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HomeMy WebLinkAbout93- Community Development Block Grant Contract . > , City of Bozeman COMMUNITY DEVELOPMENT BLOCK GRANT CONTRACT CONTRACT #MT-CDBG-92PF-02 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. APPLICATION INCORPORATED BY REFERENCE The Grantee's application for CDBG grant assistance is incorporated into this Contract by reference and the representations therein are binding upon the Grantee. 3. ACCEPT ANCE OF CDBG PROGRAM REQUIREMENTS The Grantee will comply with the Certifications for Application as signed and submitted with the Grantee's CDBG application. The Grantee will comply with all applicable parts of Title I of the Housing and Community Development Act of 1974, as amended; the applicable Department of Housing and Urban Development (HUD) regulations in 24 CFR Part 570, as now in effect or as they may be amended during the term of this contract; all requirements established by the Department of Commerce; applicable State and federal laws, regulations, administrative directives and procedures; and local ordinances and resolutions. The Grantee agrees that all contracts entered into by it for the completion of the activities described in Section 5 hereof will contain special provisions requiring contractors to comply with all applicable state and federal requirements. 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. 4. EFFECTIVE DATE AND TIME OF PERFORMANCE This Contract takes effect on December 18, 1992, and will terminate upon final project closeout by the Department. The activities to be performed by the Grantee will be completed according to the implementation schedule included as Attachment A to this Contract, which by this reference is made a part hereof. Prior to the . commencement of construction on the project, the Grantee will provide the Department with a final implementation schedule, to be designated Attachment C, which by this reference will become a part hereof and supersede Attachment A, if approved in writing by the Department. 5. SCOPE OF ACTIVITIES The Grantee will engage in activities as set forth in the Grantee's application for CDBG grant assistance as supplemented by the attached local agreement which by this reference is made a part hereof. The major components of the project include: ~ extending city water and sewer lines to a 1 Q-acre parcel of land and installing on-site sewer, water, utilities, streets, sidewalks, curb and gutter for the purpose of constructing affordable housing (20 single-family and 1 four-plex) for low-moderate income households. - depositing program income in the Land Trust LMI Housing Account to be used to expand and facilitate home ownership among persons of low and moderate income in accordance with the terms of the City's CDBG application and the local agreement between the City and the HRDC. The project will be constructed as described in engineering plans and specifications to be submitted to and approved by the Water Quality Bureau, Montana Department of Health and Environmental Sciences. 6. BU DG ET (a) The total amount of this Contract will not exceed $375,000. (b) A copy of the preliminary project budget is included as Attachment B to this Contract, and by this reference is made a part hereof and binding upon the Grantee. After it receives construction bids on all approved activities, the Grantee will provide the Department with a final project budget to be designated as Attachment D which by this reference will become a part hereof and supersede Attachment B, if approved in writing by the Department. (c) Budget adjustments must be approved in advance by the Department. For adjustments between line items of the CDBG portion of Attachment B, in an amount not to exceed $5,000, Department approval of the Request for Payment form will constitute approval of the budget adjustment. The Grantee must describe the rationale for a budget adjustment in the Project Progress Report and the adjustments 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 are subject to written Department approval. (d) The Grantee will be permitted to retain program income generated by the activities described in section 5. Scope of Activities. Program income earned during the grant period shall be added to the funds committed under this contract, provided that such program income is disbursed for eligible activities before additional withdrawals of grant funds are made. 2 . It is anticipated that substantially all program income received during and after the grant period will consist of reimbursement of development costs of site improvements to the Grantee from subsequent users of the services who are not low and moderate income homeowners. The Grantee has entered into an agreement with the Human Resource Development Council of District IX, a nonprofit corporation (HRDCl, which owns the real property upon which the site improvements to be installed under this contract are to be located. The HRDC, through use of a community land trust, is developing the low and moderate income housing project to be served by the site improvements. Under its agreement with the Grantee, the HRDC has agreed to operate the proposed project for the benefit of low and moderate income homeowners for a minimum of twenty (20) years. The grantee proposes to transfer program income earned during and after the grant period to the HRDC for placement in a designated Land Trust LMI Housing account. The funds in the Land Trust LMI Housing account are to be used solely for eligible activities in support of the HRDC low and moderate income housing project and provision of housing to low and moderate income households. The Grantee and the Department hereby agree that transfer of program income to the Land Trust LMI Housing account under the terms of the agreement entered into between the Grantee and the HRDC shall constitute disbursement for an eligible activity under this Contract. Once program income is expended by the Grantee, additional CDBG funds may be requested by the Grantee. The receipt and disbursement of program income shall be treated as additional CDBG funds subject to all applicable requirements governing the use of CDBG funds. The receipt and disbursement of program income shall be recorded as part of the financial transactions of the grant program. The Grantee will submit a program plan for review and written approval by the Department at closeout. 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. 