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HomeMy WebLinkAbout12-157 Resolution No. 12-157 RESOLUTION AUTHORIZING EXECUTION OF A COMMUNI TY DEVELOPMENT BLOCK GRANT SUB-RECIPIENT A I REEMENT WITH P.A.D.S. OF ELGIN, C. BE IT RESOLVED BY THE CITY COUNCIL OF TH 1 CITY OF ELGIN, ILLINOIS,that Sean R. Stegall,City Manager,and Kimberly A.Dewis,City Cl•rk,be and are hereby authorized and directed to execute a community development block grant agre-ment on behalf of the City of Elgin with P.A.D.S. of Elgin, Inc. for emergency shelter monthly re tal costs, Elgin, Illinois, a copy of which is attached hereto and made a part hereof by reference. s/ Da id J. Ka stain David J. Kaptain, Mayor Presented: October 10, 2012 Adopted: October 10, 2012 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk AGREEMENT BETWEEN THE CITY OF ELGIN, AND P.A.D.S. OF ELGIN, INC. This AGREEMENT is entered into as of the /OW') dAy of eata,--6-eA-i , 2012, by and between the CITY OF ELGIN, an Illinois municipal corporation(hereinafter called "GRANTEE" or"CITY")and P.A.D.S. OF ELGIN, Inc., a not-for-profit corporation incorporated pdrsuant to the laws of the State of Illinois, (hereinafter called "SUB-RECIPIENT") having a principal place of,business at 1730 Berkley Street, Elgin, Illinois, 60123. I. RECITALS A. CITY has applied for Community Developme t Block Grant Funds (hereinafter referred to as "CDBG funds") from the United States Depart ent of Housing and Urban Development (hereinafter called "HUD") as provided by the Hous ng and Community Development Act of 1974, as amended(P.L. 93-383) (hereinafter called "A T"). B. CITY has considered and approved the applicaiion of SUB-RECIPIENT for CDBG funds allotted to CITY for distribution to SUB-RECIPIENT. C. The CITY and SUB-RECIPIENT enter into this Agreement pursuant to their respective powers to enter into such Agreements, as those powers are defined in the Illinois Constitution and applicable statutes. II. SCOPE OF THE PROJECT A. SUB-RECIPIENT hereby agrees to perform, in a timely fashion, the activities provided for herein, and those previously defined and identi ed in the Project Application and project description submitted by the SUB-RECIPIENT, dated December 14, 2010, and entitled -Emergency Shelter Program," a copy of which is attached hereto as Exhibit "A" and incorporated herein by this reference(hereinafter refei4ed to as the"PROJECT"). B. All funding provided to SUB-RECIPIENT shall be used solely to reimburse SUB- RECIPIENT for monthly rental costs associated with the lease of the facility at 1730 Berkley Street, Elgin, Illinois. This facility is to be used exclusively for the provision of shelter, support services and counseling activities that aid homeles families and individuals to become self- sufficient members of society. Services provided ait the facility are to be consistent with the scope and intent of the PROJECT. All individuals Twed by SUB-RECIPIENT pursuant to this agreement will be low and moderate income persons us defined by 24 CFR 570.208 (a)(2)(i)(A). C. The SUB-RECIPIENT shall develop and submit to the CITY an Outcome Performance Measurement Statement that establishes project goals and objectives, identifies performance indicators, and estimates the number of clientele t be served. The SUB-RECIPIENT shall provide quarterly Progress Reports to the CITY, r porting on the status of the PROJECT in relation to the percent of project completion, accoinplishments, effectiveness of the project as related to the goals and objectives, and the clientele served, including number served, client access to the service (either new or improved acces ), and demographics. The progress reports shall begin upon the signing of the Agreement and shall continue until the completion of this project or until directed to discontinue such reports in writing by the CITY. D. Prior to the expenditure of CDBG funds, SUB-RECIPIENT shall meet with the City's Community Development Department staff to establish acceptable documentation and guidelines 1 . , regarding requests for payment for the activities described in the Scope of Work. No payment of CDBG funds will be made by City without the required documentation. E. SUB-RECIPIENT shall return to the CITY an program income, as defined in 24 CFR Part 570.500(a), which is generated as a result of thi PROJECT. All written requests for an exception to this agreement shall be made, in writing, to the City's Community Development Department explaining why the SUB-RECIPIENT needs the income, the specific activities the SUB-RECIPIENT will undertake with the funds and how the SUB-RECIPIENT will report the income and expenditures to the CITY. A written response to the request will be provided to SUB-RECIPIENT from the CITY. III. AMOUNT AND TERMS OF GRANT A. The CITY shall distribute to SUB-RECIPIE1T, as SUB-RECIPIENT'S portion of the total grant received by the CITY and in consideration of the SUB-RECIPIENT'S undertaking to perform the PROJECT, a maximum of $50,000 (her inafter "Grant Funds"), to be paid in the manner provided for herein at Sections II (D) and VII. Prior to the initial payment of Grant Funds, SUB-RECIPIENT shall submit, to the CITY, heir Outcome Performance Measurement Statement and progress report indicating client demographics and program status. SUB- RECIPIENT shall submit quarterly progress reports, by the 10th day following the end of the preceding quarter, to the CITY. The amount to be paid to SUB-RECIPIENT will be based upon the work completed and the submittal of employee work reports in support of the invoiced amount. B. This PROJECT shall be identified as Project No. 154750 and Account No. 230-0000- 791.30-99, which identifying numbers shall be used by SUB-RECIPIENT on all payment requests. IV. SUB-RECIPIENT'S COMPLIANCE WITH THE ACT A. CITY shall assist SUB-RECIPIENT in makin application for CDBG funds. B. SUB-RECIPIENT shall abide by the Act and Ull HUD rules and regulations promulgated to implement the Act. C. SUB-RECIPIENT shall, upon request of the CITY, (1) assist in the completion of an environmental review and (2) complete certifications showing equal employment opportunity compliance including equal employment opportunity certifications with reference to the PROJECT, as set forth in Exhibit"C"attached hereto and made a part hereof. D. SUB-RECIPIENT, in performing under this Agreement, shall: 1. Not discriminate against any worker, employee, or applicant, or any member of the public, because of race, creed, color, ex, age or national origin, nor otherwise commit an unfair employment practice; and 2. Take affirmative action to insure thai applicants are employed without regard to race, creed, color, sex, age or national origin with such affirmative action including, but not limited to the following: Employment, ujgrading, demotion or transfer, termination, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, selection for training, including apprenticeship. 2 E. SUB-RECIPIENT shall permit the CITY and1 the Department of Housing and Urban Development to conduct on-site reviews, examine personnel and employment records and to conduct any other procedures or practices to assure compliance with the provisions of this agreement. SUB-RECIPIENT shall post in conspic ous places available to employees and applicants for employment notices setting forth the pro isions of Section IV (D) above. F. SUB-RECIPIENT shall not violate any laws, state or federal rules or regulations, including but not limited to those regarding a direct oil indirect illegal interest on the part of any employee or elected official of the SUB-RECIPIENT in the PROJECT or payments made pursuant to this Agreement. G. SUB-RECIPIENT hereby warrants and represents that neither the project, including but not limited to any funds provided pursuant thereto, nor any personnel employed in the administration of the program shall be in any way o to any extent engaged in the conduct of political activities in contravention of Chapter 15 o1 Title 5, United States Code, commonly known as the Hatch Act. H. SUB-RECIPIENT shall maintain records to show actual time devoted and costs incurred, in relation to the PROJECT, and shall prepare and submit quarterly progress reports which describe the work already performed and anticipated daring the remaining time of the PROJECT. Upon fifteen (15) days notice from the CITY, originals or certified copies of all time sheets, billings, and other documentation used in the preparation of said progress reports shall be made available for inspection, copying, or auditing by the (CITY at any time during normal business hours, at 150 Dexter Court, Elgin, Illinois. I. SUB-RECIPIENT shall adopt the audit requirements of the Office of Management and Budget (hereinafter "OMB") Circular A-133, "Audits of Institutions of Higher Learning and Other Non-Profit Institutions." SUB-RECIPIENT shall submit to the CITY one copy of said audit report. SUB-RECIPIENT shall peiruit the aut orized representatives of the CITY, HUD and the Comptroller General of the United States to i spect and audit all data and reports of the SUB-RECIPIENT relating to its performance under t Agreement. J. SUB-RECIPIENT and CITY shall at all times observe and comply with Title 24 CFR Part 570 and all applicable laws, ordinances or regulations of the Federal, State, County, and local government, which may in any manner affect the perfdrmance of this Agreement. K. SUB-RECIPIENT shall transfer to the CITE' any unused CDBG funds and submit all billings attributable to this Project at the time this Agreement expires. L. SUB-RECIPIENT will ensure that any real property under the SUB-RECIPIENT'S control that was acquired and/or improved in whole or in part with CDBG funds in excess of $25,000 is used exclusively for the benefit of low and moderate income persons as defined by HUD, for a period of 15 years after the expiration of this agreement M. If during the 15 year period after the expirati n of this Agreement, the SUB-RECIPIENT disposes of any property under the SUB-RECIP ENT'S control that was acquired and/or improved in whole or in part with CDBG funds in excess of$25,000, then the SUB-RECIPIENT will reimburse the CITY in the amount of the current fair market value of the property less any portion of the value attributable to expenditures df non-CDBG funds for acquisition of, or improvement to, the property in accordance with 24 CFR 570.503(b)(8)and 24 CFR 570.505. 3 V. RIGHTS TO SUBCONTRACT A. SUB-RECIPIENT shall not assign, transfer, su contract or otherwise convey its rights or obligations under this Agreement without the prior written consent of the CITY, which consent may be withheld in the CITY'S sole discretion." B. Administration of any subcontracts by the SOB-RECIPIENT shall be in conformance with 24 CFR Part 570.200(d)(2) and Part 85.36. VI. SUB-RECIPIENT'S AUTHORIZATION TO ACCEPT PROPSALS A. After the CITY has received notification that funds for the PROJECT have been released by HUD, the SUB-RECIPIENT shall be authorized tn accept the proposal of any subcontractor for the PROJECT. VII. BILLING PROCEDURE A. Upon Release of Grant Funds by HUD fdr the PROJECT, the CITY shall make disbursements to the SUB-RECIPIENT as either reimbursement for advances made by SUB- RECIPIENT or as advances for specific cash requirements of SUB-RECIPIENT for the PROJECT. All claims of SUB-RECIPIENT, whether for reimbursement or advancement, shall comply with the following requirements: 1. SUB-RECIPIENT shall submit a listing of all disbursements of CDBG Funds, on a form provided by the CITY. 2. Any claim for advancement of CDI3G Funds shall be limited to an amount necessary for SUB-RECIPIENT to meet spe ific cash requirements for the PROJECT and shall be disbursed by SUB-RECIPIENT frithin three (3) working days of receipt by SUB-RECIPIENT. 