTY's written approval 20 from the Economic Development Agency prior to implementing the following "high risk" 21 activities funded with CDBG assistance: 22 A. Construction of public facilities (project plans and specifications); 23 B. Acquisition of real property; 24 C. Historic Preservation; 25 D. Relocation; and 26 F. Economic Development 27 23. MODIFICATION OF AGREEMENT. This Agreement may be modified or 28 Page 12 of 13 1 amended only by a writing signed by the duly authorized and empowered representative of 2 COUNTY and CITY respectively. 3 IN WITNESS WHEREOF, the COUNTY and the CITY have executed this Agreement as 4 of the date listed below. 5 6 DATED: 7 8 CO ► TY OF RIVE SID 9 10 By: Jam, 1 � ' Y• Suz. -(e Holland, Assistant Dir- ctor 11 Coif unity Services Division 12 13 14 15 CITY OF CATHEDRAL CITY 16 Br"..., 17 May r 18 19 20 21 22 23 24 25 SH:JT:mmv:MC 26 27 28 Page 13 of 13 EXHIBIT A File No.: 4. CC. 07 -10 SUPPLEMENTAL AGREEMENT SCOPE OF WORK (NON- PUBLIC SERVICE) I. GENERAL INFORMATION CITY NAME: City of Cathedral City ADDRESS: 68 -700 Avenida Lalo Guerrero Cathedral City, CA 92234 PROGRAM CONTACTS: Janet Davison, Redevelopment Director PHONE: (760) 770 -0340 FAX: (760) 770 -0399 E -MAIL: PROJECT NAME: Whitewater Neighborhood Park Project PROJECT LOCATION: Moreno and Ocotillo Roads, Cathedral City, CA 92234 LEVEL OF ENVIRONMENTAL CLEARANCE: Environmental Assessment 24 CFR 58.36 CDBG ELIGIBILITY CODE: 570.201 (c) Public Facilities PROJECT FUNDING SUMMARY: $240,417 Project to be administered by County (EDA) on behalf of City: YES ❑ NO II. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2010 - 2011 Community Development Block Grant for the Whitewater Neighborhood Park Project in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program: Activity #1 Cathedral City will use CDBG funds to design and construct a public park in the City's Whitewater Neighborhood. CDBG funds will be used for design, engineering, soft costs, and construction expenses. Page 1 of 7 EXHIBIT A File No.: 4.CC.07 -10 B. National Objective All activities funded with CDBG funds must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(a)(2). City certifies that the activity(ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: 570.208 (a)(1)(i) CFR Reference: Low Mod Area C. Levels of Accomplishment — Goals and Performance Measures The City agrees to implement and complete the following activity(ies): Activity #1 Prepare design and specifications for facility improvements. Activity #2 Implement and complete construction activities. CPD OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): ® Creating Suitable Living Environments ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): ❑ Availability /Accessibility ['Affordability ® Sustainability (promoting livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City or subrecipient's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County. E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. Page 2 of 7 EXHIBIT A File No.: 4.CC.07 -10 F. Program Budget It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $245,417 Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in 24 CFR 84.21. The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City. Line Item Design/Engineering Costs Project Administration Costs ❑ Construction Costs El Acquisition Costs [] Relocation Costs ❑ Capital Equipment Costs n Code Enforcement Clearance Interim Assistance ❑ Other: n oa: Vii, Page 3 of 7 mmom EXHIBIT A File No.: 4.CC.07 -10 G. Total Amount of Non- CDBG Leveraging TYPE , SOURCE AMOUNT SOURCE AMOUNT SOURCE AMOUNT TOTAL FEDERAL $0 STATE /LOCAL $0 PRIVATE $0 OTHER . al $0 TOTAL: $0 III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable 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. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," A -21, "Cost Principles for Educational Institutions," or OMB Circular A -87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. C. Documentation and Record Keeping 1. Records to be Maintained The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; v. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21 -28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. Page 4 of 7 EXHIBIT A File No.: 4.CC.07 -10 2. Records Retention The City shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five (5) years. The retention period begins on the date of the submission of the County's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five -year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five -year period, whichever occurs later. 3. Client Data The City 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 County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Close - outs The City's obligation to the County 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 accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income. 6. Audits & Inspections All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed 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 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A -133. Page 5 of 7 EXHIBIT A File No.: 4.CC.07 -10 IV. PROJECT IMPLEMENTATION AND SCHEDULE Unless pre- approved by County, City will perform and complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Start Date Completion Date Attend Mandatory Cooperating September 2010 September 2010 City Training Implement Project Activities Upon Notification from EDA Execute Supplemental Agreement August 2010 September 2010 & Notice to Incur Cost Tasks / Milestone Start Date Completion Date Submit Quarterly Performance October 15, 2010 Reports to County January 15, 2011 April 15, 2011 July 15, 2011 October 15, 2011 January 15, 2012 April 15, 2012 July 5, 2012 County Monitoring of City To be determined by Program Manager Program/Performance Specific Project Activities 1. City executes Supplemental Agreement; receives authorization to incur cost letter 2. City prepares final construction documents for EDA review and approval 3. EDA authorize City to advertise for bids 4. EDA reviews and approves bidding process 5. City awards construction contract 6. City and EDA conduct "pre- construction meeting" 7. EDA authorize City to issue "Notice to Proceed" CDBG - funded activities must be completed by April 30, 2012. City Submits Reimbursement Requests Monthly Submittal ❑ Other Schedule ® Final reimbursement