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HomeMy WebLinkAbout96-277 Resolution No. 96-277 RESOLUTION AUTHORIZING EXECUTION OF A FIRST AMENDED SUBRECIPIENT AGREEMENT WITH THE 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 First Amended Subrecipient Agreement on behalf of the City of Elgin with the Elgin Recreation Center for the operation of its physical fitness facility at 1080 East Chicago Street for at-risk youth and former gang members, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: October 9 , 1996 Adopted: October 9, 1996 Vote: Yeas 6 Nays 1 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk FIRST AMENDED SUBRECIPIENT AGREEMENT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ELGIN RECREATION CENTER THIS AGREEMENT is made and entered into this /[//f day of October 1996 , by and between the 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, the Elgin Recreation Center operates a physical fitness facility for at-risk youth and former gang members located at 1080 East Chicago Street in Elgin, Illinois; and WHEREAS, the Elgin Recreation Center provides services to low and moderate income persons as defined by the U. S . Department of Housing and Urban Development, a copy of which is attached hereto and made a part hereof as Exhibit "A" ) ; and WHEREAS, the parties hereto have previously entered into a subrecipient agreement dated October 10, 1995, a copy of which is attached hereto and made a part hereof as Exhibit "G" (hereinafter referred to as "original agreement" ) ; and WHEREAS, the Subrecipient is in need of funding for operational expenses in order to continue services to the community; and WHEREAS, the parties hereto have determined it to be in their best interests to enter into this agreement to provide for the efficient utilization of 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. Principal Tasks The Subrecipient shall utilize a maximum of $88, 000 . 00 of Community Development Block Grant funds for operational expenses occurring retroactive from May 1, 1996 to December 31 , 1996 , and the cost of an annual audit to meet federal requirements after these dates with funding from the original agreement pursuant to the 1995 Community Development Block Grant (CDBG) Program of the Grantee . The Subrecipient shall administer all tasks in the provision of the aforementioned public service in compliance with all applicable Federal, state, and local rules and regulations governing such CDBG funds , and in a manner satisfactory to the Grantee. A minimum of 51% of the persons provided services on an annual basis shall be at or below the Section 8 Income Limited contained in Exhibit "A" , in order for the Subrecipient to maintain eligibility for the CDBG funds provided for herein, said income levels shall be updated and revised from time to time to conform to such levels as may be set by the U.S . Department of Housing and Urban Development . Failure to meet the aforementioned minimum 51% threshold shall require Subrecipient to reimburse the CDBG Program or Grantee for funds expended in support of the Elgin Recreation Center operations . 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 Subrecipient and Grantee. The major tasks which Subrecipient shall perform in connection with the provision of operational expenses to the Elgin Recreation Center include, but are not limited to, the following: 1 . Subrecipient shall document the number of clients served and shall maintain program and financial records documenting the eligibility, attendance and provision of services as a result of assistance provided through the CDBG program. All such documentation shall be available for inspection by Grantee and representatives of the U. S . Department of Housing and Urban Development . 2 . Grantee shall monitor on a monthly basis the performance of the Subrecipient regarding the goals and performance standards contained herein. Substandard performance as determined by Grantee shall constitute a material breach of this agreement. If action to correct such substandard performance is not taken by the 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. �3e1 � October 15, 1996 3 . Subrecipient shall provide a detailed fivet year operating plan to Grantee on or before 1c1,0/4100:50,/r//q////X9/9/C/. Said operating plan shall include financial , administrative and program analysis and projections . B. Budget and Method of Compensation It is expressly agreed and understood that the total amount of CDBG funding to be provided for the Elgin Recreation Center for the operational expenses under this agreement shall not exceed $88, 000 . 00 . Operational expenses include, but are not limited to, rent and utilities for Subrecipient ' s facility located at 1080 East Chicago Street, Elgin, Illinois . Payment for 2 operational expenses outside of rent and utilities, including the required audit for the 1996 fiscal year, must be submitted in writing to and approved by Grantee in Grantee ' s sole discretion. Grantee shall provide monthly rent and payments to the Subrecipient ' s as follows : Month Rent May 1, 1996 $6 , 083 . 33 June 1, 1996 6 , 083 . 33 July 1, 1996 6 , 083 . 33 August 1, 1996 6 , 083 . 33 September 1 , 1996 8 , 100 . 00 October 1, 1996 8, 100 . 00 November 1 , 1996 8, 100 . 00 December 1, 1996 8, 100 . 00 Total $56 , 733 . 32 Subrecipient shall submit utility billing statements appropriate for payment to the Grantee for review and approval prior to payment. Notices Communication and notices shall be directed to the following representatives : City of Elgin Elgin Recreation Center Veronica Bell, Associate Planner Joel Perez, Jr. , President 150 Dexter Court 1080 E . Chicago St. Elgin, IL 60120 Elgin, IL 60120 ( 847 ) 931-5913 ( 847 ) 888-1989 II . CONDITIONS Subrecipient shall 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 these regulations . The Subrecipient shall utilize funds under this agreement to supplement rather than supplant funds otherwise available (see Exhibit C) . A. General Compliance Subrecipient shall comply with all applicable federal , state and local laws and regulations governing the funds provided under this agreement . 