Loading...
HomeMy WebLinkAboutR-2017-110 Community Development Block Grant Agreement with Rural Community Development ResourcesA RESOLUTION RESOLUTION NO. R-2017-110 authorizing an agreement with Rural Community Development Resources (RCDR) in the amount of Fifty Thousand Dollars ($50,000) in Community Development Block Grant funds to provide technical assistance to microenterprise businesses within the City of Yakima WHEREAS, Rural Community Development Resources (RCDR) is a private, non-profit provider of technical assistance, training and financial assistance for small business, and WHEREAS, RCDR has requested Fifty Thousand dollars ($50,000) in Community Development Block Grant funding to provide technical assistance services to microenterprise businesses in the City of Yakima; and WHEREAS, the City is a recipient and is responsible for the administration of its annual allocation of Community development Block Grant (CDBG) funds made available through the United States Department of Housing and Urban Development (HUD) and authorized by Title I of the Housing and Community development Act of 1974, as amended, and WHEREAS, federal regulation governing the use of CDBG funds for economic development activities allow the City to use such funds to provide grants to assist private, for-profit businesses; and WHEREAS, the provision of technical assistance to businesses will provide substantial appropriate public benefits to the City, particularly by creating new businesses and jobs, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute a grant agreement with Rural Community Development Resources (RCDR), in the amount of Fifty Thousand dollars ($50,000) in Community Development Block Grant funds to provide technical assistance to microenterprise businesses within the City of Yakima A copy of the grant agreement is attached hereto. ADOPTED BY THE CITY COUNCIL this 5th day of September, 2017 ATTEST Sonya CIa ar Tee, City Clei-k• o; v ,^ • .y' AGREEMENT BETWEEN THE CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES AND AWARDEE — Rural Community Development Resources 1 AWARDEE Rural Community Development Resources (hereinafter "Contractor") 2 Address 24 South 3rd Avenue, Yakima, WA. 98902 3 Phone. (509) 453-5133 4 Contact Person Maria DJ Rodriguez 5 Title of Service or Program being funded Micro-enterprise/Small Business Technical Assistance) 6 Amount of Contract Award $50,000 (CDBG) CFDA Contract # 14.218 7. The term of this Contract shall commence upon the execution date of Contractors' receipt of "Letter to Proceed" from City of Yakima Office or Neighborhood Development Services and terminate on December 31, 2017 at midnight, unless sooner terminated by either party in accordance with Section XXII of Exhibit "A", attached hereto and incorporated herein by this reference 8 - This contract award and the rights and obligations of both parties hereto shall be subject to and governed by the following. (a) "Terms and Conditions" attached hereto as Exhibit "A" and incorporated herein by this reference, and (b) The work plan, attached hereto as Exhibit "B" and incorporated herein by this reference (c) City of Yakima Resolution No. '�R aDl7'dIcopy of which is attached hereto as Exhibit "C" and incorporated herein by this reference 9 Final Contract payment shall be subject to satisfactory completion of the project described in Exhibit "B", and satisfaction of all contract terms and conditions, including, but not limited to, the submission of the final report and billing invoice information within thirty (30) days of the contract closing date, and as stated in Exhibit "A", Exhibit "B" and Exhibit "C" This written document, together with all of the incorporated Exhibits hereto, constitutes the entire Contract and terms of agreement between the parties hereto IN WITNESS THEREOF the parties have executed this Contract as of the day and year stated below CITY OF YAKIMA RURAL COMMUN D V RESOURCES Cliff Moo -, Cid` anager Date. By: (( 4 i ti Title ...iar e.- /i cX / rfP� Date Viol/ �f 4 l/q741.40L. Joan enport, Communir V Development Director tr) Date: ATTEST stutio,r7s, ikErm Sonya Claare, City Clerk City Contract No : O 1 1 - 1L-1 R- aO7 - i I D tO A . a'v ` 41 cr Page 2 of 22 EXHIBIT "A" TERMS AND CONDITIONS WITNESSETH WHEREAS, the CITY is the recipient of Community Development Block Grant Funds from the U.S Department of Housing and Urban Development (HUD), and WHEREAS, Rural Community Development Resources (hereinafter referred to as "AWARDEE" or "Contractor") and has submitted a proposal for use of CDBG funds for an eligible activity under CDBG regulations, NOW, THEREFORE in consideration of the mutual covenants and obligations herein contained, including the Attachments, and subject to the terms and conditions hereinafter stated, the parties hereto understand and agree as follows Section I — Definitions A. AGENCY — is hereby defined as the Office of Neighborhood Development Services, the