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HomeMy WebLinkAboutARMSTRONG GALLERIA LAUNDROMAT FUNDED CDBG-R " AGREEMENT BETWEEN AUGUST A, GEORGIA AND LANEY WALKER DEVELOPMENT CORPORATION COMMUNITY DEVELOPMENT BLOCK GRANT - RECOVERY (CDBG-R) PROGRA M This Agreement is made and entered into this 20th day of January, 2010, by and between Augusta, Georgia, by and through the Augusta-Richmond County Commission, as the Implementer of the Community Development Block Grant - Recovery (hereinafter referred to as "Grantee"), and Laney Walker Development Corporation, (hereinafter referred to as the "Sub-Grantee"). WHEREAS, the Grantee has applied for and received funds from the United States Government under Title XII of Division A of the American Recovery and Reinvestment Act of 2009 ("Recovery Act"); and WHEREAS, the purposes of the Recovery Act are to stimulate the economy through measures that modernize the Nation's infrastructure, improve energy efficiency, and expand educational opportunities and access to health care; and WHEREAS, the City as an Entitlement Grantee is responsible for the administration, implementation, planning and evaluation within its respective jurisdiction of the Community Development Block Grant - Recovery Program and for the H U D Consolidated Plan; and . WHEREAS, the Grantee wishes to engage the Sub-Grantee to assist the Grantee in utilizing such funds; NOW, THEREFORE, it is agreed between the parties hereto as follows: ARTICLE I. DEFINITIONS AND IDENTIFICATIONS Unless the context otherwise requires, the capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in this Article I. Community Development Block Grant- Recovery Program or "CDBG-R" The term "Community Development Block Grant - Recovery (CDBG-R) Program", or "Program" shall mean that program administered by the Housing and Community Development Department of the City and funded by a special Community Development Block Grant under the Recovery Act and applied for by the City and awarded by HUD as authorized pursuant to Title XII of the American Recovery and Reinvestment Act of 2009, Public Law 111-005. Department The term "Department" shall mean the Housing and Community Development Department of the City. Grantee The term "City" shall mean Augusta, Georgia. Sub-Grantee The term "Sub-Grantee" shall mean the agency receiving the CDBG-R grant from the City. Page 1 of 29 " HUD The term "HUD" shall mean the U. S. Department of Housing and Urban Development. Project The term "Project" shall mean the project of projects set forth in Article III hereto entitled "Scope of Services and Timetable." Low and Moderate Income Household The term "Low and Moderate Income Household" shall mean a household having an income equal to or less that the Section 8 low income limit established by HUD. Low and Moderate Income Person The term "Low and Moderate Income Person" shall mean a member of a family having an income equal to or less than the Section 8 low income limit established by HUD (80% of Area Median Income). Unrelated individuals will be considered as one-person families for this purpose. Household Household means all the persons who occupy a housing unit. The occupants may be a single family, one person living alone, two or more families living together, or any other related or unrelated person who share living arrangements. ARTICLE II: PREAMBLE In order to establish the background, context and frame of reference for this Agreement and to manifest the objectives and the intentions of the respective parties herein, the following statements, representations and explanations are set forth. Such statements, representations and explanations shall be accepted as predicates for the undertakings and commitments included within the provisions, which follow, and may be relied upon by the parties' essential elements of the mutual considerations upon which this Agreement is based. A. Title I of the Housing and Community Development Act of 1974, P. L. 93-383 (hereinafter the "Act") consolidated several existing programs for community development into a single program of Community Development Block Grants (hereinafter "CDBG") for the purpose of allowing local discretion for the determination of needs and priorities of community development. The citizens of Augusta, through citizen participation workshops and public hearings, the Mayor and Commission determined the needs and priorities of community development in the City. B. Pursuant to Title XII, Division A of the American Recovery and Reinvestment Act of 2009, P. L. 111-005 (hereinafter "Recovery Act"), a special fund was appropriated for the CDBG-Recovery Program. Statutory and regulatory provisions governing the CDBG program, including those at 24 CFR Part 570 subparts A, C, D, E, F, J, K and 0 for entitlement communities shall apply to the use of CDBG-R funds. Furthermore, provisions outlined in Docket No. FR-5309-N-01 Notice published May 4, 2009, are applicable. C. Pursuant to HUD regulations at 24 CFR 570.200 (a), certain projects were included in City's CDBG submission to HUD, referred to as the Annual Plan, which was amended to incorporate the CDBG-Recovery project(s). Page 2 of 29 The City has determined that the Project is a CDBG-R eligible activity which will create jobs for low and moderate income persons, promote economic recovery and assist those most impacted by the recession. D. Under the Rules and Regulations of HUD, the City is the administrator for the Program, and is mandated to comply with various statutes, rules and regulations of the United States, as they pertain to the allocation and expenditure of funds as well as protecting the interest of certain classes of individuals who reside in the City of Augusta. E. The Grantee is desirous of disbursing the funds to the Sub-Grantee for use in the Project. However, as administrator for the Program, the Grantee desires to obtain assurance from the Sub-Grantee that it will comply with all applicable statutes, rules and regulations of the United States, the State of Georgia, and/or the City relating to the Project and the Program, as a condition precedent to the release of such funds to the Sub-Grantee. ARTICLE III: PROJECT The Grantee agrees to reimburse the Sub-Grantee in an amount not to exceed One Hundred Forty Thousand dollars and no cents ($140,000.00) of which $140,000.00 shall be a loan, to implement the following project: Armstrong Galleria Laundromat The project will consist of the renovation of an existing laundromat facility (1,960 square feet - single story) known as the Armstrong Galleria Laundromat. Additionally, this project includes the installation of new laundry equipment in the form of twenty-eight (28) commercial front load washing machines and fourteen (14) commercial stack dryers. ARTICLE IV: EMPLOYMENT BENEFITS TO PERSONS FROM LOW AND MODERATE INCOME HOUSEHOLDS The Grantee and Sub-Grantee agree that the general purpose of the project is to principally benefit low and moderate income persons as determined in accordance with the U.S. Department of Housing and Urban