3 B. Independent Contractor Nothing contained in this agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer or employee between the parties hereto. 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 Worker' s Compensation Insurance as the Subrecipient is an independent Subrecipient. C. Hold Harmless The Subrecipient shall hold harmless, defend and indemnify the Grantee from any and all claims, actions, suits , charges and judgments whatsoever that arise out of or in connection with, Subrecipient ' s performance or nonperformance of the services or subject matter called for in this agreement . 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 reasonably 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 the total cash advances to be provided by Grantee. Subrecipient shall comply with the bonding and insurance requirements of Attachment B of OMB Circular A-110 , Bonding and Insurance (see Exhibit D) . F. Grantor Recognition The 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 under 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 invalidate this 4 • Agreement, nor relieve or release the Subrecipient from its obligations under this Agreement. Grantee may, in its discretion, amend this Agreement to conform with federal, state or local governmental guidelines , polices and available funding amounts or for other reasons . If such amendments result in a change in the funding or the scope of services to be undertaken as part of this Agreement, such modifications shall be incorporated only by a written amendment signed by both the Grantee and Subrecipient . The Subrecipient shall cooperate in the execution of any and all documents necessary to effect such amendments at the sole discretion of the 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 approval of the Grantee. The Grantee may also suspend or terminate this Agreement, in whole or in part, if Subrecipient fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and Grantee may declare the Subrecipient ineligible for any further participation in Grantee contracts , in addition to other remedies as provided by law. In the event that there is probable cause to believe the Subrecipient is in noncompliance with any applicable rule, regulation, or provision of this agreement, the Grantee may withhold up to fifteen ( 15 ) per cent of said Agreement funds until such time as the Subrecipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. III . ADMINISTRATIVE REQUIREMENTS A. Financial Management Subrecipient shall comply with Attachment F of OMB Circular A-110, a copy of which is attached hereto and made a part hereof as Exhibit "D" , and agrees to adhere to the accounting principals 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 Principals for Non-Profit Organizations" , a copy of which is attached hereto and made a part hereof as "Exhibit E" , for all costs incurred whether charged on a direct or indirect basis . 5 B. Records and Reports Subrecipient shall provide the following reports and documentation: 1) For each client served by the Elgin Recreation Center, Subrecipient shall maintain a file containing the following information: a. Name and address of the client. b. Race and ethnicity of the client. c. Age and sex of the client. d. Household income of the client. e. Household size. 2) Subrecipient shall provide the Grantee with monthly reports on the Elgin Recreation Center clients . Said reports shall include monthly client levels, number of low/moderate income (as defined in Exhibit A) persons provided service, demographic statistics on the clients served, and any other information as appropriate. 3) Subrecipient shall retain all records pertinent to the Elgin Recreation Center incurred under this contract for a period of five (5) years from the date of this agreement. 4) Subrecipient shall maintain client data demonstrating client name, address, age, sex, racial/ethnic group and household income. Such information shall be made available to the Grantee for review upon request. 5) Subrecipient acknowledges and 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 of 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 ) The Subrecipient' s obligations to the Grantee 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, unused materials and program income balances) and determining custodianship of records . 7) All Subrecipient records with respect to any matters covered by this agreement shall be made available to the Grantee and the U.S. Department of Housing and Urban Development at any time during normal business 6 hours, as often as the 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. Failure of Subrecipient to comply with the above audit requirements will constitute a violation of this agreement and may result in the withholding of future payments . 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. C. Program Income There should be no Program Income generated from this activity. However, if Program Income is generated, any such income shall be returned to the Grantee. D. Uniform Administrative Requirements The Subrecipient shall comply with the uniform administrative requirements contained in 570 .502, a copy of which is attached hereto and made a part hereof as Exhibit "B" . IV. 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) 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 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. 7 3) 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 upon request. 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) 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 shall comply with Chapter 3 . 12 . 100-Affirmative Action-City contract (see Exhibit "F" attached hereto and made a part hereof) . 2) 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. C. Employment Restrictions 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 . D. Conduct 1) 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. 