3. Any request for reimbursement or advancement pertaining to work under contracts from the SUB-RECIPIENT shall include the following: a. For interim payments to contractors and subcontractors, certification that the work for which payment is requeted has been performed and is in place and to the best of SUB-RECIPIENT'S knowledge, information and belief that, the quality of such work is in accordance with the contract and subcontracts, subject to: (i) any evaluation of such work a a functioning PROJECT upon substantial completion; (ii) the results of any su sequent tests pennitted by the subcontract; and (iii) any defects or deficiencies ot readily apparent upon inspection of the work; and b. For final payment, that the work has been performed in a satisfactory manner and in conformance with the Contract. 4. Processing of all requests for paymeth shall be contingent upon the submission of the required documentation by the contractor and subcontractor to the CITY that fully complies with federal labor standards, uniform relocation act or any other applicable federal, state, or local statutes, rules or regulations. 4 5. SUB-RECIPIENT shall forward to thT CITY all billings, vouchers, and other documents representing any accounts payable, in such timely and reasonable manner as both parties shall determine; provided, however, that in no event shall such documents be forwarded to the CITY later than twenty-one ) days after SUB-RECIPIENT'S receipt of such documents. 6. SUB-RECIPIENT shall cooperate with the CITY to facilitate the maintenance of financial records by the CITY as required by Title 24 CFR 85. B. Upon submission of an acceptable claim for Grant Funds, the CITY shall process such claim and shall approve such claim for payment folldwing approval by the City's Community Development Department, for compliance with this Agreement and applicable HUD requirements. C. Except as provided for in Sections IX and hereof, the CITY shall pay all required payments against eligible project costs, as descrilled in Section II.B, incurred by SUB- RECIPIENT under this Agreement. VIII. ADMINISTRATION AND REPORTING REQUIREMENTS A. SUB-RECIPIENT shall administer the Grant Funds in conformance with the regulations, policies, guidelines and requirements of OMB Circular numbers A-110, and A-122, as they relate to the acceptance and use of federal funds for the PROJECT. B. SUB-RECIPIENT shall submit all required information to show compliance with applicable laws, rules and regulations, as specified in this Agreement and shall submit to the CITY a quarterly progress report, by the 10th day f9llowing the end of the preceding quarter. Other reporting requirements are specified in Exhibit °'B" attached hereto and made a part of this Agreement. IX. TERMINATION OF AGREEMENT OR SUSPENSION OF PAYMENT A. During the implementation of the PROJECT, he CITY may terminate this Agreement or may suspend payment of Grant Funds to SUB-RECIPIENT for SUB-RECIPIENT'S substantial breach of the Agreement, abandonment of the PROJECT or occurrence rendering impossible the performance by SUB-RECIPIENT of this Agreement. B. During the implementation of the PROJECT, the CITY may suspend payments of Grant Funds, due to use of funds in a manner unrelanTd to SUB-RECIPIENT'S performing the PROJECT, failure by SUB-RECIPIENT in submitting supporting information or documentation for a claim, submission by SUB-RECIPIENT of tncorrect or incomplete reports, or SUB- RECIPIENT'S suspension of its pursuit of the PROJE'2T. C. In the event the CITY elects to terminate this Agreement or to suspend payments, for any reason stated hereinabove in paragraph A and B of this Section IX, it shall notify the SUB- RECIPIENT, in writing, of such action, specifying the particular deficiency, at least five (5) working days in advance of any such action and establishing a time and a place for the SUB- RECIPIENT to refute the alleged deficiency at a tirne prior to the CITY'S taking such action. After allowing the SUB-RECIPIENT the opportunity to refute or correct the alleged deficiency, if the alleged deficiency continues to exist, in the reasdnable opinion of the CITY, the CITY may withhold payment of the Grant Funds until such tim(1 as the violation or breach is remedied. No action taken or withheld by the CITY under this paragraph shall relieve the SUB-RECIPIENT of 5 its liability to the CITY for any funds expended in violation of any of the terms of this Agreement. D. Unless terminated pursuant to the provisions of paragraph IX herein, this agreement shall terminate on October 31, 2013. X. REMEDIES A. To the fullest extent permitted by law, SUB-RECIPIENT agrees to and shall indemnify, defend and hold harmless the CITY, its officers, emplpyees, boards and commissions from and against any and all claims, suits,judgments, costs, attorneys fees, damages or any and all other relief of liability arising out of or resulting from or through, or alleged to arise out of, any breach of this agreement; misuse or misapplication of funds derived pursuant to this agreement by SUB- RECIPIENT; violation of any statutes, rules and re lations, directly or indirectly, by SUB- RECIPIENT and/or any of its agents or representatives; or any negligent acts or omissions of SUB-RECIPIENT or of SUB-RECIPIENT'S officers, employees, agents or subcontractors. In the event of any action against the CITY, its officers, employees, agents, boards or commissions covered by the foregoing duty to indemnify, defend and hold harmless, such action shall be defended by legal counsel of the CITY'S choosing. The provisions of this paragraph shall survive any termination and/or expiration of this Agreeinent. B. In the event of loss of approved Grant Funds for the PROJECT as a result of any violation or breach of this Agreement by the CITY, Misuse or misapplication of funds received from HUD unrelated to the PROJECT, or any violatipn of the statutes, rules and regulations of HUD, directly or indirectly, the CITY and/or any of its agents or representatives, the CITY'S liability to SUB-RECIPIENT shall be limited to any nds which have previously been provided to SUB-RECIPIENT pursuant to this agreement. S -RECIPIENT hereby waives and releases the CITY from any and all other liability pursuant to any such breach, misuse, misapplication or violation of statutes, rules or regulations. C. In the event HUD, or any other federal agency, makes any claim which would give rise to invoking the remedy provisions, as set forth in para raphs A or B of this Section X, then the CITY or SUB-RECIPIENT shall immediately notify t e other party, in writing, providing the full details of the alleged violation. To the extent that any such matter is not subject to exclusive federal jurisdiction, venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this Agreement between the CITY and SUB-RECIPIENT shall be in the Circuit Court of Kane County, Illinois. D. In addition to any other remedies available t.o the CITY, if the CITY has lost or been prevented from receiving any federal funds, other than the Grant Funds, as a result of any alleged violation of law or other breach of this Agreement b SUB-RECIPIENT, the SUB-RECIPIENT shall repay, upon demand by the CITY, such amoint of Grant Finds previously disbursed or allegedly due to the SUB-RECIPIENT. XI. TIMELINESS A. Time is of the essence of this agreement. SUB-RECIPIENT shall meet the schedule deadlines listed below. Any milestone which the SUB-RECIPIENT does not achieve within two months of the date listed will result in the SUB-RECIPIENT submitting a revised implementation schedule for approval by the City's Community Development Staff. Failure to achieve these deadlines may result in the loss or reduction of grant funds at the CITY'S discretion. 6 . . Actions Date 1. Provide Emergency Shelter January 1, 2011-December 31, 2011 2. Provide Case Management January 1, 2011-December 31, 2011 3. Rental Reimbursement January 1, 2011-December 31, 2011 B. Total Number of Months Required for Project Completion 12 Months XII. MISCELLANEOUS PROVISIONS A. AMENDMENTS - This Agreement constitute the entire Agreement between the parties hereto. Any proposed change in this Agreement shal be submitted to the other party for prior approval. No modifications, additions, deletions, or th like, to this Agreement shall be effective unless and until such changes are executed, in writing,by the authorized officers of each party. B. SUBJECT TO FINANCIAL ASSISTANCE AGREEMENT - This Agreement is made subject to financial assistance agreements between the CITY and the United States Department of Housing and Urban Development, with the rights and remedies of the parties hereto being in accordance with any such agreements. C. ASSIGNMENT - except as provided in Sectipn VI hereof, SUB-RECIPIENT shall not assign this Agreement or any part thereof and SUB-RECIPIENT shall not transfer or assign any Grant Funds or claims due or to become due hereundei[, without the written approval of the CITY having first been obtained. D. ATTORNEY'S OPINION - If requested, S -RECIPIENT shall provide an opinion of its attorney, in a form reasonably satisfactory to the cITY, that all steps necessary to adopt this Agreement, in a manner binding upon SUB-RECIPIENT, have been taken by SUB-RECIPIENT, and that SUB-RECIPIENT is in compliance with applicable local, state and federal statues, rules and regulations for the purpose of complying with this Agreement. E. HEADINGS -The section headings of this Agreement are for convenience and reference only and in no way define, limit, or describe the scop ct or intent of this Agreement, and should be ignored in construing or interpreting this Agreement. F. The terms of this agreement shall be sevet-able. In the event any of the terms or provisions of this agreement are deemed to be void or Otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force trid effect. G. This agreement shall not be construed to cre te a joint venture, partnership, employment or other agency relationship between the parties heret . 7 IN WITNESS WHEREOF, the parties hereto have executed this Agree7nt on the dates recited below. CITY OF ELGIN, an Illinois Municipal Corporation j 40, BY: 4 Sear' . Stegall, City anage/ DATE: 0(1*,beA-- I a) a 0 I ATTEST: &44/644.4( Kimberly Dewis, City plerk SUB-RECIPIENT: P.A.D.S. of Elgin, Inc. Street, Elgi IlliHz)is, 60123 BY: • .0 Dennis Hewitt, Executive Director P.A.D.S. of Elgin, Inc], DATE: /o/ // ATTESPr—Ct'''C 8 EXHIBIT A SUB-RECIPIENT'S 2011-2012 CDBG AP'LICATION 9 . . '-n e-_ OF ELGIN, INC. oec, i &j, ic.90/0 Public Action to Deliver Shelter ,/ 411P—AdIP itt* .51 December 14,2010 Jennifer Fritz-Williams Elgin Planning and Neighborhood Services Department, CD3G Program 150 Dexter Court Elgin, IL 60120 Dear Ms. Fritz-Williams, PADS of Elgin, Inc.is pleased to submit this application to the City of Elgin Community Development Block Grant Program. This year we are requeSting a total of$50,000 to support our emergency shelter. We are very grateful for the support that the City of Elgin has given us in the past, and we hope that the city will continue to commit to our program, aS we feel we have shown we are the most cost effective and successful answer our community has to the problem of homelessness. Despite economics troubles and an ever groWing poverty level PADS has managed to reduce the number of chronically homeless clients from 53%to 28%over the past 3 years and last year our successful placement rate for Clients was 73%, nearly 2.5 times the national average. However,the number of children in our shelter each night continues to rise. In the first half of the 2010-2011 shelter season we have seen 150% more children than we did in all of last year. It is because of the fact that a response to homelessness is an ongoing need in our community that we ask you to continue to support our program and the work that we do to fulfill our mission. I have enclosed in this package our application which includes our most recent audit. If you have any further question or would like to schedule a tour of our facility please contact us at 847-608-9744. Thank