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HomeMy WebLinkAbout02-313 Resolution No. 02-313 RESOLUTION AUTHORIZING EXECUTION OF A SUBRECIPIENT AGREEMENT WITH CREATIVE ASSISTANCE DEVELOPMENT, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Olufemi Folarin, Interim City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a Subrecipient Agreement on behalf of the City of Elgin with Creative Assistance Development, Inc . for capital improvements at 1640 Mark Avenue, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: September 11, 2002 Adopted: September 11, 2002 Omnibus Vote : Yeas : 6 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk SUB-RECIPIENT AGREEMENT BETWEEN THE CITY OF ELG1N,AND CREATIVE ASSISTANCE DEVELOPMENT,INC. B-17-02-MC-0011 THIS AGREEMENT is made and entered into this 11th day of September, 2002 by and between, CREATIVE ASSISTANCE DEVELOPMENT, INC., a not-for-profit corporation incorporated pursuant to the laws of the State of Illinois, (hereinafter referred to as the "Sub- recipient"),and the CITY OF ELGIN,Illinois,an Illinois municipal corporation,(hereinafter referred to as the "Grantee"or"City"). WHEREAS,Grantee has applied for and received funds from the United States Government pursuant to Title I of the Housing and Community Development Act of 1974,Public Law 93—383,as amended; and WHEREAS,Sub-recipient provides safe and decent housing opportunities for individuals and families whose income falls at or below 80%of the median family income; and WHEREAS, Sub-recipient owns a building located at 1640 Mark Avenue, Elgin,IL 60120 (herein referred to as the`Building")which it leases to the Ecker Center for Mental Health to provide housing for special needs individuals; and WHEREAS,Grantee has determined it to be in its best interest to enter into this Agreement with Sub-recipient to assist Grantee in utilizing CDBG funds totaling $25,000.00 in 2002 CDBG capital funds to renovate the interior and exterior to provide a safe and comfortable environment for the persons residing at the building. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein,the sufficiency of which is hereby acknowledged,the parties hereby agree as follows: 1. Statement of Work A. Activities The Sub-recipient's performance of all the following activities must be performed in a satisfactory manner. Whether performance is satisfactory is determined by the Grantee in its sole discretion. Should Sub-recipient not perform in a satisfactory manner,including but not limited to adhering to the Project Schedule detailed in Section 1C,as solely determined by the Grantee,Grantee may terminate the Agreement and pursue any remedies provided by law including but not limited to suits for breach of contract,or for reimbursement of any and all money paid to Sub-recipient by Grantee. Sub-recipient shall provide services to families whose income falls at or below 80%of the median family income. Sub-recipient will be allocated a total of$25,000.00 in Program Year 2002-2003 funds for the renovation of the building. CDBG funds shall be used for the following; 1. Replace windows, water heaters, reconstruct deteriorated basement walls, install permanently mounted through the wall air conditioner units,repave parking lot,and landscape the exterior. 2. Other costs associated with the above activities as are consistent with the scope and intent of the PROJECT and are pre-approved by the Planning and Neighborhood Services Department. Sub-recipient shall perform their activities in a manner satisfactory to Grantee and consistent with any standards required as a condition of providing these funds and shall comply with all applicable Federal, state, and local statutes, rules and regulations governing such CDBG funds and in accordance with the Project Schedule set forth in Section 1C herein. Such project will include the following activities eligible under the CDBG Program: Activity#1: Sub-recipient and Grantee shall oversee progress of the building renovation. Completed building improvements shall be approved by the Sub-recipient in writing, prior to the City of Elgin's release of payment to the contractor. Grantee shall inspect and approve completed building improvements prior to release of payment to the contractor. Activity#2 Sub-recipient shall submit monthly Construction/Progress Reports to Grantee each month,reporting on the status of the project in relation to the Project Schedule. The reports shall begin upon the signing of the Agreement and shall continue until the project is closed out. The Sub- recipient shall use a form provided by the Grantee and shall include all required information about the clients served each month(by race and the number of female headed households). Activity#3: Sub-recipient shall maintain records in accordance with Section 2 of this Agreement and shall submit semiannual statements to the grantee documenting number of clients and female-headed households served, as required by the U.S.Department of Housing and Urban Development. B. Eligibility and National Objectives Creative Assistance Development,Inc.certifies that the activities undertaken pursuant to this Agreement will be implemented in accordance with CDBG eligibility and national objectives criteria. Sub-recipient is eligible to receive CDBG funds pursuant to 570.208 (a) (3) for improving permanent residential structures,which upon completion,will be occupied by low and moderate income households. For rental housing, occupancy by low and moderate income households must be at affordable at the maximum allowable fair market rents established by HUD to qualify for CDBG funding(see Exhibit A). Rehabilitation of public facilities is eligible for CDBG funding pursuant to 570.202 (a)(2)(b)(2). Labor, materials and other costs of rehabilitating properties, including repair directed toward an accumulation of deferred maintenance,replacement of principal