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HomeMy WebLinkAbout93- HRDC/Bozeman CDBG Agreement (2) , . , 1 'j . 1 /, . " ~ . 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 households; and WHEREAS, the HRDC is committed to maintaining its project as a site for housing units for low- and moderate-income households for a minimum of twenty (20 ) years; and WHEREAS, the property owned by the HRDC and its housing project will be maintained and operated by a community land trust to be established by the HRDC; and WHEREAS, the CDBG Program is a program funded by the federal Department of Housing and Urban Development (HUD) and administered by the Montana Department of Commerce, hereinafter referred to as the "Department"; and WHEREAS, the City received CDBG funding to install site improvements proposed for HRDC's project; 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 proj ect; 1 , . ; . '. , .' , , . , and WHEREAS, this contract between the City and HRDC will facilitate mutual cooperation in implementing the CDBG for site improvements on HRDC's property; 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 project; and WHEREAS, the Department has required the City to enter into a contract with HRDC specifying the terms and conditions for the City;s delegation of CDBG responsibilities to HRDC; and WHEREAS, this contract affects only those specific site improvements identified in the City's CDBG application, which is incorporated herein by reference, 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 deleqated 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 impro",::ements under this CDBG grant. Selection of the consulting engineering firm will be made in 2 . , ' . . . , , accordance with State law, CDBG requirements 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; 3. Except as provided by paragraph IV, Administration below, compliance with all applicable State and Federal requirements contained in the Statement of Assurances submitted to the Department with the City's application for 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 a determination by the City that all design and construction proposals meet City - standards and to approval by the Bozeman City Commission 3 . . '. , . I ' 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 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 the 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 4 . , . - 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 CDBG grant agreement with the Department, a copy of which shall, upon execution, be appended as Attachment A 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, and other parties accordingly. C. The City will deduct a retainage from each payment 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 by the City, 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 !HS-SO- 206 (2) . E. The City may refuse to pay any claim which it deems not valid under the terms of the CDBG application or CDBG agreement between the Department and the City. S , . , . . . 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 Commission and HRDC Board of Directors have each approved this Contract. B. As it relates to site improvement installation, this Agreement will terminate 90 days after the project engineer files a certificate of completion with the Department or the Department closes out the CDBG grant with the City, whichever occurs later. The obligations of the City and the HRDC under Paragraph VII. Reimbursement of Development Costs shall remain in effect until such time as all affected properties have provided reimbursement or the HRDC is no longer maintaining its project solely for the benefit of low- and moderate- income households, whichever first occurs. IV. Administration. A. The City and HRDC shall each designate a liaison for ongoing communication concerning performance of this Agreement. The liaisons will meet on a regular basis,_ 6 , , . - 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 Part 570, except that: 1. HRDC does not assume the City's environmental responsibilities 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. A. With respect to any equipment, site improvements or real property under HRDC or City 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: 1. Use the property to meet one of the national objectives contained in 24 CFR Section 570.901 and. 7 . , " . - I applicable state CDBG; state program final rule under 24 CFR Part 570, 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 570.489E (program income), 24 CFR Part 85.25, 24 CFR 570.504 (program Income) , and Part 85.32 (equipment) and 24 CFR 570.489(J) (change of use of real property) . B. Site improvements installed under this Agreement shall, upon expiration of this Agreement, become the property of the City and the City will accept ownership, operate and maintain those facilities subsequent to acceptance of ownership by the City. 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 for a period of at least twenty (20 ) years. VI. Indemnification. 8 I .' , . , .. . ' . 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. Reimbursement of Develooment Costs. A. If additional property owners seek access to sewer and water services made available through site improvements installed under this Contract, the City and the HRDC will jointly establish a method to implement the payback of development costs and to prorate the cost of the improvements between the HRDC's low and moderate income housing proj ect and other users, and the City will require that other users pay an assessment which will fully reimburse the cost of installation of those services. B. Upon receipt of reimbursement assessments from property owners under Paragraph A above, the City will transfer those funds to a Land Trust LMI Housing account designated for deposit of CDBG funds. The Land Trust LMI Housing account is to be maintained by the HRDC. Proceeds of the Land Trust LMI 9 , . . . - " Housing account which constitute program income from the CDBG grant may only be used for eligible CDBG activities in connection with the provision of housing to low and moderate income households, in accordance with the terms of the City's CDBG application and the CDBG agreement to be entered into between the City and the Department. Eligible activities shall facilitate and expand homeownership among persons of low and moderate income, including but not limited to the following activities: - subsidize interest rates and mortgage principal amounts for low- and moderate-income homebuyers; - finance the acquisition by low- and moderate-income of housing that is occupied by the homebuyers; - acquire guarantees for mortgage financing obtained by low- and moderate-income homebuyers from private lenders; - provide up to 50% of any downpayment required from low- and moderate-income homebuyers; - pay reasonable closing costs incurred by low- and moderate-income homebuyers; and - reasonable administrative costs of the project. Such funds may also be used to expand the supply of available housing for low and moderate income occupants through expansion of the HRDC project or new construction or acquisition of new properties. The HRDC will be required to reimburse to the Land Trust LMI Housing account for any unauthorized expenditures from the account. 10 l ---- --- . . . .. . ., '. C. The HRDC will provide the City with access to the Land Trust LMI 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 Land Trust LMI Housing account. The Land Trust LMI 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 Land Trust LMI Housing 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 agreement with the Department is terminated by the Department for convenience in accordance with 24 CFR 85.44. IX. Indeoendent 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 11 . I '. .. , ,.,~ .. f" .. 4 . ~ . .. " . 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. Attorney'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 City 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 fees, 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. This contract has been approved by the City and HRDC. Dated this 21st day of June , 19~. , -" AT~ ~ ~N L .~LIVAN' Clerk of Commission 12 . I .' . t ~ . . , , . . . , , . . , / . , !k Dated this ~ day ., HRDC ATTEST: ... .. lJ-fVw (#S- e P sident, of Directors APPROVED AS TO FORM: A~ --- 13