CM-12-10-231ROUND ROCK, TEXAS
PURPOSE PASSION. PROSPERITY
£4Il13! RECEIVED
OCT 241012
City�� roval Form
Item Caption: Consider Execution of a CDBG 2012-2013 Sub -recipient Agreement with the Round Rock Area Serving Cellf�
Approval Date: October 26, 2012
Department Name: Finance Department
Staff Person making presentation w/ Title: Cheryl Delaney
Assigned Attorney: Jason Rammel
Item Summary:
The Community Development Block Grant Program (CDBG) was developed in 1974 and works to ensure decent affordable
housing and to provide services to the most vulnerable in our communities. CDBG is an important tool for helping tackle serious
challenges facing our community. To be eligible for CDBG funding, activities must meet one of the three national objectives of
the program which are 1) benefit low to moderate income persons 2) prevention of slums or blight 3) meet and urgent need.
Consider the execution of a 2012-2013 Community Development Block Grant Sub -recipient Agreement with the Round Rock Area
Serving Center in the amount of $25,000. The Round Rock Area Serving Center will use the funds to purchase food for their food
pantry at the Capital Area Food Bank at .13 cents a pound. The Food Pantry program will allow the Round Rock Area Serving
Center to assist 1000 low income families in Round Rock.
The Round Rock Area Serving Center Food Pantry Program meets a "High" priority need of public services as identified in the
2009-2013 Consolidated Plan and meets the National Objective of benefitting low to moderate income persons in Round Rock.
The Community Development Advisory Commission (CDAC) recommended to City Council on May 03, 2012 approval of the
2012-2013 Annual Action Plan which included the funding of the Round Rock Area Serving Center Food Pantry Program in the
amount of C7S non rit, rniunril annrrn,orl thic nlan by Rocnliitinn R-17-nA-na_r;1 nn Ailot ict Q 7!117
No. of Originals Submitted: 1
Project Name: CDBG 2012-2013 Sub -recipient Agreement with Round Rock Area Serving Center Food Pantry Fla
Cost: $25,000
Source of Funds: CDBG HUD Entitlement Grants
Source of Funds (if applicable): Select Source Fund
Account Number:
Finance Director Approval: Cheryl Delaney
Department Director Approval: Cheryl Delaney
""`Electronic signature by the Director is acceptable. Please only submit ONE approval form per item."
CIP
N/A
Date: 10/24/12
Date: 10/24/12
OK
Budget
I
N/A
OK
Purchasing
N/A
OK
Accounting
N/A
n
OK
ITEMS WILL NOT BE PLACED ON THE COUNCIL OR CM AGENDA W/OUT PRIOR FINANCE AND/OR LEGAL APPROVAL
REV. 6/20/11
THE STATE OF TEXAS §
COUNTY OF WILLIAMSON §
COMMUNITY DEVELOPMENT BLOCK GRANT AGREEMENT
( )
THIS AGREEMENT, entered into thistJ� c ay of oc,i4DY , 2012 by and
between the City of Round Rock, a Texas home -rule municipality (herein called "CITY") and the
Round Rock Area Serving Center (herein called "CENTER").
WHEREAS, CITY has applied for and received funds from the United States
Government under Title I of the Housing and Community Development Act of 1974, Public Law
93-383; and
WHEREAS, CITY wishes to engage CENTER to assist CITY in utilizing such funds;
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein
the parties agree as follows:
SECTION I:
SCOPE OF SERVICES
1.1. Activities
CENTER will be responsible for administering a Community Development Block Grant
("CDBG") Year 2012-2013 program known as the Food Pantry Program in a manner satisfactory
to CITY and consistent with any standards required as a condition of providing these funds.
Such program will include the following activities eligible under the CDBG Program:
Program Delivery
Activity #1: Provide food for low to moderate income families. CENTER will utilize
CDBG funds to purchase food from the Capital Area Food Bank. Such
food will be subsequently distributed to low income families through
CENTER'S food pantry.
General Administration
The Executive Director of CENTER ("Executive Director") will provide administrative
oversight for the program.
1.2 National Objectives
CENTER certifies that the activities carried out under this Agreement shall meet the
national objective of benefiting low -and moderate -income persons by providing food to low to
moderate income families through the Food Pantry Program.
00259656.doc/jmr 1
1.3. Levels of Accomplishment — Goals and Performance Measures
In addition to normal administrative services required as part of this Agreement,
CENTER agrees to provide the following program services:
Activity
Unduplicated Clients Receiving
Program Services Per Year
Provide food for low to
moderate income families
1,000
1.4. Staffing
To undertake the activity described above and accomplish the levels of service described
above, CENTER will allocate staff time in support of the program funded under this Agreement
as follows:
Title
Hrs. per Week
# of Weeks
=
Estimated Hours
Volunteer Case Worker
5
36
=
180
Timeframe: October 1, 2012 through July 1, 2013
Title
Hrs. per Week
# of Weeks
=
Estimated Hours
Case Manager
5
36
=
180
Timeframe: October 1, 2012 through July 1, 2013
Any changes in the key personnel assigned or their general responsibilities under this program
are subject to the prior approval of CITY.
SECTION II:
TIME OF PERFORMANCE
2.1 Services of CENTER shall start on the October 1, 2012. This Agreement shall expire on
July 1, 2013, unless extended in writing by CENTER and CITY, except as provided below.
CENTER shall complete all services contemplated by this Agreement prior to its expiration.
2.2 Notwithstanding Section 2.1, the term of this Agreement shall automatically be extended
for as long as CENTER has control over CDBG funds, including program income.
