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HomeMy WebLinkAbout91-1218 Operation Outreach crr - iaa RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH OPERATION OUTREACH BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that George VanDeVoorde, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a Purchase of Service Agreement on behalf of the City of Elgin with Operation Outreach for recreational and counseling activities in an environment free of drugs, gangs and crime, a copy of which is attached hereto and made a part hereof by reference. s/ Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: December 18, 1991 Adopted: December 18 , 1991 Vote : Yeas 6 Nays 0 Recorded: Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk EWin `Sy_Of ELC, Agenda Item No . 712) (r- I :I .]) _ _ p�pgLLO'Fte1 December 11 , 1991 MEMORANDUM TO: Mayor and Members of the City Council FROM: Larry L. Rice, City Manager SUBJECT: Purchase of Service Agreement - Operation Outreach Purpose: To consider a Purchase of Service Agreement with the Operation Outreach organization. Background: As part of the Community Development Block Grant hearing process the allocation of General Fund dollars to certain organizations was considered and approved by the City Council. The Operation Outreach Organization was allocated $ 50 ,000 . for the costs of renting building space, payment of utilities and purchase of weight and recreational equipment. A condition included in the Purchase of Service Agreement is a provision that any of the equipment purchased with city funds be returned to the City if Operation Outreach should cease being a full time organization in the next five years. Staff has discussed this provision with Operation Outreach and it appears that this is an acceptable condition. Financial Impact: The $50 ,000 allocation was made from a total of available General Fund dollars of $560,000. Therefore sufficient funds exist in the budget for this activity. A total of $17,489 has already been paid to Operation Outreach ($4,200 for rent and $13 ,289 for the purchase of weight and recreational equipment) . The $17,489 expended is a component of the $50,000 allocation and is covered by the proposed Purchase of Service Agreement. Recommendation: It is recommended that the City Council approve the attached Purchase of Service Agreement. A copy has been forwarded to Operation Outreach. A resolution for the execution of the agreement 4 on the agenda for the regular City Council meeting. GLtic Larry . Ri City Manager Resolution No. 95-212 RESOLUTION AUTHORIZING EXECUTION OF A SUBRECIPIENT AGREEMENT WITH ELGIN RECREATION CENTER BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard B. Helwig, 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 Elgin Recreation Center for the operation of a physical fitness facility, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: October 11, 1995 Adopted: October 11, 1995 Vote: Yeas 6 Nays 1 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk PURCHASE OF SERVICE AGREEMENT CITY OF ELGIN, ILLINOIS/OPERATION OUTREACH On this /77Y, day of , 199., by and between Operation Outreach, a not for profit corporation, and the City Of Elgin, Illinois, a municipal corporation hereinafter referred to as "City. " Whereas, the City desires to assist in the provision of alternative activities to reduce dependency on drugs , gangs and crime. Whereas, Operation Outreach is an organization which provides an environment free of drugs, gangs and crime with free recreational activities and counseling. It is hereby agreed: 1 . The Operation Outreach organization will provide recreational and counseling activities to persons seeking an environment free of drugs, gangs and crime. 2 . The Operation Outreach organization will operate on a full time basis for a period of five years. 3 . The Operation Outreach organization will research the purchase of recreational equipment and obtain bids for the purchase of appropriate recreational equipment. 4 . The Operation Outreach organization shall submit a report six months after the date of this agreement to the office of the City Manager which shall document activities and clientele served by Operation Outreach during the first six months of this period. 5. The Operation Outreach organization shall submit a report twelve months after the date of this agreement to the office of the City Manager which shall document activities and clientele served by Operation Outreach during the final six (6) month reporting period. 6 . The Operation Outreach organization shall submit invoices of the cost of rent and utilities to operate their facility located at 214-216 East Chicago Street. 7 . The City shall provide funds to the Operation Outreach organization in an amount not to exceed $50 ,000 . for the purchase of recreational equipment and the payment of rent and utilities. All equipment purchased and rent and utility payments shall be for the Operation Outreach facility located at 214-216 East Chicago Street. 8 . The City may terminate this agreement and make no future payments if Operation Outreach breaches any of the terms of this agreement. 