you again for your consideration and your continued commitment to breaking the cycle of homelessness in our community. Sincerely , 7------, Brittany Mitchll Special Projects Coordinator, PADS of Elgin, Inc. 1730 Berkley Street• Elgin,Illinois 60123 • Phone: 847.608 9744• Fax:847.608.9746 www.padsofelain.org• PADS of Elgin Inc.is a 501 (C)3 IR recognized organization . . � PROPOSAL APPLICATION FOR CD8GFUN=|NG: THE COMMUNITY DEVELOPMENT BLOCK GRNT(CDBG) / ^ ENTITLEMENT PROGRAM �L � � �6:1, ' �5' +� ~- � x�� FISCAL YEAR 2O11 '° ~� "�/ JUNE 1,IO11THROUGH MAY 31, ZDZ � � of PADS nso zoc Organization Name: ' � | `' Project Name: Project Address: 1730 Berkley St. ozsin, IL 60123 Exec Director Name: Dennis Hewitt | Address: 1730 Berkley St. Elgin, IL 60123 Telephone#: 847'608-9744 Fax#: 847-608-9746 Email Address: dhh=witt@pausocezein.org Website : www.gwdaofczgio.org Employer(|RS) |D#: 36-3e95063 DUNS#: 136471153 Contact Name: Brittany Mitchell Title: Special nrojepto Coordinator soo oo� ym« ContactTe|ephone#: ' ' Fax#: 8147-608-9746 Contact Email: bm���u�zl��auoozezg�o�»qs Website(if applicable): gadsvzezgio.ors PROJECT FUNDING REQUEST CDBG Funds Requested $ so'o»» Funding Leverage from other Sources $ 45'434 Check the category,which describes the type of funding,requested: -- Hous/ng F-- Pub|icFaci}ity Infrastructure _L Economic �- E- Public Service Other • BRIEF PROJECT DESCRIPTION: Please provide a one-sentence statement about your project—not your Organization. The purpose of this project is to cover costs associated "lc: rent of a facility that provides shelter to oigio ohomeleos men, women and children. City of Elgin CDBG Application FY 2011 Application Page 15 . . [] Slum or Blighted Area: the project is in a designated slum/blight area and the result of this project addresses one or more of the conditions that qualified the area. LJ Spot Blight: the project will prevent or eliminate specific conditions of blight or physical decay outside a slum area. Activities are limited to clearance, historic preservation, rehabilitation of buildings, but only to extent necessary to eliminate conditions detrimental to public health and safety. Examples: historic preservation of a public facility threatening public safety, demolition of a deteriorated, abandoned building. D. Project Category Echeck one]: Fl �� AcquishinnnfRwa/Pnoperty [� �� Disposition of Real Property CI Public Facilities and Improvements (e.g., homeless shelter, water and sewer facilities, flood and drainage improvements, fire protection facilities/equipment, community, senior and health centers, parking, streets, curbs, gutters and sidewalks, parks and playgrounds.) [� �� Privately-Owned Utilities �� �� Public Service(i.e., a new service or an increase in the level of a service) Fl �� RelocationPaymentsandAss}goncetoDispbcedPersnns LJ Removal of Architectural Barriers, Handicapped Accessibility El Hous/ngRehabiUtatknn [� �� Historic Preservation �l �� [ommercia| or Industrial Rehabilitation, including facade improvements and correction of code violations. [� �� 3pecin/ EconomicDeve|opmentorasy|stancetomicro'enterprises. •City of Elgin CDBG Application FY 2011 Application Page 21 ' ' 3. IMPACT ON APPLICABLE GOALS,NEEDS,AND OBJECTIVES The Five-Year Consolidated Plan identifies both priority needs in the community and strategies to address these needs. The need for your proposed project will be determined by identifying how the project impacts upon the adopted Consolidated Plan Priority Needs. . Therefore, applications should provide a clear explanation of how the project impacts upon the adopted Consolidated Plan Priority Needs. Greater consideration will be given to projects that provide a clear description of the project with supporting data and methodology of how the project will meet the Consolidated Plan Priority Needs. Please identify the category arid activity applicable to your proposal, using that table as your guide: Example: /Public Services Activity: Youth Trnsporditinn aHome|essnesa Ack/ityomerecocy su=lt=r' services and advocacy a Infrastructure Activity Affordable Housing Activity a Public Facilities Activity a Planning& Capacity Building Activity The City ofElgin has identified ten strategic goals toreflect the City's ongoing curnmitmenttuthecnmmunity. Greater consideration will be given to projects that provide a clear description of the project with supporting data and methodology of how the project will meet the City's strategic goals. Please identify ALL the categories applicable to your proposal: a A Safe Community a Quality Housing a Neighborhood Vitality 0 River as a Resource a Economic Growth and Diversified Tax 0 Alive Downtown Base 0 Financially Stable City Government o Recreational, Leisure and Cultural 0 Customer Service Opportunities for all Citizens a Diverse Management Staff PROPOSED PROJECT ACCOMPLISHMENTS Please briefly describe proposed accomp{ishment(o)|ffunding isavvardd �Accon�p6�h/nen�� muxtbedesc�be� /� �enn� ofhouseho�� �ervec( served, bus/neoescreote� housing units oeote'�jobs created orpub8cfboV/�esundertaken. Exo67 p/c: This program will serve 485 LMI individuals, this program will create 25 jobs, etc.) I PROPOSED ACCOMPLISHMENTS: This program will serve approximately 450 individuals, and � pzo,iue over 13'000 nights of safe shelter to homeless men, women and children. Please answer the following questions: - L- 450 A. VVhatisthe total etimotednumber ofpeconstobesenxedu'thisp��eo0 B. What is the total estimated number of LMI persons to be serVed by this project? 450 - C. What is the anticipated percentage of LMI persons to be seryed by this project? 100v City of Elgin CDBG Application FY 2011 Application Page 22 4. ACTIVITY DESCRIPTION: Please answer the following questions in the space provided. A. Provide a detailed description of the proposed activity including how the activity will address the community need you have indicated. Identify whether the activity is new,ongoing, or expanded from previous years. In the proposed activity CDBG funds will be used to support the Douglas Hoeft Resource Center, which houses the PADS of Elgin, Inc. emergency shelter. The shelter addresses the consolidated plans priority of "homelessness" by providing a safe place to stay, as well as showers, meals, clothing and hygiene products, and case management and advocacy to the homeless in our community. PADS works diligently to provide these services in the most effective and efficient ways possible. The activity is ongoing, as homelessness is an ongoing need in our community. The PADS program has expanded from previous years with the addition of the SOAR program, which helps qualified individuals apply for social security and disability benefits, and the CHIP program, which is an intensive outpatient program to treat substance abusing homeless individuals. The PADS program is the best solution to the homeless need in Elgin with the best rate of success. B. Identify who will benefit from the proposed activity (e.g. homeless, youth, seniors, disabled, et cetera). If designed to benefit persons of L/M income, describe the process you will use to identify these persons and ensure that the activity meets this objective. (An LMI certification form is included in the RFP Packet). The program will benefit the homeless men, women and families of our community. 100% of persons being served by this program qualify as being of L/M income. This information is verified by case managers at the time of intake into the PADS homeless shelter. C. Identify the accomplishments you intend to achieve with this activity. Provide an activity timeframe/schedule (include start, completion dates,and other significant stages). The accomplishments we intend to achieve include providing safe shelter and services to approximately 450 individuals, over 13,000 safe nights of shelter, and serving approximately 25,000 meals in the Douglas L Hoeft Resource Center during the 2010- 2011 fiscal year. City of Elgin CDBG Application FY 2011 Application Page 23 . . 5. ORGANIZATIONAL CAPACITY Please answer the following questions in the space provided. A. Provide an overview of your organization including length of time lb existence.Attach a list of current officers and board members with terms. The PADS organization was founded in 1989 through a cooperation of many churches in downtown Elgin. As it grew, PADS began operating out of the Salvation Army for several years, eventually moving back to church basements, before opening our own permanent facility in 2007. During this time PADS expanded our months of operation from a seasonal basis, to year round, in order to better serve those who wOuld have no choice but to sleep on the streets during the time the shelter was closed, as Well as maintain consistency in case management programs. B. Describe your organization's experience in successfully conducting this type of activity. Identify any skills,current services, or special accomplishments that demonstrate your capacity for success. The PADS program has been successfully providing shelter and services to Elgin for 21 years, beginning as a humble organization providing refuge from the cold, and becoming an organization operating a year round permanent facility providing shelter, meals, case management and advocacy to our over 400 yearly guests. Of special note is our rate of successful placement for guests during the 2009-2010 shelter season. Our rate of 74% is nearly 2.5 times the national average, combining this with the fact that since opening our permanent facility in 2007 we have reduced our chronid homeless population from 53% to 26%, these statistics clearly show the program's capacity for success. C. Identify the person(s) responsible for program and financial man gement of the activity. Identify all other persons involved in this activity noting whether these po itions are current or new, pending this award. The main individual responsible for the management of the activity is Executive Director Dennis Hewitt. Mr. Hewitt has over 32 years of experience as a business executive and has been the director of PADS since 2003. He was the district administrator and then state coordinator of little league baseball for for 16 years, as well as a a member of the steering committee for the Kane County Continuum of Care, member of the United Way of Elgin Family Matters Council, and the Cook County 16th District Court Family Advisory Council. In 2009 he also received the Maureen Withers Award for Outstanding Contributions in the Field of Mental Health. He is uniquely qualified as both a veteran of the business world and of social service to ensure the responsible administration of these funds. Other persons involved in this activity include Doris Kemph, who has been the administrative assistant of PADS for 7 years. Ms. Kemph will be responsible for gathering statistics ard demographics for the program and currently reports to HUD, City of Elgin, Hanover Township, United Way of Elgin, and FEMA. City of Elgin CDBG Application FY 2011 Application Page 24 D. Identify any other agencies/partners in this activity and define the roles and responsibilities of these partners. PADS of Elgin partners with a large number of other social service agencies in order to ensure the most comprehensive level of services for our guests in need. Those partner agencies include the Ecker Center for Mental Health, the Community Crisis Center, the Renz Center, Greater Elgin Family Care Center. These agencies send counselors and service providers to the Hoeft Resource Center, as well as see PADS clients in their own facilities, as part of the PADS case management program. PADS also partners with the Department of Corrections to provide qualifying individuals with a place to stay after being paroled where they can easily be monitored by parole agents and stay compliant with the terms of their release. E. Demonstrate that the proposed activity is economically feasible and can be implemented in