Development income limits for Richmond County, Georgia. A. The Grantee and Sub-Grantee agree that the primary purpose of the project is the creation of at least 4 (four) full time equivalent permanent jobs with 51% for low and moderate income persons. Sub- Grantee agrees to maintain and provide documentation that it has complied with this requirement by collecting income certifications and job creation reports. B. Sub-Grantee shall require contractors and subcontractors to provide information on jobs created. This information shall be submitted to Grantee monthly. Sub-Grantee shall oversee the creation of jobs and shall make arrangements to ensure compliance with the creation of the targeted jobs, within the grant agreement, in the event that the contractor fails to comply. Page 3 of 29 .. ARTICLE V. SUB-GRANTEE REQUIREMENTS The parties agree that concurrent with execution of this Agreement, as security for the performance of the obligations set forth herein, a lien against the Property created by this Agreement will be duly recorded with the Augusta-Richmond County Clerk and Recorder's office. Grantee and Sub-Grantee shall execute a promissory note and deed to secure debt for the purposes of supporting the Armstrong Galleria Laundromat which includes the rehabilitation of a new facility. ARTICLE VI: NOTICES Sub-Grantee and the Grantee agree that all notices required by this Agreement shall be in writing and delivered via mail (postage prepaid), commercial courier, or personal delivery or sent by facsimile or other electronic means. Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending. All notices and other written communications under this Agreement shall be addressed to the individuals in the capacities indicated below, unless otherwise modified by subsequent written notice. Communication and details concerning this Agreement shall be directed to the following Agreement representatives: Grantee: Augusta, Georgia Attention: David S. Copenhaver, Mayor 530 Greene Street, 8th Floor, Augusta, Georgia 30901 With copy to: Housing and Community Development Department Attention: Chester A. Wheeler, III, Director 925 Laney-Walker Boulevard, Augusta, Georgia 30901 Ifto Sub-Grantee: Laney Walker Development Corporation Attention: Anthony Chandler, Executive Director 851 Laney Walker Boulevard Augusta, Georgia 30901 ARTICLE VII: GENERAL CONDITIONS A. General Compliance The Sub-Grantee agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 [the U. S. Housing and Urban Development regulations concerning Community Development Block Grants (CDBG)] including subpart K of these regulations and Docket No. FR-5309-N-01 Notice published May 4, 2009, except that (1) the Sub-Grantee does not assume the Grantee's environmental responsibilities and (2) the Sub-Grantee does not assume the Grantee's responsibility for initiating the review process. The Sub-Grantee also agrees to comply with all other applicable Federal state and local laws, regulations, and policies governing the funds provided under this Agreement. The Sub-Grantee further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. Page 4 of 29 B. Transparency Act Sub-Grantee, Contractors and Subcontractors receiving CDBG-R funds or contracts utilizing CDBG-R funds shall comply with the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109-282) and to ensure accountability and transparency as cited in Title XV of the Recovery Act. This may include, but is not limited to, address and contact information as well as more detailed information about the entity and awards. 1. DUNS Number Sub-Grantee and its contractors and subcontractors participating in the CDBG-R program must obtain a Data Universal Numbering System (DUNS) number prior to entering into a CDBG-R contract. A DUNS number may be requested via the web at: http://www.grants.gov/applicants/reQuest duns number.isp 2. Central Contractor Registration Any contracts awarded by Sub-Grantee which amounts to $25,000 or less, $25,000 or more or to individuals shall comply with Title XV, Section 1512 subsection (c)(4) of the Recovery Act in which registration with the Central Contractor Registration (CCR) database is required: http://www.ccr.govstartregistration.aspx C. Buy American Sub-Grantee shall comply with Section 1605 of the Recovery Act that requires all iron, steel and manufactured goods used in rehabilitation, alteration, repair, or maintenance of a public building or public work project assisted with funds under the Recovery Act must be produced in the United States, unless the Secretary of HUD finds that: the requirement is inconsistent with public interest; those goods are not reasonably available or produced in sufficient quantity in the U.S.; or the use of the goods will increase the project cost by more than 25 percent. To streamline compliance with the provision of Section 1605 in determining the project cost using American-made materials, Sub-Grantee may acquire two (2) costs estimates with bids: one with only American-made materials and the other with any materials. D. Guidelines for Energy Management/Energy Star Guidelines have been established regarding energy management using Energy Star and are recommended by the Department of Housing and Urban Development and Sub-Grantee and its contractors and subcontractors are encouraged to follow these guidelines. Page 5 of 29 .. E. Independent Contractor Nothing in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the Sub-Grantee, the Contractor, the Project Architect and their employees and agents. Said parties shall be deemed to be independent contractors and not agents or employees of the City. The Sub-Grantee shall at all times remain an "Independent Contractor" with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance, as the Sub-Grantee is an Independent Contractor. F. Hold Harmless The Sub-Grantee shall hold harmless, defend and indemnify the Grantee from any and all claims, actions, suits, charges and judgments whatsoever that arise out of the Sub-Grantee's performance or nonperformance ohhe services or subject matter called for in this Agreement. G. Workers' Compensation The Sub-Grantee shall provide Workers' Compensation Insurance coverage for all of its employees involved in the performance of this Agreement, if applicable. H. Insurance and Bonding The Sub-Grantee 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 cash reimbursements/advances from the Grantee. I. Grantee's Recognition The Sub-Grantee shall insure recognition of the role of the Grantee in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition, the Sub-Grantee will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. J. Amendments 1. The Grantee or Sub-Grantee may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the Department Director. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Sub-Grantee from its obligations under this Agreement. 