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HomeMy WebLinkAbout94- Community Development Block Grant Contract #MT-CDBG-93ED-11 . , ,.. , , . . COMMUNITY DEVELOPMENT BLOCK GRANT CONTRACT CONTRACT #MT-CDBG-93ED-11 This Contract is entered into by the City of Bozeman, Montana, herein referred to as "the Grantee" and the state of Montana Department of Commerce, Helena, Montana, herein referred to as "the Department." WITNESSETH THAT the Grantee and the Department mutually agree as follows: 1. PURPOSE The purpose of this Contract is to provide funding for project activities approved by the Department under the Montana community Development Block Grant Program (CDBG) for FY 1993. 2 . EFFECTIVE DATE AND TIME OF PERFORMANCE This Contract takes effect on January 18, 1994. The activities to be performed by the Grantee will be completed no later than January 18, 1996. Activities will conform to the implementation schedule included as Attachment A to this Contract, which by this reference is made a part hereof. 3. SCOPE OF ACTIVITIES The Grantee will engage in activities as set forth in the Grantee's application, including any written modifications resulting from the review of the applications by the Department, for CDBG grant assistance which by this reference are made a part hereof. The Grantee will loan $76,500 to Reliable Transaction Processing, Inc. (RTP), hereinafter referred to as the "Borrower", for working capital to be used for its business activities. The Borrower has projected 31 full time equivalent positions, of which 23 will be made available to low and moderate income persons. 4 . BUDGET a) The total amount to be awarded to the Grantee under the Contract will not exceed $80,000. 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. The Grantee may modify this budget only after having requested and received prior approval of the adjustment from the Department. c) Budget adjustments must receive prior approval from the 1 . Department. For adjustments of $5,000 or less between line items of the CDBG portion of Attachment B, Department approval of the Request for Payment form will constitute approval of the budget adjustment. The rationale for budget adjustment must be described in the proj ect Progress Report and the proposed adj ustments noted in the Request for Payment and status of Funds Report submitted with draws against the grant funding reserve. Budget adjustments in excess of $5,000 require formal Department approval. d) If an acceptable program income plan is submitted to the Department, the Grantee may be permitted to retain program income generated by the activities described in section 3. scope of Activities. Program income received before the project is closed out by the Department must be expended on project activities before additional CDBG funds are requested by the Grantee. The Department will deduct the amount of program income on hand shown on the drawdown form from the amount requested by the Grantee. The receipt and expenditure of program income shall be treated as additional CDBG funds subject to all applicable requirements governing the use of CDBG funds. The receipt and expenditure of program income shall be recorded as part of the financial transactions of the grant program. At the time of closeout, the Department will specify the conditions and requirements that will apply to program income received by the Grantee after project closeout. 5. AMOUNT OF GRANT AND METHOD OF PAYMENT a) The Department will authorize the Grantee to draw up to $80,000 against the funding reserved for it by the Department. In drawing against the reserved amount the Grantee will follow the instructions supplied by the Department. b) The Grantee will review and determine the propriety of and need for each request for funds by the Borrower in relation to the proposed uses specified in its final CDBG loan agreement and in the Grantee's CDBG application to the Department. c) A copy of the loan agreement between the Grantee and the Borrower must be submitted to the Department for review before it is executed. The Grantee shall not execute the loan agreement until the Grantee receives written approval from the Department. d) If the Department determines that the Grantee has failed to satisfactorily carry out its responsibilities under this contract, the Department may revoke the Grantee's 2 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 January 18, 1994. 6. LIAISON Terry Dimock, CDBG Administrative Officer, is the Department's liaison with the Grantee. Dixie Swenson, 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 pro- duced 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) Quarterly 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; 3 c) Project progress reports with each drawdown request; d) Evidence documenting the propriety of the proposed use of CDBG funds with each drawdown request and the Grantee's review of the proposed use; e) Annual business plan report indicating Borrower's progress toward implementing the business plan proposed in the CDBG application or noting any proposed revisions of the plan; and f) Annual financial reports prepared by a certified public accountant with full disclosure notes. The Grantee will submit the above listed reports to the Department until the goals contained in the hiring and training plan have been achieved and the Grantee receives project closeout approval from the Department. 