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HomeMy WebLinkAboutMINUTES - 08181987 - 1.6 (2) TO: BOARD OF SUPERVISORS /BOARD OF DIRECTORS , REDEVELOPMENT AGENCY FROM: Harvey E. Bragdon Contra Director of Community Development Costa DATE: August 3, 1987 C"`"' '•1 SUBJECT: Approval of the 1987-88 Community Development Block Grant (CDBG) Program Project Agreement;. CCC Redevelopment Agency SPECIFIC REQUEST S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Authorize the Chair also serving as Executive Director of the Contra Costa County Redevelopment Agency to approve the 1987-88 CDBG program project agreement with the. Contra Costa County Redevelopment Agency implementing activity 13-15 North Richmond Property Acquisition with a payment limit of $150,000. FINANCIAL IMPACT None ( 100% HUD .Funds) BACKGROUND/REASONS FOR RECOMMENDATIONS This agreement provides funding for the acquisition and.disposition of land in the unincorporated area of North Richmond for the purposes of constructing affordable ownership housing of which up to 10 homes would be affordable to low-moderate income people. It should be noted that the Director of Community Development also serves as the Assistant Executive Director of the Redevelopment Agency as well. CONTINUED ON ATTACHMENT: YES SIGNA 4 RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND N O1V BARD COMMITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON August 18 , 1987 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. cc:, Community Development ATTESTED August 18 , 1987 County Admi nstrators Office via Risk Management PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS Auditor (c/o Nona) CO ADMINISTRATOR Contractor Q appofby.bos BYFDEPUTY SE/df PROJECT AGREEMENT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM 1. Agreement Identification. Number 13-15 Department: Community Development Department Subject: Allocation of Federal funding under Title I of the Housing and Community Development Act of 1974, as amended. 2. Parties. The County of Contra Costa, California (County), for its Department named above, and the following named Contractor mutually agree and promise as follows: Contractor: Contra Costa County Redevelopment Agency Address: 651 Pine Street, 4th Floor, North Wing Martinez, CA 94553 3. Term. The effective date of this Agreement is April 1, 1987 and it terminates March 31, 1988, unless sooner terminated as provided herein, subject to all terms, conditions, and assurances contained or incorporated herein. 4. Allocation Payment Limit. County's total payments to Contractor under this Agreement shall not exceed $150,000. 5. County's Obligation. County shall make those allocation payments to the contrac- tor described in the "Payment Provisions" attached hereto which are incorporated herein by reference, subject to all terms, conditions, and assurances contained or incorporated herein. 6. General Conditions and Certifications. This Agreement is subject to the "General Conditions" and the "Assurances" attached hereto, which are incorporated herein by reference. 7. Contractor's Obligation. Contractor shall provide those services and carry out that work as described in and in accordance with the "Project Work Program" at- tached hereto, which is incorporated herein by reference, subject to all the terms, conditions and certifications contained or incorporated herein. 8. Project. This Agreement implements in whole or in part the following described project, the application and approval documents of which are incorporated herein by reference: That project as described in the Community Development Block Grant Program Application dated February 24, 1987, and approved by HUD on April 1, 1987; and as more particularly described in the "Project Work Program", at- tached hereto. 9. Signatures. These signatures attest the parties' agreement hereto: a COUNTY OF CONTRA COSTA, CALIFORNIA CONTRACT By: By: Chair, Board of Supervisors Desitfateficial Capacity n Or anization) Director of Community Development and ATTEST: Phil Batchelor, County Clerk Assistant Executive Director of the of the Board of Supervisors Contra Costa County Redevelopment Agency and County Administrator By: (Designate Official Capacity 0 1AA&I 0 1�1 in Organization) By: Deputy Reco d y De artment Note to Contractor: (1) rIf a public agency, designates By: official capacity in public agency and H vey Bragdon attach a certified copy of the governing body resolution authorizing execution of this agreement. Form Approved: County Counsel (2) All others: execute acknowledgement from above, and if a corporation, designate • official capacity in business, execute By:Y acknowledgement form and affix corporation Deput seal . CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT PROGRAM 1987-1988 A. PROJECT DESCRIPTION 13-15 North Richmond Property Acquisition Acquisition and subsequent disposition of land in North Richmond (unincorporated) for affordable ownership housing. It is intended that the Redevelopment Agency enter into necessary agreements with a private developer to construct and sell the affordable housing. The developer is to be selected through a request for proposal or request for qualification process. B. PROJECT TIME SCHEDULE Time Schedule on a month-by-month basis for the above Project indicating when major activity items are expected to be undertaken and completed. Work Item Start Date Completion Date 1. Preliminary Site Identification Preliminary Title Reports, etc. May - mid-June 2. Appraisals, Negotiations, etc. mid-June thru end of August 3. Acquisition September 4. Circulation of RFP/RFQ October 5. Selection of Developer late November 6. Securement of Planning Approvals December - February, 1988 7. Development of Financing Plan March - April 1988 8. Disposition of Properties*/ Initiation of Construction May, 1988 9. Project Completion/Sales September - October, 1988 * Disposition of the properties could occur earlier or later depending on development and financing considerations. C. PROJECT GOALS Contractor shall define project objectives in accordance with the approved application and any conditions, if applicable. Goals are to be quantified in all cases to provide a benchmark for evaluation. Development of 5 - 10 for-sale housing units affordable to low and moderate income households. PROJECT WORK PROGRAM D. PERFORMANCE STANDARDS The performance standards indicated (details of project implementation) will be applied in implementing the Work Program. 