HomeMy WebLinkAbout92- Community Development Block Grant Contract #MT-CDBG-91ED-04
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COMMUNITY DEVELOPMENT BLOCK GRANT CONTRACT
CONTRACT #HT-CDBG-91ED-04
This Cont1"act is entered into by the City of Bozeman, Montana,
her(~in referred to as "the Grantee" and the St.ate of 1'1ontana
Department of Commerce, Helena, 1'10n ta na, herein referred to as
"the Department. "
WITNESSETH THAT the Grant(-~(~ and the Department mutually agree as
follows:
1. PURPOSE
The _purpose of this Contract ] s to provide funding for project
activities approved by the Department under the Montana Community
Development Block Grant Program (CDBC) for FY 1991.
') EFFECTIVE DATE AND TIME OF PERFORMANCE
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This Contract takes effect on December 4 , 1991. The activities
to be performed by the Grantee will be completed no later than
Decembe1- 4, 1993. Activities will conform to the implementation
schedule included as Attachment A to this Con tract, which by this
n~ference is made a part hereof.
3. SCOPE OF ACTIVITIES
The Grantee ","'i 11 engage J_n act .i v i t j c. H a~; set. forth III the
Gran-tee IS pre-applicatiun and full applicaLion, including any
written modifications resul t,inlJ from the reVlew of the
appl ica t_ions by the DCpal"tment::., for COBG grant assistance which
by t:his reference arc made a part hereof.
The G 1" ant e e wi 11 loan $190,000 to Lattice Materials COl.'poration
for administrative costs to be used during the start up of its
business activities. Lattice Materials Corporation has projected
the creation of 16 full time equivalent positions, of which 11
will be filled by low and moderate lncome persons.
4. BUDGET
a) The total amount to be awan:led to the Grantee under this
Contract will not exceed $19B,000.
b) A copy of the project budget IS included as Attachment B
to this Contract, and by this reference is made binding
upon the Grantee. '1'he Grantee may modify this budget
only after having requested and received prior approval
of the adjustment from the Department.
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c) Budget adjustmE:'nts must receive prior approval ll'om the
Department. Fur adjustments of $5,000 or less De t\vccn
line items of the CDBG pOl,tion of Attachment B,
Department approval of the Request lor Payment form will
constitute approval of the budCJet adjustment.
The rationale for bud~Jet adjustment. must be described
l.n the Project ProS:lress Hcport and the proposed
adjustments noted ..LO the Herjllest for Payment and status
of Funds Report submitted with draws against the grant.
funding reserve. Budget adjustments 1n excess of $5,000
requ1re formal Department. approval.
d) If an acceptable progl-am 1ncome plan 1S submitt.ed to the
Department. before funds are released for the project,
the Grantee may be permitted to retain program .income
generated by the activities described In section 3 .
Scope of Activities. Program i.ncome received before the
project is closed out by the Department must be expended
on project activities before additional CDBG funds are
request.c'd by the Grantee. The Depa rt_ment will deduct
t.he amount of program lncome on band shown on the
drawdown form from the amount requested by the Grantee.
The receipt and expenditure of program _income ~'3hall be
treated as additional CDnG funds subject to all
applicable requirements 9overnl_nf,] the use of eDue; funds.
The receipt and expenditure of program l_ncurnc~ shall be
recorded as part. of Lhe financial transactions of the
grant program. At_ the time of closeout, the Deparhnent
will specify the conditions and n=quirements that will
apply to pl"ograrn lncome received by the Grantee after
pl"oject closeout.
5 . Ar>'IOUN'l' OF GHANT AND METHOD OF PAYMENT
a) The Department will authorize the Grantee to draw up to
$198,000 against the funding reserved for it by the
Department.. In drawing against the reserved amount the
Grantee will follow t.he instruct.ions supplied by the
Department: .
b) The Grantee will review and determine the propriety of
and need for each request f(H- funds by t.he Borrower :Ln
relation to the proposed US("S specified :In its final
CDBG loan agreement and .in the Grantee's CDBG
application to the Department.
c) A copy of t.he loan agreement between the Grant-ee and the
Borrower must be ~mbmi t led to the Department fOl" rCVlew
before it lS executed. The Grantee shall not execute
the loan agreement until the Grantee recelves written
approval from t.he Department.
d) If the Department determines tha t~ the Grant.ec has failed
to satisfactorily carry out its responsibilities under
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this Contract, the Department may revoke the Grantee's
authority to draw against the reservation described
herein until such time as the Department and the Grantee
agree on a plan to remedy the deficiency.
e) The Department of Commerce reserves the right to
withdraw a commitment for any CDBG funds which remain
unobligated twenty-four months after the date of the
announcement of the tentative grant award, which was
December 4, 1991.