request to be submitted no later than May 15, 2012 Page 6 of 7 EXHIBIT A File No.: 4.CC.07 -10 Tasks / Milestone Start Date Completion Date CDBG - funded Project Complete TBD April 30, 2012 City Submits Monthly N/A Direct Benefit Reports V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS EDA must review and approve (in writing) all architectural and construction bid documents prior to notice of inviting bids. Page 7 of 7 EXHIBIT CI Prohibition Against Conflicts of Interest Page 1 of 4 § 570.611 Conflict of interest. (a) Applicability. (1) In the procurement of supplies, equipment, construction, and services by recipients, and by subrecipients (including those specified at § 570.204(c)), the conflict of interest provisions in 24 CFR 85.36 and OMB Circular A 110, respectively, shall apply. (2) In all cases not governed by 24 CFR 85.36 and OMB Circular A -110, the provisions of this section shall apply. Such cases include the acquisition and disposition of real property and the provision of assistance by the recipient, by its subrecipients, or to individuals, businesses and other private entities under eligible activities which authorize such assistance (e.g., rehabilitation, preservation, and other improvements of private properties or facilities pursuant to § 570.202, or grants, loans and other assistance to businesses, individuals and other private entities pursuant to § 570 -203, § 570.204 or § 570.455). (b) Conflicts prohibited. Except for the use of CDBG funds to pay salaries and other related administrative or personnel costs, the general rule is that no persons described in paragraph (c) of this section who exercise or have exercised any functions or responsibilities with respect to CDBG activities assisted under this part or who are in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from a CDBG assisted activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. For the UDAG program, the above restrictions shall apply to all activities that are a part of the UDAG project, and shall cover any such interest or benefit during, or at any time after, such person's tenure. (c) Persons covered. The conflict of interest provisions of paragraph (b) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the recipient, or of any designated public agencies, or subrecipients which are receiving funds under this part. (d) Exceptions: threshold requirements. Upon the written request of the recipient, HUD may grant an exception to the provisions of paragraph (b) of this section on a case -by -case basis when it determines that such an exception will serve to further the purposes of the Act and the effective and efficient administration of the recipient's program or project. An exception may be considered only after the recipient has provided the following: EXHIBIT CI Prohibition Against Conflicts of Interest Page 2 of 4 (1) A disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict and a description of how the public disclosure was made; and (2) An opinion of the recipient's attorney that the interest for which the exception is sought would not Violate State or local law. (e) Factors to be considered for exceptions. In determining whether to grant a requested exception after the recipient has satisfactorily met the requirements of paragraph (d) of this section, HUD shall consider the cumulative effect of the following factors, where applicable: (1) Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project which would otherwise not be available; (2) Whether an opportunity was provided for open competitive bidding or negotiation; (3) Whether the person affected is a member of a group or class of low or moderate income persons intended to be the beneficiaries of the assisted activity, and the exception will permit such person to receive generally the same interests or benefits as are being made available or provided to the group or class; (4) Whether the affected person has withdrawn from his or her functions or responsibilities, or the decision making process with respect to the specific assisted activity in question; (5) Whether the interest or benefit was present before the affected person was in a position as described in paragraph (b) of this section; (6) Whether undue hardship will result either to the recipient or the person affected when weighed against the public interest served by avoiding the prohibited conflict; and (7) Any other relevant considerations. EXHIBIT CI Prohibition Against Conflicts of Interest Page 3 of 4 Community Development Block Grant Policy Manual I.D. # A -11 (pg. 1 of 2) TOPIC: CONFLICT OF INTEREST CODED RIVERSIDE COUNTY ECONOMIC DEVELOPMENT AGENCY DATE: October 1989 This Conflict of Interest Code is written to comply with Federal Regulations (24 CFR Part 85). These Regulations. "Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments" require that grantees and sub - grantees will maintain a written code of standards of conduct governing the performance of their employees engaged in the award and administration of contracts. 1) No employee, officer or agent of the grantee shall participate in the selection, in the award or in the administration of a contract supported by Federal Funds if a conflict of interest, real or apparent, would be involved. 2) Such a conflict will arise when: i) The employee, officer or agent; ii) Any member of the immediate family; iii) His /Her partners, or; iv) An organization which employs, or is about to employ any of the above has a financial or other interest in the firm's selection for award. 3) The grantee's or sub - grantee's officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors or parties to sub - agreements except as noted in Section 4. 