1. In all contracts, purchase agreements, invoices entered, contractor shall comply with appropriate HUD regulations including Equal Opportunity and Section 3 provisions, as provided in the "Guide for Compliance with Assurances and Certification Under the Housing and Community Development Act", as provided by the County Community Development Department. 2. In all contracts, purchase agreements, contracts, invoices entered into over $100, the contractor shall obtain the required signed Equal Opportuni- ty/Section 3 Compliance Form signed by the supplier service prior to the receipt of any goods or initiation of any services. The required forms are available from the County Community Development Department. 3. All contracts under $10,000 entered into shall be in compliance with pro- curement procedures contained in Office of Management and Budget (OMB) Cir- cular A-102, Attachment 0 and any other applicable HUD regulations. 4. In all construction contracts over $2,000 the Contractor shall enforce and administer Labor Standards Requirements in accordance with Title 1 of the Housing and Community Development Act of 1974, HUD Handbook 6500.3 - Labor Standards Administration and Enforcement, Community Development Block Grant Program, and as provided in the Compliance Guide cited. 5. All construction contracts over $10,000 shall be in compliance with bid procedures contained in the Compliance Guide cited. 6. All construction contracts over $100,000 shall be in compliance with the bonding and insurance requirements contained in OMB A-102 Attachment B, and with the requirements of the Clear Air Act and Federal Water Pollution Con- trol Act. 7. The contractor shall comply with all applicable building codes and laws in the construction work and ensure that access to the handicapped will be provided in accordance with the requirements of the "American Standard Specifications for Making Buildings and Facilities Accessible to, and usable by, the Physically Handicapped", Number A-117-1-R-1971. 8. The contractor shall , at a minimum,notify applicable minority owned business firms located in Contra Costa County of bid opportunities for Community Development funded projects and maintain documentation of such efforts. A listing of minority owned businesses located in Contra Costa County and Neighboring counties is available from the County Community Development Department. 9. The contractor shall transmit to the County Community Development Department a copy of all construction contracts over $2,000 prior to the Contract being advertised to ensure that all appropriate requirements and provisions have been included. 10. Contractors providing direct benefit type activities such as single and multi-family residential rehabilitation; public services such as day care, job training, economic development, health services, relocation, etc. must track such assistance to low and moderate income households/persons, to include data on ethnicity, and female heads of households. 11. Contractors must give credit for Community Development Block Grant funding to the County in advertisements, brochures or news releases to the media. Projects involving construction or acquisition must place a sign in a clearly visible location on the site where County Community Development Block Grant funds are used for all or part of the funding for that project. 12. Contractors must submit to the County Community Development Department by October 1, of the current contract year .an independent evaluation of the project in terms of meeting the stated goals in Item C. PROJECT GOALS, and overall program performance. 13. Work with the Community Development and Housing Division staff of the Community Development Department to: f 1. Develop a process for citizen participation in structuring the project; 2. Develop a Request for Proposal or Request for Qualifications for private developers; 3. Develop a disposition plan which will achieve desired affordability goals consistent with an appropriate return of funds to the County. E. PROJECT ADMINISTRATION Contractor shall indicate who will be responsible for administering the Work Program. Gerald Raycraft (415) 372-2031 Redevelopment Project Manager Contra Costa County Redevelopment Agency 651 Pine St. , 4th Flr. , N. Wing Martinez, CA 94553 PROJECT YORK PROGRAM F. PROGRAM MONITORING 1. Contractor shall report at least quarterly to the Community Development Department the status of funds expended, balances remaining and a narrative of the project status relative to the stated goals and objectives in item C. PROJECT GOALS. 