10. AVOIDANCE OF CONFLICT OF INTEREST The Grantee will comply with the provisions of 24 CFR 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 avoidance of conflict of interest. 1I. ASSURANCES a) The Grantee will comply with the statement of Assurances, as signed and submitted with the Grantee's CDBG application. The Grantee will also comply with all other applicable federal and state statutory and regulatory requirements, administrative directives issued by the Department, and local ordinances and resolutions. All contracts entered into by the Grantee for the completion of the activities described in Section 3 hereof must contain special provisions requiring contractors to comply with all applicable requirements. b) The Grantee expressly agrees to repay to the Department any funds advanced to the Grantee under this Contract which the Grantee, its subcontractors or sUbrecipient entities, or any public or private agent or agency to which it delegates authority to carry out portions of this Contract expends in violation of the terms of this Contract or the federal statutes and regulations governing the CDBG Program. 12. ARTICLES INCORPORATED BY REFERENCE The Grantee's complete application for CDBG grant assistance, the applicable HUD regulations at 24 CFR Part 570, and Title I of the 4 Housing and Community Development Act of 1974, as now in effect or as they may be amended during the term of this Contract are incor- porated in this Contract by this reference and are binding upon the Grantee. 13. MODIFICATION AND ASSIGNABILITY OF CONTRACT This Contract contains the entire agreement between the parties, and no statements, promises, or inducements made by either party, or agents of either party, which are not contained in or authorized by this written Contract, are valid or binding. This Contract may not be enlarged, modified, or altered except upon written agree- ment, and does not imply any continuing commitment by the state of Montana beyond the termination date noted herein. The Grantee accepts responsibility for adherence to the terms of this Contract by subcontractor or subrecipient 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 for by this Contract until: a) The Grantee completes an Environmental Review Record and the Department issues a Notice of Release of Funds; however, upon receiving written authorization from the Department, the Grantee may incur 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 other resources necessary for the completion of the project as defined in section 3 and Attachment 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 ensure that the positions created will be made available to persons of low and moderate income; ii) A breakdown of jobs to be created indicating the job titles and hourly or monthly rates of compensation; iii) A timetable for creating the jobs; 5 iv) An assurance that nondiscrimination and equal opportunity laws will be complied with; v) Procedures for outreach, recruitment, screening, selection, training and placement of workers which will ensure maximum access for local residents, particularly persons of low and moderate income; vi) A description of the Borrower's training curriculum and resources, if applicable; vii) written commitments from agencies participating in the implementation of the plan; and viii) The Borrower's written commitment to comply with the plan. In addition, the loan agreement must contain the following conditions: The loan agreement and collateral positions will be consistent with the application. The loan term will be for three years with six months deferral period for loan payments with accrual of interest allowed during the construction and start-up phase of the project. e) If the Grantee fails to enforce the low and moderate income verification and documentation requirements and to ensure that at least 51% of the full-time equivalent 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 Department 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 Grantee and the business assisted to achieve the projected goals, or the grant provided hereby will terminate and the Grantee will reimburse the Department all funds disbursed hereunder. 15. CONSTRUCTION AND VENUE This Contract will be construed under and governed by the laws of the state of Montana. The Department and Grantee agree that performance of this Contract is in the city of Helena, Lewis and Clark County, state of Montana and that in the event of litigation concerning it, venue is in the District Court of the First JUdicial District in and for the County of Lewis and Clark, state of Montana. 