2.3 If the term of this Agreement is extended pursuant to Section 2.2, the term of this
Agreement shall expire upon the disposition of the CDBG funds by CENTER, or remittance of
the CDBG funds, including program income, to CITY by CENTER.
SECTION III:
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BUDGET
All funds expended by CENTER pursuant to this agreement shall be expended in
accordance with the following budget:
Line Item Amount
Acquisition of Food for Food Pantry 25,000.00
Any indirect costs charged must be consistent with the conditions of Paragraph 8.3(B) of this
Agreement. In addition, CITY may require a more detailed budget breakdown than the one
contained herein, and CENTER shall provide such supplementary budget information in a timely
fashion in the form and content prescribed by CITY. CENTER may reallocate funds from one
budget line -item above to another budget line -item provided that the level of program services
does not decrease and provided that the CITY's Director of Finance approves such reallocation
in writing.
SECTION IV:
PAYMENT
It is expressly agreed the total amount to be paid by CITY under this Agreement shall not
exceed $25,000. Draw -downs for the payment of eligible expenses shall be made against the
line item budgets provided above and incorporated herein and in accordance with performance.
Expenses for general administration shall also be paid against the line item budgets provided
above and in accordance with performance.
Payments will be contingent upon certification of CENTER's financial management
system in accordance with the standards specified in OMB Circular 122.
SECTION V:
NOTICES
Notices required by this Agreement shall be in writing and delivered via mail (postage
prepaid), commercial courier, or personal delivery or sent by facsimile or other electronic means.
Any notice delivered or sent as aforesaid shall be effective on the date of sending. All notices
and other written communications under this Agreement shall be addressed to the individuals in
the capacities indicated below, unless otherwise modified by subsequent written notice.
Notices made pursuant to this Agreement shall be directed to the following
representatives:
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CITY:
CENTER:
Elizabeth Alvarado
Community Development Coordinator
Round Rock Area Serving Center
Lori Scott
City of Round Rock
Executive Director
221 East Main Street
PO Box 5006
Round Rock, Texas 78664
Round Rock TX 78664
Telephone: 512-218-5416
Telephone: 244-2431
Fax: 512-341-3301
Fax: 255-0913
e-mail: lalvarado@round-rock.tx.us
e-mail: lori_c scottna,yahoo.com
SECTION VI:
SPECIAL CONDITIONS
CENTER agrees to comply with the requirements of Title 24 Code of Federal
Regulations, Part 570 of the Housing and Urban Development (HUD) regulations concerning
Community Development Block Grants and all federal regulations and policies issued pursuant
to these regulations, except that: (1) CENTER does not assume CITY's environmental
responsibilities, if any, described in 24 CFR § 570.604; and (2) CENTER does not assume
CITY'S responsibility, if any, for initiating the review process under the provision of 24 CFR
Part 52. CENTER further agrees to utilize funds available under this Agreement to supplement
rather than supplant funds otherwise available.
SECTION VII:
GENERAL CONDITIONS
7.1. General Compliance
CENTER agrees to comply with all applicable federal, state and local laws, regulations
and policies governing the funds provided under this Agreement.
7.2. Independent Contractor
It is understood and agreed that CENTER is an independent contractor and shall not be
considered an employee of CITY. CENTER shall at all times remain an independent contractor
with respect to the services to be performed under this Agreement. CITY shall be exempt from
payment of all unemployment compensation, FICA and retirement benefits to CENTER, its
employees, officers, or other agents, as CENTER is an independent contractor. CENTER shall
not be within protection or coverage of CITY'S Workers' Compensation insurance, Health
Insurance, Liability Insurance or any other Insurance that CITY from time to time may have in
force and effect.
7.3. Hold Harmless
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CENTER shall indemnify, save harmless and exempt CITY, its officers, agents, servants,
and employees from and against any and all suits, actions, legal proceedings, claims, demands,
damages, costs, expenses, attorney fees and any and all other costs or fees incident to any work
done as result of this Agreement and arising out of a willful or negligent act or omission of
CENTER, its officers, agents, servants, and employees; provided, however, that CENTER shall not
be liable for any suits, actions, legal proceedings, claims, demands, damages, costs, expenses and
attorneys' fees arising out of a willful or negligent act or omission of CITY, its officers, agents,
servants and employees, or third parties.
7.4. Worker's Compensation
CENTER shall provide Workers' Compensation Insurance coverage for all of its employees
involved in the performance of this Agreement.
7.5. Insurance and Bonding
CENTER shall carry sufficient insurance coverage to protect contract assets from loss due to
theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity bond
covering all employees in an amount equal to cash advances from CITY.
7.6. Amendments
The terms and conditions of this Agreement constitute the entire agreement between the
parties and supersede all previous communications, representations, or agreements, either written
or oral, with respect to the subject matter hereof. No modification or amendment to this
Agreement will be binding on either party unless acknowledged in writing by their duly
authorized representatives.
7.7. Suspension or Termination
Partial terminations of the Scope of Services in Paragraph 1.1 above may only be
undertaken with the prior approval of CITY. The award made pursuant to this agreement may be
terminated for convenience in accordance with 24 CFR § 85.44 by either CITY or CENTER by
setting forth the reasons for such termination, the effective date, and in the case of partial
termination, the portion to be terminated. However, if in the case of a partial termination, CITY
determines that the remaining portion of the award will not accomplish the purpose for which the
award was made, CITY may terminate the award in its entirety. In the event of any termination
for convenience, all finished or unfinished documents, data, reports or other materials prepared
by CENTER under this Agreement shall, at the option of CITY, become property of CITY.
