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HomeMy WebLinkAbout93- HRDC/Bozeman CDBG Agreement , . . , . , HRDC/BOZEMAN CDBG AGREEMENT THIS CONTRACT is entered into by and between the City of Bozeman, Montana, herein referred to as the "City" and the Human Resource Development Council, District IX, Inc. hereinafter referred to as "HRDC' . WITNESSETH: WHEREAS, the City and HRDC worked cooperatively to submit a Community Development Block Grant (CDBG) application to obtain funding for certain specified site improvements on a tract of land owned by HRDC to be developed as a site for housing units for low- and moderate-income householdsi and WHEREAS, the City received the CDBG to install the site improvements proposed for HRDC's propertYi and WHEREAS, the City in its capacity as the CDBG grantee, has determined that the HRDC, due to its expertise in housing programs, should implement and administer the CDBG site improvements projecti and WHEREAS, this contract between the City and HRDC will facilitate mutual cooperation in implementing the CDBG for site improvements on HRDC's propertYi and WHEREAS, the City has staff who are experienced in planning, structuring and implementing site improvements, and its input will assist HRDC in implementing the site improvements projecti and WHEREAS, the Montana Department of Commerce, hereinafter referred to as "Department", has required the City to enter into a contract with HRDC specifying the terms and conditions for the 1 . . . City's delegation of CDBG responsibilities to HRDC; and WHEREAS, this contract affects only those specific site improvements identified in the City's CDBG, attached hereto as Exhibit A, and does not affect or govern any other improvements or construction undertaken by HRDC on its properties; and WHEREAS, both parties to this agreement understand that neither party involved herein has in any way, expressly or implied, abrogated any of its individual powers, and that this agreement does not create any new organization or legal entity. NOW, THEREFORE, the parties mutually agree as follows: I. Responsibilities deleoated to HRDC. A. HRDC will, subject to prior approval by the City Commission, retain the services of a consulting engineering firm to design and supervise the installation of site improvements under this CDBG grant. Selection of the consulting engineering firm will be made in accordance with State law and City consultant selection policy. " B. HRDC will be responsible for all facets of the design and construction phases of the site improvement project, including the following: 1- Design engineering to include but not limited to contract administration, inspection and testing, engineering, certification, and provision of as-built drawings; 2 . Construction engineering; 2 I . l 3. Except as provided by paragraph IV, Administration below, compliance with all applicable Sate and Federal requirements contained in the Statement of Assurances submitted to he Department with the City's application or CDBG assistance, dated September 14, 1992; 4. Except as provided by paragraph IV, Administration below, compliance with all other State and Federal requirements as described in the Montana Community Development Block Grant Program, Grant Administration Manual; 5 . Preparation of Construction Bid Documents; 6. Supervision of the Bid Process, and construction of the project. The awarding of the site improvements project contract will be subject to approval by the Bozeman City Commission and bid solicitation documents will reflect this requirement. C. HRDC and its consulting engineer will receive, review, and certify for payment all requests for payment for items contained in paragraph B. above, and prepare and submit such requests through the Finance Director to the City Commission in a timely fashion in accordance with City procedure. The issuance of a certificate for payment shall constitute a representation that the contractor or engineer is entitled to payment in the amount certified. D. During the term of this contract, HRDC will maintain 3 . . , reasonable records of its performance hereunder in a manner consistent with generally accepted accounting principles and with State and federal grant requirements. HRDC will allow the City and Department, and their authorized representatives, access to those records at any time during normal business hours. At the request of the City, HRDC will submit to the City, in the format prescribed by the City, monthly status reports on its performance under this contract, unless more frequent status reports are required by the City. II. Payment of Desiqn and Construction Costs Incurred: A. HRDC shall be responsible for reviewing and certifying all payment requests in connection with the design and installation of site improvements. Requests for payment from CDBG funds shall be submitted to the Finance Director for payment by the City. B. Upon receipt of a certification for payment from HRDC for allowable project costs as specified in the City's grant