a timely cost effective manner within the proposed program year. The demonstrated history of the PADS program is proof that if funding is provided to help keep the resource center operational, that the services can feasibly be provided. PADS has provided shelter and services for the past 21 years, 3 of those on a full year schedule at our facility. Additionally PADS works hard to ensure that services are provided in the most timely and cost effective manner possible by coordinating with other agencies to cooperate and reduce duplication of services to our shared clients, and by harnessing the power of in kind donations from our supporters. F. Oftentimes projects that receive an award of CDBG funding are actually awarded less than the amount originally requested. This requires the submission of a revised budget and a description of how it will carry out the proposed activity with reduced funding prior to the commitment of any funding. Please indicate here whether your proposed activity could be undertaken with a reduced commitment of funding and if so, please highlight how that would affect the scope of services you are proposing. The PADS program would find it extremely difficult to operate without full funding from the City of Elgin CDBG program. Rent for our facility is the most fundamental expense associated with the services that we provide. PADS receives yearly support from Kane County, Elgin Township, Hanover Township, Elgin United Way, the State of Illinois. federal and private funders, and countless individual donors. However, the vast majority of our clients were residents of the City of Elgin prior to becoming homeless and because of this we sincerely hope that the City of Elgin will support the services that we provide to the homeless members of the community. City of Elgin CDBG Application FY 2011 Application Page 25 ' ' | 6. FINANCIAL � The City encourages CDBG funds to be utilized as gap funding. A gap is defined as the amount of funding necessary to run a program after all other funding sOuoeu have been identified, thus leveraging is very important in the application process. ACTIVITY BUDGET Please answer the following questions in the space provided. you may reference and attach an additional page if necessary. A. Complete the Budget Summary chart. More detailed budgets may be attached (and are strongly recommended)in support of the proposal. 8. Identify sources of leveraged funding for this activity. Include tte status of these funds(i.e. c9sh on hand, grants received, planned fund-raising, etc.). Attach copies of funding commitment letters or other evidence of funding support. C. Leverage—Consideration will be given to the amount of non-CDBG funds committed to the proiect. BUDGET SUMMARY | � L� | Category Breakdown CDBG Leveraged Funds ="uroeof Total Funds Leveraged Funds Personnel* Contractual Services (Specify) Rent&Utilities $50,000 $45.434 soleasios $95,434 Communications Travel ] ' Other Specify: Total CDBGRequest $50,000 Total Other Funds - Grand Tote! | , 95'434 *NOTE: Please complete Budget Detail Chart on page 26 if personnel costs are included in your proposal. City of Elgin CDBG Application FY 201 1 ApplicationPoge26 BUDGET DETAIL This section provides back-up for each line item shown in the Budget Summary Chart. Please make certain this detailed breakdown is consistent with the Program Budget.Round up to the nearest hundred. Please note: A job description for each person must be provided. A Note about the Staff/Salary Breakdown: Please show all proposed staff positions funded with CDBG funds that relate to the proposed activity. If multiple staff members have the same position/title, list separately(For example: Counselor 1, Counselor 2). Use an additional sheet if necessary. You must submit job descriptions with your application for each position title identified below. Is this a Annual Total %Time Spent on _ Total Position Position current or Annual Fringe Annual x this CDBG Cost Requested Title proposed Salary Benefits Salary Project/Program from CDBG position? .Exam le...:....:_,_. • - _ _ _-.- _:- .- ..-_. .-Current:- �= 2SDOf1:`-`�;�-, .S-ODa:•=_<,, 300017-':=->:x-s.; .: ;�._.�0�6:::_;�:=_�:=:.:.,_,__.:,:,��<:Y.__-.1;__D e- • �nibn - x = x = x = x = x x = A. Oftentimes projects that receive an award of CDBG funding are actually awarded less than the amount originally requested. This requires the submission of a revised budget and a description of how it will carry out the proposed activity with reduced funding prior to the commitment of any funding. Please indicate here whether your proposed activity could be undertaken with a reduced commitment of funding and if so, please highlight how that would affect the scope of services you are proposing. City of Elgin CDBG Application FY 2011 Application Page 27 A. THRESHOLD CERTIFICATION in order for your application to be accepted, in addition to the application itself, your organization must submit the following items to the Office of Housing and Community Development no later than 5:00 PM on DECEMEBER 15,2010. El An original application with all questions completed along with one copy that is 3-hole punched and clipped [not bound] of the completed application. (Only the original must include the requested support documents such as the articles of incorporation and the current list of your Board of Directors.) 0 The following attachments/certifications:(if you have not submitted an application in the last two years OR if the information has changed) 0 Articles of Incorporation 'd! Current List of Board of Directors Certified Organization Audit/Financial Statements of most recent year a. Copy of OMB A-133 Audit (Required if $300,000 in aggregate Federal funds expended),or b. Financial statements audited by a CPA(only if not qualified for A-133),or c. Profit and Loss Statement for most recently completed fiscal year and General Ledger printout(only first time applicants or those who do not meet above criteria may submit) ❑ IRS 501(c)(3)Designation Letter(Pending letters will not be accepted) f Current Fiscal Year Agency Budget, including all funding sources ❑ Job Descriptions per budget detail. 43 An Executed Statement of Applicant Form. An Executed Signature Authorization Form. Conflict of Interest Disclosure Form. here firm at this •acket c.5 ain all materials required. 1 Signature and Printed Name Authorized Signer City of Elgin CDBG Application FY 2011 Application Page 28 . . B.STATEMENT OF APPLICANT The undersigned acknowledges the following: 1. That, to the best of its knowledge and belief, all factual information provided is true and correct and all estimates are reasonable. 2. That no revised proposals/applications may be made in connection with this application once the deadline for applications has passed. 3. That the City of Elgin may request or require changes in the information submitted, and may substitute its own figures, which it deems reasonable for any or all figures provided. That the applicant will participate in required interview for project assessment and cooperatively assist in the review process. 4. That, if the project(s) is recommended and approved by the Mayor and City Council,the City reserves the right to reduce and/or cancel the allocation if federal entitlements are cancelled,reduced, or rescinded. 5. The City of Elgin reserves the right not to fund any submittals received. 6. By submission of this application,the organization agrees to abide by the federal regulations applicable to this program, 7. That, if the project(s) is funded, the organization agrees to abide by the City's locally established policies and guidelines 8. That past program and financial performance will be considered in reviewing this application. ( 9. That services are to be provided at no cost to citizens during the grant period. All program income (i.e:fees, repayments,foreclosures,etc.) must be remitted to the City. 10. That, if the project(s) is funded,the City or a designated agency may conduct an accounting system inspection to review internal controls, including procurement and uniform administrative procedures, prior to issuance of payments for projected expenditures. 11. That, if project(s) is funded,the City will perform an environmental review prior to the obligation of funds. 12. That, if a project is funded, a written agreement that includes a statement of work, records retention and reporting, program income procedures, local and federal requirements, circumstances that would trigger grant suspensions and terminations, and reversions of assets would be required between the organization and the City. 13. That a project's funding does not guarantee its continuation in subsequent action plans. 14. Provide written signatory authority from the organization's governing body indicating who can execute contracts and amendments on its behalf. Statement of Applicant continued on following page. City of Elgin CDBG Application FY 201 } Application Page 29 15. Agrees to abide by the City of Elgin's Conflict of Interest policy. Items of concern would include staff members serving on the Board of Directors, staff members' families serving on the Board of Directors, and other matters that may give the appearance of a conflict of interest. PENALTY FOR FALSE OR FRAUDULENT STATEMENT U.S. Code Title 18, Section 1001, provides that a fine of up to$10,000 or imprisonment for a period not to exceed five years, or both, shall be the penalty for willful misrepresentation and the making of false,fictitious statements,knowing same to be false. By ' nature below,the applicant acknowledges the above in its name on this / 3 fC day of („y• ,2010. P )TJScc I xis Name of Organizaon By: i � (Signature) 4 Qc ‘. ,�q.c.1ir (Title) City of Elgin CDBG Application FY 2011 Application Page 30 . . ^ C. SIGNATURE AUTHORIZATION FORM � � The Board of Directors of q^\�i�\ O` ��u ' //X^ . does hereby resolve that on (Date), the Board reviewed the Application for Community Development Block Grant Funds to be submi-tted to the City of Elgin Community Development Department for funding consideration for the fiscal year 2011 and in a proper motion and vote approved this application for submission. The Board further certifies that the organization making this application has complied with all applicable laws and regulations pertaining to the application and is a non-profit organization, tax-exempt and incorporated in the State of Massachusetts. OL2 � \�� (Name of organization requesting CDBG funds) hereby proposes to provide the service's-or project identified in the Scope of Services in accordance with this application for Community Development Block Grant Funds. If this application is approved and this organization receives CDBG funding from the City of Elgin, this organization agrees to adhere to all relevant Federal, State and local regulations and other assurances as required by the City. Furthermore, as the duly authorized representative of the organization, I certify that the organization is fully capable of fulfilling its obligation under this application as stated herein. I further certify that this application and the information contained herein are true, correct and complete. I also authorize the following person(s)to have signatory authority regarding this grant: p `L ' L�_JTl/ }-C -Cg~q/ Name Title � ' ^ ' � . ' , Name Title President/Board ofDirectors*.rother authorized person) PENALTY FOR FALSE OR FRAUDULENT STATEMENT U.S. Code Title 18' Section 1001' provides that a fine of up lo $10,000or irnprisonrneni � | for a period not to exceed five years, or both, shall be the penalty for willful misrepresentation and the making of false, fictitious statements, knowing some to be false. _______ _— City of Elgin CDBG Application FY 201 C instructions Page 27 Conflict of Interest The standards in OMB Circular A-110, Subpart C, provide that no employ-e, officer, or agent shall participate in the selection, award, or administration of a contract supported by