6. LIAISON
Gary Morehouse, CDBG Program Officer, is the Department's liaison
with the Grantee. Dixie Swenson, Executive Director of Gallatin
Development Corporation, will be the Grantee's liaison with the
Department.
7. OWNERSHIP AND PUBLICATION OF MATERIALS
All reports, information, data, and other materials prepared by
any contractor or subcontractor pursuant to this Contract are to
be the property of the Grantee and the Department which have
exclusive and unrestricted authority to release, publish or
otherwise use, in whole or in part, information relating thereto.
No material produced in whole or part under this Contract shall
be sUbject to copyright or patent in the united States or in any
other country without the prior written permission of the Grantee
and the Department.
8. ACCESS TO RECORDS
The Grantee will maintain reasonable records of its performance
under this Contract and will allow access to these records at any
time during normal business hours by the Department, the U.S.
Department of Housing and Urban Development, the Comptroller
General and, when required by law, the Montana Legislative
Auditor and Legislative Fiscal Analyst. These records will be
kept in the Grantee's offices in Bozeman, Montana.
9. PERFORMANCE REPORTING
The Grantee will submit status reports on project performance at
the request of, and in the format prescribed by, the Department.
The Grantee will monitor the Borrower's operations to ensure
compliance with CDBG requirements during the term of the project.
The Grantee will require the Borrower to submit the following:
a) Quarterly financial status reports;
b) Biannual reports documenting progress towards
achievement of hiring and training goals specified in
the final plan to be prepared as specified in Section 14
of this contract;
c) Project progress reports with each drawdown request;
d) Evidence documenting the propriety of the proposed use
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uf CDBG funds with each dri:lwduwn request and the
Grantee's reV1ew of thc':' proposed us(~ ;
e) Annui:ll business plan report indicating Borrower's
progress toward implementing the business plan proposed
1n the CDBG application or not-ing any proposed reV1Slons
of the plan; and
:E ) Annual financial reports reviewed by a cel:tifiell publ ic
accountant with full disclosure notes.
The Grantee will submit the above listed reports to the
Department until the goals contained 111 the hiring and training
plan have been achieved and the Grantee rece1ves project closeout
approval from the Department.
10. AVOIDANCE OF CONFLICT OF INTEREST
The Grantee will comply with the provisions of 24 CFE 570.611 and
with sections 2-2-125, 2-2-201, 7-3-4367, 7-5-2106, and 7-5-4109,
MCA, (as applicable) regarding the avuidance of conflict of
interest.
1I. ASSURANCES
a) The Grantee will comply with the Stat~ement of
Assurances, as signed and submitted with the Grantee's
CDBG application. The Gr;J n t.CC will also comply with all
other applicable federal and state statuto'ry dnd regula-
tory requirements, administrative directives issued by
the Department, and local ordinances .3.nd resolutions.
All contracts entered into by the Gri:lntee fox" the
completion of the activities described 1n Sec \:~ion 3
hc,reof must contain special provls1ons requ:Lr 1ng
contraclox"s to comply wiLh all aptJ 1 icabl e requirement.s.
b) The Grantee expressly agl-ees to repay too the Department
any funds advi:lncec1 to the Grantee Undel" this Contract~
which the Grantee, its sllbcontri:lctors or subrecipient
entities, or any public or private agent or agency to
which it delegates authol- ity t.o Cd r l-y out portions of
this Contract expends ln violi:ltion of the t.erms of this
Contract or the fedel"al statutes and regulations
governing the CDBG Program.
12. ARTICLES INCORPORATED BY HEFEHENCE
The Grantee's pre-applici:ltion and full application for CDBG grant
assistance, the applicable HUD l-eiJul a Lions aL 24 CFE Part 570,
and Title I of the Housing and Communi.ty Development Act of 1974,
as now in effect or as they may be alTlenc1ed during the term of
this Con-tract are incorporated ln this Contract by this reference
and arc binding upon the Grantee.