2. Economic development and job creation activity sponsors must also report monthly on the status of each economic development activity. This report must include a cumulative update by project on the number of jobs filled by position, the date filled and a narrative describing progress on completing the hiring plan, and program income. G. CONTRACTOR'S DETAILED EXPENDITURE SCHEDULE CONTRACTOR: ACTIVITY NUMBER: 13-15 Contra Costa County Redevelopment Agency 651 Pine Street, 4th Floor, North Wing Martinez, CA 94553 BUDGET PERIOD: April 1, 1987 - March 31, 1988 (a) (b) (c) (d) Budget Item CD Funds - $ +Other Funds - $ =Total 13-15 North Richmond Property Acquisition $150,000 $-0- $150,000 Land Acquisition/Disposition - Appraisals, Title Reports, etc. - Acquisition - Disposition - Planning/Administrator (e) TOTAL $150,000 $-0- $150,000 Notes: (a) Detailed categories pursuant to OMB A-102. (b) Items are eligible to be funded by CDBG funds. (c) Estimate of other necessary expenditures that cannot be funded with CD monies; and indication of anticipated sources. (d) Sum of (b) and (C) above including both Community Development and non-Community Development funds. (e) Contract Payment Limit for CD project. 1pa2/13-15.doc GENERAL CONDITIONS 1. Compliance with Law. Contractor shall be submit to and comply with all Federal , State and local laws and regulations applicable to public agencies with respect to its performance hereunder, including but not limited to Federal regulations, guidcl '^es, bulletins, and circulars pursuant to Tile I of the Housing and Community Development Act of 1974, including Title 24 of the Code of Federal Regulations, Chapter U, Part 570 as published in the Federal Register, Vol . 30, No. 220, Wednesday, November 13, 1974, as may be revised and amended; and which are incorporated herein by. reference. Documentation of such compli- ance shall be made available for review by the County upon request. 2. Inspection. Contractor's performance, place of business and records pertaining to this Agreement are subject to monitoring, inspection, review and audit by authorized representatives of the County, the State of California, and the United States Government. 3. Records. Contractor shall keep and make available for inspection by authorized representatives of the County, the State of California, and the United State Government, the Contractor's regular business records pertaining to this Agreement and such additional records as may be required by the County. 4. Retention of Records. The Contractor and County agree to retain all documents pertaining to this Agreement for three years from the date of submis- sion of the Annual Performance Report by the County to HUD, except as follows: (a) Records that are the subject of audit findings shall be retained for three years after such findings have been resolved. (b) Record for nonexpendable property which was acquired with Federal grant funds shall be retained for three years after its final disposition. (c) Records for any displaced persons shall be retained for three years after he has received final payment. 5. Termination. (a) Failure to Perform. In the event the Contractor fails to perform properly any of its obligations hereunder and such failure of performance is not cured by the Contractor within thirty (30) days after receipt of written notice from the County, the County may in addition to any other remedies, complete the Contractor's obligations in any reasonable manner it chooses, take possession of any real or personal property associated with the project, and construct, oper- ate or maintain the project as the County may deem necessary to fulfill require- ments of the Federal Government. The Contractor agrees to reimburse the County for any costs or expenses incurred by the County because of said failure to per- form and also agrees to convey title to any real property acquired by Contractor with project funds should County request such title. (b) Cessation of Funding. In the event the Federal funding for this Agreement ceases, this Agreement is terminated. (c) Failure by the Contractor to perform properly any of its obligations under this Agreement may be cause for suspension of all obligations of the County thereunder. 6. Entire Agreement. This Agreement contains all the terms and condi- tions agreed upon by the parties. Except as expressly provided herein and in the "COOPERATION AGREEMENT, H.C.D.A. 1974" effective November 24, 1981, and amendments relating thereto, if any, no other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties hereto. 7. Further Specifications for Operating Procedures. Detailed specifica- tions of operating procedures and budgets required by this Agreement, including but not limited to monitoring, auditing, billing or regulatory changes, may be developed and set forth in written "Informal Agreements" entered between the Contractor and the County. Such "Informal Agreements" when entered shall not be modifications to this Agreement except to the extent that they further detail or clarify that which is already required hereunder. Further, any "Informal Agree- ment" entered may not enlarge in any manner the scope of this Agreement, includ- ing any sums of money to be paid the Contractor as provided herein. "Informal Agreements" may be approved for, and 'executed on behalf of the County by the head of the County Department for which this Agreement is made or his designee. General Conditions - Page 2 8. Modifications and Amendments. (a) General Agreements. This Agreement may be modified or amended only be a written document executed by the Contractor and the Contra Costa County Board of Supervisors, subject to any required State or Federal (United States) approval . (b) Administrative Amendments. Subject to the Payment Limit, only the Payment Provisions and the Project Work Program may be amended by a written administrative amendment executed by the Contractor and the head of the County Department for which this Agreement is made or his designee, subject to any re- quired State of Federal (United States) approval , provided that such administra- tive amendments may not materially change the Payment Provisions or the Project Work Program. (c) Extension of Term for Performance. Without requiring Contractor to provide consideration in addition to that supporting this Agreement, the County of Contra Costa, through its Community Development Director, may grant Contractor an extension of time for performance, beyond that time specified above under "Term" (Paragraph 3) . Any such extension must be in writing and shall be at the sole discretion of the County. 