fixtures and components of existing structures and renovation through alterations, additions to or enhancement of existing structures may be undertaken. Creative Assistance Development, Inc.will need to provide documentation that at least 51%of the clients are low and moderate income households. Documentation will need to be provided showing family size and income(see Exhibit A). C. Project Schedule Time is of the essence. Sub-recipient will be responsible for meeting 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 Planning and Neighborhood Services staff. Failure to achieve these deadlines may result in the loss or reduction of grant funds. Milestones Date 1. Bid Specifications Completed 9/02 2. Submit request for Bids 10/02 3. Award a Contract 10/02 4. Construction/Clientele reports Submit monthly beginning 9/11/02 through construction completion and due to Grantee on the first on each month thereafter. Submit Clientele reports semiannually thereafter, March 1 th and September 11 th until 2007. D. Budget 1. Sub-recipient expenditures are not to exceed the following budget as provided by the City of Elgin through the Community Development Block Grant Program: Line Item: Amount: Renovation:Materials and Labor $25,000.00 Total Project Budget $25,000.00 2. For fmal payment work will have been performed in a satisfactory manner and in conformance with the contract. 2. Records and Reports A. Types and Schedules Sub-recipient certifies that it will make all records pertaining to this Agreement available to the Grantee,U. S.Department of Housing and Urban Development,Comptroller General of the United States,or any of their duly authorized representatives,until such time as they are no longer required under this Agreement. Sub-recipient shall maintain the following records which are necessary to guarantee project eligibility and for reporting/monitoring purposes. Sub-recipient will retain all records pertinent to this Agreement for a period of 5 years from the date of this Agreement, starting 9/11/02 and ending 9/11/07. B. Invoices and Payments Grantee will maintain financial management of the program. Payments to contractor(s) will be processed by Grantee upon approval of Sub-recipient and after submittal of timesheets from contractors. 3. Uniform Administrative Requirements Sub-recipient certifies that they will comply with applicable administrative requirements as set forth in 24 CFR part 570.502 (b)(see Exhibit B). These specifically include: 1. OMB Circular A-110,"Uniform Administrative Requirements for Grants and Agreements With Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations", implemented at 24 CRF Part 84(see Exhibit C). 2. OMB Circular A-122 "Cost Principles for Non-Profit Organizations" (see Exhibit D). 3. OMB Circular A-133 "Audits of Institutions of Higher Education and Other Non-profit Institutions"(see Exhibit E). 4. Other Program Requirements Sub-recipient will conduct activities authorized under this Agreement in compliance with all Federal laws and regulations described in 24 CFR Part 570, Subpart K (see Exhibit F). They may not, however,assume Grantee's environmental responsibilities described at 570.604 or assume Grantee's responsibility for initiating reviews required pursuant to 24CFR Part 52 (see Exhibit G). The applicable laws and regulations include: 570.600 General. 570.601 Public Laws 88-352/90-284;affirmatively furthering fair housing; Exec. Order 11063. 570.602 Section 109 of the Act. 570.603 Labor Standards. 570.604 Environmental Standards. 570.605 National Flood Insurance Program. 570.606 Displacement,relocation, acquisition,and replacement of housing. 570.607 Employment and contracting opportunities. 570.608 Lead-based paint. 570.609 Use of debarred, suspended,or ineligible contractors or sub-recipients. 570.610 Uniform administrative requirements and cost principles. 570.611 Conflict of interest. 570.612 Executive Order 12372. 570.613 Eligibility restrictions for certain resident aliens. 5. Suspension and Termination of Agreement This Agreement may, in accordance with the provisions of 24 CFR Part 85.43, be suspended or terminated by Grantee if Sub-recipient materially fails to comply with any term of this award. The award may also be terminated for convenience,in writing,by either Grantee or Sub-recipient,pursuant to 24 CFR Part 85.44,providing a minimum of 30 days prior notice. The Sub-recipient shall repay to the Grantee all funds used for ineligible activities, further described below. 6. Reversion of Assets In the event the services identified in 1. Statement of Work of this Agreement or other eligible services for low and moderate income individuals are no longer provided at the Buildings due to actions by Creative Assistance Development,Inc.,Creative Assistance Development,Inc.shall reimburse the U.S. Department of Housing and Urban Development or the City for all CDBG funds expended for the renovation activities made with CDBG funds in an amount equal to 6.7%for each year and portion of each year remaining on the five-year useful life of the building improvements. The compliance period begins on the date of this agreement. This provision shall not be construed as limiting the Grantee from asserting any claims against Creative Assistance Development,Inc.for the breach of any other terms of this Agreement. Upon project completion as specified in 1. Statement of Work, any remaining CDBG project funds shall be available for reallocation by the Grantee to another eligible CDBG project. If Sub-recipient materially fails to comply with any term of this award,the Sub-recipient shall repay to the Grantee all funds used for ineligible activities. A minimum of 51%of the persons served on an annual basis shall be at or below 80%of the Median Family Income contained in Exhibit A in order for the Sub-recipient to maintain eligibility for the CDBG funds provided for herein. Said income levels shall be updated and revised annually to conform to levels set by the U.S.Department of Housing and Urban Development. Failure to meet the aforementioned minimum 51%threshold shall require Sub-recipient to reimburse Grantee for funds expended,in whole or in part, for renovation activities. Changes in the scope of services,budget, or method of compensation contained in this Agreement, unless otherwise noted,may only be made through a written amendment to this Agreement,executed by the Sub-recipient and Grantee. 