9 . The City may demand and receive any equipment purchased with City funds for the benefit of Operation Outreach in the event that Operation Outreach ceases operation within five years of the date of this agreement. This provision shall in no way limit the City in asserting its claim against Operation Outreach for breach of any other terms contained in this agreement. -2- In witness whereof, the parties hereto have caused this agreement to be executed on the above written date. By President CITY OF ELGIN, a municipal corporation By dAA.t.Akdov-4_- Mayo George Van De Voorde Attest: /C44-4--v-47 City Clerk -3- RAGREE/ELGINREC.SUB SUBRECIPIENT AGREEMENT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ELGIN RECREATION CENTER IS AGREEMENT is made and entered into this 40; day of , 1995, by and between ELGIN RECREATION CENTER, an Illinois not-for-profit organization, (hereinafter referred to as "Subrecipient" ) and the CITY OF ELGIN, Illinois, a municipal corporation, (hereinafter referred to as the "Grantee" ) . 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; and WHEREAS, Grantee has determined it to be in its best interests to enter into the agreement with Subrecipient to assist Grantee in utilizing such funds . Now, therefore, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows : I . SCOPE OF SERVICE A. Subrecipient operates a physical fitness facility for at-risk youth and former gang members which provides services to predominately low and moderate income persons . Subrecipient is in need of building rehabilitation work and equipment to facilitate expanded services to the Elgin community. Subrecipient and Grantee shall develop specifications for the building rehabilitation work to be accomplished and for the aforementioned equipment to be purchased. The specifications developed shall be reviewed and approved by both parties hereto. Bids on the specified work and equipment shall be solicited by the Grantee. The completed rehabilitation work and equipment purchased shall be approved by Subrecipient, in writing, by the Subrecipient prior to payment by the Grantee. Subrecipient shall not unreasonably withhold such approval . Subrecipient shall document the addresses, names and household income of all persons utilizing the Elgin Recreation Center facility and services . A minimum of 51% of the persons provided services on an annual basis must be at or below the Section 8 Income Limited contained in Exhibit A, which is attached hereto and made a part hereof, in order for Subrecipient to maintain eligibility for the Community Development Block Grant funds provided for herein, said income levels shall be updated and revised from time to time periodically to conform to the levels as may be set by the U.S . Department of Housing and Urban Development. Failure to meet the minimum 51% threshold shall require Subrecipient to reimburse the Community Development Block Program or Grantee for funds expended for the rehabilitation work to, and equipment purchased for, the Elgin Recreation Center facility. All documentation shall be available for inspection by the Grantee and representatives of the U.S. Department of Housing and Urban Development. II . PERFORMANCE MONITORING Grantee shall monitor on at least a semi-annual basis, the performance of Subrecipient regarding the goals and performance standards contained or provided for herein or as shall be established pursuant to this agreement. Substandard performance, as determined in the sole reasonable discretion of Grantee, shall constitute material breach of this agreement. If action to correct such substandard performance is not taken by Subrecipient within 30 days after being notified by the Grantee, Grantee may terminate this agreement, and may pursue any remedies provided herein or by law. III . TIME OF PERFORMANCE The useful life of the building improvements and equipment to be purchased is estimated to be five (5) years . Based upon life expectancy, the use of said improvements and equipment shall be reported on by Subrecipient and monitored by Grantee for a five year period from the date of this agreement. Subrecipient shall be responsible for assuring that 51% of the persons served by the Elgin Recreation Center qualify according to the Section 8 Income Limits (Exhibit A) . Purchase of all building rehabilitation work and equipment shall be completed within twelve ( 12) months from the date of execution of this agreement. IV. PAYMENT It is expressly agreed and understood that the total amount of funding to be provided for the Elgin Recreation Center building rehabilitation and equipment under this agreement shall not exceed $95,225 . Grantee shall provide payment to vendors and contractors after work completion and/or equipment delivery upon approval of the rehabilitation work and equipment by the Subrecipient as provided herein. Payments may be contingent upon certification of Subrecipient' s financial management system in accordance with the standards specified in OMB Circular A-110, Attachment F (see Exhibit "D" ) attached