9. Disputes. Disagreements between the County and Contractor concerning the meaning, requirements, or performance of .this Agreement shall be subject to final determination in writing by the head of the County Department for which this Agreement is made or his designee or in accordance with the applicable pro- cedures (if any) required by the Federal Government. 10. Law Governing Agreement. This Agreement is made in Contra Costa County and shall be governed and construed in accordance with the law of the State of California. 11. Conformance with Federal and State Regulations. Should Federal or State regulations touching upon this Agreement be adopted or revised during the term hereof, this Agreement is subject to modification to assure conformance with such Federal or State requirements. 12. No Waiver by County. Subject to the disputes provision contained herein, inspections or approvals, or statements by any officer, agent or employee of the County indicating the Contractor's performance or any part thereof complies with the requirements of this Agreement, or acceptance of the whole or any part of said performance, or payments therefore, or any combination of these acts, shall not relieve the Contractor's obligation to fulfill this Agreement as prescribed; nor shall the County be thereby stopped from bringing any action for damages or enforcement arising from any failure to comply with any of the terms and conditions thereof. 13. Original Agreement. The original copy of this Agreement and of any modification thereto is that:coo�y filed with the Clerk of the Board of Supervisors of Contra Costa County. 14. Independent Contractor Status. This Agreement is by and between two independent contractors and is not intended to and shall not be construed to create the relationship of agent, servant, employee, partnership, joint venture or association. 15. Conflicts of Interest. Contractor agrees to furnish to the County upon demand a valid copy of the most recently adopted bylaws of any Corporation and also a complete and accurate list of the governing body (Board of Directors or Trustees) and to timely update said bylaws or the list of its governing body as changes in such governance occur, if contractor is a corporation. Contractor promises and attests that the Contractor and any members of its governing body shall avoid any actual or potential conflicts of interest and will establish safeguards pursuant to Paragraph 12 of the attached "Assurances". 16. Confidentiality. Contractor agrees to comply and to require his em- ployees to comply with all applicable State of Federal statutes or regulations respecting confidentiality, including but not limited to, the identify of recipients, their records, or services provided them, and assures that: General Conditions - Page 3 (a) All applications and records concerning any individual made or kept by Contractor or any public officer or agency in connection with the ad- ministration of or relating to services provided under this Contract will be confidential , and will not be open to examination for any purpose not directly connected with the administration of such service. (b) No person will publish or disclose or permit or cause to be pub- lished or disclosed, any list of persons receiving services, except as may be required in the administration of such service. Contractor agrees to inform all employees, agents and partners of the above provisions, and that any person knowingly and intentionally disclosing such information other than as authorized by law may be guilty of misdemeanor. 17. Indemnification. (a) Contractor hereby waives all claims and recourse against the County including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this Agreement except claims arising from the concurrent or sole negligence of County, its officers, agents and employees. (b) The Contractor shall defend and indemnify the County and its of- ficers, agents and employees against and hold the same free and harmless from any and all claims, demands, damages, losses, costs, and/or expenses of liability due to, or arising out of, either in whole or in part, whether directly or indirectly, the organization, development, construction, operation, or maintenance of the Project except for liability arising out of the concurrent or sole negligence of County, its officers, agents or employees. '� (c) In the event County is named as co-defendant the Contractor shall notify the County of such fact and shall represent County in the legal action unless County undertakes to represent itself as co-defendent in such legal ac- tion in which event County shall bear its own litigation costs, expenses, and attorney's fees. (d) This condition shall not terminate on the date specified in the Agreement but shall remain in full force and effect. 