In accordance with 24 CFR § 85.43, the CITY may also suspend or terminate this
Agreement, in whole or in part, if CENTER materially fails to comply with any term of this
Agreement, such material failures include, but are not limited to the following:
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A. Failure to comply with any of the rules, regulations or provisions referred to
herein, or such statutes, regulations, executive orders, and HUD guidelines,
policies or directives as may become applicable at any time;
B. Failure, for any reason, of CENTER to fulfill in a timely and proper manner its
obligations under this Agreement;
C. Ineffective or improper use of funds provided under this Agreement; or
D. Submission by CENTER to CITY reports that are incorrect or incomplete in any
material respect.
CITY may declare CENTER ineligible for any further participation in CITY contracts, in
addition to other remedies as provided by law. Should CENTER fail to cure or correct such
defects or failures identified by CITY within the fifteen (15) days after notification of
deficiencies, and such breach of contract relate to a violation of federal law or regulations which
results in a demand for reimbursement from the Department of Housing and Urban Development
(HUD) or its successor, CITY may seek reimbursement of all funds paid from CITY to CENTER
under this Agreement.
CENTER shall not be relieved of the liability to CITY for damages sustained by CITY by
virtue of any breach of this Agreement by CENTER and CITY may withhold any payments to
CENTER for the purpose as set out and until such time as the exact amount of damages due
CITY from CENTER is determined. Should CITY become aware of any activity by CENTER
which would jeopardize CITY's position with HUD which would cause a payback of CDBG
funds or other CITY federal funds then CITY may take appropriate action including injunctive
relief against CENTER to prevent the transaction as aforesaid. The failure of CITY to exercise
this right shall in no way constitute a waiver by CITY to demand payment or seek any other
relief in law or in equity to which it may be justly entitled.
7.8. Pending Litigation
CENTER agrees to inform CITY about any litigation CENTER is, or becomes, involved
in.
7.9. Background Checks
CENTER agrees to conduct a criminal background check on all employees working
directly with youth.
7.10 Participant Eligibility
CENTER shall only provide services that benefit from this Agreement to families that
qualify as a "low -and moderate -income household," as that term is defined in 24 CFR § 570.3.
CENTER shall require all families served by CENTER pursuant to this Agreement to establish
that such families are a low -and moderate -income household through the use of documentation
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such as pay stubs, tax returns, social security statements or other readily verifiable financial
documentation. Pursuant to 24 CFR § 570.3, a low -and moderate -income household is a
household having an income equal to or less than the Section 8 low-income limit established
from time to time by HUD. The current Section 8 income limits are contained in Exhibit "A",
attached hereto and incorporated herein for all purposes. CENTER acknowledges that the
Section 8 income limits are subject to amendment from time to time and that the income limits in
place at the time CENTER receives an application for service determine participant eligibility
under this Agreement.
SECTION VIII:
ADMINISTRATIVE REQUIREMENTS
8.1. Financial Management
A. Accounting Standards
CENTER agrees to comply with 24 CFR § 84.21-28 and agrees to adhere to the
accounting principles and procedures required therein, utilize adequate internal controls, and
maintain necessary source documentation for all costs incurred.
B. Cost Principles
CENTER shall administer its program in conformance with OMB Circulars A-122, "Cost
Principles for Non -Profit Organizations," or A-21, "Cost Principles for Educational Institutions,"
as applicable. These principles shall be applied for all costs incurred whether charged on a direct
or indirect basis.
8.2. Documentation and Record Keeping
A. Record Keeping
CENTER shall maintain all records required by the federal regulations specified in 24
CFR § 570.506 and that are pertinent to the activities to be funded under this Agreement. Such
records shall include, but are not be limited to:
1. Records providing a full description of each activity undertaken;
2. Records demonstrating that each activity undertaken meets one of the
National Objectives of the CDBG program under 24 CFR § 570.208;
3. Records required to determine the eligibility of activities under 24 CFR §§
570.201 - 570.206;
4. Financial records as required by 24 CFR § 570.502, 24 CFR §§ 84.21-28
and OMB Circular A-110; and
5. Other records necessary to document compliance with Subpart K of 24
CFR Part 570.
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B. Retention
CENTER shall retain all financial records, supporting documents, statistical records and
all other records pertinent to this Agreement for a period of five (5) years after the termination of
all activities funded under this Agreement. Notwithstanding the above, if there is litigation,
claims, audits, negotiations or other actions that involve any of the records cited and that have
started before the expiration of the four-year period, then such records must be retained until
completion of the actions and resolution of all issues, or the expiration of the five-year period,
whichever occurs later.
C. Client Data
CENTER shall maintain client data demonstrating client eligibility for services provided.
Such data shall include, but not be limited to, client name, address and annual household income
level as shown in Exhibit "B", attached hereto and incorporated herein. Any other basis for
determining eligibility must be approved by CITY in advance in writing, and description of
services provided. Such information shall be made available to CITY monitors or their
designees upon request.
D. Disclosure
CENTER understands that client information collected under this contract is private and
the use or disclosure of such information, when not directly connected with the administration of
CITY's or CENTER's responsibilities with respect to services provided under this contract is
prohibited by the U.S. Privacy Act of 1974 unless written consent is obtained from such person
receiving service and, in the case of a minor, that of a responsible parent/guardian.
E. Close -Outs
CENTER's obligation to CITY shall not end until all closeout requirements are
completed. Activities during this close-out period shall include, but are not limited to: making
final payments, disposing of program assets (including the return of all unused materials,
equipment, unspent cash advances, program income balances, and receivable accounts to CITY),
and determining custodianship of records. Not withstanding the foregoing, the terms of this
Agreement shall remain in effect during any period that CENTER has control over CDBG funds,
including program income.