13. MODIFICATION AND ASSIGNABILITY OF CONTRACT
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This Contract contains t_hc entire a <;"1 rC'E'ment between the parties,
and no statements, pronnses, or inducements made by either parLy,
or agents of either part.y, which are not contained 1n or
authorized by this writ-Len Contract, arc valid or binding. This
Contract may not be enlarged, modified, or altered except llpon
written agreement, and does not imply any continuing commitment
by the state of Montana beyond the termination date noted herein.
The Grantee accepts responsib:i 1 i ty for adhC1-ence to the terms of
this Cont_ract by subcontract.or or subn~cipient entities and by
public or private agents or agencies to which it delegates
authority to carry out portions hereof.
14. SPECIAL CONDITIONS
The Grantee will not obligate or utilize funds for any activities
provided f.or by this Cont.ract until:
a) The Grantee completes an l';nv ironment;:ll Review Record and
th(~ Department issues a Notice of He 1. ease of Funds;
however, upon receiving W1- i tten au thaI' iza Lion from the
Depa1-tment, the Grantee may lncur administrative costs
necessary for the preparation of the Environmental
Review and for planning activities defined as exempt.
under 24 CFR part 58.34.
b) The Grantee submits to the Department evidence of the
firm commitment of the ot~her resources necessary for the
completion of the project as defined ln Section 3 and
At tachmen-t B hereof.
c) The Grantee submits to the Department an acceptable
project management plan and program income plan.
d) 'The Grantee submits to the Department an acceptable loan
agreement which includes the final hiring and training
plan which must include the following:
i. ) A discussion of actions to be taken to enSU1"e that the
positions created will be made available tu persons of
low and moderate lncome;
ii) A breakdown of jobs to be created indicating the job
titles and hourly or monthly rates of compensa-tion;
iii) A timet.able for creating the jobs;
iv) An assurance that. equal opportunity and
nondiscrirninaLion 1 a \\1 8 will be complied wiLh;
v) Procedures for outreach, recruitment, screenlIlg,
selection, traini.ng and placement of worl.;:ers which will
ensure maXlmum access for local residents, particularly
persons of low and moderate lnc0l11e;
vi) A clescr ipt.ion of the BC)l- rower's training curriculum and
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resources, if applicable;
vii) Written commitments from asencies pdrticipatin9 in the
implementation of the plan; ancl
viii) The Borrower*s written commitment to comply with the
plan.
In addition, t.he loan agreement must contain the following
conditions:
1- The lease/purchase option on the building and the Job
Training Partnership Act funds did not meet CDBG match
requlrementl:>. The city may contribute $10,000 or more from its
revolving loan fund or the company can request it from the
Montana Science and Technology Alliance.
2. The interest rate will be 8\ over a seven year term in~tead
of the t~n year term proposed.
3. A deferral of payments will be allowed for six months after
the date the loan agreement is signed. Full payments wIll be
required thereafter.
e) If the Grantee fails to enforce the low and moderate
income verification and documentation requirements and
tu ensure that at least 51% of the full-time equiv~lent
jobs created or retained as a direct result of this
project are filled by or made available to low and
moderate income persons, the grant provided hereby will
terminate and the Grantee will reimburse the uepartment
all funds disbursed hereunder. If the projected number
of jobs or percentage of low and moderate income persons
is not met during the contract period, the Grantee must
be able to demonstrate a "good faith effort" on the part
of the GI:antee and tIle business assisted to achieve the
projected goals, or the grant provided bereby will
terminate and the Grantee will relmbuL":se the Depl1.t't.ment
all funds disbur5ed hereunder.
f) If the Grantee fails to satisfy c.;ondltiotls a,L, and c
within 4 months of the date of thls c.;ontract, the
Department may, at its dl~cretion( terminate the
contract or provide and extension.
15. CONSTRUCTION AND VENUE
Thl~ Cuntract will be construed under and governed by the laws of
the state of MonLana. The Department and Grantee agree that
performance of this Contract i5 in the city of Helena, Lewi5 and
Clark CounLy, State at Montana and that in the event of
litigation concerning it, venue is in the DistrIct Court of the
Yirst JUdicial District in and for the County of Lewil:i dnd ,..-
state of Montana.
