HomeMy WebLinkAbout06- Community Development Block Grant, Contract #MT-CDBG-EDPG06-02
COMMUNITY DEVELOPMENT BLOCK GRANT
ECONOMIC DEVELOPMENT PROGRAM CONTRACT
PLANNING GRANTS
CONTRACT #MT -CDBG-EDPG06-02
A. PARTIES. The parties to this contract (the Contract) are the State of Montana, Department of
Commerce (MDOC) (the Department), 301 South Park, Helena, Montana, 59620-0501, and the
CONTRACTOR, City of Bozeman, PO Box 1230, Bozeman, Montana 59771, IRS # 81-6001238
B PURPOSE The purpose of the Contract is to provide funding for project activities as approved
by the Department under the Montana Community Development Block Grant-EconomiC
Development Program (CDBG-ED) for FY2006.
NOW, THEREFORE, in consideration of the mutual promises and covenants herem, the parties
hereto agree as follows
1 AUTHORITY The Contract is issued under authority of Title 18, Montana Code Annotated, and
the Administrative Rules of Montana, Title 2, chapter 5
2. SCOPE AND DUTIES'
a) The Contractor will engage in activities as setforth in the Contractor's application, Including
any written modifications resulting from the review of the applications by the Department for CDBG-
ED grant assistance that by this reference are made a part hereof
b) Grant funds of $15,000 are budgeted for the following activities:
. To hire a consultant to:
Conduct a cost and market feasibility analysis for the development and operation of a
new business incubator in Bozeman, and
Assist with a preliminary architectural study to identify building needs, costs, and
development timeline.
3. PERIOD OF CONTRACT' This Contract takes effect upon execution by the parties and will
terminate upon completion of the 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 of thiS Contract
4 LIAISON The contact person for the Department is Karyl Tobel, Section Manager, Commerce
Loan Fund, Helena, Montana, or successor, and Jeff Krauss, Mayor, City of Bozeman, for the
Contractor.
5 BUDGET
a) The total amount to be awarded to the Contractor under thiS Contract will not exceed
$15,000
b) A copy of the project budget is included as Attachment B to thiS Contract, and by thiS
reference IS made binding upon the Contractor The Contractor may modify thiS budget only after
having requested and received pnor approval of the adjustment from the Department
c) For budget adjustments of $5,000 or less between line items of the CDBG-ED 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 Project Progress
Report and the proposed 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 require formal Department approval.
6. COMPENSATION & CONSIDERATION:
a) The Department will authorize the Contractor to draw up to $15,000 against the funding
reserved for it by the Department. In drawing against the reserved amount the Contractor will follow
the instructions supplied by the Department.
b) The Department will reimburse all eligible expenses incurred in furtherance of this Contract
as provided in this Contract and upon approval by the Department of the Contractor's Request for
Payment. The Department will reimburse the Contractor for approved, eligible and necessary
expenses according to the documentation submitted by the Contractor to support the expenditures.
The Department will not reimburse the Contractor for any costs incurred prior to the date of tentative
grant award that was July 17, 2006, nor for any expenses not included in the approved budget or
not clearly and accurately supported by the Contractor's records. Any authorized funds not
expended under this grant will revert to the Department and will be used to finance other CDBG-ED
projects.
c) The Department agrees to reimburse the Contractor for successfully completing the activities
set forth in Section 2 SCOPE AND DUTIES.
d) The reimbursement of eligible costs incurred is contingent upon the Contractor's completion
of Section 11 SPECIAL CONDITIONS. In the event the Contractor is unable to comply with the
terms and conditions of this Contract, any costs incurred will be the Contractor's sole responsibility.
e) If the actual cost of completing the project is less than has been projected by the Contractor
in the preliminary budget (Attachment B), the Department may, at its discretion, reduce the amount
to be provided under this Contract in proportion to the overall savings. For construction projects, if
actual construction bids are less than the estimates included in the preliminary budget, the
construction budget in the CDBG-ED Contract will be established at the bid price plus a ten percent
(10%) contingency. The difference between actual project costs and original grant award will be
reallocated by the Department for unfunded or inadequately funded projects or added to the
following year's CDBG-ED allocation.