hereto and made a part hereof . -2- V. NOTICES Communications and notices concerning this agreement shall be directed to the following representatives : City of Elgin Elgin Recreation Center Planning Department Joel Perez, Jr. Patricia Andrews President CDBG Administrator 1080 East Chicago Street 150 Dexter Court Elgin, IL 60120 Elgin, IL 60120 (708) 888-1989 (708) 931-5911 VI . SPECIAL CONDITIONS Subrecipient agrees to comply with the requirements of Title 24 , Code of Federal Regulations, Part 570 of the Housing and Urban Development regulations concerning Community Development Block Grants and all federal regulations and policies issued pursuant to such regulations . Subrecipient further agrees to utilize funds provided pursuant to this Agreement to supplement rather than supplant funds otherwise available. VII . GENERAL CONDITIONS A. General Compliance Subrecipient agrees to comply with all applicable federal, state and local laws and regulations governing funds provided pursuant to this agreement. B. Independent Contractor Nothing contained in this agreement is intended to, or shall be construed in any manner, as creating or establishing an employer/employee, partnership or joint venture or other agency relationship between the parties. Subrecipient shall at all times remain an independent contractor with respect to the services to be performed under this agreement. Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers ' Compensation Insurance as the Subrecipient is an independent Subrecipient. C. Hold Harmless Subrecipient shall hold harmless, defend and indemnify Grantee from and against any and all claims, actions, suits, charges and causes of action, which may arise out of or in connection with Subrecipient' s negligent or reckless performance or nonperformance of the services or subject matter called for in this agreement. -3- D. Worker's Compensation Subrecipient shall provide Worker' s Compensation Insurance coverage for all employees involved in the performance of this agreement. E. Insurance and Bonding Subrecipient shall carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity bond covering all employees in an amount equal to payments to be received from the Grantee. F. Grantor Recognition. Subrecipient shall ensure recognition of the role of Grantee in providing services through this agreement. All activities, facilities and items utilized pursuant to this contract shall be prominently labeled as to funding source. In addition, Subrecipient shall include a reference to the support provided herein in all publications made possible with funds made available pursuant to this contract. G. Amendments Grantee or Subrecipient may amend this Agreement at any time, provided that such amendments make specific reference to this Agreement, are executed in writing, signed by a duly authorized representative of the parties hereto, and approved by the Elgin City Council . Such amendments shall not be construed to invalidate this Agreement, nor relieve or release Subrecipient from its obligations under this Agreement. Grantee may, in its discretion, amend this Agreement to conform with federal, state or local governmental guidelines, policies and available funding amounts or for other reasons . If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications shall be incorporated only by a written amendment signed by both Grantee and Subrecipient. Subrecipient shall cooperate in the execution of any and all documents necessary to effect such amendments at the sole discretion of Grantee. H. Suspension or Termination Either party may terminate this contract at any time by giving written notice to the other of such termination and specifying the effective date thereof at least 30 days before the effective date of such termination. Partial terminations of the Scope of Service may only be undertaken with the prior written approval of Grantee. In the event of any termination, all finished or unfinished documents, data, studies , surveys, -4- maps, models, photographs, reports or other materials prepared by Subrecipient under this agreement shall, at the option of Grantee, become the property of Grantee, and Subrecipient shall be entitled to receive just and equitable compensation only to the extent provided by the availability of funds as provided herein, for any satisfactory work completed on such documents or materials prior to the termination. Grantee may also suspend or terminate this Agreement, in whole or in part, if Subrecipient materially fails to comply with any term of this Agreement, or with any of the laws, rules, regulations or provisions referred to herein; and Grantee may declare Subrecipient ineligible for any further participation in Grantee contracts, in addition to other remedies as provided by law. In the event there is probable cause to believe Subrecipient is in noncompliance with any applicable laws, rules or regulations, Grantee may withhold up to fifteen ( 15) percent of said Agreement funds until such time as Subrecipient is found to be in compliance by Grantee, or is otherwise adjudicated to be