F. Audits & Inspections
All CENTER' s records with respect to any matters covered by this Agreement shall be
made available to CITY, grantor agency, their designees or the Federal Government, at any time
during normal business hours, as often as CITY or grantor agency deems necessary, to audit,
examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit
reports must be fully cleared by CENTER within thirty (30) days after receipt by CENTER.
Failure of CENTER to comply with the above audit requirements will constitute a violation of
this contract and may result in the withholding of future payments. CENTER hereby agrees to
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have an annual agency audit conducted in accordance with current CITY policy concerning
CENTER's audits and OMB Circular A-133.
8.3. Reporting and Payment Procedures
A. Program Income
CENTER shall report and remit all program income, as that term is defined in 24 CFR §
570.500(a), to the CITY in accordance with the City of Round Rock Community Development
Block Grant Program Income Policy, attached hereto as Exhibit "C", and incorporated herein for
all purposes.
Any interest earned on cash advances from the U.S. Treasury is not program income and
shall be remitted promptly to the CITY. Pursuant to 24 CFR § 570.500(a)(5) and 24 CFR §
570.503(b)(7), program income does not include proceeds from the disposition of real property
acquired or improved with CDBG funds when the disposition occurs after five (5) years after the
expiration of this Agreement. CENTER agrees that the obligations of CENTER under this
Section 8.3 shall survive the expiration or termination of this agreement and shall continue for a
period of five (5) years following the expiration of this Agreement pursuant to Section II, or
termination of this Agreement.
B. Indirect Costs
If indirect costs are charged, CENTER will develop an indirect cost allocation plan for
determining CENTER's appropriate share of administrative costs and shall submit such plan to
CITY for approval.
C. Payment Procedures
CITY will pay to CENTER funds available under this Agreement based on information
submitted by CENTER and consistent with an approved budget and CITY policies concerning
payments. With the exception of certain advances, payments will be made for eligible expenses
actually incurred by CENTER, and not to exceed actual cash requirements. Payments will be
adjusted by CITY in accordance with advance fund and program income balances available
under this contract for costs incurred by CITY on the behalf of CENTER.
D. Progress Reports
CENTER shall submit regular Monthly Progress Reports to CITY in the form, content,
and frequency as required by CITY. These shall include but not be limited to summary of
expenditures, list of beneficiaries and a brief narrative of accomplishments. Monthly Progress
Reports should be submitted on Exhibit "D", attached hereto and incorporated herein unless an
alternative report is approved by CITY in advance and in writing.
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E. Budgets
CITY and CENTER may agree to revise the budget, provided in Section III above, from
time to time in accordance with existing CITY policies. Any amendments to the budget must be
approved in writing by both CITY and CENTER.
8.4. Procurement
A. Compliance
CENTER shall maintain inventory records, which clearly identifies any real or personal
property purchased, improved or sold using funds provided under this Agreement. Property
retained shall continue to meet eligibility criteria and shall conform to the "changes in use"
restrictions specified in 24 CFR § 570.503(b)(8). All program assets (unexpended advanced
funds) shall revert to CITY upon termination of this Agreement. The only authorized
expenditures of funds shall be those items and indirect costs provided in Section III of this
Agreement.
B. OMB Standards
CENTER shall procure materials in accordance with the requirements of Attachment 0
of OMB Circular A-110, Procurement Standards, and shall subsequently follow Attachment N,
Property Management Standards, covering utilization and disposal of property. These
requirements are referenced in 24 CFR Part 84, titled "Common Rule".
C. Travel
CENTER shall obtain written approval from CITY for any travel outside the
metropolitan area with funds provided under this Agreement. CITY shall determine that such
travel is necessary and reasonable according to applicable standards outlined in OMB Circular
A87.
8.5. Use and Reversion of Assets
The use and disposition of real property and equipment under this Agreement shall be in
compliance with the requirements of 24 CFR Part 84 and 24 CFR §§ 570.502, 570.503 and
570.504, as applicable, which include but are not limited to the following:
A. CENTER agrees that should it discontinue the services as provided for herein, or
upon the expiration or termination of this Agreement, then CENTER shall transfer to CITY all
unexpended CDBG funds on hand and any accounts receivable attributable to the use of funds
under this Agreement, as determined at the time of the expiration, discontinuance or termination
of this Agreement, within ten (10) days from the time of expiration, discontinuance, or
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termination of services. The funds remaining will be appropriated to eligible CDBG activities in
keeping with CITY's budgetary process.
B. Real property under CENTER's control that was acquired or improved, in whole
or in part, with funds under this Agreement in excess of $25,000 shall be used to meet one of the
CDBG National Objectives pursuant to 24 CFR § 570.208 until five (5) years after expiration of
this Agreement. If CENTER fails to use CDBG-assisted real property in a manner that meets a
CDBG National Objective for the prescribed period of time, CENTER shall pay CITY an
amount equal to 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 improvement to, the
property. Such payment shall constitute program income to CITY. CENTER may retain real
property acquired or improved under this Agreement after the expiration of the five-year period.
C. In all cases in which equipment acquired, in whole or in part, with funds under
this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to
that funds received under this Agreement were used to acquire the equipment). Equipment not
needed by CENTER for activities under this Agreement shall be (a) transferred to CITY for the
CDBG program or (b) retained after compensating CITY an amount equal to the current fair
market value of the equipment less the percentage of non-CDBG funds used to acquire the
equipment.