f) If the Department determines that the Contractor has failed to satisfactorily carry out its
responsibilities under this Contract, the Department may revoke the Contractor's authority to draw
against the reservation described herein until such time as the Department and the Contractor agree
on a plan to remedy the deficiency.
g) The Montana Department of Commerce reserves the right to withdraw a comm itment for any
CDBG funds which have not been disbursed twenty-four (24) months after the date of the
announcement of the tentative grant award.
h) If needed, travel expenses, meals and lodging will be reimbursed at the Montana State Rate.
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i) Unless otherwise stated herein, the Department is allowed 30 days to process requests for
payments. The Contractor may be required to provide banking information at the time of Contract
execution in order to facilitate electronic funds transfer payments. The Department may withhold
payments to the Contractor if the Contractor has breached the terms of the Contract.
j) The Department will withhold ten percent (10%) of the total authorized grant amount, until all
tasks outlined in Section 2. SCOPE AND DUTIES are completed and approved. The Department
will disburse the retained amount upon receipt of a copy of the final product, documented costs, and
provided the Contractor has demonstrated effective overall management of the current project.
7. PERFORMANCE REPORTING
The Contractor will submit status reports on project performance at the request of, and in the format
prescribed by the Department. These reports include, but are not limited to:
a) Project Progress Reports describing the status of the project with respect to each
implementation objective including at a minimum, the percentage complete, costs incurred, funds
remaining and projected completion date. The report must also describe any significant problems
encountered and any necessary scope of implementation modifications requested. At a minimum,
this report must be submitted to the Department by the Grantee within 30 days of each calendar
quarter ending March, June, September, and December;
8. ASSURANCES:
a) The Contractor will comply with all the 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 not in effect or as they may be
amended during the term of this Contract, all requirements established by the Department;
applicable state and federal laws, regulations, administrative directives and procedures, and local
ordinances and resolutions.
b) The Contractor agrees that all contracts entered into by it for the completion of activities
described in Section 2 SCOPE AND DUTIES, will contain special provisions requiring contractors to
comply with all applicable state and federal requirements.
c) The Contractor will comply with the Statement of Assurances as signed and submitted with
the Contractor's CDBG-ED application. The Contractor 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 Contractor for
the completion of activities described in Section 2. hereof must contain special provisions requiring
contractors to comply with all applicable requirements.
d) The Contractor expressly agrees to repay to the Department any funds advanced to the
Contractor under this Contract which the Contractor, its subcontractors or Sub-recipient entities, or
any public or private agent or agency to which it delegates authority to carry our portions of this
Contract expends in violation of the terms of this Contract or the federal statutes and regulations
governing the CDBG program.
9. AVOIDANCE OF CONFLICT OF INTEREST: The Contractor will comply with the provisions of
24 CFR 570.611 and with sections 2-2125, 2-2-201, 7-3-4367, 7-5-2106, and 7-5-4109, MCA (as
applicable) regarding the avoidance of conflict of interest.
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10. ARTICLES INCORPORATED BY REFERENCE: The Contractor's full application for CDBG-
ED grant assistance, the applicable HUD regulations at 24 CFR Part 570, and Title I of the Housing
and Community Development Act of 1974, as now in effect or as they may be amended during the
term of this Contract are incorporated in this Contract by this reference and are binding upon the
Contractor.
11. SPECIAL CONDITIONS
The Contractor will not obligate or utilize funds for any activities provided for by this contract until:
a) The Contractor submits to the Department evidence of the firm commitment of the other
resources necessary for the completion of the project as defined in Section 2 and Attachment B
hereof.
b) All project funding must be fully committed and available and the project must be ready to
proceed within six (6) months of award. The Montana Department of Commerce reserves the right
to withdraw a commitment of any CDBG funds for projects not ready to proceed within six (6)
months after the date of tentative grant award.
12. OWNERSHIP AND PUBLICATIONS OF MATERIALS: All materials developed under the
Contract are the property of the Department.
13. PROPERTY MANAGEMENT: Title to real property or equipment acquired under a grant or sub-
grant will vest upon acquisition in the Contractor's or sub-grantee. The Contractor or sub-grantee
will use, manage, and dispose of this property or equipment in accordance with the req uirements set
out in 24 CFR Part 85, Subpart C and 24 CFR part 570, Subpart J.
14. ACCESS TO RECORDS AND PROJECT MONITORING:
a) The Contractor will maintain adequate and 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. These records will be kept in the
Contractor's offices in Bozeman, Montana.
b) The Department or its agents may monitor and inspect all phases and aspects of the
Contractor's performance to determine compliance with the SCOPE AND DUTIES, and other
technical and administrative requirements, including the adequacy of the Contractor's records and
accounts. The Department will advise the Contractor of any specific areas of concern and provide
the Contractor opportunity to propose corrective actions acceptable to the Department.
15. EQUAL EMPLOYMENT OPPORTUNITY: Any hiring of employees by the Contractor under this
Agreement will be on the basis of merit and qualification, and the Contractor will not discriminate
against any person on the basis of race, color, religion, creed, political ideas, sex, age, marital
status, physical or mental disability, or national origin. As used herein, "qualification" means
qualifications as are generally related to competent performance of the particular occupational task.
16. COMPLIANCE WITH WORKERS' COMPENSATION ACT: Contractors are required to comply
with the provisions of the Montana Workers' Compensation Act while performing work for the State
of Montana in accordance with sections 39-71.401, 39-71-405, and 39-71-417, MCA. Proof of
compliance must be in the form of workers' compensation insurance, an independent contractor's
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exemption, or documentation of corporate officer status. Neither the contractor nor its employees
are employees of the State. This insurance/exemption must be valid for the entire term of the
contract. A renewal document must be sent to the Montana Department of Commerce, upon
expiration.
CONTRACTS WILL NOT BE ISSUED TO CONTRACTORS WHO FAIL TO PROVIDE THE
REQUIRED DOCUMENTATION WITHIN THE ALLOTTED TIME FRAME.
Coverage may be provided through a private carrier or through the State Compensation Insurance
Fund (406) 444-6500. An exemption can be requested through the Department of Labor and
Industry, Employment Relations Division (406) 444~1446. Corporate officers must provide
documentation of their exempt status.
17. DEBARMENT: The Contractor certifies that neither it nor its principals are presently debarred,
suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in
the Contract by any governmental department or agency. If the Contractor cannot certify this
statement, attach a written explanation for review by the Department.
18. FAILURE TO HONOR CONTRACT: If the Contractor refuses orfails to deliver in accordance
with the Contract terms and conditions, the State Procurement Bureau may, in its discretion,
suspend the Contractor for a period of time from entering into any contracts with the State of
Montana.
19. ACCESS AND RETENTION OF RECORDS: The Contractor agrees to provide the Department,
Legislative Auditor, or their authorized agents, access to any records necessary to determine
contract compliance (Mont. Code Ann. S 18-1-118). The Contractor agrees to create and retain
records supporting the services rendered or supplies delivered for a period of three years after either
the completion date of the Contract or the conclusion of any claim, litigation, or exception relating to
the Contract taken by the State of Montana or third party.
20. CONTRACT TERMINATION
a) Termination for Cause. The State may, by written notice to the Contractor, terminate this
contract in whole or in part at any time the Contractor fails to perform this contract; OR
b) Termination for Cause with Notice to Cure Requirement. The State may terminate this
contract for failure of the Contractor to perform any of the services, duties, or conditions contained in
this contract after giving the Contractor written notice of the stated failure. The written notice must
demand performance of the stated failure within a specified period of time of not less than (insert
number of days). If the demanded performance is not completed within the specified period, the
termination is effective at the end of the specified period; OR
c) Termination for Convenience. The State may, by written notice to the Contractor, terminate
this contract without cause. The State must give notice of termination to the Contractor at least
(insert numbers of days) days prior to the effective date of termination: AND
d) Reduction of Fundinq. The State, at its sole discretion, may terminate or reduce the scope of
this contract if available funding is reduced for any reason. (See Mont. Code Ann. S 18-4-313(4).)
21. UNAVAILABILITY OF FUNDING: The Department may, at its sole discretion, terminate or
reduce the scope of the Contract if available funding is eliminated or reduced for any reason.
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22. U.S. FUNDS: All prices and payments must be in U.S. dollars.
23. DEFAULT: Failure on the part of either party to perform the provisions of the Contract
constitutes default. Default may result in the pursuit of remedies for breach of contract, including but
not limited to damages and specific performance.
24. CONFORMANCE WITH CONTRACT: No alteration of the terms, conditions, delivery, price,
quality, quantities, or specifications of the Contract shall be granted without prior written consent of
the Department.
25. VENUE: The Contract is governed under the laws of Montana. The parties agree that any
litigation concerning the Contract must be brought in the First Judicial District in and for the County
of Lewis and Clark, State of Montana, and each party shall pay its own costs and attorney fees.
(Mont. Code Ann. S 18-1-401.)
26. COMPLIANCE WITH LAWS: The Contractor must, in performance of work under the Contract,
fully comply with all applicable federal, state, or local laws, rules and regulations, including the
Montana Human Rights Act, the Civil Rights Act of 1964, the Age Discrimination Act of 1975, the
Americans with Disabilities Act of 1990, and Section 504 of the Rehabilitation Act of 1973. Any
subletting or subcontracting by the Contractor subjects subcontractors to the same provision. In
accordance with Mont. Code Ann. S 49-3-207, the Contractor agrees that the hiring of persons to
perform the Contract will be made on the basis of merit and qualifications and there will be no
discrimination based upon race, color, religion, creed, political ideas, sex, age, marital status,
physical or mental disability, or national origin by the persons performing the Contract.
27. DISABILITY ACCOMMODATIONS: The Department does not discriminate on the basis of
disability in admission to, access to, or operations of its programs, services, or activities. Individuals,
who need aids, alternative document formats, or services for effective communications or other
disability-related accommodations in the programs and services offered, are invited to make their
needs and preferences known to this office. Interested parties should provide as much advance
notice as possible.
28. NO ARBITRATION: Unless otherwise agreed to in writing or provided for by law, arbitration is
not available to the parties as a method of resolving disputes that would arise under the Contract.
29. ASSIGNMENT, TRANSFER AND SUBCONTRACTING: The Contractor shall not assign,
transfer or subcontract any portion of the Contract without the express written consent of the
Department. (Mont. Code Ann. S 18-4-141.)
30. MODIFICATION: The Contract may not be enlarged, modified, amended or altered except
upon written agreement signed by all parties to the Contract.
31. ALTERATION OF SOLICITATION DOCUMENT: In the event of inconsistencies or
contradictions between language contained in the Department's solicitation document and a
Contractor's response, the language contained in the Department's original solicitation document will
prevail. Intentional manipulation and/or alteration of solicitation document language will result in the
Contractor's disqualification and possible debarment.
32. SOLICITATION DOCUMENT EXAMINATION: The Contractor shall promptly notify the
Department of any ambiguity, inconsistency, or error, which they may discover upon examination of
a solicitation document.
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33. FACSIMILE RESPONSES: Facsimile responses will be accepted for limited solicitations ONLY
if they are completely received by the Department prior to the time set for receipt. Bids, or portions
thereof, received after the due time will not be considered.
34. NOTICE: All notices required under the provisions of the Contract must be in writing and
delivered to the parties' liaisons either by regular mail or personal service.
35. SEPARABILITY: A declaration by any court, or any other binding legal source, that any
provision of the Contract is illegal and void shall not affect the legality and enforceability of any other
provision of the Contract, unless the provisions are mutually dependent.
36. SHIPPING: Supplies shall be shipped prepaid, F.O.B. Destination, unless the Contract
specifies otherwise.