7. Indemnification To the fullest extent permitted by law,Sub-recipient agrees to indemnify,defend and hold harmless the City, its officers, employees, boards and commissions from and against any and all claims, suits, judgments,costs,attorney's fees,damages or other relief arising out of or resulting from or through or alleged to arise out of any reckless or negligent acts or omissions of Sub-recipient's officers,employees or agents in the performance of this Agreement. 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. 8. Severability The terms of this Agreement shall be severable. In the event any of the terms or provisions of this Agreement are deemed to be void or otherwise enforceable for any reason, the remainder of this agreement shall remain in full force and effect. 9. Independent Contractor Status This Agreement shall not be construed so as to create a partnership,joint venture,employment or other agency relationship between the parties. 10. Choice of Law This Agreement shall be subject to and governed by the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights pursuant to this Agreement shall be in the Circuit Court of Kane County, Illinois. 11. No Personal Liability No official, director, officer, agent or employee of the City shall be charged personally or held contractually liable under any term or provision of this Agreement or because of their execution, approval or attempted execution of this Agreement. 12. Period of Applicability This Agreement will be in full force and effect from September 11,2002 through September 11,2007 IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the date and year written above. CITY OF ELGIN By: — - - Olufemi Folarin Interim City '1 . 1.� Attest: iii0)11,,AZA..Q.,C12-14.,... Dolonna Mecum City Clerk Creative Lance Develo ent, Inc. y:_ P Ec Exec irector Exhibit A: Year 2002 HUD Income Guidelines and Fair Market Rents Exhibit B: 24 CFR part 570.502 (b) Exhibit C: 24 CFR 84 Grants and Agreements With Institutions of Higher Education,Hospitals and Other Non- Profit Organizations Exhibit D: OMB Circular A-122 Cost Principles for Non-Profit Organizations Exhibit E: OMB Circular A-133 Audits of Institutions of Higher Education and Other Non-Profit Institutions Exhibit F: 24 CFR Part 570, Subpart K-Other Program Requirements • • Exhibit G: 24 CFR 52 Intergovernmental Review of HUD Programs and Activities w ` 1„§ City of Elgin Agenda Item No. nano\ k E ''t _ Lir ,,i, G IP August 23 , 2002 ' 6 TO: Mayor and Members of the City Council QUALITY HOUSING FROM: Olufemi Folarin, Interim City Manager SUBJECT: The Creative Assistance Development, Inc. Community Development Block Grant Sub-Recipient Agreement PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information regarding the Sub- Recipient Agreement between the City of Elgin and Creative Assistance Development, Inc . BACKGROUND Creative Assistance Development, Inc . is a not-for-profit organization established by the Housing Authority of Elgin on February 14, 1995 . The organization was formed to create additional housing opportunities for low and moderate income persons throughout the City of Elgin. Creative Assistance Development, Inc. applied for Community Development Block Grant funds (CDBG) funds in 2002 . The funding was approved by the City Council in March of 2002 and implemented into the 2002 Annual Updated Action Plan. The plan was submitted to HUD and approved in May of 2002 . Creative Assistance Development, Inc. (CADI) was allocated a total of $25, 000 in CDBG funds from the 2002 Program Year. The funds will be utilized to make capital improvements to a home CADI owns, located at 1640 Mark Avenue, Elgin, IL. The renovation work consists of the following; replacing windows, water heaters, reconstruct deteriorated basement walls, install permanently mounted wall air conditioner units, repave parking lot, and landscape the exterior. Creative Assistance Development August 23 , 2002 Page 2 Once completed, CADI will lease the home to the Ecker Center for Mental Health for the purpose of administering a supportive housing program. Ecker Center provides housing for disabled persons throughout the Elgin area. At least fifty-one percent (51%) of the disabled persons residing at the home will be at or below fifty-one percent (51%) of the Median Family Income limits established by HUD. Upon approval of the Sub-recipient Agreement by the City Council, CADI will be ready to begin implementing the project . It is the goal of City staff and CADI to have the project ready to bid by October of 2002 and a contract awarded within the same month. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. F NANCIAL IMPACT Sufficient funds are budgeted and available ($25, 000) to enter into this agreement in the CDBG Program Year 2002, Major Repairs/Building-Structures, account number 230-0000-791 . 93-36, project number 154056 . _ _ p0 ,EGAL IMPACT None. ALTERNATIVES 1 . Approve the attached Sub-Recipient Agreement . 2 . Do not proceed with the Sub-Recipient Agreement at this time. 1111/11 Creative Assistance Development August 23, 2002 Page 3 RECOMMENDATION It is recommended that the City Council approve the Sub- Recipient Agreement between the City of Elgin and Creative Assistance Development, Inc. in the amount of $25, 000 . Respectfully submitted, Olufe i F ar'n Interi y Manager OF/ac