Feder.' funds if a real or apparent conflict of interest would be involved.Such a conflict would arise when an employee,officer, or agent,any member of his or her immediate family, his or her partner, or an organization which emsloys or is about to employ any of the parties indicated herein,has a financial or other interest in the firm selectee for an award. The CDBG regulations at 24 CFR 570.611 and HOME regulations at 24 CFR '2.356 provide that no person who is an employee, agent, consultant, officer, or elected official or appointed official of the recipient or subrecipient that are receiving CDBG or HOME funds and (1) who exercises or has exercis-d any functions or responsibilities with respect to activities assisted with CDBG funds; or (2) who is in a positi•n to participate in a decision-making process or gain inside information with regard to these activities, may oetain a financial interest from a CDBG- assisted or HOME-assisted activity, or have any interest in any contract, subcontract, or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with horn they have family or business ties, during their tenure or for one (1)year thereafter. A disclosure of the nature of any perceived or actual conflict must be math prior to the execution of agreements utilizing CDBG or HOME. IF NO CONFLICT EXISTS,COMPLETE THE FOLLOWING: I certify that no conflict of interest exists between the City of Elgin and (name of organization) PADS of Elgin, Inc. I certify that no conflict of interest exists between the subcontract.rs of and (name of organization) IF A POTENTIAL CONFLICT EXISTS,COMPLETE THE FOLLOWING: I certify that a potential conflict of interest may exist between the City of Elgin and(name of organization) I certify that a potential conflict of interest may exist between (na e of subcontractor) and(name of organization) Describe the nature of the conflict of interest below. Identify the individu:1,employment and the conflict or potential conflict,and their affiliation with your organization. gKi ' roNr Signature of Authorized Agency Official Date Dennis Hewitt, Executive Director Typed Name and Title City of Elgin CDBG Application FY 2010 Instructions Paae 27 COMMERCIAL BUILDING SUBLEASE CM' THIS LEASE AGREEMENT executed this Iti day of '-4/-tx-Ai 2007, by and between P.A,D.S. OF ELGIN, INC., an Illinois not-for-profit corporatin (hereinafter referred to as "Lessor") and Wayside Cross Ministries an Illinois not-for-profit corporation (hereinafter referred to as "Lessee"). Berkley Court Properties, L.L.C. will hereinafter be referred to as"owner". WITNESSETH: Article 1. PREMISES. Lessor, for and in consideration of the covenants and agreements hereinafter mentioned to be kept and performed by Lessee, hereby leases to Lessee a portion of the real estate commonly known as 1730 Berkley Court, Elgin, Illinois, and legally described in Exhibit "A"attached hereto and made a part hereof together with the benefit of all easements appurtenant thereto ("Building"). That portion of the Building being leased hereunder is identified as two offices in Unit A (Director's office and shared office) and shared smoking area; Unit B (minus one storage room) and shared conference room, computer networking, laundry and shower rooms; this is approximately thirty percent(30%) of the Building, a depiction of which is attached hereto as Exhibit B which shall hereinafter be referred to as the "Leased Premises." Article 2. TER. !. 2.1 The original term of the Lease shall be for five (5)years 2.2 Lessee shall have the right to request an extension of this Lease for two (2) additional periods of five (5) lease years, provided it gives written notice thereof to Lessor at least six (6) months prior to the inception of each such additional period. Such extensions shall be dependent upon concurrence of Lessor and shall be exercisable only if Lessee is in good standing and all rents payable hereunder have been paid in full up to the date that the notice of extension is given. Article 3. BASE RENT. 3.1 Lessee agrees to pay $2,743 to Lessor (45% of Lessor's rent], as rent covering shared space in Units A&B of the Leased Premises for 2007. During a term of five (5) years, rent is payable monthly on the first day of each month. The base rent shall be increased on January 1 of each year by three percent (3%)per annum during any additional lease years: MONTHLY RENTAL PATE 2007 (6 months) $2743 2008 $2825 2009 $2910 2010 $2997 2011 $3087 2012 (6 months) $3180 3.2 Lessee agrees to pay $583 to Lessor (60%of Lessor's rent], as rent covering shared space in Unit C of the Leased Premises for 2007. During a term of five (5)years, rent is payable monthly on the first day of each month. The base rent shall be increased on January 1 of each year to the rates listed below: MO. RENTAL RATE (unit C) UNIT C TOTAL A, B & C 2007 ($5sf) (6 months) $583 $3326 2008 ($5.50sf) $641 $3465 2009 ($6sf) $700 $3610 2010 ($6.50sf) $758 $3755 2011 ($7sf) $816 $3903 2012 (S7sf) (6 months) $816 $3996 7/11/2007 Pagel Lessor, as rent for the Leased Premises for the term •ften (10) years and one month (Units A&B) and for the term of nine (9) year- and seven and one-half (7.5) months (Unit C) the total sum of Nine Hundred Seventy Three Thousand Seven Hundred Seventy and 75/100 dollars ($973,7 0.75) payable monthly on the first day of each month as follows in Column C: RENTAL TOTALS COLUMN 1 COLUMN 2 COLUMN 3 Units A&B(10,600 sf) Unit C(2332 sf) Units A-C(12,932 sf) Monthly 04/15/07- Term Monthly Annual 12/31/07 •nnual Monthly Annual 12/01/06 to 12/31/06 $6,095.00 $ 6,095.00 $ 0.00 0.00 $6,095.00 $ 6,095.00 01/01/07 to 12/31/07 6,095.00 73,140,00,sic 2i1,544 911)- 7,282.50 -7756-1-4a 1044 80,422.50 01101/08 to 12/31108 6,277.85 75,334.20 1,000.13 12,001.56 7,277.98 87,335.76 01/01/09 to 12131/09 6,466.19 77,594.23 1,030.13 12,361.61 7,496.32 89,955.83 01/01/10 to 12/31/10 6,660.17 79,922.05 1,061.04 12,732.46 7,721.21pW 92,654.51 01/01/11 to 12/31/11 6,859.98 82,319.71 1,092.87 13,114.43 7,952.85 95,434.14 01/01/12 to 12/31112 7,065.78 84,789.31 1,125.66 13,507.86 8,191.43 98,297.17 01/01/13 to 12/31113 7,277.75 87,332.98 1,159.42 13,913.10 8,437.17 101,246.08 01/01/14 to 12/31/14 7,496,08 89,952.97 1,194.21 14,330.49 8,690.29 104,283.46 01/01/15tol2/31/15 7,720.96 92,651.56 1,230.03 14,760.40 8,951.00 107,411.97 01/01/16to12/31/16 7,952.59 95,431.11 1,266.93 15,203.22 9,219.53 110,634.33 TOTAL $844,563.13 129,207.62 $973,770.75 (d) Article 41 the first sentence is aended to say: To secure the faithful performance by ;ssee of all of the covenants, conditions and agreements in this lease, Lessee shall deposit with Lessor the sum of Twelve Thousand One Hundred inety Dollars ($12,190) for Units A&B and the sum of One Thousand Nine Hun•red Forty Two Dollars ($1,942) for Unit C. *AMENDMENT 2 (Article 4.1) the second paragraph is . i ended to say: For the overnight occupancy of homele-s persons and related sanitary facilities and office space, storage space an. related social services including, but not limited to those described on the Exhibit D. dja\rer\berkley.pads.lease.amd2 -2- P.A.D.S. OF ELGIN, INC. - BOARD OF DIRECTORS NAME ADDRESS & HOME WORK F AX/EMAIL TELEPHONE TELEPHONE/CELL ADDRESS Susan Angell-Case 202 Atwell Street Cell— 847-452-8831 312-592-2229 Realtor® Elgin, IL. 60124 Baird & Warner Secretary(W/05) Ron Barkby 37W240 Olwin Drive Cell— 847-812-0466 RBARKBY0),comcast.net Consultant Elgin,IL. 60124 President(10/05) 847-742-3138 Charles Falls 18 Villa Street Work- 847-931-5800 847-931-5801 President Elgin, IL. 60120 cfallsademicooper.com Demi & Cooper Advertising(11/07) Dan Fox 890 Douglas Cell—847-217-5650 nigelfoxxgaol.com Consultant Elgin, IL. 60120 Fox & Waters 847-695-8706 Leader Training (10/05) Doug Kramp 31 S. Union krampdc@yahoo.com Scientist/Engineer Elgin, IL. 60123 Retired 847-741-4903 Vice President (10/05) Joyce Lueth 165 S. Randall Road Work— 847-622-8800 jluethriZfirstcombank.com Vice President Elgin, IL. 60123 Cell— 847-337-4585 First Community Bank 847-658-4528 Treasurer(6/08) Clemon McCullough 507 N. Liberty Street 847-695-7757 onerevclem(d)live com Second Baptist Church Elgin, IL. 60120 (4/10) 847-346-7757 Emi Morales Salzar 559 Columbia Cell — 847-452-2865 nmoralela.,vahoo.com Attorney (8/09) Elgin, IL. 60120 Sue Moylan(10/05) 1879 Banks Drive suebill1965(1.4sbcg1obal.net Elgin, IL. 60123 847-888-0056 Debbie McGuire 1025 N. So. Elgin Blvd Work— 847-695-0484 x321 darn129540'raol.com Ecker Center So. Elgin, IL. 60177 Cell— 847-533-1954 (home) )0/10 847-531-5990 10/25/10 P.A.D.S. of Elgin Inc. 2010-2011 Operations Budget 2010-ii INCOME Liatmlatn Parking Messiah 4,500 Dinner Dance 62,000 Spring Fundraiser 2,500 Summer Fundraiser 2,500 Thomas 10,000 Total Fund Raisers 81,500 Contribution Income Individual Contributions 34,000 Business/Corporations 17,000 Churches 27,000 Organizations 2,200 Other Income 4,620 Interest Income 4,500 Memorials 350 • 0th Contrib.(Fndtns/Trsts) (GVF) 1,800 Sub-Lease Income(Wayside) 40,950 Total Contribution Income 132,420 Grants DCEO 10,000 • CDBG Kane Co 40,000 Elgin Township 20,000 City of Elgin 24,930 United Way of Elgln 40,000 Other(gov10 DHS 37,475 FEMA 12,400 Hanover Township 15,000 ECC Work Study 6,500 Elgin CDBG 50,000 Total Grants 256,305 TOTAL INCOME 470,225 • 1 12 P.A.D.S. of Elgin Inc. 2010-2011 Operations Budget EXPENSES 5000 •Shelter Services 5101•Auto Transportation expense 1,000.00 5102 •Client Assistance 5102.01 •Misc Medical 1,500.00 5102.02•Transportation 7,000.00 5109 •Program Supplies 5109.1.0*Site Supplies 9,000.00 5112 Site Maintenance 4,000.00 5109.12 •DHS Check Off 0.00 5109.1.3• DCEO 0.00 6000 •Management& General 6105• Telephone expenses/Utilities 18000.00 6100 •Advertising expenses 600.00 6101• Bank Fees 120.00 6102• Equipment Rental+ Purchases 2,500.00 6103•Salary&Wages 246,900.00 6119-1 Employee Health Benefits 18,000.00 6106• Dues and Subscriptions 1,000.00 6108• Office Expense 725.00 6109-Outside Services 3,300.00 6110•Accounting/Bookkeeping Svc 17,000.00 611.1• Rent 95,000.00 6114• Meetings&Meals 450.00 6115•Printing and Reproduction 500.00 6116W Donations 500.00 6117• Education&Seminars 1,500.00 6118• Postage and Delivery 1,200.00 611.3.Miscellaneous 120.00 6119-2 Other Insurance Expense 14,000.00 7000 •Special Events 7000,05-Auction Expenses 16,000.00 7000.02 •Outside Services 8,500.00 7000.04•Food Expenses 500.00 7000.09•Garage Sale Expenses 0.00 7000,10-Spring Fundraiser 310.00 7113,10•Thomas the Train 1,000.00 TOTAL EXPENSES $ 470,225 212 P.A.D.S. OF ELGIN, INC. {a non-profit corporation) AUDITED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2009 if CONTENTS PAGE Basic Financial Statements Independent Auditors' Report 1 i - Statements of Financial Position 2 Statements of Activities 3 Statements of Cash Flows 4 Statements of Functional Expenses 5 Notes to Financial Statements 6 - 11 /004tpie,17,MuEuEI & C., LLP MUELLER. CONSULTING, LLC: 2230 Point Blvd., Suite 700 • Elgin, Illinois 60123 847.888.8600 Fax:847.888.0635 www.MuellerCPA.com INDEPENDENT AUDITOR'S REPORT To the Board of Directors P.A.D.S. of Elgin, Inc. Elgin, Illinois We have audited the accompanying statement of financial position of P.A.D.S. of Elgin, Inc.(a nonprofit organization) as of June 30, 2009, and the related statements of activities, cash flows, and functional expenses for the year ended June 30, 2009. These financial statements are the responsibility of P.A.D.S. of Elgin, Inc.'s management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of P.A.D.S. of Elgin, Inc. for the year ended June 30, 2008 were audited by other auditors whose report, dated October 6, 2008, expressed an unqualified opinion on those statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the 2009 financial statements referred to above present fairly, in all material respects, the financial position of P.A.D.S. of Elgin, Inc. as of June 30, 2009, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. 4, LLP Elgin, Illinois October 16, 2009 -1- Certified Public Accountants■Management Consultants Offices in Elgin,St Charles,Oakbrook Terrace,and Chicago P.A.D.S. OF ELGIN, INC. STATEMENTS OF FINANCIAL POSITION JUNE 30, 2009 AND 2008 ASSETS 2009 2008 Current assets: Cash and cash equivalents $ 249,498 303,667 Certificate of deposit 76,051 - Accounts receivable - 10,483 Pledges receivable 35,344 - Prepaid insurance 4,252 3,579 Total current assets 365,145 317,729 Property and equipment: Site development - 62,061 Automobiles 19,370 19,370 Equipment • 19,518 19,518 Leasehold improvements 489,372 489,372 528,260 590,321 Less accumulated depreciation and amortization (122,843) (121,849) 405,417 468,472 Other assets - Security deposit 14,132 14,132 $ 784,694 800,333 The accompanying notes are an integral part of the financial statements -2- LIABILITIES AND NET ASSETS 2009 2008 Current liabilities: Accounts payable 650 Accrued expenses 10,160 9,092 Deferred revenue 3,466 Total current liabilities 10,160 13,208 Noncurrent liabilities - Security deposit 6,752 6,752 • Net assets: Unrestricted: Board designated assets 93,504 88,965 Undesignated 638,934 681,408 732,438 770,373 Temporarily restricted 35,344 10,000 767,782 780,373 $ 784,694 800,333 P.A.D.S. OF ELGIN, INC. STATEMENTS OF ACTIVITIES YEARS ENDED JUNE 30, 2009 AND 2008 2009 TEMPORARILY UNRESTRICTED RESTRICTED TOTAL Revenues: Grants-government $ 224,698 35,344 260,042 United Way allocation 25,000 - 25,000 Interest income 4,892 - 4,892 Rental income 42,248 - 42,248 Miscellaneous income 307 - 307 Net assets released from restrictions - satisfaction of program restrictions 10,000 (10,000) - - Total revenue 307,145 25,344 332,489 Public support: Contributions 88,252 - 88,252 Contributions- capital campaign - - - In-kind donations 43,065 - 43,065 Special events (net of expenses of $29,857 in 2009 and $24,123 in 2008) 52,179 - 52,179 Total public support 183,496 - 183,496 Total revenue and public support 490,641 25,344 515,985 Expenses: Program services 389,779 - 389,779 Management and general 97,894 - 97,894 Fundraising 40,903 - 40,903 Total expenses 528,576 - 528,576 Change in net assets (37,935) 25,344 (12,591) Net assets, beginning of year 770,373 10,000 780,373 Net assets, end of year $ 732,438 35,344 767,782 The accompanying notes are an integral part of the financial statements -3- • 2008 TEMPORARILY UNRESTRICTED RESTRICTED TOTAL 299,335 299,335 13,000 - 13,000 6,956 6,222 13,178 40,612 - 40,612 607,893 (607,893) 668,461 (302,336) 366,125 119,601 - 119,601 7,800 7,800 39,804 - 39,804 81,837 - 81 ,837 241,242 7,800 249,042 909,703 (294,536) 615,167 387,405 - 387,405 159,200 - 159,200 41,962 - 41,962 588,567 - 588,567 321,136 (294,536) 26,600 449,237 304,536 753,773 770,373 10,000 780,373 P.A.D.S. OF ELGIN, INC. STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2009 AND 2008 2009 2008 Cash provided by (applied to) operating activities: Change in net assets $ (12,591) 28'800 Adjustments to reconcile change in net assets to net cash provided by (applied to) operating activities: Depreciation and amortization 63.055 135,913 Changes in: Accounts receivable 10'483 (10'483) Pledges receivable (35,344) 82'500 Prepaid insurance (673) 1,164 Accounts payable (650) (219'767) Accrued expenses 1'068 Deferred revenue (3'466) 3,466 Security deposit ' 100 • 21,882 19'483 Cash applied to investing activities: Purchase of certificate of deposit <76,091> ' Purchases of property and equipment (112'206) (76'051) (112'206) Cash provided by (applied to) financing activities: Proceeds from line of credit ' 150'000 Repayments on line of credit (300'000) - (150'000) Net decrease in cash {54'169} (242,713) Cash and cash equivalents, beginning of year 303'667 546'380 Cash and cash equivalents, end of year $ 249'498 303'607 Other cash flow information - Interest paid The accompanying notes are an integral part of the financial statements -4- _____ P.AJD.S. OFELGIN, INC. STATEMENTS OF FUNCTIONAL EXPENSS YEARS ENDED JUNE 3O' 2003AND 2n0O | 2009 MANAGEMENT PROGRAM Amo ] SERVICES GENERAL FUNDRAISING TOTAL Salaries, wages and other compensation $ 149,524 50,574 19'780 219'888 Employee benefits 6'963 738 10'550 Payroll taxes 11,429 1,513 76'808 � Total salaries and related expenses 167.916 5r'2DS 22'041 247,246 Advertising 747 - - 747 Bank fees 581 - 581 Donations 695 � ' - 695 Equipment rental 752 [ '253 501 2,506 General insurance 6'570 1'842 - 8,212 In-kind expense 43.065 - - 43,065 -Interest expense ' - - - �oenuevand oubauhptiono -� 55q - 550 • kAewdngaand emp�yeooducabnnexpense ' 825 206 1,031 Office supplies 986 329 329 1,644 Payroll processing fees ' 959 - 959 Postage and shipping 1,041 625 416 2,082 Printing and reproduction 1,046 - - 1'046 Professional fees - 1 '582 5'826 22.408 Program supplies 24,133 - - 24,133 Rent expense 70'818 8'865 8,865 88.646 Storage expense ' ' - - Utilities 11'604 1,458 1'458 14'580 Transportation expense 5,390 - 5'390 'L 334.921 eo'358 39'642 465'521 Depreciation and amortization 54,858 [6,936 1,261 63/055 Total expenses $ 389,779 9+7'894 40'903 528'576 The accompanying notes are an integrapart of the financial statements '^' 2008 MANAGEMENT PROGRAM AND SERVICES GENERAL FUNDRAISING TOTAL 140,351 48,048 17,403 205,802 6,147 2,532 608 9,287 11,086 3,795 1,375 16,256 157,584 54,375 19,386 231,345 - 556 - 556 681 - - 681 737 1,230 492 2,459 11,875 2,969 - 14,844 39,804 - - 39,804 18,066 - 18,066 675 - 675 - 1,750 438 2,188 781 781 390 1,952 1,777 - 1,777 645 644 322 1,611 40 - - 40 - 16,811 5,866 22,677 20,005 - - 20,005 36,906 39,326 9,832 86,064 557 446 112 1,115 8,736 6,916 2,548 18,200 6,661 - - - 6,661 285,012 146,322 39,386 470,720 102,393 12,878 2,576 117,847 387,405 159,200 41,962 588,567 ' ' P.A.D.S. OF ELGIN, INC. �� NOTES TOBNAN[IAL STATEMENTS NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES P.A.D.S. of Elgin, Inc., is an Illinois non-profit organization, which operates an overnight homeless shelter. A summary of the significant ntiioioa of the Organization is presented below to assist the reader in evaluating the financistatements. Support and Expenses Contributions received and unconditional promises to give are measured at their fair values arid are reported as increases in net assets. The organization reports gifts of cash and other assets as restricted support if they are received with domor stipulations that limit the use of the donated assets, or if they are designated as ouppprt for future periods. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose ' restriction is uuuonmpUuhod, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activity as net assts released from restrictions. Donor-restricted contributions whose restrictions are met in the same reporting period are reported as unrestricted support. The organization reports gifts of goods and equipment as unretricted support unless , explicit donor stipulations specify how the donated assets mut be used. Giftyoflpng' long- lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about hlong those long-lived assets must be maintained, the organization reports expirationof donor restrictions when the donated or acquired long-lived assets are placed in service. | Expenses are recorded when incurred in accordance with the accrual basis of accounting. Donated Services A substantial number of volunteers have donated services to l' A.D.S.'s program services andfund'raioinQuarnpaignodurinQtheyaor| hovxever' thesedomatedsmn/\omuarenot reflected in the financial statements since the services do not require specialized skills as defined by generally accepted accounting standards. Materials and other assets received as donations are recorded nd reflected in the accompanying financial statements at their estimated fair value at the date of receipt. -6- I ^ ------ -- ' ` P.A.D.S. OF ELGIN, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 1 SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Investments Investments consist of certificates of deposits and are carried at market value, which approximates cost. Pledges and Accounts Receivable The Organization carries its grants and accounts receivable at the outstanding principal balance adjusted for any allowance for doubtful accounts. The allowance for doubtful accounts is estimated based on the Organization's historical bad debt experience, the aging of the receivables and based on management's judgment. Accounts deemed uncollectible are charged to the allowance for doubtful accounts. No allowance for doubtful accounts was deemed necessary at June 30, 2009 and 2008. Property and Equipment Property and equipment is stated at cost or if donated, at the approximate fair market value at date of donation. Depreciation is computed over the estimated useful life of the assets using the straight-line method, ranging from 3 to 9.5 years. Major additions are capitalized while replacements, maintenance and repairs, which do not improve or extend the lives of the respective assets, are expensed currently. Cash and Cash Equivalents For the purposes of the statements of cash flows, the Organization considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. Accordingly, the certificate of deposit is not considered cash equivalents. Designated Fund Balances Designated net assets represent amounts that have been designated for specific purposes by the Organizations Board of Directors. Financial Statement Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. -7- . . P.A.D.S. OF ELGIN, INC. NC]TE8T�� FINANCIAL STATEMENTS (CONTINUED) NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES. CONTINUEL Concentration of Credit Risk The Organization maintains its cash in bank deposits which, at times, may exceed federally insured limits. The Organization believes it is not exposed to any significant credit risk on cash. NOTE 2 - PLEDGES RECEIVABLE Pledges receivable are expected to be collected within the nextyoar and are included in temporarily restricted net assets. NOTE 3 - FUNCTIONAL EXPENSES The costs of providing the various programs and other activitiehave been summarized on a functional basis. Accordingly, certain costs have been aUooeted among the programs and supporting services benefited. NOTE 4 - TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted not assets at June 30, 2009 and 2008 consisted of the following: 2009 2O( D Hanover Township $ 11'250 ' United Way of Fox Valley 14'094 ' CDBG Kane 10j000 10.0OO $_ 36.344 10.900 NOTE 5 - TAX STATUS P.A.D.S. is exempt from income taxes under Section 601{c}(3) of the Internal Revenue Code. -8- ' -- . P.A.D.S. OF ELGIN, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6 - LOAN PAYABLE P.A.D.S' entered into a non-secured loan agreement with the City of Elgin in April 2007 for $300'000. The bank issued $150,000 of the loan to P.A.D.S. during the year ended June 30, 2007' No interest was to accrue on the unpaid balance prior to the maturity date of May 31, 2009; however the loan was subject to a 9% rate of interest on any unpaid balance that existed after the maturity date. The loan was recorded at the present value of the estimated future cash payments. The discounts on those amounts were computed using the 9% rate of interest that the loan was subject to after the maturity date. Amortization of the discount was included in interest expense. P.A.D.S. paid the entire loan during the year ended June 30, 2003' ( NOTE 7 - BUILDING LEASE During December 2006 the Organization entered into an operating lease for its office and housing space. The lease required initial monthly rental payments of $6,21 2 with yearly increases beginning January 1, 2008. Dur/ngApri|.2O07 the Organization leased additional space from the landlord and the original lease was amended to include the additional rental. The amended lease requires additional monthly rental payments of $971 with yearly increases beginning January 1, 2008. The leases expire on December 31, 2018. Rent expense under these lease agreements for the years ended June 30, 2009 and 2008 was $88,646 and 886,064' respectively. The aggregate future minimum lease commitment for these leases as of June 30, 2009 is as follows: 2010 91,305 2011 94'044 2012 96'866 2013 99,772 2014 102'765 Thereafter 270'188 $ 7_4.94O P.A.D.S. OF ELGIN, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 8 - SUBLEASE AGREEMENT P.A.D.S. entered into a sublease as lessor in July 2007. The sublease requires initial monthly rental payments of $3,326 with yearly increases beginning January 1, 2008. The sublease expires in June 2012. Rental income under this sublease agreement for the years ended June 30, 2009 and 2008 was $42,248 and $40,612, respectively. The aggregate future minimum lease receipts to be received under this operating lease at June 30, 2009 is as follows: 2010 $ 44,190 2011 45,948 2012 47,394 $ 137,532 NOTE 9 - FAIR VALUE MEASUREMENTS Financial Accounting Standards Board Statement No. 157, Fair Value Measurements (FASB Statement No. 157), establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The th ee levels of the fair value hierarchy under FASB Statement No. 157 are described below: Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Organization has the ability to access. Level 2 Inputs to the valuation methodology include: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets • Inputs other than quoted prices that are observable for the asset or liability • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. -10- P.A.D.S. OF ELGIN, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 9 - FAIR VALUE MEASUREMENTS, CONTINUED Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at June 30, 2009 and 2008. Interest-bearing cash and certificates of deposit: Based on value of cash or certificate at year end. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Organization believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Within the fair value hierarchy, the Organizations assets consisted of Level 1 inputs which had fair values of $325,549 and $303,667 as of June 30, 2009 and 2008, respectively. NOTE 10 - SITE DEVELOPMENT During the year ended June 30, 2009, the Organization offset $62,061 of site development costs and accumulated depreciation. These costs were incurred in prior years when the organization was pursuing construction of its facilities. In the year ended June 30, 2008, site development costs were fully depreciated as the Organization entered into a lease agreement for its facilities. NOTE 11 - RECLASSIFICATIONS Certain amounts in the 2008 financial statements have been reclassified to conform with the year 2009 presentation. -11- PAID S OF ELGIN, INC. „ 1, Public „ionto Deliver Sheller 2i)4 y 11/0 December 14, 2010 Jennifer Fritz-Williams Elgin Planning and Neighborhood Services Department, CIDIG Program 150 Dexter Court Elgin,IL 60120 Dear Ms. Fritz-Williams, PADS of Elgin, Inc.is pleased to submit this application to the City of Elgin Community Development Block Grant Program. This year we are requesting a total of$50,000 to support our emergency shelter. We are very grateful for.the support that the City of Elgin ha S given us in the past, and we hope that the city will continue to commit to our program, as iwe feel we have shown we are the most cost effective and successful answer our community has to the problem of homelessness. Despite economics troubles and an ever growing poverty level PADS has managed to reduce the number of chronically homeless clients from 53%to 28%over the past 3 years and last year our successful placement rate for clients was 73%,nearly 2.5 times the national average. However,the number of children in our shelter each night continues to rise. In the first half of the 2010-2011 shelter season we have seen 150% more children than we did in all of last year. It is because °tithe fact that a response to homelessness is an ongoing need in our community that we ask you to continue to support our program and the work that we do to fulfill our mission. I have enclosed in this package our application which includes our most recent audit. If you have any further question or would like to schedule a tont of our facility please contact us at 847-608-9744. Thank you again for your consideration and your continued commitment to breaking the cycle of homelessness in our community. Sincerely • Brittany Mitch-11 Special Projects Coordinator,PADS of Elgin, Inc. 1730 Berkley Street•Elgin,Illinois 60123 • Phone: 847.608.9744• Fax:847.608.9746 www.padsofelgin.org•PADS of Elgin Inc.is a 501 (C) 3 IRS recognized organization _ _ . . EXHIBIT B ASSURANCES The SUB-RECIPIENT hereby assures and certifies that it will comply with the regulations, policies, guidelines and requirements with respect to the acceptance and use of CDBG finds in accordance with the ACT and City of Elgin policies. Also, the SUB-RECIPIENT certifies with respect to the rant that: 1. It possesses legal authority to make a grant submission to the City and to execute a community development and housing program; 2. Its governing body has duly adopted or passed as an official ict, a resolution, motion or similar action authorizing the person identified as the official representative of the SUB-RECIPIENT to execute the Agreement, all understandings and assurances contained her in, and directing the authorization of the person identified as the official representative of the SUB-RECIPIENT to act in connection with the execution of the Agreement and to provide such additional inforri ation as may be required. 3. Prior to submission of its application to the City, the SUB-RECIPIENT has: (A) Met the citizen participation requirements of 570.301(b) and has provided citizens with: (1) The estimate of the amount of CDBG funds ii)roposed to be used for activities that will benefit persons of low and moderate income; ad (2) Its plan for minimizing displacement of persons as a result of activities assisted with CDBG funds and to assist persons actually displaced as a result of such activities; (B) Prepared its application in accordance with the policies of the City of Elgin and made the application available to the public; 4. I. The grant will be conducted and administered in compliance with: (A) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352 42 U.S.C. Sec 2000d et seq.) and implementing regulations issued at 24 CFR Part I; (B) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-208), as amended; and that the SUB- RECIPIENT will administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing; (C) Section 109 of the Housing and Community Develbpment Act of 1974, as amended; and the regulations issued pursuant hereto; (D) Section 3 of the Housing and Urban Development Acf of 1968, as amended; (E) Executive Order 11246-Equal Opportunity, as amen ed by Executive Orders 11375 and 12086, and implementing regulations issued at 41 CFR Chap er 60; (F) Executive Order 11063-Equal Opportunity in Housirkg, as amended by Executive Order 12259, and implementing regulations at 24 CFR Part 107; (G) Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and implementing regulations when published in effect; (H) The Age Discrimination Act of 1975 (Pub. L. 94-135), as amended, and implementing 10 regulations when published for effect; (1) The relocation requirements of Title II and the acquisition requirements of Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and the implementing regulations at 24 CFR Part 42, as required under 24 CFR 570.606; (J) The labor standards requirements as set forth in 24 CFR Part 570, Subpart K and HUD regulations issues to implement such requirements; (K) Executive Order 11988 relating to the evaluation of flood hazards and Executive Order 11738 relating to the prevention, control and abatement of water pollution; (L) The flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (Pub. L. 93-234); (M) The Fair Housing Act(42 U.S.C. 3601-20); 5. Its notification, inspection, testing and abatement procedures concerning lead-based paint will comply with 570.608 and 24 CFR Part 35; and 6. When a grant is in excess of $100,000 it will comply with all applicable standards, orders, or requirements issued under Section 308 of the Clean Air Act (42 U.S.C. 1857(h), Section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency regulation (40 CFR Part 15), which prohibit the use under nonexempt Federal contracts, grants or loans, of facilities included on the EPA list of Violating Facilities. The provision shall require reporting of violations to the City, HUD, and to the AESOP Assistant Administrator for Enforcement(EN-329). 7. It has developed its application so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or e1i lination of slums or blight; (the application may also include activities which the SUB-RECIPIENT certi.ies are designed to meet other community development needs having a particular urgency because existi g conditions pose a serious and immediate threat to the health or welfare of the community, and other fins cial resources are not available); 8. It is following the current City of Elgin Consolidated Plan which has been approved by HUD pursuant to 570.306; and 9. It will not attempt to recover any capital costs of public improvements assisted in whole or in part with funds provided under Section 106 of the ACT or with amount resulting from a guarantee under Section 108 of the ACT by assessing any amount against properties ciwned and occupied by persons of low and moderate income, including any fee charged or assessment ade as a condition of obtaining access to such public improvements, unless: (1) funds received under ection 106 of the ACT are used to pay the proportion of such fee or assessment that relates to the capital costs of such public improvements that are financed from revenue sources other than under Title I of the ACT; or (2) for purposes of assessing any amount against properties owned and occupied by low d moderate income persons, the SUB- RECIPIENT certifies that it lacks sufficient funds received un er Section 106 of the ACT to comply with the requirements of subparagraph(1)above. 10. The SUB-RECIPIENT certifies that it will provide a drug-free workplace by: (A) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the SUB-RECIPIENT'S workplace and specifying the actions that will be taken against employees for violation of such prohibition; 11 (B) Establishing a drug-free awareness program to inform e ployees about: (1) The dangers of drug abuse in the workplace; (2) The SUB-RECIPIENT'S policy of maintaining a drug-free workplace; (3) Any available drug counseling, rehabilitation, and employee assistance programs; and (4) The penalties that may be imposed upon emplbyees for drug abuse violations occurring in the workplace. (C) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph(A ; (D) Notifying the employee in the statement required by paragraph (A) that, as a condition of employment under the grant, the employee will: (1) Abide by the terms of the statement; and (2) Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; (E) Notifying the City of Elgin's Community Developmnt Department within ten (10) days after receiving notice under subparagraph (D)(2) from an employee or otherwise receiving actual notice of such conviction; (F) Taking one of the following actions, within 30 day S of receiving notice under subparagraph (D)(2), with respect to any employee who is so convictd: (1) Taking appropriate personnel action against such an employee, up to and including termination; or (2) Requiring such employee to participate sansfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; (G) Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs (A), (B), (C), (D), (E) and (F). 11. It has adopted and is enforcing a policy prohibiting the 1.1e of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations. 