18. Insurance. During the entire term of this Contract and any extension of modification thereof, the Contractor shall keep in effect insurance policies meeting the following insurance requirements unless otherwise expressed in the Special Conditions: (a) Liability Insurance. The Contractor shall provide a policy or policies of comprehensive liability insurance, including coverage for owned and non-owned automobiles, naming the County and its officers and employees as addi- tional insureds, with a minimum combined single limit coverage of $500,000 for all damages because of bodily injury, sickness or disease, or death to any per- son and damage to or destruction of property, including the loss of use thereof, arising from each accident or occurrence. (b) Worker's Compensation. The Contractor shall provide the County with a certificate of insurance evidencing workers' compensation insurance coverage for its employees. (c) Additional Provisions. The policies shall include a provision for thirty (30) days written notice to County before cancellation or material change of the above specified coverage. Said policies shall constitute primary insurance as to the County, the State and Federal Governments, their officers, agents, and employees, so that other insurance policies held by them shall not be required to contribute to any loss covered under the Contractor's insurance policy or policies. Not later than the effective date of the Contract, the Con- tractor shall provide the County with a certificate(s) of insurance evidencing the above liability insurance. 19. Notices. All notices provided for by this Agreement shall be in writing and may be delivered by deposit in the United States mail , postage prepaid. Notices to the County shall be addressed to Contra Costa County Community Development Department, 651 Pine Street, 4th Floor North Wing, Martinez, California 94553. Notices to the Contractor shall be addressed to the Contractor's address designated herein. The effective date of notice shall be the date of deposit in the mails or of other delivery. General Conditions - Page 4 20. Available Copies. Copies of the County�s Project documents (as speci- fied in Paragraph 8, Project, of this Agreement) , and all pertinent Federal statues, regulations guidelines, bulletins, and circulars applicable to this Agreement, shall be available at all times for inspection by the Contractor during regular business hours at the Offices of the Community Development De- partment, Martinez, California. 21. Retained Powers. All powers not explicitly invested in the Contractor remain in the County. 22. Project Development. (a) If the Project includes construction, the construction plans and specifications shall be reviewed and approved by the Contractor before construc- tion is commenced. (b) The Contractor shall secure completion of the construction work in accordance with the approved construction plans and specifications. (c) If the Project includes acquisition of real property, the pur- chase price for such property shall be determined in accordance with the re- quirements contained in Department of Housing and Urban Development (HUD) Hand- book 1376.1, Relocation and Real Property Acquisition. The appraisal reports and qualifications of appraisers shall be submitted for review and approval by the County before initiation of the acquisition procedure. Contractor agrees to furnish County preliminary title reports respecting such real property or such other evidence of title which is determined to be sufficient by County. Con- tractor agrees in negotiated purchases to correct prior to or at thelose of escrow any defects of title which in the opinion of County might intere with the operation of the Project. In condemnation actions such title defects must be eliminated by the final judgement. 24. Project Termination. It shall be a policy of the County that any project funded in any way through the Community Development Program that is cancelled, abandoned or fails during the contract period or is otherwise completed, all remaining funds allo- cated shall be immediately returned to the County. Property acquired with the use of federal funds, in whole or in part, under the Community Development Pro- gram that falls to disuse, is abandoned or is no longer needed for the original intended purpose within 20 years of acquisition, will be disposed of in accor- dance with OMB Circular A-102, Attachment N. with prior written approval and co- ordination with County staff. c:gencond.txt CERTIFICATIONS I. The grantee/contractor hereby assures and certifies that it will comply with the regulations, policies, guidelines and requirements with respect to the acceptance and use of Federal funds for this federally-assisted pro- gram. Also the grantee/contractor gives assurances and certifies with re- spect to the grant inasmuch as they are applicable, that: (a) It possesses legal authority to make a grant submission and to execute a community development and housing program; (b) Its governing body has duly adopted or passed as an official act a resolution, motion or similar action authorizing the person identified as the official representative of the grantee to submit the final statement, all understandings and assurances contained therein, and directing and authorizing the person identified as the official re- presentative of the grantee to act in connection with the submission of the final statement and to provide such additional information as may be required. (c) That prior to submission of its final statement to HUD, the grantee/con- tractor has met the citizen participation requirements, prepared its final statement of community development objectives and projected use of funds, and made the final statement available to the public, as re- quired by Section 104(a)(2) of the Housing and Community Development Act of 1974, as amended; (d) It is following a current housing assistance plan which has been ap- proved by HUD and which meets the requirements of Section 104(a)(2) of the Housing and Community Development Act of 1974, as amended; (e) It has developed its final statement of projected use of funds so as to give maximum feasible priority to activities which benefit low- and moderate-income families or aid in the prevention or elimin4tion of slums or blight; the final statement of