16. INDEMNIFICATION a) The Grantee waives any and all claims and recourse against 6 . . the Department and the state of Montana, including the right of contribution for loss or damage to persons or property arising from, growing out of, or in any way connected with or incidental to the Grantee's or any subrecipient's performance of this Contract. b) Further, the Grantee will indemnify, hold harmless, and defend the Department and the state of Montana against any and all claims, demands, damages, costs, expenses, or liability arising out of the Grantee's or subrecipients performance of this Contract. In the event the Department or the state of Montana is named as a codefendant in any action relating to activities to be performed by the Grantees or subrecipients under this Contract, the Grantee will notify the Department of such fact and will represent the Department in such legal action unless the Department undertakes to represent itself as a codefendant in such legal action in 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 the Department makes a determination to allow an amendment, the grantee must clearly demonstrate that the modification is justified and will enhance the overall impact of the original project. The Department will consider each request to determine whether the modification is substantial enough to necessitate reevaluating the project's original ranking. If warranted, the Department will analyze the proposed modification and its impact on the scores assigned to the application during the original grant competition. If the proposed modification would have resulted in the project not being funded, the Department will disapprove the modifications. b) If it determines that the proposed amendment represents a substantial change in the project activities proposed in the original application for cDBG funds, the Department will require the Grantee to conduct a local public hearing on the amendment. 18. TERMINATION OF CONTRACT. This contract may be terminated as follows: a) Termination Due to Loss of Funding. This Contract will terminate in whole or in part, at the discretion of the Department, in the event that the Department suffers a loss of funding or termination of the federal grant which permits it to fund the Grantee in whole or in part so that 7 . it is unable to make payment to the Grantee. In this event, the Department will give the Grantee written notice setting forth the effective date of full or partial termination or, if a change in funding is required, setting forth the change in funding and changes in the approved budget. b) Termination Due to Noncompliance with Contract Terms. If the Department determines that the Grantee has failed to comply with the general terms and conditions of this Contract, the proj ect schedule, or any special conditions, and if, upon notification of the defect, the Grantee does not remedy the deficiency within a reasonable period of time to be specified in the notice, the Department may terminate this Contract in whole or in part at any time before the date of completion. The Department will promptly notify the Grantee in writing of the decision to terminate, the reasons for the termination, and the effective date of the termination. c) Termination Due to Adverse Environmental Impact. This Contract will terminate at the conclusion of the environmental review process if the Grantee or the Department determines that the project would have a significant adverse impact on the quality of the human environment and that this impact cannot be avoided or sufficiently mitigated by reasonable means. 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. City of Bozeman Departme C~~ (,," ~ ,...--.~' "--, 'j / ~ "'-"'- -::::-:~.ti../,~ ~, (b Ja es E. Wysocki, I "-:) /(/. t'. i'j Date <::~- --y - ! C,-t~' Date "\ 8 . . , . CITY OF BOZEMAN CONTRACT #MT-CDBG-93ED-11 ATTACHMENT A PROJECT IMPLEMENTATION SCHEDULE PROJECT START-UP Begin Project Planning January, 1994 Establish Project Files January, 1994 Prepare Management Plan January, 1994 Prepare Environmental Review Record January, 1994 DOC Release of Funds February, 1994 Finalize Contract with DOC February, 1994 PROJECT IMPLEMENTATION Finalize Loan Agreement February, 1994 Document Financing Sources/Terms/Conditions February, 1994 Expend CDBG Funds As Required Implement Hiring & Training Plan Spring, 1994 Create 31 jobs & make 23 jobs available to Low & Moderate (LMI) Persons Monitor Hiring Process & Project Process Throughout Submit Hiring & Training Reports to DOC Quarterly Submit Financial Statements to DOC Quarterly PROJECT CLOSEOUT Project Audited as Part of Annual Fall, 1994 Organization-wide city Audit Submit Audit Report to Program Staff December, 1994 Project Audited as Part of Annual Fall, 1995 Organization-wide City Audit Submit Audit Report to Program Staff December, 1995 Conditional Closeout Spring, 1996 Final Closeout Fall, 1996 9 , . , , . . . . CITY OF BOZEMAN CONTRACT #MT-CDBG-93ED-11 ATTACHMENT B PRELIMINARY PROJECT BUDGET ADMINISTRATION (BOZEMAN) OTHER TOTAL PERSONAL SERVICES OFFICE COSTS Supplies Postage, Printing, Pub. Telephone PROFESSIONAL SERVICES Consulting (GDC/HRDC) $3,500 $2,500 $6,000 Legal 500 500 Audit 500 500 OTHER Travel/Training TOTAL ADMINISTRATION $3,500 $3,500 $7,000 ACTIVITY Equipment/Machinery $20,000 $20,000 Working Capital $76,500 156,500 $233,000 TOTAL ACTIVITY $76,500 $176,500 $253,000 TOTAL BUDGET $80,000 $180,000 $260,000 CDBG FUNDS: $80,000 OTHER RESOURCES: Bozeman RLF 100,000 Equity 80,000 TOTAL PROJECT: $260,000 10