CDBG Program administering agency of the City of Yakima For the purpose of this Agreement and all administration of CDBG funds, the AGENCY shall act on behalf of the CITY in the execution and fiscal and programmatic control of this agreement. The term "Approval by the CITY" or like term used in this Agreement shall in no way relieve the AWARDEE from any duties or responsibilities under the terms of this Agreement, or obligation State or local law or regulation B FEE — is hereby defined as the amount of money the CITY agrees to pay and the AWARDEE agrees to accept as payment in full for all the professional, technical and construction services rendered pursuant to this Agreement to complete the WORK as further defined in Section III - SCOPE OF WORK, hereof C WORK — is hereby defined as all the professional, technical and construction services to be rendered or provided by the AWARDEE as described here D PROJECT — is defined in Section IV below E HOME — is hereby defined as the HOME Investment Partnerships Program as described in 24 CFR Part 92, under the authority of 42 U S.0 3535 (d) and 12701 - 12839. Section II — Term The AWARDEE expressly agrees to complete all work required by this agreement in accordance with the timetable set forth Milestone Deadline Project Start Date : Date of signature. Interim Milestones/Deadlines (list below) Project Completion Date: . December 31, 2017 Timely completion of the work specified in this agreement is an integral and essential part of Page 3 of 22 performance The expenditure of CDBG funds is subject to Federal deadlines and could result in the loss of the Federal funds. By the acceptance and execution of this agreement, it is understood and agreed by the AWARDEE that the PROJECT will be completed as expeditiously as possible and that the AWARDEE will make every effort to ensure that the project will proceed and will not be delayed Failure to meet these deadlines can result in cancellation of this contract and the revocation of CDBG funds Since it is mutually agreed that time is of the essence as regards this agreement, the AWARDEE shall cause appropriate provisions to be inserted in all contracts or subcontracts relative to the work tasks required by this agreement, in order to ensure that the PROJECT will be completed according to the timetable set forth It is intended that such provisions inserted in any subcontracts be, to the fullest extent permitted by law and equity, binding for the benefit of the CITY and enforceable by the CITY against the AWARDEE and its successors and assigns to the project or any part thereof or any interest therein In the event the AWARDEE is unable to meet the above schedule or complete the above services because of delays resulting from Acts of God, untimely review and approval by the CITY and other governmental authorities having jurisdiction over the PROJECT, or other delays that are not caused by the AWARDEE, the CITY shall grant a reasonable extension of time for completion of the WORK. It shall be the responsibility of the AWARDEE to notify the CITY promptly in writing whenever a delay is anticipated or experienced, and to inform the CITY of all facts and details related to the delay Section III — Scope of Work The AWARDEE, in close coordination with the CITY, shall perform all professional services (the "WORK") necessary to complete the development and occupancy of the following project in full compliance with the terms of this Agreement, including, but not limited to, Exhibit "B" It is understood that the AWARDEE will provide a specific working budget and realistic timetable as relates to soft costs, development fees and other allowable costs/activities prior to any fund usage. Said budget shall identify all sources and uses of funds, and allocate CDBG funds to activities or line items. The aforementioned Work tasks will be performed in essentially the manner proposed in the AWARDEE's proposal as received by the AGENCY on October 27, 2016 The aforementioned document will be considered to be a part and portion of this agreement fully incorporated herein Section IV — Reimbursement of Expenses & Developer Fees A. GENERAL. Project expenses (excluding developer fee) shall be paid based on vouchers for actual expenses incurred or paid. Requests for payment must be submitted by the AWARDEE on forms specified by the CITY, with adequate and proper documentation of eligible costs incurred in compliance with 92 206 and necessary for HUD IDIS disbursement requirements All such expenses shall be in conformance to the approved project budget. Budget revision and approval shall be required prior to payment of any expenses not conforming to the approved project budget. The City reserves the right to hold payment until adequate documentation has been provided by the Contractor and reviewed by the City. The Contractor agrees to the Page 4 of 22 following provisions in satisfying the terms and conditions of this contract. B PAYMENT AND DISBURSEMENTS Disbursements by the City of Yakima from this contract/grant award shall be on a reimbursement basis covering actual expenditures by the Contractor or obligations of the Contractor currently due and owing, but not paid. Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions: 1 Receipt by the City of Yakima ONDS of a written reimbursement request on forms approved by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries, or other acceptable documentation, and 2. Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the principles set forth in Federal Management Circular 74-4 "eligible costs under the CDBG Program" and that also fall within the applicable Project Budget. The Contractor shall submit monthly written claims for reimbursement of services performed under this Agreement. C No payment shall be made for any service rendered by the Contractor except for services within the scope of a category set forth in the budget in Exhibit "B" of this Contract, and all funds received must be used for service as identified in Exhibit "B" of this Contract. D 1 The Contractor shall submit to the City of Yakima ONDS a written request for approval of budget revision when a proposed revision would result in an increase or decrease of ten percent (10%) or more per home, from what has been set forth in the approved budget subject category The City's written budget revision approval must be received by the Contractor prior to the Contractor incurring any expenditures against the revised budget subject categories 2 When the revision of the Contractor budget does not exceed ten percent (10%) of an approved budget subject category, the Contractor must submit a revised budget to the City of Yakima ONDS prior to the submittal of claims against the budget. E. CITY reserves the right to inspect records and project sites to determine that reimbursement and compensation requests are reasonable. The CITY also reserves the right to hold payment until adequate documentation has been provided and reviewed F Within thirty (30) days of the contract closing date, AWARDEE shall submit a final invoice that includes all unpaid invoices and a final report. Final payment shall be made only after the CITY has determined that all services have been rendered, files and documentation delivered (including the final invoices and final report), and units have been placed in service in full compliance with CDBG regulations, including submission of a completion report and documentation of eligible activities If the final invoices and report are not Page 5 of 22 received within thirty (30) days of the contract closing date, AWARDEE understands and agrees that it will not receive any payment for any final pending unpaid invoices. G CITY shall have the right to review and audit all records of the AWARDEE pertaining to any payment by the CITY Said records shall be maintained for a period of six years after completion Section V — Project Requirements The AWARDEE agrees to comply with all requirements of the CDBG Program as stated in 24 CFR Part 92, including but not limited to the following A. No project funds will be advanced, and no costs can be incurred, until the City has conducted an environmental review of the proposed project site as required under 24 CFR Part 58 The environmental review may result in a decision to proceed with, modify or cancel the project. Notwithstanding any provision of this Agreement, the parties hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval, and that such commitment of funds or approval may occur only upon satisfactory completion of environmental review and receipt by the CITY of a release of funds from the U S Department of Housing and Urban Development [or the State of Washington] under 24 CFR Part §58. Further, the AWARDEE will not undertake or commit any funds to physical or choice -limiting actions, including property acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior to the environmental clearance, and must indicate that the violation of this provision may result in the denial of any funds under the agreement. B. Any HOME funds advanced to the PROJECT will be secured by a note and mortgage, and in the case of a rental project, a deed covenant as required by 24 CFR Part 92 C The AWARDEE will ensure that any expenditure of CDBG funds will be in compliance with the requirements at 92 206, and acknowledges that CDBG funds will only be provided as reimbursement for eligible costs incurred, including actual expenditures or invoices for work completed D If the project is to be owner -occupied, the AWARDEE will ensure that all HOME assisted units will be in compliance with 24 CFR 92.254, including documenting that the property is eligible under 92 254(a)(1) — (2), and will maintain compliance during the minimum compliance period. (If the property also contains a rental unit assisted with HOME funds, the AWARDEE will ensure that occupancy complies with