SECTION IX:
RELOCATION, REAL PROPERTY ACQUISITION AND ONE-FOR-ONE HOUSING
REPLACEMENT
9.1. CENTER agrees to comply with (a) the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970, as amended (URA), and implementing regulations at
49 CFR Part 24 and 24 CFR § 570.606(b): (b) the requirements of 24 CFR § 570.606(c)
governing the Residential Anti -displacement and Relocation Assistance Plan under section
104(d) of the HCD Act; and 9c) the requirements in 24 CFR § 570.606(d) governing optional
relocation policies. CENTER shall provide relocation assistance to displaced persons as defined
by 24 CFR § 570.606(b)(2) that are displaced as a direct result of acquisition, rehabilitation,
demolition or conversion for a CDBG-assisted project. CENTER also agrees to comply with
applicable CITY ordinances, resolutions and policies concerning the displacement of persons
from their residences.
SECTION X:
PERSONNEL & PARTICIPANT CONDITIONS
10.1. Civil Rights
A. Compliance
CENTER agrees to comply with city and state civil rights acts and ordinances, and with
Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as
amended, Section 109 of Title I of the Housing and Community Development Act of 1974,
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Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the
Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as
amended by Executive Orders 11375, 11478, 12107 and 12086.
B. Nondiscrimination
CENTER will not cause any person to be excluded from participation in, denied the
benefits of, or subjected to discrimination under any of the program's activities receiving
assistance under this Agreement based on the grounds of race, color, religion, sex, ancestry,
national origin or handicap. In order to allow CITY to monitor non-discrimination, CENTER
will at minimum maintain records regarding the race of persons or households assisted under this
contract and whether households assisted have a female head of household.
CENTER will not discriminate against any employee or applicant for employment
because of race, color, religion, sex, ancestry, national origin, or other handicap, age, marital
status, or status with regard to public assistance. CENTER will take affirmative action to ensure
all employment practices are free from such discrimination. Such employment practices include
but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship. CENTER agrees to post in conspicuous places,
available to employees and applicants for employment, notices to be provided by the contracting
agency setting forth the provisions of this nondiscrimination clause.
CENTER agrees to comply with the non-discrimination in employment and contracting
opportunities laws, regulation, and executive orders referenced in 24 CFR § 570.607, as revised
by Executive Order 13279. The applicable non-discrimination provisions in Section 109 of the
Housing and Community Development Act (42 U.S.C. 5301 et seq.).
C. Land Covenants
This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964
(P.L. 88-352) and 24 CFR §§ 570.601 and 570.602. In regard to the sale, lease, or other transfer
of land acquired, cleared or improved with assistance provided under this Agreement, CENTER
shall cause or require a covenant running with the land to be inserted in the deed or lease for
such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the
use or occupancy of such land, or in any improvements erected or to be erected thereon,
providing that CITY and the United States are beneficiaries of and entitled to enforce such
covenants. CENTER, in undertaking its obligation to carry out the program assisted hereunder,
agrees to take such measures as are necessary to enforce such covenant, and will not itself so
discriminate.
D. Compliance with Section 504
CENTER agrees to comply with any federal regulations issued pursuant to compliance
with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 706) or applicable updates which
prohibits discrimination against the handicapped in any federally assisted program. CITY shall
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provide CENTER with any guidelines necessary for compliance with that portion of the
regulations in force during the term of this Agreement.
10.2. Affirmative Action
A. Approved Plan
CENTER agrees that it shall be committed to carry out pursuant to CITY's specifications
an Affirmative Action Program in keeping with the principles as provided in Presidents
Executive Order 11246 of September 24, 1966. CITY shall provide Affirmative Action
guidelines to CENTER to assist in the formulation of such program. CENTER shall submit a
plan for an Affirmative Action Program for approval prior to the award of funds.
B. Women- and Minority -Owned Businesses (W/MBE)
CENTER will use its best efforts to afford small businesses, minority business
enterprises, and women's business enterprises the maximum practicable opportunity to
participate in the performance of this Agreement. As used in this Agreement, the terms "small
business' means a business that meets the criteria set forth in section 3(a) of the Small Business
Act, as amended (15 U.S.C. 632), and "minority and women's business enterprise" means a
business at least fifty-one (51) percent owned and controlled by minority group members or
women. For the purpose of this definition, "minority group members" are Afro-Americans,
Spanish-speaking, Spanish surnamed or Spanish -heritage Americans, Asian -Americans, and
American Indians. CENTER may rely on written representations by businesses regarding their
status as minority and female business enterprises in lieu of an independent investigation.
C. Access to Records
CENTER shall furnish and cause each of its own subcontractors to furnish all
information and reports required hereunder and will permit access to its books, records and
accounts by CITY, HUD or its agent, or other authorized Federal officials for purposes of
investigation to ascertain compliance with the rules, regulations and provisions stated herein.
D. Notifications
CENTER will send to each labor union or representative of workers with which it has a
collective bargaining agreement or other contract or understanding, a notice, to be provided by
the agency contracting officer, advising the labor union or worker's representative of CENTER's
commitments hereunder, and shall post copies of the notice in conspicuous places available to
employees and applicants for employment.
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E. Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement
CENTER will, in all solicitations or advertisements for employees placed by or on behalf
of CENTER, state that it is an Equal Opportunity or Affirmative Action employer.
F. Subcontract Provisions
CENTER will include the provisions of Paragraphs X.A, Civil Rights, and B, Affirmative
Action, in every subcontract or purchase order, specifically or by reference, so that such
provisions will be binding upon each of its own subcontractors.
10.3. Employment Restrictions
A. Prohibited Activity
CENTER is prohibited from using funds provided herein or personnel employed in
the administration of the program for: political activities; inherently religious activities;
lobbying; political patronage; and nepotism activities.