7. AMOUNT OF GRANT AND METHOD OF PAYMENT (a) The Department will authorize the Grantee to draw up to $375,000 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) If the actual total cost of completing the project is less than has been projected by the Grantee in the preliminary budget (Attachment S), the Department may, at its discretion, reduce the amount to be provided under this Contract in proportion to the overall savings. If actual construction bids are less than the estimates include in the preliminary budget, the construction budget in the CDBG contract will be established at the bid price, plus a ten percent contingency. The difference between actual project costs and the original grant award will be reallocated by the Department for unfunded or inadequately funded projects or added to the following year's COSG allocation. 3 i (c) 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 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. (d) 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 18, 1992. 8. LIAISON Ann Desch, CDBG Program Officer, is the Department's liaison with the Grantee. James Goehrung, City of Bozeman, is the Grantee's liaison with the Department. 9. 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 may be copyrighted or patented in the United States or in any other country without the prior written approval of the Department. 10. 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. 11. PERFORMANCE REPORTING The Grantee will submit status reports on project performance at the request of, and in the format prescribed by, the Department. 12. AVOIDANCE OF CONFLICT OF INTEREST 4 '. The Grantee will comply with the provisions of the applicable HUD regulations of 24 CFR 570.611 Subpart J; 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. 13. MODIFICA TION 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 agreement, 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 Record 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 5 and Attachment B hereof. (c) The Grantee submits to the Department an acceptable project management plan and implementation schedule. 15. CONSTRUCTION AND VENUE This Contract will be construed under and governed by the laws of the State of Montana. 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. INDEMNIFICA TION (a) The Grantee waives any and all claims and recourse against the Department and the State of Montana, including the right of c'ontribution 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 subrecipients' performance under this Contract. S . , (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 any 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 Grantee or subrecipient 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 by the Grantee 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 originally assigned the application in the original grant competition. (b) The Department will not approve amendments which would materially alter the circumstances under which the grant was originally ranked and selected. (c) 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 hold a local public hearing on the amendment with reasonable notice. 18. PROPERTY MANAGEMENT Title to real property or equipment acquired under a grant or subgrant will vest upon acquisition in the grantee or subgrantee respectively. The grantee or subgrantee will use, manage, and dispose of any such property or equipment in accordance with the requirements set out in 24 CFR Part 85, Subpart C and 24 CFR Part 570, Subpart J. 19. 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 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 6 . . 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 project 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 on whether any failure to comply with the terms of this contract was the result of circumstances beyond the Grantee's control. 7 ------ . . IN WITNESS THEREOF, the parties hereto have caused this Contract to be executed. City of Bozeman - - I ) -... ____:~-Q/~L-,!:;' L\.__.' . \IL/l: Ja es Wysocki, City Mana er Date: ~--2 1-- ~~ .7 /7t/3 ( <-- Date: ATTEST: ~~J 1I~ pfcont92Boz 5/93 8 . . \ City of Bozeman #MT .CDBG-92-PF-02 ATTACHMENT B PRELIMINARY BUDGET ADMINISTRATION CDBG Other Other Total HRDC (City) Personnel $26,000 $26,000 Supplies 200 200 Postage. Printing, Pub. 200 200 Telephone 270 270 Consulting Services Cikan Architects 5,000 5,000 Morrison/Maierle 8.400 8.400 Barb Richards 15,000 15,000 Travel and Training 200 200 Contingency 100 100 Misc. Administrative - 7.200 - 7,200 SUBTOTALS -0- $62,570 -0- $62,570 ACTIVITY Annexation Fees & Assessments $ 22,800 $ 22,800 Land Acquisition 200,000 200,000 Engineering Design 14.400 $14,100 28,500 Engineering Inspection 8,400 18,500 26,900 Construction: On-site $255,300 255,300 Off-site 82,700 28,000 110,700 Contingency 37,000 $17 , 900 $ 54,900 SUBTOTALS $375,000 $245,600 $78,500 $699,100 TOT ALS $375,000 $308,170 $78,500 $761,670 OVERALL PROJECT BUDGET TOTAL CDBG BUDGET $375,000 OTHER RESOURCES: City of Bozeman $78,500 ($18,500 City, $60,000 RLF) HRDC $308,170 OVERALL PROJECT BUDGET: $761,670 9 . , . , . ;. , . CONTRACT #MT-CDBG-92-PF-02 ATTACHMENT A City of Bozeman PROJECT IMPLEMENTATION SCHEDULE APROJECT START~UP: Attend DOC Workshop March 1993 Award Engineering Contract March 1993 Authorize Preliminary Design March 1993 Complete Preliminary Design April 1993 Hire CDBG Project Manager April 1993 Complete Acquisition of land May 1993 Prepare Management Plan May 1993 Award HOME funding May 1993 Complete local Agreement between Bozeman and HRDC May 1993 Complete Subdivision Review and Annexation May 1993 Establish Project Files June 1993 Complete ERR June 1993 Secure DOC Approval of RROF June 1993 B. IMPLEMENTATION: Submit Plans to DHES June 1993 Secure Wage Determination July 1993 Complete Final Plans August 1993 Prepare Bid Document August 1993 Advertise for Bids August 1993 Bid Opening August 1993 Clearance for low Bidders August 1993 Submit First Drawdown September 1993 Authorize Final Design September 1993 Bid Award September 1993 10 . , . .. - . . , . . , . . C. CONSTRUCTION Preconstruction Conference September 1993 Submit Compliance Documents September 1993 Start Construction September 1993 Construction Engineering September 1993 November 1993 Compliance Monitoring September 1993 November 1993 Submit Drawdowns and Progress Reports As Needed Ongoing Final Inspection November 1993 Final Payment to Contractor November 1993 Final Payment to Engineer November 1993 D. PROJECT CLOSEOUT: Begin Project Closeout January 1994 Project Completion Report January 1994 Determine Audit Requirements February 1994 Project Audit September 1994 11