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16. INDEMNIFICATION
a) The Grantee wa1ves any and all claims dnd recourse
against the Depart_ment and the Stah~ of Montana,
including the right of contribution for loss or damage
to persons or pl-operty ar1s1ng from, grow1n9 out of, or
J.n any way connected with or incidental to the Grantee's
or any sllbrec ipieryt ' s performance of this Contract.
b) Further, the Grantee will indemnify, hold harmless, and
defend the Department and the state of Muntana against
any and all claims, demands, damages, costs, expenses,
or liability arising out of the Grantee's or
subrecipients per fonnance of this Contract. . In the event
the Department or th(,:~ state of Montana is named as a
codefendant ~n any action relating to activities to be
perfonned by the Grantees or subrecipients under this
Contract, the Gl"antee will notify the Depa l' t.meni~ of such
fact and will l"epresent the Department 1fl such legal
action unless the Department undertakes to represent.
itself as a codefendant J,n snch legal action 1n which
case the Department will bear its own litigation costs,
expenses, and attorneys' fees.
17. GRANT AMENDMENT
a) The Department- will consider requests for grant
amendments. However, before tlw Department makes a
determination to a 11 o\v an amendment, the gl-an-tee must
clearly demonstrate that the modification 1S justified
and will enhance -the cwerall impact of -the original
project. The Department will considel" each request t~o
determine \vhether the modification lS substantial enough
to necessitate reeva 1 ua t,ing t.he project's original
ranking. If warranted, the Depdr Lrncnt will analyze the
proposed modification and its impact on the scores
assigned t.o the application during t.he original g 1- a nt
competition. If the proposed modification would have
resulted 1n the project not being funded, the Department
will disapprove the modifications.
b) If it determines that the proposed amendment represents
a substantial change ],n the project activities proposed
1n t_he ori.ginal aElpl icalion for CDBG funds, the
Department will requll-e the Grantee to conduct a local
public hearing on the amendment.
18. TERMINATION OF CONTHAC'l'.
This contract may be tenninated as follows:
a) Termination Due to Loss of Fllnding. This Contract will
terminate in whole or in part, ~t the discretion of the
Department, in I::hc event that. the Department suffers a
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loss of funding or termination of the federal grant
which [lermiLs it to fund the G t'an Lee In whole or In part
so that it lS un,clDle to make payment to the Grant-ee. In
this event, the Department will rjlVe the Grantee written
notice setting forth the effective date of full or
partial termination or, if a change In funding lS
required, setting forth the chiHlge 11'1 fund in(] and
changes .in thc' approved budget.
b) Termination Due to Noncompliance with Contract Terms.
If the Department detennines that the Grantee has failed
to comply with the general terms and conditions of this
Contract, the project schedule, or any special
conditions, and if, upon notification of the defec't, the
Grantee cloes not remedy t_he def ic< :iency within a
reasonable period of time to be f>pecified ln tIle notice,
the Department Illay terminate this Contract 11'1 whole or
In part at any time before the date of completion. The
Department wil1 proffip-tly notify the Grantee ln writing
of the decision t,o terminate, the reasons for the
tennina t,ion, and the effective date of the termination.
c) Termination Due to Adverse Environmental Impac L . This
Contract will t_erminate at the conclusion of the
c'nv ironmenta 1 reVlCW process if the Grantee or the
Departmen-L determines that. the project would have a
significant adverse impact on t_he qualit.y of the human
environment and i._hat t.his impact cannot be avoided or
sufficiently mitigated by l'casonable means.
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d) Effect of Termination. In the event of termination, due
to the Grantee's failure to comply with the terms of
this Contract terms, or the project's adverse
environmental impact, any costs incurred will be the
responsibility of the Grantee. However, at its
discretion, the Department may approve requests by the
Grantee for reimbursement of expenses incurred. The
Department's decision to authorize payment of any costs
incurred or to recover expended CDBG funds will be based
on a consideration of the extent to which the
expenditure of those funds represented a good faith
effort of the Grantee to comply with the terms of this
contract and whether the failure to comply was the
result of conditions beyond the control of the Grantee.
IN WITNESS THEREOF, the parties hereto have caused this Contract
to be executed.