B. Labor Standards
CENTER agrees to comply with the requirements of the Secretary of Labor in
accordance with the Davis -Bacon Act as amended, the provisions of Contract Work Hours and
Safety Standards Act as amended, the provisions of Contract Work Hours and Safety Standards
Act (40 U.S.C. 327 et seq.) and all other applicable Federal, state and local laws and regulations
pertaining to labor standards insofar as those acts apply to the performance of this Agreement.
CENTER agrees to comply with the Copeland Anti -Kick Back Act (18 U.S.C. 874 et seq.) and
its implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. CENTER shall
maintain documentation that demonstrates compliance with hour and wage requirements of this
part. Such documentation shall be made available to CITY for review upon request.
CENTER agrees that, except with respect to the rehabilitation or construction of
residential property containing less than eight (8) units, all contractors engaged under contracts
in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part
with assistance provided under this Agreement, shall comply with Federal requirements adopted
by CITY pertaining to such contracts and with the applicable requirements of the regulations of
the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and
ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than
those required under the regulations are imposed by state or local law, nothing hereunder is
intended to relieve CENTER of its obligation, if any, to require payment of the higher wage.
CENTER shall cause or require to be inserted in full, in all such contracts subject to such
regulations, provisions meeting the requirement of this paragraph.
14
C. "Section 3" Clause
1. Compliance
Compliance with the provisions of Section 3 of the HUD Act of 1968, as
amended, and as implemented by the regulations set forth in 24 CFR Part 135, and all applicable
rules and orders issued hereunder prior to the execution of this Agreement, shall be a condition
of the Federal financial assistance provided under this Agreement and binding upon CITY,
CENTER and any of CENTER's subcontractors. Failure to fulfill these requirements shall
subject CITY, CENTER and any of CENTER's subcontractors, their successors and assigns, to
those sanctions specified by the Agreement through which Federal assistance is provided.
CENTER certifies and agrees that no contractual or other disability exists that would prevent
compliance with these requirements.
CENTER further agrees to comply with these "Section 3" requirements and to
include the following language in all subcontracts executed under this Agreement:
"The work to be performed under this Agreement is a project assisted under a
program providing direct Federal financial assistance from HUD and is subject to
the requirements of Section 3 of the Housing and Urban Development Act of
1968, as amended (12 U.S.C. 1701). Section 3 requires that to the greatest extent
feasible opportunities for training and employment be given to low- and very low-
income residents of the project area, and that contracts for work in connection
with the project be awarded to business concerns that provide economic
opportunities for low- and very low-income persons residing in the metropolitan
area in which the project is located."
CENTER further agrees to ensure that opportunities for training and employment
arising in connection with a housing rehabilitation (including reduction and abatement of lead-
based paint hazards), housing construction, or other public construction project are given to low -
and very low-income persons residing within the metropolitan area in which the CDBG-funded
project is located; where feasible, priority should be given to low -and very law -income persons
within the service area of the project or the neighborhood in which the project is located, and to
low- and very low-income participants in other HUD programs; and award contracts for work
undertaken in connection with a housing rehabilitation (including reduction and abatement of
lead-based pain hazards), housing construction, or other public construction project to business
concerns that provide economic opportunities for low -and very low-income persons residing
within the metropolitan area in which the CDBG-funded project is located; where feasible,
priority should be given to business concerns that provide economic opportunities to low- and
very low-income residents within the service area or the neighborhood in which the project is
located, and to low- and very low-income participants in other HUD programs.
CENTER certifies and agrees that no contractual or other legal incapacity exists
that would prevent compliance with these requirements.
15
2. Notifications
CENTER agrees to send to each labor organization or representative of workers
with which it has a collective bargaining agreement or other contract or understanding, if any, a
notice advising said labor organization or worker's representative of its commitments under this
Section 3 clause and shall post copies of the notice in conspicuous places to employees and
applicants for employment or training.
3. Subcontracts
CENTER will include this Section 3 clause in every subcontract and will take
appropriate action pursuant to the subcontract upon a finding that the subcontractor is in
violation of regulations issued by the grantor agency. CENTER will not subcontract with any
entity where it has notice or knowledge that the latter has been found in violation of regulations
under 24 CFR Part 135 and will not let any subcontract unless the entity has first provided it with
a preliminary statement of ability to comply with the requirements of these regulations.
10.4. Conduct
A. Assignability
CENTER shall not assign or transfer any interest in this Agreement without the prior
written consent of CITY.
B. Subcontracts
1. Approvals
CENTER shall not enter into any subcontracts with any agency or individual in the
performance of this contract without written consent of CITY prior to the execution of such
Agreement.
2. Monitoring of Subcontractors
CENTER will monitor all subcontracted services on a regular basis to assure contract
compliance. Results of monitoring efforts shall be summarized in written reports and supported
with evidence of follow-up actions taken to correct areas of noncompliance.
3. Content
CENTER shall cause all of the provisions of this contract in its entirety to be included in
and made a part of any subcontract executed in the performance of this Agreement.
16
4. Selection Process
CENTER shall undertake to ensure that all subcontracts let in the performance of this
agreement shall be awarded on a fair and open competition basis in accordance with applicable
procurement requirements. Executed copies of all subcontracts shall be forwarded to CITY
along with documentation concerning the selection process.
C. Hatch Act
CENTER agrees that no funds provided, nor personnel employed under this Agreement,
shall be in any way or to any extent engaged in the conduct of political activities in violation of
Chapter 15 of Title V United States Code.