agreement with the Department, a copy of which is appended as Attachment B of this agreement, and which by this reference is made a part hereof, the City will request the required CDBG funds from the Department, and upon receipt of these funds, the City will pay the funds directly to the engineer, contractor, other parties accordingly. c. The City will deduct a retainage from each payment 4 , . I request not to exceed 10% of the request, submitted by HRDC for installation costs and hold this retainage until construction is completed, the engineer approves final payment, and the project is accepted, all in accordance with the conditions of the construction contract. D. The City will also withhold 1% of the amount of any claim submitted by HRDC for payment of site improvements construction costs and will forward this amount to the Montana Department of Revenue pursuant to MCA SlS-50- 206(2). E. The City may refuse to pay any claim which it deems not valid under the terms of this CDBG Agreement (Attachment A) . III. Duration of the Contract. A. This Contract takes effect when the following conditions are satisfied: 1. The Department and the City have executed the CDBG Grant Agreement~ 2 . The Department has approved the City's "Request for Release of Funds and Certification"; 3 . The City's attorney and the attorney for HRDC have approved this Contract as to form; and 4 . The City Corrunission and HRDC Board of Directors have each approved this Contract. B. This Agreement will terminate 90 days after the project engineer files a certificate of completion with the 5 . ' . Department or Department closes out the CDBG grant with the City, whichever occurs later. IV. Administration. A. The City and HRDC shall each designate liaison for ongoing corrununication concerning performance of this Agreement. The liaisons will meet on a regular basis, but no less than monthly, to provide for the smooth and efficient implementation of this Agreement and shall report to their respective entities as necessary. B. HRDC will comply with the federal administrative requirements contained in 24 CFR Section 570.502, as applicable. C. HRDC will carry out each activity under this Contract in compliance with all federal laws and regulations described in 24 CFR Sections 570.600 through 570.612 (Subpart K), except that: l. HRDC does not assume the City's environmental responsibilitie~ described at 24 CFR Section 570.604, and 2. HRDC does not assume the City's responsibility for initiating the review process under the provisions of 24 CFR Part 58, provided, however, that HRDC shall advise the City when this responsibility arises and shall assist the City in initiating the review process. V. Disposition of Real Property or Equipment Acquired. 6 . , A. With respect to any equipment under HRDC control that was acquired or improved in whole or in part with CDBG funds in excess of $25,000, HRDC will, upon expiration of this Agreement and subject to paragraph B below, either: l- Use the property to meet one of the national objectives contained din 24 CFR Section 570.901 for five years after expiration of the agreement or for such longer period of time as is determined to be appropriate by the City; or 2 . Dispose of the property in a manner that results in the City being reimbursed in the amount of the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvements to, the property. The proceeds from such disposition will be subject to the applicable provisions of 24 CFR 570.504 (Program income), 24 CFR Part 85.25,c.24 CFR 570.504 (Program Income) , and Part 85.32 (equipment) . B. Site improvements installed under this Agreement shall, upon expiration of this Agreement, become the property of the City and the City may accept ownership, operate and maintain those facilities. C. HRDC will maintain the real property upon which the site improvements are located for the sole purpose of providing housing for low- and moderate-income occupants 7 . . . for a period of at least twenty (20) years. VI. Indemnification. HRDC waives any and all claims and recourse against the City, 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 incident to HRDC's performance under this contract, except claims arising from the sole negligence of the City or its officers, agents, or employees. HRDC will indemnify, hold harmless, and defend the City against all claims, demands, damages, costs, expenses, or liability arising out of HRDC's performance of this Contract except for liability arising out of the sole negligence of the City or its officers, agents, or employees. . VII. Payback bv additional users of site improvements. A. If additional property owners seek access to sewer and water services made available through site improvements under this Contract, the City and the HRDC will jointly establish a method to implement the paybacks and to prorate the cost of the improvements between the HRDC's low and moderate income housing project and other users, and the City will require that other users pay a hookup fee or assessment which will fully reimburse the cost of installation of those services. B. Upon receipt of paybacks due from property owners under ~.