2. The Grantee will agree to an amendment only if the Sub-Grantee clearly demonstrates that the modification is justified and will enhance the overall impact of the original Project. Page 6 of 29 3. It is further understood that the Grantee is responsible to HUD for the administration of funds and may consider and act upon reprogramming recommendations as proposed by its Sub-Grantee. In the event that the Grantee approves any modification, amendment, or alteration to the funding allocation, the Sub-Grantee shall be notified pursuant to Article IV and such notification shall constitute an official amendment to this Agreement. 4. It is further agreed that the Sub-Grantee will submit to the Grantee within thirty (30) days of the completion of Project a complete financial accounting of all its project activities. 5. The Department's Director shall be authorized to approve line item changes to the Sub- Grantee's budget as long as such changes do not increase the grant amount set forth in the "Budget" . 6. The 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 will be incorporated only by written amendment signed by both the Grantee and Sub-Grantee. K. Suspension or Termination 1. In accordance with 24 CFR 85.43, the Grantee may suspend or terminate this Agreement if the Sub-Grantee materially fails to comply with any terms of this Agreement, which include, but are not limited to the fqllowing: a) Failure to comply with any of the rules, regulations or provisions referred to herein, or such statues, regulations, executive orders, and HUD guidelines, policies or directives as may become applicable at any time; b) Failure, for any reason, of the Sub-Grantee to fulfill in a timely and proper manner its obligations under this Agreement; c) Ineffective or improper use of funds provided under this Agreement; or d) Submission by the Sub-Grantee to the Grantee reports that are incorrect or incomplete in any material respect. e) In accordance with 24 CFR 85.44, this Agreement may also be terminated for convenience by either the Grantee or the Sub-Grantee, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if in the case of a partial termination, the Grantee determines that the remaining portion of the award will not accomplish the purpose for which the award was made, the Grantee may terminate the award in its entirety. Page 7 of 29 ARTICLE VIII: ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Sub-Grantee agrees to comply with 24 CFR 84.21-28 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. 2. Cost Principles The Sub-Grantee shall administer its program in conformance with OMB Circulars A-l22, "Cost Principles for Non-Profit Organizations", These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. a) Sub-Grantee gives the Grantee, HUD, and the Comptroller General, through any authorized representatives, access to and the right to examine all records, books, papers, or documents relating to the Project. b) Sub-Grantee agrees to maintain books, records, and documents in accordance with generally accepted accounting procedures and practices that sufficiently and properly reflect all expenditures of grant funds provided by the Grantee under this Agreement. c) All Grant funds disbursed through the Community Development Block Grant Recovery Program shall be used only for eligible activities specifically outlined in this Agreement. The Sub-Grantee shall comply with any conditions and timetables set forth in this Agreement. In the event the Sub-Grantee does not comply with the conditions and timetables, or if the Sub-Grantee ceases to exist or provide the services for which the Grant was made, the Sub-Grantee will not carry out another CDBG eligible project, the Sub-Grantee shall be in default. In the event of default, the Grantee may exercise any rights or remedies provided in this Agreement. B. Documentation and Recordkeeping 1. Records to be Maintained The Sub-Grantee shall maintain all records required by Federal regulations specified in 24 CFR 570.506, and CDBG-R Notice, Docket No. FR-5309-N-01 which are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: a) Records providing a full description of each activity undertaken; b) Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c) Records documenting the number of jobs created; d) Records required to determine the eligibility of activities; Page 8 of 29 e) Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; f} Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; g) Financial records as required by 24 CFR 570.502 and 24 CFR 84.21-28; and other records necessary to document compliance with Subpart K of 24 CFR Part 570. 2. Retention The Sub-Grantee shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five (5) years. The retention period begins on the date of the submission of the Grantee's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited that have started before the expiration of the five-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five-year period, whichever occurs later. 3. Job Creation and Client Data Sub-Grantee shall ensure that 51% of jobs, on a full-time equivalent basis, created are for low to moderate income households. Client income data shall be maintained to include, but not be limited to name, income,' job title, permanent, temporary, full-time or part-time job. 4. Disclosure The Sub-Grantee understands that client information collected under this Agreement is private and the use or disclosure of such information, when not directly connected with the administration of the Grantee's or Sub-Grantee's responsibilities with respect to services provided under this Agreement, is prohibited by unless written consent is obtained from such persons receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Close-outs The Sub-Grantee's obligation to the Grantee shall not end until all closeout requirements are completed. Activities during this closeout period shall include, but are not limited to: making final payments and disposing of program assets. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the Sub-Grantee has control over CDBG funds, including program income. Any Grant funds remaining at the end of the Agreement period shall be returned to the Grantee, and the Grantee may in its discretion reprogram the funds to another CDBG eligible project. Page 9 of 29 6. Audits and Inspections All Sub-Grantee records with respect to any matters covered by this Agreement shall be made available to the Grantee, HUD, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Sub- Grantee within 30 days after receipt by the Sub-Grantee. Failure of the Sub-Grantee to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. The Sub-Grantee hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning Sub-Grantee audits and OMB Circular A-133, if applicable. If Sub-Grantee does not expend $500,000 in Federal funds within the fiscal year, then a financial statement audit shall be submitted to Grantee. C. Reporting and Payment Procedures 1. Program Income The Sub-Grantee shall report program income [as defined at 24 CFR 570.500 (all generated by activities carried out with CDBG-R funds made available under this Agreement annually once facility is constructed and in full operation. Program income shall be reported for the life of the loan. The use of program income by the Sub-Grantee shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Sub-Grantee may use such income during the Agreement period for activities permitted under this Agreement and shall reduce requests for additional funds by the amount of any such program income balance on hand. All unexpended program income shall be retained by Sub-Grantee at the end of the Agreement period and utilized for eligible CDBG activities. 2. Indirect Costs If indirect costs are charged, the Sub-Grantee will develop an indirect cost allocation plan for determining the appropriate Sub-Grantee's share of administrative costs and shall submit such plan to the Grantee for approval, in a form specified by the Grantee. 3. Invoicing and Payment Procedures a) In order to obtain reimbursement from the Grantee in connection with the Project, Sub-Grantee shall provide the following information: (1) Request for reimbursements by Sub-Grantee shall be accompanied by invoices, cancelled checks, receipts, Architect's Inspection report indicating percentage of project completion, Contractor's Statement and Certified Payrolls as required to comply with Davis Bacon regulations, Job Creation Report and any other documentation evidencing funds expended by Sub-Grantee. Before disbursement of any funds, Sub-Grantee shall provide to Grantee one copy of all Page 10 of 29 contracts for which these grant funds are being disbursed. Contracts shall include rehabilitations and professional services contracts. (2) The Grantee agrees to reimburse costs allowable under Federal, state and local guidelines. b) Upon receiving the invoices, reports and other material, the Department shall audit such documentation to determine whether the items invoiced are eligible for reimbursement under applicable Federal, state and local laws and regulations. c) The Department shall authorize the Grantee's Financial Officer to reimburse the Sub-Grantee for all costs it determines are eligible for reimbursement, pursuant to the audit. Payments will be made on a monthly basis with a 15-day turnaround period by Grantee. Requests for payments must be received by Grantee not later than the week before payment is expected, subject to the Department inspector's authorization. The Sub-Grantee shall not claim reimbursement from the Grantee for that portion of its obligations which has been paid by another source of revenue. d) The Grantee will pay to the Sub-Grantee funds available under this Agreement based upon information submitted by the Sub-Grantee and consistent with any approved budget and the Grantee policy concerning payments. The Grantee reserves the right to liquidate funds available under this Agreement for costs incurred by the Grantee on behalf of the Sub-Grantee. 4. Progress Reports The Subrecipient shall submit Monthly Progress Reports which are due by the 5th of the month for prior month activities. Progress Reports shall be submitted with each request for payment. Quarterly Performance Reports shall be submitted to Grantee quarterly, by the 5th of the month for prior quarter activities. 5. Annual Reports The Sub-Grantee shall submit an Annual Performance Report to the Grantee in the form and content as required by the Grantee. The Annual Performance Report shall be submitted to Grantee 30 days following the year of the grant period. D. Procurement 1. Compliance The Sub-Grantee shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. Personal property means property of any kind except real property. All program assets Page 11 of 29 (unexpended program income and/or property) shall be retained by Grantee upon termination of this Agreement. 2. OMB Standards All procurement transactions regardless of whether negotiated or advertised and without regard to dollar value, shall be conducted in a manner so as to provide maximum open free competition consistent with the 24 CFR Part 84 "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations; more specifically 84.40-48 "Procurement Standards", E. Use and Reversion of Assets The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502, 570.503, and 570.504, as applicable, which include but are not limited to the following: 1. The Sub-Grantee shall transfer to the Grantee any CDBG funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation or termination. 2. Real property under the Sub-Grantee's control that was acquired or improved, in whole or in part, with funds under this Agreement in excess of $25,000 shall be used to meet the CDBG National Objective of benefitting low to moderate income persons pursuant to 24 CFR 570.208 until fifteen (15) years after completion of rehabilitation. 3. If the Sub-Grantee fails to use CDBG-assisted real property in a manner that meets a CDBG National Objective for the prescribed period of time, the Sub-Grantee shall pay the Grantee an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of or improvement to the property. Such payment shall constitute program income to the Grantee. The Sub-Grantee may retain real property acquired or improved under this Agreement after the expiration of the fifteen-year period or such longer period of time as the Grantee deems appropriate. 4. In all cases in which equipment acquired, in whole or in part, with funds under this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to that funds received under this Agreement were used to acquire the equipment). Equipment not needed by the Sub-Grantee for activities under this Agreement shall be: a) Transferred to the Grantee for the CDBG program, or b) Retained after compensating the Grantee for an amount equal to the current fair market. Page 12 of 29 ARTICLE IX: RELOCATION REAL PROPERTY ACQUISITION AND ONE-FOR-ONE HOUSING REPLACEMENT The Sub-Grantee agrees to comply with (a) the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URAl, and implementing regulations at 49 CFR Part 24 and 24 CFR 570.606 (b); (b) the requirements of 24 CFR 570.606 (c) governing the Residential Anti- Displacement and Relocation Assistance Plan under section 104(d) of the HCD Act; and (c) the requirements in 24 CFR 570.606 (d) governing optional relocation policies. (The Grantee may preempt the optional policies.) The Sub-Grantee shall provide relocation assistance to displaced persons as defined by 24 CFR 570.606 (b)(2) that are displaced as a direct result of acquisition, rehabilitation, demolition or conversion for a CDBG-assisted project. The Sub-Grantee also agrees to comply with applicable Grantee ordinances, resolutions and policies concerning the displacement of persons from their residences. ARTICLE X: PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance a) The Sub-Grantee agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107 and 12086. b) In compliance with Executive Order 11246 and Section 3 of the 1968 Housing and Urban Development Act regarding Equal Employment Opportunity, the Sub-Grantee agrees and understands that no person shall be discriminated against on the grounds of race, color, national origin, age, familial status, handicap or sex. Further assurance is also given that the Sub-Grantee will immediately take any measures necessary to effectuate this policy. Notice of the policy will be placed in plain sight at the Project location, for the benefit of interested parties, and all subcontractors will be notified of the policy provisions. 2. Nondiscrimination The Sub-Grantee agrees to comply with the non-discrimination in employment and contracting opportunities laws, regulations and executive orders referenced in 24 CFR 570.607, as revised by Executive Order 13279. The applicable non-discrimination provisions in Section 109 of the Housing and Community Development Act are still applicable. 3. Land Covenants This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P. L. 88-352) and 24 CFR 570.601 and 570.602. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, the Sub- Page 13 of 29 Grantee shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the Grantee and the United States are beneficiaries of and entitled to enforce such covenants. The Sub-Grantee, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. 4. Section 504 The Sub-Grantee agrees to comply with all Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.c. 794), which prohibits discrimination against the individuals with disabilities or handicaps in any Federally assisted program. The Grantee shall provide the Sub-Grantee with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement. B. Affirmative Action 1. Approved Plan Note: as to subparagraph B, Parts 1, 2, and 5, these are not requirements of Augusta-Richmond County as Augusta Richmond County does not operate a DBE or MBE program, but rather operates a race and gender neutral Local Small Business Program. The Sub-Grantee agrees that it shall be committed to carry out pursuant to the Grantee's specifications an Affirmative Action Program in keeping with the principles as provided in President's Executive Order 11246 of September 24, 1966. The Grantee shall provide Affirmative Action guidelines to the Sub-Grantee to assist in the formulation of such program. The Sub-Grantee and its prime contractor shall submit a plan for an Affirmative Action Program for approval. 2. Women-and Minoritv-Owned Businesses (W /MBE) (24 CFR 570.610 & Part 84 applies) The Sub-Grantee will use its best efforts to afford small businesses, minority business enterprises and women's business enterprises the maximum practicable opportunity to participate in the performance of this Agreement. As used in this Agreement, the terms "small business" means a business that meets the criteria set forth in section 3 (a) of the Small Business Act, as amended (15 U.S. C. 632), and "minority and women's 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. The Sub-Grantee may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. 3. Access to Records The Sub-Grantee shall furnish and cause each of its own Sub-Grantees or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Grantee, HUD or its agent, or other authorized Federal officials Page 14 of 29 for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. 4. Notifications The Sub-Grantee will send to each labor union or representative of workers with which it has a collective bargaining agreement or other agreement or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or worker's representative of the Sub-Grantee's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5. Equal Employment Opportunity and Affirmative Action (EEO/ AA) Statement The Sub-Grantee will, in all solicitations or advertisements for employees placed by or on behalf of the Sub-Grantee; state that it is an Equal Opportunity or Affirmative Action employer. 6. Subcontract Provisions The Sub-Grantee will include the provIsions of Paragraphs X.A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own Contr,actors or subcontractors. Sub-Grantee shall require General Contractor and Project Architect to submit docl:lments and reports to the City in such form, manner and frequency as prescribed by the City for compliance with applicable requirements. C. Employment Restrictions 1. Prohibited Activity The Sub-Grantee is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities, inherently religious activities, lobbying, political patronage and nepotism activities. 2, Labor Standards The Sub-Grantee 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 and Safety Standards Act (40 U.s.e. 327 et seq.) 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 Agreement. The Sub-Grantee agrees to comply with the Copeland Anti- Kick Back Act (18 U.S.c. 8864 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. The Sub-Grantee shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be submitted to Grantee weekly upon commencement of rehabilitation. Page 15 of 29 The Sub-Grantee agrees that, except with respect to the rehabilitation or rehabilitation of residential property containing less than eight (8) units, all Contractors engaged under contracts in excess of $2,000.00 for rehabilitation, renovation or repair work financed in whole or in part with assistance provided under this Agreement, shall comply with Federal requirements adopted by the Grantee pertaining to such contracts and with applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers, provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Sub-Grantee of its obligation, if any, to require payment of the higher wage. The Sub-Grantee shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements ofthis paragraph. 3. "Section 3" Clause a) Compliance Compliance with the provisions of Section 3 of the HUD Act of 1968, as amended, and as implemented by the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this Agreement, shall be a condition of the Federal financial assistance provided under this Agreement and binding upon the Grantee, the Sub-Grantee and any of the Sub-Grantee's Sub-Grant~es and subcontractors. Failure to fulfill these requirements shall subject the Grantee, the Sub- Grantee and any of the Sub-Grantee's Sub-Grantees' and subcontractors, their successors and assigns, to those sanctions specified by the Agreement through which Federal assistance is provided. The Sub-Grantee certifies and agrees that no contractual or other disability exists that would prevent compliance with these requirements. The Sub-Grantee 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 Agreement 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 low and very low income residents of the project area, and that contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for low and very low income persons residing in the metropolitan area in which the project is located. II The Sub-Grantee further agrees to ensure that opportunities for training and employment arising in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing rehabilitation, or other public rehabilitation project are given to low and very low income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to low and very low income persons within the service area of the project or the neighborhood in which the project is located, and to low and very low income participants in other HUD programs and award contracts for work undertaken in Page 16 of 29 connection with a housing rehabilitation (including reduction and abatement of lead- based paint hazards), housing rehabilitation, or other public rehabilitation project to business concerns that provide economic opportunities for low and very low income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to business concerns that provide economic opportunities to low and very low income residents within the service area or the neighborhood in which the project is located and to low and very low income participants in other HUD programs. Reporting on Section 3 shall be submitted to Grantee annually until completion of rehabilitation. The Sub-Grantee certifies and agrees that no contractual or other legal incapacity exists that would prevent compliance with these requirements. b) Notifications The Sub-Grantee agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other agreement 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. c) Subcontracts The Sub-Grantee will include this Section 3 clause in every subcontract'and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the grantor agency. The Sub-Grantee will not subcontract with any entity where it has notice of knowledge that the latter has been found in violation' of regulations under 24 CFR Part 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. 4. Debarred. Suspended or Ineligible Contractors CDBG-R funds shall not be used directly or indirectly to employ, award contracts to, or otherwise engage the services of, or fund any contractor or subcontractor during any period of debarment, suspension, or placement in ineligibility status by any federal agency under the provisions of 24 CFR Part 24 (Government Debarment and Suspension Regulations). D. Conduct 1. Assignabilitv The Sub-Grantee shall not assign or transfer any interest in this Agreement without the prior written consent of the Grantee thereto; provided, however, that claims for money due or to become due to the Sub-Grantee from the Grantee under this Agreement 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 the Grantee. Page 17 of 29 2. Subcontracts a) Approvals The Sub-Grantee shall not enter into any subcontracts with any agency or individual in the performance of this Agreement without the written consent of the Grantee prior to the execution of such agreement. b) Monitoring The Sub-Grantee will monitor all subcontracted services on a regular basis to assure Agreement compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. c) Content The Sub-Grantee shall cause all of the provisions of this Agreement in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. d) Selection Process The Sub-Grantee shall undertake to insure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis in accordance with applicable procurement requirements. Executed copies of all subcontracts shall be forwarded to the Grantee along with documentation concerning the selection process. E. Hatch Act The Sub-Grantee agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 ofTitle V of the U.s.e. F. Conflict of Interest The Sub-Grantee agrees to abide by the provisions of 24 CFR 84.42 and 570.611, which include (but are not limited to) the following: 1. The Sub-Grantee shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of Agreements supported by Federal funds. 2. No employee, officer or agent of the Sub-Grantee shall participate in the selection, or in the award, or administration of, an Agreement supported by Federal funds if a conflict of interest, real or apparent, would be involved. Page 18 of 29 3. No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a decision- making process or gain inside information with regard to such activities, may obtain a financial interest in any Agreement, or have a financial interest in any contract, subcontract or agreement with respect to the CDBG-assisted activity, or with respect to the proceeds from the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a "covered person" includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Grantee, the Sub-Grantee, or any designated public agency. G. Lobbving The Sub-Grantee hereby certifies that: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or,cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 3. It will require that the language of paragraph (d) of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants and Agreements under grants, loans and cooperative agreements) and that all Sub-Grantees shall certify and disclose accordingly. 4. Lobbving Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S.e. Any persons who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Page 19 of 29 H. Copyright If this Agreement results in any copyrightable material or inventions, the Grantee and/or grantor agency reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for governmental purposes. I. Religious Activities The Sub-Grantee agrees that funds provided under this Agreement will not be utilized for inherently religious activities prohibited by 24 CFR 570.200 0), such as worship, religious instruction, or proselytization. ARTICLE XI: ENVIRONMENTAL CONDITIONS A. Air and Water The Sub-Grantee agrees to comply with the following requirements insofar as they apply to the performance of this Agreement: Clean Air Act, 42 U.X.e., 7401, et seq.; Federal Water Pollution Act, as amended, 33 U.S.e., 1251 et seq., as amended, 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; Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, as amended. B. Flood Disaster Protection In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.e. 4001), the Sub-Grantee shall assure that for activities located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or rehabilitation purposes (including rehabilitation). C. Lead-Based Paint The Sub-Grantee agrees that any rehabilitation or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint regulations at 24 CFR 570.608, and 24 CFR Part 35, Subpart B. Such regulations pertain to all CDBG-assisted housing and require that all owners, prospective owners and tenants of 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 and the advisability and availability of blood lead level screening for children under seven. The notice should also point that if lead-based paint is found on the property, abatement measures may be undertaken. The regulations further require that, depending on the amount of Federal Page 20 of 29 funds applied to a property, paint testing, risk assessment, treatment and/or abatement may be conducted. D. Historic Preservation The Sub-Grantee agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.e. 470) and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties insofar as they apply to the performance of this agreement. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, state or local historic property list. ARTICLE X: SEVERABILITY If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect. ARTICLE XII: SECTION HEADINGS AND SUBHEADINGS The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms ofthis Agreement. ARTICLE XIII: WAIVER The Grantee's failure to act with respect to a breach by the Sub-Grantee does not waive its right to act with respect to subsequent or similar breaches. The failure of the Grantee to exercise or enforce any right or provision shall not constitute a waiver of such right or provision. Page 21 of 29 ARTICLE XIV: ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the Grantee and the Sub-Grantee for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between the Grantee and the Sub- Grantee with respect to this Agreement, IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. SEAL AUGUSTA, GEORGIA ~'f) (Grante~) , B. LV/G" (;, ,'- y, .~ l' N.I If Deke S. Copenhaver ! . GWl As its Mayor l 21(10 ATTEST: ATTEST: SEAL LANEY WALKER DEVELOPMENT CORPORATION, INC. ~ ~ /,F~ , e Holmes As its Board Chairman Cynthia McKinley As its Corporate Secretary (Plain Witness) --:: Andrew McKenzie Interim General Counsel Page 22 of 29 EXHIBIT "A" SCOPE OF SERVICES AND TIMETABLE Sub-Grantee understands and agrees that it is a recipient of grant funds under the Community Development Block Grant - Recovery (CDBG-R) Program and is eligible to receive funds for Sub-Grantee Project No. CDBG-R1 pursuant to this Agreement, The following conditions, in addition to those established in the Agreement itself and other attachments thereto, and federal, state, and city laws, regulations and procedures pertinent to this project, have been set forth and must also be complied with in order for Sub-Grantee to received CDBG-R Program assistance for Sub-Grantee Project No. CDBG-R1. This Agreement is contingent upon Sub-Grantee operating the Scope of Service herein outlined during the period January 20, 2010 through March 31, 2019, I. SCOPE OF SERVICES Sub-Grantee shall be responsible for administering the program herein described, utilizing funds from the CDBG-R Program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. Such program shall include the following activities eligible under the CDBG-R Program, A. Program Delivery Sub-Grantee shall undertake the Armstrong Galleria Laundror:nat for the purpose of providing an economic development component to the Laney Walker area. Laney Walker Development Corporation's vision includes a new coin Laundromat located within the Armstrong Galleria Phase. This Laundromat will provide residents the availability of washer and dryer services for those who may not have those amenities within their households. Also available will be a wash/fold service for those persons who may be under time restrictions as well as drop-off cleaning service. With this venture in mind, the LWDC has chosen the experience of Southern Automatic Machinery Company as its provider of commercial industrial laundry equipment. The project involves the rehabilitation of a 1,960 square feet 1-story facility. LWDC envisions this development project will affect the surrounding community in the following areas: 1) Allowing the community residents access to a clean, safe environment in which their laundry services can be operated. Additionally the series of wash/fold laundry and a drop- off dry cleaning will add to the list series available to the local residents; 2) This Laundromat will assist the City of Augusta's Housing and Community Development Department (AHCDD) in its efforts of revitalization in the Laney Walker Community through the renovation of an existing vacant building, in a low income Enterprise Zone Community, to a vibrant business; Page 23 of 29 3) The potential income from the Laundromat development will allow the LWDC more resources for future developments/projects for low-income persons throughout the City of Augusta. B. General Administration Sub-Grantee will provide all necessary staffing, materials, meeting sites and anything else necessary to facilitate the rehabilitation and operation of the facility. Sub-Grantee shall maintain records related to the number of jobs created, persons served under this grant along with documentation of income eligibility, as well as appropriate financial documentation of expenditures. C. National Obiectives Sub-Grantee certifies that the activity carried out under this Agreement will meet the National Objective of creating jobs for low- to moderate-income persons. Sub-Grantee will meet the requirements under the regulations by requiring information on family size and income so that it is evident that clients are low to moderate income. D. Levels of AccomDlishment- Goals and Performance Measures The Sub-Grantee agrees to create 4 permanent full time equivalent permanent jobs for low- to moderate-income persons. Activity Units Accomplishments January 20, 2010 - March 31, 2019 . 4 FTE PERMANET jobs to be created . Creation of Economic Development in a Low-Income Enterprise Zone Rehabilitation of facility . 570.203(a) Rehabilitation of one (1) Existing structure Page 24 of 29 1FT PERMANENT JOBS Day Laundromat Attendant Night Laundromat Attendant Weekend Attendant Security Guard Company Armstrong Galleria Laundromat Armstrong Galleria Laundromat Armstrong Galleria Laundromat Armstrong Galleria Laundromat 1FT 1FT 1FT ***** *********************** ********************** Total: Permanent - 4 FT Equivalent Jobs E. Performance Monitorine: The Sub-Grantee agrees that the Department may carry out periodic monitoring activities as determined necessary by the Department. At a minimum, monitoring shall occur annually, and it may occur more frequently if the Department deems it necessary. The Department will provide the Sub-Grantee with advance notice in writing prior to any monitoring activities. Such monitoring shall consist of evaluating the Sub-Grantee's compliance with the terms and conditions of this Agreement, and comparing the Sub-Grantee's projected Project schedule, budget and output with its actual performance. Upon request, the Sub-Grantee shall furnish the Department, the Grantee, or its designee copies of such records and information as the Department or the Grantee deems necessary. In addition, the Sub-Grantee shall submit monthly progress reports as required by this Agreement, and shall prepare such other reports as may be required by the Department, the Grantee and/or HUD. The Grantee will monitor the performance of the Sub-Grantee against goals and performance standards as stated above. Substandard performance as determined by the Grantee will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the Sub-Grantee within a reasonable period of time after being notified by the Grantee, Agreement suspension or termination procedures will be initiated. II. BUDGET Line Item Amount $140,000 @ 4%, 8.5 Years Rehabilitation This funding shall carry an eighteen (18) month deferment period, beginning upon the execution of this contract by all parties as shown on page 22 of this funding agreement. Based on the 18 month deferment period, this loan shall stay in deferment until July 14, 2011. Beginning August 2011, Laney Walker Development Corporation, shall begin making monthly scheduled loan payments ($1,621.32) to Augusta Housing and Community Development Department) by no later than the 5th of each month. Late fee payments will be assessed to the Armstrong Galleria Laundromat loan as follows...... Page 25 of 29 . Payments received on the 6th _15th of each month . Payments received on the 16th - 23,d of each month . Payments received on the 24th - 31st of each month 10% Penalty 15% Penalty 20% Penalty Any amendments to the budget must be in writing and approved by the Grantee's Director of Housing and Community Development Department. III. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed S140.000. Draw downs for the payment of eligible expenses shall be made against the line item budgets specified in Paragraph II herein and in accordance with performance. Expenses for general administration shall also be paid against the line item budgets specified in Paragraph II and in accordance with performance. Payments may be contingent upon certification of the Sub-Grantee's financial management system in accordance with the standards specified in 24 CFR 84.21. Sub-Grantee is also responsible for submitting to the Grantee, monthly progress, quarterly performance, annual performance reports, time sheets (if applicable), mileage (if applicable), invoices and any other documentation deemed necessary by the monitoring official during the funding cycle. These records shall be retained up to five (5) years after the Agreement expires. EXHIBIT "B" PROGRAM REQUIREMENTS Sub-Grantee shall operate this project funded through the City's Community Development Block Grant Program according to the following guidelines: ' 1. Accounting and related records of Sub-Grantee shall comprise the following as a minimum: a. Voucher System - All supporting documentation, such as purchase order, invoices, receiving reports and requisitions. b. Books of Original Entry - Cash receipts and disbursements journal, general ledger. c. Chart of Accounts - Listing of accounts must be maintained in the accounting system. d. Personnel Records - Separate personnel file shall be maintained for each project employee. As a minimum, the file shall contain a resume of the employee, a description of duties assigned, and a record of the date employed, rate of pay at the time of employment, subsequent pay adjustments, and documentation supporting leave taken by the employee. e. Attendance Record - Attendance records shall be maintained for all personnel paid with CDBG funds. This applies to part-time as well as full-time personnel. In addition to accounting for daily attendance, the type of leave taken (annual, sick, or other), shall be Page 26 of 29 disclosed. Daily attendance records must support budgetary changes for payroll purposes. f. Payroll Records - Formal payroll records supporting cash disbursements to employees shall be maintained. Such records shall disclose each employee's name, job title, social security number, date hired, rate of pay, and all required deductions for tax purposes. Timely quarterly payment of taxes withheld from employees for the Federal Government, along with required matching costs, are required. In addition, all charges for payroll purposes shall be in accordance with the budget submitted to the Grantee. g. Checking Accounts - Monthly bank reconciliation shall be conducted by Sub-Grantee. All checks, stubs, etc. shall be prenumbered and accounted for, including voided checks. Check stubs, cancelled checks, and deposit slips must be readily available for audit purposes. h. Petty Cash - Sub-Grantee is encouraged to use an imprest system and adhere to a monthly, or if necessary, more frequent reimbursement procedure if any CDBG funds are used as petty cash. i. Purchasing Practices - HUD considers State"purchasing regulations to be an acceptable standard for purchasing practices. Local purchasing practices and other procedures shall prevail unless State and/or Federal practices and procedures are more stringent. Therefore, Sub-Grantee is obligated to conform to the more restrictive practices and procedures. It is recommended that Sub-Grantee use a formal prenumbered purchase order system where possible and applicable. j. Inventories - Sub-Grantee is advised to maintain adequate safeguards against loss by theft or physical deterioration of any inventories of office supplies, equipment, or other items purchased with CDBG funds. ' k. Property Records - Sub-Grantee is required to maintain formal subsidiary records to control all project property and equipment. Such records shall disclose the acquisition and subsequent disposition of all property. An annual inventory should be conducted, and the books shall reflect the actual value of property on hand at the end of the fiscal year. 2. All projects accounting records and supporting documents shall be maintained for a period of at least five (5) years after termination of the Grantee's award. The records shall be made available to the Grantee, HUD and/or any of their authorized representatives. 3. Sub-Grantee should maintain records in an orderly manner, with separate identification for different federal time periods. Records must be protected from fire or other perils, and if stored in a location other than the project site, shall be readily accessible to the Grantee's staff, HUD officials and others who may be authorized to examine such records. Page 27 of 29 EXHIBIT "C" REPORT SCHEDULE Audit 1st year - October 30,2010 2nd year - October 30,2011 3rd year - October 30,2012 4th year - October 30, 2013 5th year - October 30, 2014 6th year - October 30, 2015 7th year - October 30, 2016 8th year - October 30,2017 9th year - October 30, 2018 10th year - October 30, 2019 30 days after receipt of Audit Report PERIOD COVERED For prior month activities 1st Report due 02/05/10 For prior quarter activities 1st Report due 04/05/10 - covering 01/20/10 - 03/31/10 Grant Period Year 1: 01/20/10 - 09/30/10 Year 2: 10/01/10 - 09/30/11 Year 3: 10/01/11-03/31/12 Year 3: 10/01/12 - 03/31/13 Year 3: 10/01/13 - 03/31/14 Year 3: 10/01/14 - 03/31/15 Year 3: 10/01/15 - 03/31/16 Year 3: 10/01/16 - 03/31/17 Year 3: 10/01/17 -03/31/18 Year 3: 10/01/18 - 03/31/19 Sub-Grantee audit period REPORT Monthly Progress Report DUE 5th day of month Quarterly Performance Report 5th day after end of quarter Annual Performance Report ATTACHMENTS: Regulations and Circulars 1. Community Development Block Grant Entitlement Program 24 CFR 570 2. Notice - CDBG-Recovery - Docket No. FR-5309-N01 3. OMB Circular A-122 - "Cost Principles for Non-Profit Organizations" 4. 24 CFR Part 84 - "Grants and Agreements with Institutions of Higher Education, Hospitals, & Other Non-Profit Organizations" 5. OMB Circular A-133, "Audits of Institutions of Higher Education and Other Non-Profit Institutions" Forms 1. Monthly Progress Report Page 28 of 29 2. Quarterly Performance Report 3. Annual Performance Report 3. Job Creation Report & instructions Page 29 of 29