D. Conflict of Interest
CENTER understands and agrees to abide by the provisions of 24 CFR §§ 84.42 and
570.611, which include, but are not limited to the following:
1. CENTER shall maintain a written code or standards of conduct that shall
govern the performance of its officers, employees or agents engaged in the award and
administration of contracts supported by Federal funds.
2. No employee, officer or agent of CENTER shall participate in the
selection, or in the award, or administration of, a contract supported by Federal funds if a conflict
of interest, real or apparent, would be involved.
3. No covered persons who exercise or have exercised any functions or
responsibilities with respect to CDBG-assisted activities, or who are in a position to participate
in a decision-making process or gain inside information with regard to such activities, may
obtain a financial interest in any contract, or have a financial interest in any contract, subcontract,
or agreement with respect to the CDBD-assisted activity, or with respect to the proceeds from the
CDBG-assisted activity, either for themselves or those with whom they have business or
immediate family ties, during their tenure or for a period of one (1) year thereafter.
These conflict of interest provisions apply to "covered persons" which shall include any
person who is an employee, agent, consultant, officer, or elected official of CITY, CENTER or
any designated public agencies which are receiving funds under the CDBG Entitlement program.
17
E. Lobbying
CENTER hereby certifies that:
1. No Federal appropriated funds have been paid or will be paid, by or on
behalf of it, to any person for influencing or attempting to influence an officer or employee of
any agency, a Member of Congress, an officer or employee of Congress, or an employee of a
Member of Congress in connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into any cooperative agreement, and
the extension, continuation, renewal, amendment, or modification of any Federal contract, grant,
loan, or cooperative agreement;
2. If any funds other than Federal appropriated funds have been paid or will
be paid to any person for influencing or attempting to influence an officer or employee of any
agency, a Member of Congress, an officer or employee of Congress, or an employee of a
Member of Congress in connection with this Federal contract, grant, loan or cooperative
agreement, it will complete and submit Standard Form -LLL, "Disclosure Form to Report
Lobbying," in accordance with its instructions; and
3. It will require that the language of paragraph (4) of this certification be
included in the award documents for all subawards at all tiers including subcontracts, subgrants,
and contracts under grants, loans, and cooperative agreements and that all subrecipients shall
certify and disclose accordingly:
4. Lobbying Certification
This certification is a material representation of a fact upon which reliance was
placed when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S.C.
Any person who fails to file the required certification shall be subject to a civil penalty of not
less than $10,000 and not more than $100,000 for each such failure.
F. Copyright
If this Agreement results in any copyrightable material or inventions, CITY and/or
grantor agency reserves the right to royalty -free, non-exclusive and irrevocable license to
reproduce, publish or otherwise use and to authorize others to use, the work or materials for
governmental purposes.
G. Religious Organization
CENTER agrees that funds provided under this Agreement will not be utilized for
inherently religious activities, such as worship, religious instruction, or proselytization; to
promote religious interests; or for the benefit of a religious organization as specified in 24 CFR
§ 570.200(j).
18
SECTION XI:
ENVIRONMENTAL CONDITIONS
11.1. Air and Water
CENTER agrees to comply with the following requirements insofar as they apply to the
performance of this Agreement:
A. Clean Air Act, 42 U.S.C., 7401, et seq.;
B. Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et seq., as
amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as
other requirements specified in said Section 114 and Section 308, and all regulations and
guidelines issued thereunder; and
C. Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50,
as amended.
11.2. Flood Disaster Protection
In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4001), CENTER shall assure that for activities located in an area identified by the Federal
Emergency Management Agency (FEMA) as having special flood hazards, flood insurance
under the National Flood Insurance Program is obtained and maintained as a condition of
financial assistance for acquisition or construction purposes including rehabilitation.
11.3. Lead -Based Paint
CENTER agrees that any construction or rehabilitation of residential structures with
assistance provided under this Agreement shall be subject to HUD Lead -Based Paint Regulations
at 24 CFR § 570.608, and 24 CFR Part 35, Subpart B. Such regulations pertain to all CDBG-
assisted housing and require that all owners, prospective owners, and tenants of properties
constructed prior to 1978 be properly notified that such properties may include lead-based paint.
Such notification shall point out the hazards of lead-based paint and explain the symptoms,
treatment and precautions that should be taken when dealing with lead-based paint poisoning and
the advisability and availability of blood lead level screening for children under seven. The
notice should also point out that if lead-based paint is found on the property, abatement measures
may be undertaken. The regulations further require that, depending on the amount of Federal
funds applied to a property, paint testing, risk assessment, treatment and/or abatement may be
conducted.
11.4. Historic Preservation
CENTER agrees to comply with the Historic Preservation requirements set forth in the
National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set
19
forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection
of Historic Properties, insofar as they apply to the performance of this agreement.
In general, this requires concurrence from the State Historic Preservation Officer for all
rehabilitation and demolition of historic properties that are fifty years old or older or that are
included on a Federal, state, or local historic property list.
SECTION XII:
SEVERABILITY
12.1. If any provision of this Agreement is held invalid, the remainder of the Agreement shall
not be affected thereby and all other parts of this Agreement shall nevertheless be in full force
and effect.
SECTION XIII:
SECTION HEADINGS AND SUBHEADINGS
13.1. The section headings and subheadings contained in this Agreement are included for
convenience only and shall not limit or otherwise affect the terms of this Agreement.
SECTION XIV:
WAIVER
14.1. CITY's failure to act with respect to a breach by CENTER does not waive its right to act
with respect to subsequent or similar breaches. The failure of CITY to exercise or enforce any
right or provision shall not constitute a waiver of such right or provision.