2) 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, 8 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 Entitlement Program. 3) 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. 4 ) 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 ( ) ) • 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. This agreement supersedes and terminates the Subrecipient Agreement entered into on October 10, 1995 by the Elgin Recreation Center and the City of Elgin (Original Agreement) . No more funding shall be committed from or paid to Subrecipient pursuant to the terminated original Subrecipient Agreement . All equipment purchased under the terminated agreement shall become the property of the City of Elgin if the Elgin Recreation Center ceases to exist. The term of this agreement shall expire April 1, 1997 . 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 � • 1� Richard B. Helwig City Manager Attest: City Clerk ELGIN RECREATION CENTER, an Illinois not-for-profit corporation By r/14/ J 1 Perez, Jr. Its President 9 I El in Agenda Item No. August 23, 1996 TO: Mayor and Member of the City Council FROM: Elgin Recreation Center Task Force SUBJECT: Report of Recommendations on Elgin Recreation Center Funding Since its creation, the Elgin Recreation Center Task Force (Task Force) has held four meetings to review and discuss the issues facing the Elgin Recreation Center (ERC). The recommendations are based on providing short-term funding of ERC to allow for planning, review and transition, if necessary, of the programs currently offered. Summary of Task Force Recommendations: December 31 1996. 1 Provide funds to continue operations of ERC through P This will be done through the reallocation of the remaining 1995 CDBG grant funds in the amount of$ 88,263.00 ($67,856.88 for rent and utility payments for the period May through December 1996, and $20,406.12 for operating expenses). Disbursements for operating expenses other than rent„utilities and the grantee audit (CDBG requirement)would be subject to City Council approval. The U.S. Department of Housing and Urban Development (HUD) has advised the City that a one time reallocation for operating expenses would be allowed. (See Attachment A) 2) Due to the time necessary to comply with HUD reallocation requirements, its is recommended that the City provide funding for outstanding rent and utility expenses, to a maximum amount of$88,263.00 from the General Fund. These funds would be reimbursed upon completion of the CDBG process. ERC and the City would be required to execute an amendment to the current subrecipient agreement. (See Attachment B) 3) ERC has agreed to present a detailed 3-5 year operating plan to address financial administrative, programming and community issues. This plan would be completed and presented to the CityCouncil no later than October 15,1996 and would be a condition of ERC receiving funding for 1997. In the event that the plan is not presented or is unacceptable to the Council no further funding would be allocated to ERC. (See Attachment C) 4) The Parks and Recreation Department, Boys and Girls Club, YMCA, YWCA, Salvation Army, other agencies and any other interested community organization would be asked to provide, by October 15,1996, contingency plans for the assumption of programs currently provided by ERC with an effective date of January 1,1997. (See Attachment C) 5) The Elgin Recreation Center Task Force remain in effect through December 31,1996 to monitor the interim operation of ERC, and evaluate the operational and contingency plans. The Task Force would provide a report to the Council with recommendations by the November 13, 1996 City Council Meeting. Other Issues These issues require additional consideration as part of the overall review of ERC and the City youth and gang intervention programming. • The mixing of younger children with adolescents within a single program. • The more formalized coordination of gang intervention programming between the City, youth service agencies, court system, business groups, medical/mental health facilities and educational institutions. • Creation of a separate facility for gang intervention programming. • The lease terms and space requirements of the current ERC facility. Alternatives 1. Accept the Elgin Recreation Center Task Force to apply CDBG funds to ERC operations through the remainder of 1996 and make a decision regarding continued support after review of a three to five year business plan (submitted October 15, 1996). 2. Cease the Funding of the Elgin Recreation Center and reallocate remaining CDBG amount to other entities. 3. Instruct the Parks and Recreation Department to take steps necessary to assume immediate control of the operation of the Elgin Recreation Center. Elgin Recreation Center Task Force ATTACHMENT A Summary of Financial Information J995 Elgin Recreation Center Block Grant Original CBDG funds $95,225.00 Less: Amount Previously Disbursed 6,962.00 Remaining 1995 CBDG funds $88,263.00 Utilization of Remaining CBDG funds Rent and Utilities (May-Dec 1996) $67,856.88 Operating Expenses 20,406.12 Total $88,263.00 Elgin Recreation Center Rent and Utilities-May through December 1996 Rent Security Dep. Electric Gas Water Total May $6,083.33 $500.00 $638.03 $460.46 $33.33 $7,715.15 June 6,083.33 500.00 685.86 147.92 33.33 $7,450.44 July 6,083.33 500.00 749.65 33.33 $7,366.31 August 6,083.33 500.00 750.00 33.33 $7,366.66 September 8,100.00 500.00 706.25 150.00 33.33 $9,489.58 October 8,100.00 500.00 706.25 150.00 33.33 $9,489.58 November 8,100.00 500.00 706.25 150.00 33.33 $9,489.58 December 8,100.00 500.00 706.25 150.00 33.33 $9,489.58 Total $56,733.32 $4,000.00 $5,648.54 $1,208.38 $266.64 $67,856.88 Note: Annual Base Rental increases from $6,083.33 to $8,100.00 on September 1,1996 per lease. ERC has made no rental or utility payments on leased premises since April 1996. September through December 1996 Utility cost are estimated on prior usage.