in compliance. VIII . ADMINISTRATIVE REQUIREMENTS A. Financial Management - Subrecipient agrees to comply with Attachment F of OMB Circular A-110 (see Exhibit "D" ) and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. Subrecipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations" (see Exhibit "E" ) attached hereto and made a part hereof for all costs incurred whether charged on a direct or indirect basis . B. Records and Reports Subrecipient shall provide the following reports and documentation: 1 . For each person utilizing the Elgin Recreation Center, Subrecipient shall maintain a record containing the following information: a. Name and address of the participant. b. Race and ethnicity of the participant. c. Age of the participant. d. Any fee charged to the participant. e. Household income of the participant. 2 . Subrecipient shall provide Grantee with semi-annual reports on the number of persons served by the Elgin Recreation Center. Said reports shall include the monthly number of persons served, number of low and moderate income -5- persons served, the average fee charged per person, the average fee charged for low and moderate income persons, the percentage of persons served that are low and moderate income, any rehabilitation work problems, and any other information as may be required by Grantee. 3 . Retention of Records - Subrecipient shall retain all records pertinent to the Elgin Recreation Center participation and expenditures incurred under this contract for a period of five (5) years from the date of this agreement. 4 . Client Data - Subrecipient shall maintain client data demonstrating client name, address, age, racial/ethnic group, household income and any fees paid to the Elgin Recreation Center. Such information shall be made available to Grantee for review upon request. 5 . Disclosure - Subrecipient understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the Grantee' s or Subrecipient ' s responsibilities with respect to services provided under this agreement is prohibited unless written consent is obtained from such person receiving the service. 6 . Property Records - Subrecipient shall maintain real property inventory records which clearly identify properties purchased with the allocated Grantee Community Development Block Grant funds . 7 . Close-Outs - Subrecipient obligations to Grant shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to; making final payments, completion of all required reporting, disposing of program assets (return of unspent cash advances, of unused materials and program income balances) and determining custodianship of records . 8 . Audits and Inspections - All Subrecipient records with respect to any matters covered by this agreement shall be made available to Grantee and the U.S. Department of Housing and Urban Development at any time during normal business hours, as often as Grantee or the U.S . department of Housing and Urban Development deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports shall be fully satisfied by Subrecipient within 30 days after receipt of notice of such deficiencies by Subrecipient. Failure of Subrecipient to comply with the above audit requirements shall constitute a material breach of this agreement and may result in the withholding of future payments by Grantee. Subrecipient hereby agrees to have an annual agency audit conducted in compliance with any relevant requirement of the Single Audit Act or other audit requirements as applicable. -6- C. Program Income It is not anticipated by the parties hereto that Program Income shall be generated from the performance of this agreement, which is limited to building rehabilitation and the purchase of equipment. However, if Program Income is generated from the disposition of any of the materials purchased with CDBG funds, any such income shall be returned to Grantee. D. Uniform Administrative Requirements Subrecipient hereby agrees to comply with the uniform administrative requirements contained in 570 .502 (see Exhibit "B" ) attached hereto and made a part hereof . E. Procurement Subrecipient shall maintain an inventory record(s) of all personal property and materials that may be procured with funds as provided for herein. All program assets shall revert to Grantee upon termination of this contract or upon discontinuation of the Elgin Recreation Center prior to November 1, 2000 . As used in this agreement "program assets" shall be defined as equipment purchased with Community Development Block Grant funds . The subrecipient shall procure materials in accordance with the requirements of Attachment 0 of OMB Circular A-110, Procurement Standards, and shall subsequently follow Attachment N, Property Management Standards, covering utilization and disposal of property. IX. PERSONNEL AND PARTICIPANT CONDITIONS A. Civil Rights 1 . Subrecipient shall comply with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 109 of Title I of the Housing and Community Development Act of 1974 , Section 504 of the Rehabilitation Act of 1973, the American with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086 . 