IN WITNESS WHEREOF, this Agreement is executed as of the last date of due
execution by both parties.
CITY: CENTER:
City of Round Rock Round Rock Area Serving Center
Steve Norwood, City
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20
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EXHIBIT
CITY OF ROUND ROCK
COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM INCOME POLICY
This policy is implemented to comply with applicable federal, state and local laws, regulations and policies
governing the disposition of program income. Applicable laws and regulations include, but are not limited
to, Title 24 Code of Federal Regulations, Chapter V, Subchapter C, Part 570, Subpart J and Subpart K.
1. DEFINITIONS:
1.1 Program Income means gross income received by the Recipient or Sub -recipient directly
generated from the use of CDBG funds.
1.2 Recipient means the City of Round Rock, Texas.
1.3 Sub -recipient means any entity that receives CDBG funding from the Recipient.
1.4 CDBG means a Community Development Block Grant received by the Recipient pursuant
to Title 24 Code of Federal Regulations, Chapter V, Subchapter C, Part 570.
1.5 Income Report means an accounting and report prepared by the Sub -recipient setting forth
the amount of Program Income generated by the Sub -recipient's activities and the method
by which such Program Income was generated.
2. INCOME: Program Income includes, but is not limited to, the following:
2.1 Proceeds from the disposition by sale or long-term lease of real property purchased or
improved with CDBG funds, including but not limited to, a pro rata share of mortgage
payments, principal and interest, or lease payments received by a Sub -recipient as a
result of such sale or long-term lease; such pro rata share being calculated pursuant to
Section 5, below.
2.2 Gross income from the use or rental of real property owned by the Recipient or by a Sub -
recipient that was constructed or improved with CDBG funds, less costs incidental to
generation of the income.
2.3 Proceeds from the sale of obligations (mortgages) secured by loans made where CDBG
funds were used.
2.4 Interest earned on program income pending its disposition.
3. DISPOSITION OF INCOME AND REPORTS: Sub -recipients shall:
3.1 Annually remit to Recipient Program Income received by Sub -recipient together with an
Income Report on or before the tenth (10th) day of the month following the end of the
program year.
3.2 Submit an Income Report for each quarter of the program year by the 10th day of the
month following the end of the quarter.
3.3 Allocate each Income Report to each program year in which funding was received.
3.4 Allocate each Income Report to each source generating the income.
3.5 Continue the reporting and remittance under this Section until five (5) years from the date
funds were last spent in each program year or until five (5) years after the expiration of
the relevant agreement between the City and the Sub -recipient, whichever is later.
EXHIBIT
G
4. INCOME MORE THAN $25,000 OR LESS THAN $25,000:
4.1 Recipient shall have on file appropriate supporting documentation necessary to support
the Recipient's determination of the total Program Income generated from all of the
activities of the Recipient and all Sub -recipients.
4.2 If the annual amount of Program Income does not exceed $25,000, the Recipient may
transfer the funds to the Recipient's General Fund and use the funds as authorized by
the Annual Operating Budget.
4.3 If the total annual amount exceeds $25,000, then the Program Income will be handled in
accordance with regulatory requirements.
5. CALCULATION OF PROGRAM INCOME:
5.1 The amount of Program Income resulting from a sale of property acquired using CDBG
funds by a Sub -recipient is calculated by multiplying the sales price of such property by a
fraction, the numerator of which is the amount of CDBG funds used to purchase such
property and the denominator of which is the total contract price of such property (the
"Sale Income Ratio"). In the event the Sub -recipient will receive partial or periodic
payments as a result of a sale of property acquired using CDBG funds, the Program
Income derived from each payment is the amount of such partial or periodic payments
multiplied by the Sale Income Ratio. Once the Sale Income Ratio has been determined, it
shall not change.
5.2 EXAMPLE:
Land purchase with CDBG funds $25,000
Contract Price $60,000
The Sale Income Ratio is $25,000 _ $60,000 = 41.667%
The Sale Income Ratio is applied to all dispositions of property, including but not limited
to:
• sale by the homeowner.
• foreclosure by Sub -recipient and sale to another homeowner.
• the rental or lease payments if Sub -recipient forecloses and rents or leases the
property
• any profit realized from any sale of the property
• principal and interest payments received to satisfy the mortgage
• any other event that would create Program Income.
5.3 If the real property acquired with CDBG funds is posted for foreclosure, and a third party
purchases the property, Program Income from such third -party purchase is the amount of
funds in excess of the mortgage balance multiplied by the Sale Income Ratio.
5.4 Program Income resulting from a rental or lease of property by a Sub -recipient that was
acquired using CDBG funds is calculated by multiplying the rental or lease payment of
such property by a fraction, the numerator of which is the amount of CDBG funds used to
purchase such property and the denominator of which is the value of such property (the
"Rental Income Ratio"). In the case of personal property, the value is the total purchase
price paid by Sub -recipient. In the case of real property, the value of such real property is
the total of the amount of CDBG funds used to acquire the real property plus the amount
of additional funds expended by a Sub -recipient for the acquisition of such real property
or the construction of improvements thereon.
6. SUB -RECIPIENTS RETAIN INCOME: Sub -recipients may retain Program Income provided:
6.1 The Program Income was generated before March 8, 2011;
6.2 A report is provided to Recipient allocating the Program Income to each activity for each
program year;
6.3 The Program Income is used to support the activities authorized by the agreement for
that program year; and
6.4 Sub -recipient complies with paragraph 3 above for all income generated after March 8,
2011.
MONTHLY PROGRESS REPORT
Month: , 20
Summary of Expenditures:
List of Beneficiaries:
Narrative of Accomplishments: