02-149 Resolution No. 02-149
RESOLUTION
AUTHORIZING EXECUTION OF A SUB-RECIPIENT AGREEMENT WITH
THE ELGIN AMERICAN LITTLE LEAGUE
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 Sub-recipient Agreement on behalf of the City of Elgin
with the Elgin American Little League for improvements to the
baseball fields, restrooms and concession stand, a copy of which
is attached hereto and made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: April 24 , 2002
Adopted: April 24 , 2002
Omnibus Vote: Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
SUB-RECIPIENT AGREEMENT
BETWEEN THE CITY OF ELGIN,AND
ELGIN AMERICAN LITTLE LEAGUE
B-17-01-MC-0011
THIS AGREEMENT is made and entered into this 27th day of March,2002,by and between,
ELGIN AMERICAN LITTLE LEAGUE, 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 a service program to youth creating an atmosphere of
healthy activity and training while participating in the community,the youth served are at or below
80%of the area median; and
WHEREAS, The subject property is located at 750 Summit St., Elgin, IL 60120 (herein
referred to as the"Property")and the City of Elgin is the owner of said Property,which the city has
permitted the Elgin American Little League to utilize; and
WHEREAS,Sub-recipient has entered into an agreement with the City of Elgin to continue
the use of the Property for their service program; and
WHEREAS,Sub-recipient will make building and site improvements to provide a clean,safe,
and accessible playing facility; and
WHEREAS, Sub-recipient lacks the capital to undertake all needed building and site
improvements; 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 for the renovation
project.
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, 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 program services to youth whose income falls at or below 80%of
the area median income (see Exhibit A). Sub-recipient will be allocated $25,000.00 in
Program Year 1999-2000 CDBG funds for the renovation of the property. CDBG funds shall
be used for replacing and repairing fencing,repair gates and doors,construct a storage shed,
replace plumbing fixtures in restrooms,cooler in concession stand, and fix electric.
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. Such project will include the following activities eligible under the CDBG Program:
Activity# 1: Sub-recipient will have approval from the City of Elgin on the proposed
property improvements before a contract is awarded.
Activity# 1: Sub-recipient and Grantee shall oversee progress of the Property renovation.
Completed Property 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 progress reports to Grantee.
Activity#3: Sub-recipient shall maintain records in accordance with Section 2 of this
Agreement and shall submit semi-annual statements to the Grantee
documenting number of clients and female-headed households served,client
income and client household size, as required by the U.S. Department of
Housing and Urban Development.
B. Eligibility and National Objectives
Elgin American Little League 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) (1) for
improving public facilities which,upon completion,will provide a safer and healthier facility
for low and moderate income youth.
Public facility improvements is eligible for CDBG funding pursuant to 570.201(c). 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. Improvements shall benefit low and moderate income persons.
Documentation on family size and household income will confirm that at least 51%of the
clients are low and moderate income households(see Exhibit A).
C. Levels of Accomplishment
In addition to the normal administrative services required under this Agreement, Sub-
recipient commits to achieving the following implementation milestones which are the sole
responsibility of the Sub-recipient.
Activity Date of Completion
Activity# 1: Review and Approve Plans Completed
Activity#2: Award a Contract 4/02
Activity#3: Progress Reports Submit monthly beginning
03/27/02 through construction
completion and due to Grantee
on the first of each month
thereafter. Submit reports semi-
annually thereafter, September
23`d and March 23rd ending
3/27/07.
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 final 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 3/27/02 and ending 3/27/07.
1. Number of clients served,household size and household income.
2. Documents related to the renovation project.
B. Invoices and Payments
Grantee will maintain fmancial 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 24CRR 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 Building due to actions by
Elgin American Little League,Elgin American Little League shall reimburse the U.S.Department of
Housing and Urban Development or the City for all CDBG funds expended for the architectural
services and building improvements 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 and site improvements.
The term of the five-year useful life of the building improvements at the Facility shall commence on
the date of this Agreement. This provision shall not be construed as limiting the Grantee from
asserting any claims against Elgin American Little League 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(see 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 from time to time 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 building improvements.
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 of 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 March 27, 2002 through March 27, 2007.
IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the date and year
written above.
CITY OF ELGIN
By: ilk "MIK
Olufemi Folari�
Interim Cly Ma•.g
Attest: S -G4....•.,
Dolonna Mecum
City Clerk
Elgin American Little League
By ._: .Il._ 41► .i' l►/
Jamie Silverman
President
Exhibit A:
Year 2001 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
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,`,711',
City of Elgin Agenda Item No.
Ni
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L ;t:_ ,
April 5, 2002
1 am.:
I .`
TO: Mayor and Members of the City Council N #4
RECREATIONAL LEISURE
AND CULTURAL OPPORTUNITIES
FROM: Olufemi Folarin, Interim City Manager FOR ALL CITIZENS
SUBJECT: The Elgin American Little League 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 the Elgin American Little
League .
BACKGROUND
(0". The Elgin American Little League is a not-for-profit organization
which provides service programs to the City of Elgin' s youth. The
programs allow the youth to participate in healthy activities and
training.
The Elgin American Little League applied for Community Development
Block Grant (CDBG) funds in 1999 . The funding was approved by the
City Council in March 1999 and implemented into the 1999 Annual
Updated Action Plan. The plan was submitted to HUD and approved in
July 1999 .
The Elgin American Little League was allocated a total of $25, 000
in CDBG funds from the 1999 Program Year. The funds will be used
to make capital improvements to the baseball fields, restrooms and
concession stand. The improvements will provide a clean, safe and
accessible playing facility. Fifty-one percent of the families
served will be low to moderate income households at or below eighty
percent of the Median Family Income limits established by HUD.
Should the agreement be approved by the City Council on April 24 ,
2002 , the Elgin American Little League will be ready to move
forward. The Planning and Neighborhood Services staff has been
working with the little league to address outstanding issues
involved with the project, one of which was the Eligible Activity
r and National Objective requirements mandated through HUD. Staff
worked with HUD throughout this time period to establish how the
project would work under HUD' s regulations . It was decided after
w
Elgin American Little League CDBG
April 5, 2002
Page 2
several discussions with income-qualifying clients, the project
would be an eligible activity under public facilities and
improvements with a national objective of low and moderate limited
clientele .
The Planning and Neighborhood Services Department is anticipating
approving the Bid Specification Manual in April 2002 . The Elgin
American Little League will be ready to award a contract and start
construction by June 2002 . The project should be completed and all
funds expended by August 2002 .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None.
�l FINANCIAL IMPACT
CI)
N"� Sufficient funds are available to enter into this agreement in the
CDBG Program Year 1999, Major Repairs/Building-Structures, account
number 230-0000-791 . 93-36, project number 154525, with a balance of
$25, 000 .
LEGAL IMPACT
V14 /7
None.
ALTERNATIVES
1 . Approve the attached Sub-Recipient Agreement .
2 . Do not proceed with the Sub-Recipient Agreement at this time.
RECOMMENDATION
It is recommended that the City Council approve the Sub-Recipient
Agreement between the City of Elgin and the Elgin American Little
League .
Respectfully submitted,
Olufemi F. grin
Interim Cloy a ger
OF/ac