projected use of funds may also include activities which the grantee/contractor certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious threat to the health and welfare of the community, and other financial resources are not avail- able; (f) Its chief executive officer or other officer of the grantee/contractor approved by HUD: (1) Consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 and other authorities as specified in 24 CFR 58.5; and (2) Is authorized and consents on behalf of the grantee/contractor and himself/herself to accept the jurisdiction of the Federal courts for the purpose of enforcement of his/her responsibilities as such an official ; II. The grant will be conducted and administered in compliance with: (1) Title VI of the Civil Rights Act of 2964 (Pub. L. 88-352) and im- plementing regulations issued at 24 CFR Part 1; (2) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-284) , as amend- ed; and that the grantee will administer all programs and activities related to housing and community development in a manner to affirma- tively further fair housing. (3) Section 109 of the Housing and Community Development Act of 1974, as amended; and the regulations issued pursuant thereto; (4) Section 3 of the Housing and Urban Development Act of 1968, as amend- ed; (5) Executive Order 11246, as amended by Executive Orders 11375 and 12086, and implementing regulations issues at 41 CFR Chapter 60; Certifications - Page 2 (6) Executive Order 11063, as amended by Executive Order 12259, and imple- menting regulations at 24 CFR Part 107; (7) Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and implementing regulations when published for effect; (8) The Age Discrimination Act of 1975 (Pub. L. 94-135) , as amended, and implementing regulations when published for effect; (9) The regulations, policies, guidelines and-requirements of OMB Circular Nos. A-102, Revised, A-87, A-110, and A-112 as they relate to the ac- ceptance and use of Federal funds under this federally-assisted pro- gram; III . The relocation requirements of Title II and the acquisition requirements of Title III of the Uniform Relocation Assistance and Real Property Acquisi- tion Policies Act of 1970, and the implementing regulations at 24 CFR Part 42; IV. The acquisition requirements of Title III of the Uniform Relocation Assis- tance and Real Property Acquisition Policies Act of 1970, and the imple- menting regulations at 24 CFR Part 42; V. The labor standards requirements as set forth in 24 CFR Part 570, Subpart K and HUD regulations issued to implement such requirements; VI. Executive order 11988 relating to the evaluation of flood hazards and Executive Order 11288 relating to the prevention, control , andatement of water pollution. The flood insurance purchase requirements of Sec ion 102(a) of the Flood Disaster Protection Act of 1973 (Pub.1.93-234) ; and VII . No member, officer or employee of the grantee/contractor, or its designees or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or local- ities who exercises any functions or responsibilities with respect to the program during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the pro- cess thereof, for work to be performed in connection with the program assist- ed under the Grant, and that is shall incorporate, or cause to be in- corporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this certification; VIII . It will comply with the provisions of the Hatch Act which limits the political activity of employees; IX. It will give HUD and the Comptroller General or any authorized representa- tives access to and the right to examine all records, books, papers, or documents related to the grant; X. It will comply with the lead-based paint requirements of 24 CFR Part 35 is- sued pursuant to the Lead-based Paint Poisoning Prevention Act (42 U.S.C. 4801 et. seq. ) . XI. It will comply with the provisions set forth in Attachment "A", Standards of Conduct. Certifications - Page 3 ATTACHMENT A STANDARDS OF CONDUCT CDBG RECIPIENTS Introduction Elected officials, employees of Community Development Block Grant recipients and contractors are those responsible for administering the entitlement program and are also responsible for the programs integrity. Following sound business prac- tices, prescribed standards of conduct and HUD requirements will not only pro- tect HUD grant funds but also those who administer the program. Purpose This notice provides information on specific activities that you must avoid and identifies key HUD requirements that must be met. The prohibited activities listed here reflect problem areas that have gotten block grant recipients into trouble in the past. The purpose of this flyer is to prevent fraud and program abuse by alerting key officials to these problems ahead of time. Authorities The pertinent laws and regulations that apply to the CDBG Entitlement program that you should have copies of are: o Housing and Community Development Act of 1974 as amended in 1983. o Community Development Block Grant Regulations (24CFR Part 570) . If you do not have copies of these requirements or need further information, contact your local HUD office. Program Requirements and Prohibited Activities 1. Conflict of Interest CDBG Regulations (24CFR, Part 570.611) prohibit conflicts of interest. For any CDBG .activities under your control or influence you May Not: a. Obtain personal or financial interest or benefits including money, favors, gratuities, entertainment or anything of value that might be interpreted as con- flict of interest. b. Obtain a direct or indirect interest in any contract, subcontract or agree- ment for any CDBG activity. This prohibition extends to contracts in which your spouse, minor child, dependent or business associate may have personal or finan- cial interest. This prohibition extends for a period of one year after you leave your position with a CDBG activity or program. C. HUD may grant an exception to this conflict of interest provision if it determines that such an exception will enhance the effectiveness of the CDBG project. Requests for such exceptions must be made in writing to the local HUD office. 