~ City Paragraph!3. . above, the will place those funds in a designated "West Babcock housing account". The West Babcock housing account is to be maintained by the HRDC. Proceeds of 8 . , r a " . . the West Babcock housing account may only be used in connection with the provision of housing to low and moderate income households, in accordance with the terms of the CDBG application and any subsequent agreement with the Department of Commerce. The HRDC will be required to reimburse to the West Babcock housing account for any unauthorized expenditures from the account. C. The HRDC will provide the City with access to the West Babcock housing account books and records at any time to allow the City to monitor expenditures from the account to insure that all CDBG requirements are met. The HRDC will cooperate in meeting all informational requests by the City in connection with the West Babcock housing account. The West Babcock housing account will be audited during annual HRDC audits, and may be audited by the City at its discretion. Upon the request of the City, the HRDC will provide monthly reports describing in detail all transactions made in connection with the West aabcock housing account. VIII.Suspension and Termination. In accordance with 24 CFR 85.43/ the City may suspend or terminate this Contract if HRDC materially fails to comply with any term of the City's grant agreement with the Department. In addition, the City may terminate this Contract if its CDBG Grant Agreement with the Department is terminated by the Department for convenience in accordance with 24 CFR 85.44. 9 . , . . IX. Independent Contractor. It is understood by the parties hereto that HRDC is an independent contractor and as such neither it nor its employees, if any, are employees of the City for any purposes including but not limited to taxes, retirement system, or social security (FICA) withholding. X. Assiqnment. HRDC shall not assign any right or obligation hereunder in whole or in part, without the prior written consent of the City. XI. Nondiscrimination. HRDC will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or disability in employment or provision of services. XII. Attornev's fees and costs. That in the event it becomes necessary for either party to this agreement to retain an attorney or use an in-house counsel, to include the Chty Attorney, to enforce any of the terms or conditions of this contract, then the prevailing party shall be entitled to reasonable attorney's fees and costs to include fe~s, costs and salary of in-house counsel. XIII.Modifications. Any amendments or modifications to this Agreement or any provision herein shall be made in writing and executed in the same manner as the original document and shall after execution become a part of this agreement. 10 . & . . . . . . . . , . . This contract has been approved by the City and HRDC. Dated this ~ day of f ATTEST: n ~ Dated this ~ day of : /JJ . ~cS ~ Bd. of Directors ..,... 11 .~. . ,-~~.~................- ~.- .. (. I I" l\- .. ., .. ~ . " . , . ~~~::,'P'~~~~.O/J - O .' '.4_ '-' /h'" .... ~ t2J.: ...~ i( 'l/)d~ ? .... .... ?:-c:: L~""" ......0 May 12, 1993 ~:r ............. '\' 'J~\ Mayor Tim Swanson & the Bozeman City Commission City of Bozeman P.O. Box 640 Bozeman, MT 59715 Dear Mayor Swanson and Commissioners: Attached please find the signed local agreement, between the City of Bozeman and the Human Resource Development Council of District IX, Inc., governing the administration of the City's 1992 Community Development Block Grant (CDBG). This document will be an addendum to the principal CDBG Contract between the Montana Department of Commerce and the City of Bozeman. Due to the above mentioned contractual structure, there are several issues, effecting the viability of the project, that the City needs to include in its negotiations with Commerce. These items were not incl uded in the attached agreement because the ci ty could not approve their inclusion without the Department of Commerce's authorization. 1. That all hook-up fees paid by the adjoining property owners and any other revenues generated by the project be dedicated to HRDC' s Land Trust. These revenues, regardl ess of time of receipt, will not impact the negotiated grant award. 2. That the above stated Land Trust revenues are constituted as committed for the purpose of future CDBG activities. 3. That the Land Trust revenues will be used to promote and perpetuate affordable housing forever, and will be governed solely by CDBG regulations. In closing, I feel the need to publicly acknowledge and thank your staff for the many hours they have given to this project. Specifically, the City Manager and Debbie Arkell, without whom we would not be here Suite 300 . 321 E. Main St. . Bozeman, MT 59715 232 S. Main St. . Livingston, MT 59047 406 / 587-4486 . FAX 406/585-3538 800/332-2796 406 / 222-0896 C1.1ENTSONI.Y