4) A grantee's or sub - grantee's officers, employees or agents will be presumed to have a financial interest in a business if their financial interest exceeds the following: i) Any business entity in which the official has a direct or indirect investment worth one thousand dollars ($1,000) or more. ii) Any real property in which the official has a direct or indirect interest worth one thousand dollars ($1,000) or more. EXHIBIT CI Prohibition Against Conflicts of Interest Page 4 of 4 Community Development Block Grant Policy Manual I.D. # A -11 (pg. 2 of 2) TOPIC: CONFLICT OF INTEREST CODE RIVERSIDE COUNTY ECONOMIC DEVELOPMENT AGENCY DATE: October 1989 iii) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating two hundred fifty dollars ($250) or more in value provided to, received by or promised to the official within 12 months prior to the time when the decision is made. iv) Any business entity in which the official is a director, officer, partner, trustee, employee, or holds any position of management. v) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating two hundred fifty dollars ($250) or more in value provided to, received by, or promised to the official within 12 months prior to the time when the decision is made. 5) For purposes of Section 4, indirect investment or interest means any investment or interest owned by the spouse or dependent child of an official, by an agent on behalf of an official, or by a business entity or trust in which the official, the official's agents, spouse, and dependent children own directly, indirectly, or beneficially a 10- percent interest or more. S \CDBG\FORMS\2007\EXHIBIT CI doc EXHIBIT "R" Constitutional Prohibition In accordance with First Amendment Church /State Principles, as a general rule, CDBG /ESG assistance may not be used for religious activities or provided to primarily religious entities for any activities, including secular activities. The following restrictions and limitations therefore apply to the use of CDBG /ESG funds. (1) CDBG /ESG funds may not be used for the acquisition of property or the construction or rehabilitation (including historic preservation and removal of architectural barriers) of structures to be used for religious purposes or which will otherwise promote religious interests. This limitation includes the acquisition of property for ownership by primarily religious entities and the construction or rehabilitation (including historic preservation and removal of architectural barriers) of structures owned by such entities (except as permitted under paragraph (j)(2) of this section with respect to rehabilitation and under paragraph (j)(4) of this section with respect to repairs undertaken in connection with public services) regardless of the use to be made of the property or structure. Property owned by primarily religious entities may be acquired with CDBG /ESG funds at no more than fair market value for a non - religious use. (2) CDBG /ESG funds may be used to rehabilitate buildings owned by primarily religious entities to be used for a wholly secular purpose under the following conditions: (i) The building (or portion thereof) that is to be improved with the CDBG /ESG assistance has been leased to an existing or newly - established wholly secular entity (which may be an entity established by the religious entity); (ii) The CDBG /ESG assistance is provided to the lessee (and not the lessor) to make the improvements; (iii) The leased premises will be used exclusively for secular purposes available to persons regardless of religion; (iv) The lease payments do not exceed the fair market rent of the premises as they were before the improvements are made; (v) The portion of the cost of any improvements that also serve a non - leased part of the building will be allocated to and paid for by the lessor; (vi) The lessor enters into a binding agreement that unless the lessee, or a qualified successor lessee, retains the use of the leased premises for a wholly secular purpose for at least the useful life of the improvements, the lessor will pay to the lessee an amount equal to the residual value of the improvements; (vii) The lessee must remit the amount received from the lessor under subparagraph (2)(vi) of this section to the recipient or subrecipient from which the CDBG /ESG funds were derived. EXHIBIT "R" Constitutional Prohibition Page 2 The lessee can also enter into a management contract authorizing the lessor religious entity to use the building for its intended secular purpose, e.g., homeless shelter, provision of public services. In such case, the religious entity must agree in the management contract to carry out the secular purpose in a manner free form religious influences in accordance with the principles set forth in paragraph (j)(3) of this section. (3) As a general rule, CDBG /ESG funds may be used for eligible public services to be provided through a primarily religious entity, where the religious entity enters into an agreement with the recipient or subrecipient from which the CDBG /ESG funds are derived that, in connection with the provision of such services: (i) It will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion. (ii) It will not discriminate against any person applying for such public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion; (iii) It will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such public services; (iv) The portion of a facility used to provide the public services shall contain no religious symbols or decorations, other than those permanently affixed to or part of the structure. (4) Where the public services provided under paragraph (j)(3) of this section are carried out on property owned by the primarily religious entity, CDBG /ESG funds may also be used for minor repairs to such property which are directly related to carrying out the public services where the cost constitutes in dollar terms only an incidental portion of the CDBG /ESG expenditure for the public services. S CDf3(r 1 OR V15 'UO',Pshihit R doc EXHIBIT "S" Page 1 of 2 Economic Opportunities for Section 3 Residents and Section 3 Business Concerns Sec. 135.38 Section 3 clause. All Section 3 covered contracts shall include the following clause (referred to as the Section 3 Clause): A. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD - assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low- income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. EXHIBIT "S" Page 2 of 2 E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. F. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. G. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. H. With respect to work performed in connection with Section 3 covered Indian housing assistance, Section 7(b) of the Indian Self- Determination and Education Assistance Act (25 U.S.C. 45Oe) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian -owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 3 and Section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 7(b). S \CDBGFORMS12007EXHIBIT S doc