2. Procurement and Contracting OMB Circular A-102, Uniform Requirements for Assistance to State and Local Govern- ments, Attachment 0, applies to the CDBG program. It provides that you May Not engage in any of the following practices in your procurement and contract adminis- tration: a. Circumvent competitive bidding requirements by: o failing to advertise for sealed bids or soliciting proposals and engaging in noncompetitive negotiation; Certifications - Page 4 o failing to use established evaluation criteria in negotiations; o splitting bids by breaking down contracts into small parts so that purchase order procedures can be used except to meet Minority/Women Business Enterprise goals; o favoring or providing a competitive advantage to any one firm or individual ; o identifying the names of those invited to bid; and o preparing fictitious bids to simulate competition. b. Fail to adhere to contract award requirements by: o allowing excessive price charges; o awarding contracts to other than the low bidder without adequate justifica- tion; and o accepting a bid that does not contain a price for all items or services _in- cluded in the Invitation to Bid form. C. Fail to verify contractual and programmatic compliance by contractors by: o authorizing payment for work not completed; o falsifying inspection reports; o altering contractor invoices; and o misusing modification or change orders. CDBG regulations state that you Must Not: Use firms and individuals on HUD's Consolidated List of Debarred, Suspended and ineligible Contractors and Grantees. 3. Financial Management and Recording Systems a You Must comply with the following requirements of OMB Circular A-102, Attach- ments C, G, and CDBG regulations. You Must: a. Establish a special ledger account for all CDBG monies. b. Establish a special ledger account for all CDBG monies. c. Maintain financial records including: o a register of cash receipts and disbursements; o a record of all noncash transactions; o general ledger to show the status of each CDBG account; o a fixed account ledger, and o a record of lump-sum drawdowns, Treasury checks received and balances of Federal funds. d. Ensure that you maintain financial records. Financial records and files must be maintained for three years. e. Use income generated from grant activities for other eligible activities. f. Use program income before drawing additional grant funds to pay for allow- able program expenses. You Must Not draw down more funds than are needed for your CDBG activities and those of subgrantees. 4. Cost Allowability You Must comply with OMB Circular A-87, Cost Principles for State and Local Gov- ernments. You May Not spend CDBG funds on ineligible activities including: a. Expenses required to carry out the regular responsibilities of the general local government. Certifications - Page 5 b. Partisan political activities (e.g. , contributions toward political cam- paigns, voter registration or candidate forums) . CDBG regulations state that you Must Not: Use CDBG funds to assist buildings used for the general conduct of government (e.g. , city halls, county administration buildings, etc. ) . 5. Program Monitoring OMB Circular A-102, Attachment 1, States that you Must constantly monitor the performance of grant-supported activities to assure that time schedules are be- ing met, projected work units by time periods are being accomplish, and other performance goals are being achieved. HUD suggests that you: a. Keep records of your on-site visits to subgrantees and contractors. b. Place special emphasis on your monitoring of the highest risk subrecipients and contractors. c:cert.txt r PAYMENT PROVISIONS 1. Payment Basis. County shall in no event pay to the Contractor a sum in excess of the total amount specified in the Payment Limit of this Agreement. Subject to the Payment Limit, it is the intent of the parties hereto that the total payment to Contractor for all services provided for County under this Agreement shall be only for costs that are allowable costs (see Paragraph 3 below) and are actually incurred in the performance of Contractor's obligations under this Agreement. All payments made under this Agreement shall be from Federal funds only. No general County funds shall be expended under this Agree- ment. If, for any reasons whatsoever, County does not receive such Federal funds, Contractor agrees that County shall have no payment obligation hereunder. 2. Payment Amounts. Subject to later adjustments in total payments in accordance with the. below provisions for Cost Report and Settlement, Audits, and Audit Exceptions, and subject to the Payment Limit of this Agreement, County will pay Contractor an amount equal to Contractor's allowable costs that are actually incurred, but subject to to "Budget of Estimated Program Expenditures" contained in the Project Work Program. 3. Allowable Costs. Contractor's allowable costs are only those which are determined in accordance with all Federal regulations, guidelines, bulletins, and circulars pursuant to Title I of the Housing and Community Development Act of 1974, as published in the Federal Register, Volume 39, No. 220, Wednesday, November 13, 1974, as may be revised and amended. All of the aforesaid docu- ments are by this reference incorporated herein. Costs incurred in carrying out the project, whether charged to the project on a direct or an indirect basis, must be in conformance with the requirements of OMB Circular A-87, "Cost Principles for State and Local Governments", OMB Circular A-122, "Cost Principles for Non-Profit Organizations"; and OMB Circular A-110, "Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations", except to the extent inconsistenl,4,vith the aforesaid documents. 