2 . Nondiscrimination - Subrecipient shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability, or other handicap, age, marital status, or status with regard to public assistance. Subrecipient shall take affirmative action to ensure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the -7- following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. 3 . Section 504 - Subrecipient agrees to comply with any federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 706 ) which prohibits discrimination against the handicapped in any federally assisted program. Grantee shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this contract. Failure of Grantee to provide such guidelines shall not relieve Subrecipient of the obligation to comply with the terms of such guidelines . B. Affirmative Action 1 . Written Commitment - Subrecipient shall carry out an Affirmative Action Program in compliance with City of Elgin Ordinance No. G19-93 Amending Chapter 3 . 12 of the Elgin Municipal Code. Subrecipient agrees to comply with Chapter 3 . 12 . 100-Affirmative Action-City contract (see Exhibit "F" attached hereto and made a part hereof) . 2 . Minority Business - Subrecipient shall use its best efforts to afford minority and women-owned business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this agreement, the term "minority and female business enterprise" means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are Afro-Americans, Spanish-speaking, Spanish surnamed or Spanish-heritage Americans, Asian-Americans and American Indians . 3 . Access to Records - Subrecipient shall furnish all information and reports required hereunder and shall permit access to its books, records and accounts by the Grantee, HUD or its agent, or other authorized federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. 4 . Notifications - Subrecipient shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or worker' s representative of the Subrecipient' s commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. -8- 5 . EEO/AA Statement - Subrecipient shall, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action employer. 6 . Subcontract Provisions - Subrecipient shall include the provisions of Paragraphs VII A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions shall be binding upon each subSubrecipient or vendor. C. Employment Restrictions 1 . Prohibited Activity - Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program provided herein for political, sectarian, religious, lobbying, political patronage, and nepotism activities . 2 . OSHA - Where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to the participants ' health or safety. 3 . Right to Know - Participants employed or trained for inherently dangerous occupations shall be assigned to work in accordance with reasonable safety practices . 4 . Labor Standards - Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland "Anti-Kickback" Act and all other applicable federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this contract. The Subreceipient shall maintain documentation which demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to Grantee for review upon request. Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property designed for residential use for less than eight (8) households, all contractors engaged under contracts in excess of $2,000 for construction, renovation or repair of any building or work financed in whole or in part with assistance provided under this contract, shall comply with federal requirements of the regulations of the Department of Labor, under 29 CFR, Parts 3, 1, 5, and 7 governing the payment of wages and ratio of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under the regulations are imposed by or local law, nothing hereunder -9- is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph, for such contracts in excess of $10,000 . 5 . Section 3 Clause - Compliance with the provisions of Section 3, the regulations set forth in 214 CFR 135, and all applicable rules and orders issued hereunder prior to the executio of this contract, shall be a condition of the federal financial assistance provided under this contract and binding upon Grantee, Subrecipient and any subSubrecipients, their successors and assigns, to those sanctions specified by the agreement through which federal assistance is provided. Subrecipient further agrees to comply with these "Section 3" requirements and to include the following language in all subcontracts executed under this agreement: "The work to be performed under this contract is a project assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 . Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the areas of the project. " Subrecipient warrants and agrees that no contractual or other disability exists which would prevent compliance with the aforementioned requirements . Subrecipient shall send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker' s representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. Subrecipient shall include this Section 3 clause in every subcontract and shall take appropriate action pursuant to the subcontract upon a finding that the subSubrecipient is in violation of regulations issued by the Grantor Agency. Subrecipient shall not subcontract with any subSubrecipient where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135 and shall not let any subcontract unless the subSubrecipient has first provided it with a preliminary statement of ability to comply with the requirements of these regulations . -10- • D. Conduct 1 . Assignability - Subrecipient shall not assign or transfer any interest in this contract without the prior written consent of Grantee thereto; provided, however, that claims for money due or to become due to Subrecipient from Grantee under this contract may be assigned to a bank, trust company, or other financial institution without such approval . Notice of any such assignment or transfer shall be furnished promptly to grantee. 2 . Hatch Act - Subrecipient agrees that no funds provided, nor personnel employed under this contract, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V United States Code. 3 . Conflict of Interest - Subrecipient agrees to abide by the provisions of 24 CFR 570 . 611 with respect to conflicts of interest, and warrants and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this contract. Subrecipient further warrants and covenants that in the performance of this contract no person having such a financial interest shall be employed or retained by Subrecipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the Grantee, or of any designated public agencies or subrecipients which are receiving funds under the CDBG Entitle program. 4 . Subcontracts - Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of Grantee prior to the execution of such agreement. Subrecipient shall monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and suported with documents evidence of follow-up actions taken to correct areas of noncompliance. Subrecipient shall cause all of the priovisions of this contract in its entirety to be included in and made a part of any performance executed in the of this agreement. Subrecipient shall ensure that all subcontracts let in the performance of this agreement shall be awarded on a fair and open competition basis . Executed copies of all subcontracts shall be forwarded to Grantee along with documentation concerning the selection process . -11- 5 . Religious Organization - Subrecipient agrees that funds provided under this contract shall not be utilized for religious activities, to promote religious interest, or for the benefit of a religious organization in accordance with the federal regulations specified in 24 CFR 570 .200( j0 . X. ENVIRONMENTAL CONDITIONS Subrecipient shall comply with the following regulations insofar as they apply to the performance of this contract: 1 . Clean Air Act, 42 U.S .C. 1857 , et seq. 2 . Federal Water Pollution Control Act, as amended, 33 U.S .C. 1251, et seq. , as amended at 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. 3 . Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R. , Part 50, as amended. 4 . National Environmental Policy Act of 1969 . 5 . HUD Environmental. Review Procedures (24 CFR, Part 58) . 6 . Flood Disaster Protection - Subrecipient shall comply with the requirements of the Flood Disaster Protection Act of 1973 (P.L. -2234 ) in regard to the sale, lease or other transfer of land acquired, cleared or improved under the terms of this contract, as it may apply to the provisions of this contract. 7 . Lead Based Paint - Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this contract shall be subject to HUD Lead Based Paint Regulations at 24 CFR 570 . 608, ad 24 CFR Part 35, and in particular Sub-part B thereof . Such regulations pertain to all HUD-assistance hosing and require that all owners, prospective owners, and tenants or properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning. 8 . Historic Preservation -- Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966 , as amended ( 16 U.S.C. 470) and the procedures set forth in 36 CFR, Part 800, Advisory Council on Historic Preservation Procedures for -12- Protection of Historic Properties, insofar as they apply to the performance of this contract. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty (50) years or older or that are included on a Federal, State, or local historic property list. The terms and provisions of this agreement shall be severable. In the event that any of the terms or provisions of this agreement shall be deemed void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date and year first written above. CITY OF ELGIN, a municipal corporation By Richard B. Helwig City Manager Attest: ?/94-2AA"-(2_ /1A-e City Clerk ELGIN RECREATION CENTER, an Illinois not-for-profit corporation ( BY 1B'C/7i9A: g ,Ipe-1 Perez Its President -13- • • �n 4 s, Agenda Item No . 