12. In regards to lobbying, the SUB-RECIPIENT certifies: (A) No Federal appropriated funds have been paid or yill be paid, by or on behalf of the SUB- RECIPIENT, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or eipployee of Congress, or an employee of a Member of Congress in connection with the awardin of any Federal contract, the making of any Federal grant, the making of any Federal loan, the ntering into of any cooperative agreement, and the extension, continuation, renewal, amendme t, or modification of any Federal contract, grant, loan, or cooperative agreement. (B) If any funds other than Federal appropriated funds hive 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 4n employee of a Member of Congress in connection with the Federal contract, grant, loan, or Cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 12 (C) The SUB-RECIPIENT shall require that the language 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 sub-recipients shall certify and disclose accordingly. This certification is a material representation of fact 41:Jon which reliance was placed when this transaction was made or entered into. Submission of th s certification is a prerequisite for making or entering into this transaction imposed by section 13$2, title 31, U.S. Code. Any person who fails to file the required certification shall be subject tip a civil penalty of not less than $10,000 and not more than$100,000 for each such failure. 13 . • EXHIBIT C EQUAL EMPLOYMENT OPPORTUNITY CERT[FICAT1ON Community Development Block Grant Pro ram City of Elgin The undersigned understands and agrees that it is a SUB-RECIPIENT of the Community Development Block Grant Program of the City of Elgin. The undersigned also agrees there shall be no discrimination against any employee who is employed in carrying out work from the assistance received from the City of Elgin and the Department of Housing and Urban Development, or against any applicant for such employment, because of race, color, religion, sex, age or national origin, including but not limited to employment, upgrading, demotion or transfer; recruitment or recruitment advertising; lay off or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The SUB-RECIPIENT further agrees to the following: (1) It will incorporate or cause to be incorporated into any grant contract, loan, grant insurance or guarantee involving Federally assisted construction work, or modification thereof, which is paid for in whole or in part with funds obtained from the Community Development Block Grant program, the language contained in HUD Equal Employment Opportunity Regulation at 42 CFR 130.15(b), in Executive Order 11246, as amended by Executive Orders 11375 and 12006, and implementing regulations issued in 41 CFR Chapter 60. (2) It will be bound by said equal opportunity clause with respect to its own employment practices when it participates in any Community Development Block Grant Program construction. (3) It will assist and cooperate actively with the City of Elgin, the Department of Housing and Urban Development and the Secretary of Labor in obtaining the coiipliance of contractors and subcontractors with the equal opportunity clause and the rules,regulations andrelevant orders of the Secretary of Labor. (4) It will furnish the City of Elgin, the Department of Housing and Urban Development and the Secretary of Labor such information as they may require for the supervision of such compliance, and will otherwise assist the City of Elgin and the Department of Housing and Urban Development in the discharge of primary responsibility for securing compliance. (5) It will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from oil who has not demonstrated eligibility for government contracts and federally assisted construction contacts pursuant to the Executive Order. (6) It will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the Secretary of Labor, the City of Elgin or the Department of Housing and Urban Development. (7) In the event that SUB-RECIPIENT fails or refuses to compl3) with the undertaking, the City of Elgin, or the Department of Housing and Urban Development may take any or all of the following actions: cancel, terminate or suspend, in whole or in part, this grant, refrain from extending any further assistance to the SUB-RECIPIENT until satisfactory assurance of future comp'iance has been received; and refer the case to the Department of Housing and Urban Development for apiln-opriate legal proceedings. 14 SUB-RECIPIENT: P.A.D.S. of Elgin, Inc. 1730 Ber - reet, Elgin, Illi ois, 60123 BY: OP' Dennis Heit( Executive Director DATE: ATTEST: impr. _ 15 '4 ._EP ._T ;i _ :. _ . WY ELGIN THE CITY IN THE SUBURBS" AGENDA ITEM: C MEETING DATE: September 26, 2012 ITEM: Sub-Recipient Agreement with Public Action to Deliver Shelter of Elgin for 2011-2012 Communi- ty Development Block Grant ($50,000) OBJECTIVE: Provide federal grant funding for an Elgin-based not-for-profit organization providing a safe overnight shelter and connection with support services to homeless individuals and families in the greater Elgin area. RECOMMENDATION: Approve the execution of a Program Year 2011-2012 Community Development Block Grant Sub-Recipient Agreement with Public Action to Deliver Shelter of Elgin in the amount of $50,000. r BACKGROUND In May 2011, city council allocated just over $374,000 in Community Development Block Grant (CDBG) funds to seven projects. CDBG funds come from the federal government, which uses a population and community need-based formula to distribute money to local communities to provide assistance to low and moderate income persons. The city has participated in the CDBG program since 1975, receiving over$25 million in financial assistance since that time. Public Action to Deliver Shelter of Elgin (PADS) will use this $50,000 to pay the monthly costs associated with the lease of the building located at 1730 Berkley Street in Elgin. PADS is a not- for-profit organization providing overnight shelter and case management to homeless individu- als and families throughout the Elgin area. PADS has requested and has been awarded CDBG funds in 2003, 2004, 2007, 2009 and 2010. The organization has complied with all federal re- quirements of the CDBG Grant Program and the city's sub-recipient agreements for the previ- ous years. Each year,the projects selected by city council are incorporated into an action plan, which must be approved by the Department of Housing and Urban Development (HUD). Staff submitted the city's 2011-2012 Action Plan in April 2011 (see Attachment A for a copy of the executive sum- mary of the plan). To acknowledge a 16.5 percent reduction in the federal allocation, the city r submitted an amended 2011-2012 Annual Action Plan to HUD on June 29, 2012 (see Attach- ment B for a copy of the letter to HUD). The amendment was approved on August 21, 2012 (see 411) Attachment C for a copy of the letter from HUD). Each applicant must sign an agreement with the city, which outlines the applicant's obligations as a recipient of federal funds. This agreement with PADS is the second agreement of the 2011- 2012 program year (see Attachment D for a copy of PADS' agreement). OPERATIONAL ANALYSIS Founded in 1989, PADS is dedicated to break the cycle of homelessness by comprehensively addressing the needs of the local homeless population. After several years of searching for a suitable location for a permanent facility, PADS was able, with support from the city, to secure its current location on Elgin's west side. The center, known as the Douglas L. Hoeft Resource Center, was established in July 2007. It functions as both a permanent shelter and headquarters for the organization. The shelter has the capacity to house 55-60 individuals and offers shower and laundry facilities. The shelter also provides meeting space for increased on-site programs such as AA meetings, educational classes, healthcare clinics, counseling sessions and asset- building programs. PADS coordinates its services with its other primary partners in the area including Community Crisis Center, Ecker Center for Mental Health, Renz Addiction Counseling Center, Greater Elgin Family Care Center, Wayside Cross Ministries Center and soup kettles. INTERESTED PERSONS CONTACTED PADS was consulted during the creation of the sub-recipient agreement. FINANCIAL ANALYSIS The overall lease of the building is $95,434. The city's contribution to the project is limited to the $50,000 CDBG grant allocation. PADS is subleasing a portion of the building to cover the remaining cost of rent. BUDGET IMPACT FUND(S) ACCOUNT(S) PROJECT#(S) AMOUNT AMOUNT BUDGETED AVAILABLE CDBG 230-0000-791.30-99 154750 $50,000 $50,000 LEGAL IMPACT None. 2 rib* ALTERNATIVES The city council may choose not to approve the sub-recipient agreement with PADS and reallo- cate the funds to another project. NEXT STEPS 1. Execute a sub-recipient agreement with PADS. 2. Process payment as approved by the agreement. 3. Complete review and monitoring of PADS' clientele file prior to closing out the project to ensure compliance with the national objectives of the program that requires service to low-to moderate-income persons. 4. Request and review quarterly reports from the sub-recipient. 5. Submit annual reports to HUD on the sub-recipient's activities. 6. Prepare sub-recipient files for on-site monitoring by HUD prior to closing out the pro- ject. r Originators: Denise Momodu, Associate Planner Sarosh Saher, Senior Planner Marc Mylott, Community Development Director Final Review: Colleen Lavery, Chief Financial Officer William A. Cogley, Corporation Counsel/Chief Development Officer Richard G. Kozal, Assistant City Manager/Chief Operating Officer Sean R. Stegall, City Manager ATTACHMENTS A. Executive Summary of the 2011-2012 CDBG Action Plan B. Letter to HUD, dated June 29, 2012 C. Letter from HUD, dated August 21, 2012 D. Draft Sub-Recipient Agreement with Attachments 3 Attachment A . EXECUTIVE SUMMARY The City of Elgin's 2011-2012 Community Development Block Grant (CDBG) Program will receive $920,000 to assist Elgin's low- and moderate-income population. These funds will be used to address Elgin's priorities to rehabilitate affordable and special needs housing, assist public facilities, support emergency shelter facilities, and support community planning and capacity-building activities. On March 23, 2011, the Elgin City Council held the Final Public Hearing and approved nine projects for the 2011-2012 Annual Action Plan (One Year Use of Funds). These projects assist the City's low- and moderate-income population, support the ability for individuals and families to become independent and self-sufficient, and promote the City's anti-poverty strategy. Additionally, the projects support the City of Elgin's Strategic Goals to promote a safe community for people, neighborhood vitality, economic growth, quality housing, and efficient services. The projects and budgets are as follows: 1. Residential Rehabilitation Grant Program-$470,955 2. CDBG Grant Administration-$75,000 3. Northern Illinois Food Bank-$75,000 4. Senior Services Associates-$42,500 5. PADS of Elgin-$50,000 6. Association for Individual Development -$53,935 7. Community Crisis Center-$42,850 8. Well Child Center- $64,700 9. Wayside Cross Ministries-$45,060 As specified by the Outcome Performance Measurement System required by the U.S. Department of Housing and Urban Development, Office of Community Planning and Development, each project is assigned an objective that describes the project purpose and the primary outcome that results from the project. Table 1 on the following page summarizes the goals of each activity selected for 2011 CDBG funding. The selected projects are consistent with the Kane County/City of Elgin Consortium 2010-2014 Housing and Community Development Consolidated Plan. Four of the five plan priorities - Housing, Public Facilities, Homelessness and Planning and Capacity Building - will be pursued with 2011 CDBG Program funds. More specifically: Priority 1: Housing Preserve existing units throughout the area served by the Consortium. • Residential Rehabilitation Grant Program- $470,955 1