4. Payment Demands. Contractor shall submit written demands for payment in accordance with the above. Said demands shall be made on County Demand Form D-15 and in the manner and form prescribed by County. Contractor shall submit said demands for payment for services rendered no later than 60 days from the end of the month in which said services are actually rendered. Upon approval of said payment demands by the head of the County Department for which this Agree- ment is made or his designee, County will make payments as specified above. ' 5. Right to Withhold. County has the right to withhold payment to the Contractor by County notifying Contractor in writing if (a) the Contractor has failed to perform its duties under this Agreement, or has insufficiently docu- mented same, or (b) the Contractor has neglected, failed or refused to furnish information or to cooperate with any inspection, review or audit of its program, work or records, or (c) Contractor has failed to sufficiently itemize or docu- ment its demands for payment. 6. Payment Adjustments. If any funds are expended by the Contractor in violation of any of the terms and conditions of this Agreement, County may make necessary adjustments in payments to Contractor on account of such unauthorized or illegal expenditure. No such action taken by County shall entitle Contractor to reduce salaries, wages, or supportive services for any participant or to ex- pend less during the effective period of this Agreement than those sums called for in the Project Work Program. Any such reduction in expenditures may be deemed sufficient cause for termination. Contractor shall reimburse County for any allocated monies which are expended in violation of this Agreement or us§d for unauthorized or illegal expenditures. 7. Cost Report and Settlement. No later than sixty (60) days following the termination of this Agreement, Contractor shall submit to County a cost re- port in the form required by County, showing the allowable costs that have actu- ally been incurred by Contractor under this Agreement. If said cost report shows that the allowable costs that have actually be incurred by Contractor un- der this Agreement exceed the payments made by County pursuant to Paragraph 2 (Payment Amounts) above, County will remit any such excess amount to Contractor, but subject to Payment Limit of this Agreement. If said cost report shows that the payments made by County pursuant to Paragraph 2 (Payment Amounts) above ex- ceed the allowable costs that have actually been incurred by Contractor under this Agreement, Contractor shall remit any such excess amount to County. Payment Provisions - Page 2 The Contractor shall provide County with a Certification of its Cost Report required under this Contract. Said Certification shall provide a full , true, and accurate accounting of the actual cost of services under this Contract, in- cluding all applicable expenditures, revenues, and indirect cost allocations, and any other pertinent allocations which are in connection with Contractor's operations that are not a part of this Contract. 8. Audits. The records of the Contractor may be audited by the County, State or United States government, in addition to any certified cost report or audit required by Paragraph 7 (Cost Report and Settlement) . Any certified cost report or audit required by Paragraph 7 shall be submitted to County by Contrac- tor within such period of time as may be expressed by applicable State or Federal regulations, policies or contracts, but in no event later than 18 months from the termination date of this Agreement. If such audit(s) show that the payments made by County pursuant to Paragraph 2 (Payment Amounts) above exceed the allow- able costs that have actually been incurred by Contractor under this Agreement, including any adjustments made pursuant to Paragraph 7 (Cost Report and Settle- ment) above, then Contractor agrees to pay to County within 30 days of demand by County any such excess amount. If such audit(s) show that the allowable costs that have actually been incurred by Contractor under this Agreement exceed the payments made by County pursuant to Paragraph 2 (Payment Amounts) above, includ- ing any adjustments made pursuant to Paragraph 7 (Cost Report and Settlement) above, then County agrees to pay to Contractor any such excess amount, but sub- ject to to Payment Limit of this Agreement. 9. Audit Exceptions. In addition to its obligations under Paragraph 8 (Audits) above, Contractor agrees to accept responsibility for receiving, replying to and/or complying with any audit exceptions by appropriate County, .State or Federal audit agencies occurring as a result of its performance of thi3l-Agree- ment. Contractor also agrees to pay to the County within 30 days of demand by County the full amount of the County's liability, if any, to the State and/or Federal government resulting from any audit exceptions, to the extend such are attributable to the Contractor's failure to perform property any of its obliga- tions under this Agreement. 10. Audit Reports. The contractor must submit to the County Community Development Department, an agency-wide compliance audit in accordance with the provisions of OMB Circular A-128 and the Single Audit Act of 1984. This is an annual requirement and is due on or before March 1 of the current contract year for which this agreement covers. c:pymtprov.txt