5_ 9p � September 20, 1995 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Proposed Subrecipient Agreement with Elgin Recreation Center PURPOSE To request that the Mayor and members of the City Council consider the proposed subrecipient agreement with Elgin Recre- ation Center. BACKGROUND The Elgin Recreation Center was allocated funding from the 1995 Community Development Block Grant (CDBG) Program for building rehabilitation work and the purchase of equipment . In order to proceed with this project a subrecipient agreement is required pursuant to the regulations covering the CDBG Program. The attached subrecipient agreement has been re- viewed by the Legal Department and by the Elgin Recreation Center. The agreement is based upon a master agreement format that has been reviewed by the U. S . Department of Housing and Urban Development and is customized for each subrecipient . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Elgin Recreation Center. FINANCIAL IMPACT The $95 , 225 in funding allocated to this project has been budgeted. Account number 230-0000-791 . 92-32 and 230-0000-791 . 93-36 , project number 154130, building repairs and equipment additions will be charged. `d Mayor and Members of City Council September 20 , 1995 Page 2 LEGAL IMPACT None. RECOMMENDATION It is recommended that the City Council approve the attached subrecipient agreement . Upon approval by the City Council , a resolution authorizing execution of the agreement will be prepared for the October 11 , 1995 City Council meeting . Respectfully submitted, fl - Roger)K . Dahlstrom Planning Director Richard B. Helwig h City Manager PA/paa September 27 , 1995 MEMORANDUM TO: Mayor and Members of City Council FROM: Erwin W. Jentsch, Corporation Counsel SUBJECT: Community Development Block Grant Funding to Elgin Recreation Center The City has proposed allocating funding from its 1995 community Development Block Grant (CDBG) program to the Elgin Recreation Center (ERC) for certain equipment purchases and building rehabilitation work. Concerns have been raised as to whether ERC constitutes a primarily religious entity and if the CDBG funding will be used by ERC for religious activities . The City' s proposed agreement for allocating funding to ERC, based upon information ERC has submitted, is in accordance with rules promulgated by the U. S . Department of Housing and Urban Development (HUD) and does not violate state or federal constitutional imitations on church/state separation. Information submitted by ERC when applying for CDBG funding indicates the Center is an Illinois Not-For-Profit Corporation in good standing that was incorporated in 1993 for the purpose of establishing and operating youth programs . Its articles of incorporation are devoid of references to religious activities or religious affiliation, and ERC ' s current listing of conducted activities include a boxing club, adventure climbing, weight lifting, aerobics, an arcade room and tutoring. Concerns over ERC ' s religious affiliation apparently ster from its decision to market itself as "Elgin Recreation center--God' s Gym. " The Center' s telephone listing is under "God' s Gymnasium" and a brochure for"God ' s Gym" allegedly promotes "Bible Through Basketball" , Bible study and prayer devotions . This information was not conveyed to the City at the time ERC applied for CDBG funding, and its verity should be confirmed before a final decision to allocate funding is made. Before making a conclusive determination as to whether ERC constitutes a "primarily religious entity, " it will be necessary to review all ERC program brochures and attend the listed program activities to determine the extent, if any, of their religious content. The prudent course of action is to demand ERC exert no religious influence in its programming as a condition to receiving CDBG funding. However, even if these facts are confirmed, ERC ' s eligibility for funding is not entirely jeopardized. Mayor and Members of City Council -2- September 27, 1995 Being mindful of Constitutional prohibitions on providing monetary assistance for religious activities or to primarily religious entities, HUD has enacted rules regarding activities that are eligible for funding. (See 24 CFR 57 .200( j ) . ) The rules reflect existing case law and form the basis for the subrecipient agreement that must be executed by ERC prior to obtaining CDBG funding. Generally, CDBG funds cannot be used for religious activities or provided to primarily religious entities for any activities, including non-religious activities . However, CDBG funds may be used for public services provided through a primarily religious entity when the religious entity enters into an agreement with the subrecipient deriving the CDBG funds and the entity agrees to ( 1) not discriminate in employment on the basis of religion, (2 ) not discriminate against any person applying for public services on the basis of religion, and ( 3 ) provide no religious services in the provision of the public services . Provided ERC abides by the guidelines set forth in the paragraph above, CDBG funding for the secular programming would not be jeopardized. Of course, this opinion is subject to revision in the event that other information about the subrecipient and its programs is �eceived. L/; f nr