Cit~ of Bozeman rtment ofl1omme~ce
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imoth Swa on, ayor A.. ~ke, Oir c or
Date Februarv 3, 1992 Date * 92-
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CUNTHACT #1''l'r-CDDG-<JII<;o-04
ATTACHMENT 1\
PI1.0JECT IMPI,EMENTATION SCHEDULE
PRO,TECT START-UP
Begin Project Planning January, 1992
Establish Project Files J'anuary, 1992
Prepare Management plan ,January, 1992
Prepare Environmental Revjcw Recurd January, 1992
DOC Helcase uf Funds Febl'Lldry, 1992
Finalize Contract with DOC February, 1992
PROJECT IMPLEMENTATION
Finalize Assistance Agreement February, 1992
Document Financing Sources, Terms and Conditions February, 1992
Implement I-lir ing dnd Training plan February, 1992
Create and Retain 16 New F'I'E Jobs and Fi 11 11 with
I,O\\l and Moderate Income Persons (LMl)
Document Verification of I.["1I status for New Llires 'fhroughout
Monitor Hiring Process and Project Progress Project
Obtain and Submit I-I i r i n r;.1 and Tt"aining Pro'Jress
Reports to DOC Biannually
PROJECT CLOSEOUT
Project Audited as Part of Annual
Organization-wide Audit of the Grantee Fall, 1992
Project Audited as ParI: of Annudl
Orgaization-wide Audit of the Grantee Fall 1993
Audit Heport Submitted to DOC Upon Completion
Conditional closeout Wintel" , 1993
Final Closeout Spring, 1994
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ATTACHMENT B
CONTRACT MT-CDBG-91ED-04 BUDGET
ADMINISTRATION City of Bozeman
PROFESSIONAL SERVICES
Consulting- HRDC 1,600
Consulting -Gallatin Develop. 5,000
Legal 400
Audit 1,000
Local Government Services
TOTAL ADMINISTRATION 8,000
ACTIVITY CDBG MSTA City of BANK/LATTICE
Bozeman
RENOVATION 50,000 45,000
MACHINERY/EQUIP. 130,000 5,000/*90,000
WORKING CAPITAL 60,000 10,000
TOTAL ACTIVITY 190,000 50,000 10,000 50,000/*90,000
TOTAL PROJECT 198,000 50,000 10,000 50,000/*90,000
TOTAL CDBG BUDGET $198,000
MSTA: 50,000
CITY OF BOZEMAN 10,000
BANK 50,000
LATTICE *90,000
TOTAL PROJECT 398,000
*90,000 EXPENDED PREVIOUSLY BY LATTICE.
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StAN STEPHENS. GOVERNOR CHARLES A. BROOKE. DIRECTOR
MONTANA DEPARTMENT OF COMMERCE
1424 9TH AVENUE
HELENA. MONTANA 59620-0501
(406) 444-3494 FAX, (406) 444-2903
February 10, 1992
Timothy Swanson, Mayor
city of Bozeman
Box 640
Bozeman, MT 59715
RE: Release of Contract Conditions and Funds for Lattice Materials
CDBG Project #MT-CDBG-91ED-04
Dear Mayor Swanson:
The Department of Commerce has reviewed the package of information
submitted by the City to complete the start-up requirements. The
Department concurs with the determination that the project is
exempt from an environmental assessment and approves the finding
of exemption for project activities.
A completed copy of the contract between the Department and the
city is enclosed with this letter. The City has satisfied
contract conditions 14. ( a) through (d) and may submit drawdowns
for administrative and activity costs.
Activity costs may only be reimbursed for expenditures or
obligations incurred after February 4, 1992. Eligible
administrative costs may be reimbursed for expenditures or
Obligations incurred after December 4, 1991.
The City procured the administrative services of Gallatin
Development Corporation through the use of small purchase
procedures with the permission of the Department. The
administrative contract has been reviewed and is acceptable.
Gallatin Development Corp. does not appear on the most recent
federal debarment list.
It is critical that the City and Lattice Materials work together
closely to verify the proposed benefits to low and moderate income
( LMI ) persons. The City and Lattice are experienced with the LMI
hiring requirements, including the need to fill at least 51% of the
positions with LMI persons, and all parties understand them. The
job announcements and position descriptions will have minimum
requirements that do not exclude low and moderate income persons
from applying.
"AN EQUAL OPPORTUNITY EMPLOYER"
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r am pleased with the city's and the administrative consultant's
performance in managing the grant to date and in completing the
start-up phase of the project. All parties have been conscientious
and cooperative to date.
r am looking forward to working with the City and Lattice Materials
towards the successful completion of this project.
sincerelY,;- if I) (1
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Gary Moreho~se, kDBG Administrative officer
cc: Dixie Swenson
Gallatin Development Corp.
321 East Main suite 413
Bozeman, MT 59715
Lattice Materials
516 East Tamarack
Bozeman, MT 59715