37. TAX EXEMPTION: The State of Montana is exempt from Federal Excise Taxes (#81-0302402).
38. WARRANTIES: The Contractor warrants that items offered will conform to the specifications
requested, to be fit and sufficient for the purpose manufactured, of good material and workmanship
and free from defect. Items offered must be new and unused and of the latest model or
manufacture, unless otherwise specified by the Department.
39. HOLD HARMLESS AND INDEMNIFICATION: The Contractor agrees to protect, defend, and
save the State, its elected and appointed officials, agents, and employees, while acting within the
scope of their duties as such, harmless from and against all claims, demands, causes of action of
any kind or character, including the cost of defense thereof, arising in favor of the Contractor's
employees or third parties on account of bodily or personal injuries, death, or damage to property
arising out of services performed or omissions of services or in any way resulting from the acts or
omissions of the Contractor and/or its agents, employees, representatives, assigns, subcontractors,
except the sole negligence of the State, under the Contract.
40. REGISTRATION WITH SECRETARY OF STATE: Any business intending to transact business
in Montana must register with the Secretary of State. Businesses that are incorporated
in another state or country, but which are conducting activity in Montana, must determine whether
they are transacting business in Montana in accordance with Mont. Code Ann. SS 35-1-1026 and
35-8-1001. Such businesses may want to obtain the guidance of their attorney or accountant to
determine whether their activity is considered transacting business.
If businesses determine that they are transacting business in Montana, they must register with the
Secretary of State and obtain a certificate of authority to demonstrate that they are in good standing
in Montana. To obtain registration materials, call the Office of the Secretary of State at (406) 444-
3665, or visit their website at http://www.sos.state.mt.us.
41. TECHNOLOGY ACCESS FOR BLIND OR VISUALLY IMPAIRED: Contractor acknowledges
that no state funds may be expended for the purchase of information technology equipment and
software for use by employees, program participants, or members of the public unless it provides
blind or visually impaired individuals with access, including interactive use of the equipment and
services, that is equivalent to that provided to individuals who are not blind or visually impaired.
(Mont. Code Ann. S 18-5-603.) Contact the State Procurement Bureau at (406) 444-2575 for more
information concerning non-visual access standards.
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42. REFERENCE TO CONTRACT: The Contract number MUST appear on all invoices, packing
lists, packages and correspondence pertaining to the Contract.
43. INTEGRATION: The Contract contains the entire agreement between the parties, and no
statements, promises, or inducements of any kind made by either party, or the agents of either party,
not contained herein are valid or binding.
This Contract is made and entered into on the_day of
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Je ss, or "/
Cit 0 Boz
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,2006.
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Date
Anthony J. Preite, Director
Montana Department of Commerce
Date
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ATTACHMENT A
PLANNING GRANT
PROJECT IMPLEMENTATION SCHEDULE
CDBG-ED Contract #MT -CDBGwEDPG06-02
TASK
MONTH
PROJECT START UP
Preparation of MDOC Contract
July 2006
PROCUREMENT OF PROFESSIONAL
SERVICES1
Submit Request for Proposals (RFP) to
MDOC for approval, if required2
August 2006
Publish RFP
August 2006
Select professional
September 2006
Execute agreement with professional
September 2006
PROJ ECT IMPLEMENTATION
Prepare Draft Plan
October 2006
Submit Interim Drawdown
October 2006
Public Review and Comment
November 2006
Finalize Plan
November 2006
PROJECT CLOSEOUT
Submit final deliverables
December 2006
Submit final drawdown
I Including professional engineers, architects, and community development consultants, etc.
2 Architcctural and engineering scrvices must be procured in compliance with Section I t;-l3-20 I MeA.
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ATTACHMENT B
PLANNING GRANT
CDBG Contract #MT-CDBG-EDPG06-02
City of Bozeman
Administration SOURCE: SOURCE: SOURCE: SOURCE: TOTAL
CDBG.ED EDA TechRanch MSU
Consultant Services
for Market Analysis,
PAR 15,000 15,000
Architectural
Services 10,000 10,000
Other Professional
Services 15,500 25,021 40,521
TOTAL 15,000 10,000 15,500 25,021 65,521
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