the requirements of 92 254(a)(6)) If the project is to be a rental, the AWARDEE will ensure that that project is eligible under 92 214, and that it will meet the applicable standards of 24 CFR 92.252 253 at occupancy and for the minimum compliance period. E. The designated HOME -assisted units of this PROJECT will meet the affordability requirements as found in 24 CFR 92 252 (rental) or 92 254 (owner -occupied) as applicable. The AWARDEE shall collect and maintain Project beneficiary information pertaining to household size, income levels, racial characteristics, and the presence of Female Headed Households in order to determine low and moderate -income benefit in a cumulative and individual manner Income documentation shall be in a form consistent with HOME requirements as stated in the HUD Technical Guide for Determining Income and Allowances Under the HOME Program. Page 6 of 22 F. In the selection of occupants for PROJECT units, the AWARDEE shall comply with all nondiscrimination requirements of 24 CFR 92 350 If the project consists of 5 or more units, the AWARDEE will implement affirmative marketing procedures as required by 24 CFR 92 351. Such procedures are subject to approval of the AGENCY G If the PROJECT is occupied at the time of this commitment, the AWARDEE will comply with the relocation requirements of 24 CFR 92 353 H AWARDEE shall assure compliance with 24 CFR 92 251 as relates to Property Standards and Housing Quality Standards (HQS), Accessibility Standards under 24 CFR 92.251(a)(3) as applicable, and Lead Based Paint Requirements as found in 24 CFR 92.355 and 24 CFR Part 35 I If the PROJECT is to be owner -occupied, the AWARDEE shall assure that any NOTES and MORTGAGES recorded for homebuyers shall be in compliance with 24 CFR 92 254 and that the AWARDEE will monitor each unit for principal residency (under 92.254(a)(3)) and resale/recapture (under 92 254 (a)(4) — (5)) J AWARDEE will provide any documentation required by the AGENCY regarding match as may be required to document match for purposes of the HOME program K. If any project under this agreement involves the construction or rehabilitation of 12 or more HOME -assisted units, the AWARDEE shall comply with the provisions of the Davis -Bacon Act (40 U S C 276 a to a - 7) as supplemented by AGENCY of Labor regulations (29 CFR, Part 5), as amended. L. If the property is sold through a lease -purchase agreement, the AWARDEE will ensure compliance with 92.254(a)(7), as modified by the 1999 Appropriations Act, Section 599B M. AWARDEE will be monitored by the AGENCY for compliance with the regulations of 24 CFR 92 for the compliance period specified above. The AWARDEE will provide reports and access to project files as requested by the AGENCY during the PROJECT and for Six (6) years after completion and closeout of the AGREEMENT. Section VI — Repayment of Loan A. All HOME funds are subject to repayment in the event the PROJECT does not meet the Project Requirements as outlined above B It is understood that upon the completion of the PROJECT, any HOME funds reserved but not expended under this agreement will revert to the CITY C If the PROJECT is for owner -occupancy, the AWARDEE shall lend the HOME funds to the individual buyers in an amount sufficient to make the purchase affordable Any HOME funds that reduce the price of the property below the fair market value of the property shall be secured by a HOME note and mortgage as required in 92.254(a)(5)(ii), using the note and mortgage prescribed or approved by the AGENCY (and consistent with the method of recapture identified in the CITY's "Consolidated Plan") All net sales proceeds from the sale of units are considered to be CDHO proceeds that may be retained by the AWARDEE and used in conformance with 24 CFR 92.300(a)(2), to be retained by the CDHO and used to further affordable housing for qualified first time home buyers within the City of Yakima Page 7 of 22 Section VII — CHDO Provisions It is understood that the AWARDEE has certified that it is and will maintain CHDO (Community Housing Development Organization) status for the term of the PROJECT/AGREEMENT in accordance with 24 CFR 92. The AWARDEE agrees to provide information as may be requested by the AGENCY to document its continued compliance, including but not limited to an annual board roster and certification of continued compliance. Any funds advanced as CHDO pre - development funds must be in compliance with 92.301, and are forgivable only under the terms in 92.301. Any funds advanced to the CHDO as CHDO Operating Expenses must be expended in compliance with 24 CFR 92.208. Any funds that the CHDO is permitted to retain as CHDO proceeds from this project shall be used in compliance with 24 CFR 92 300(a)(2) or as specified in this Agreement. If the project is rental, the AWARDEE will create and follow a tenant participation plan as required in 24 CFR 92 303 Section VIII — Procurement Standards The AWARDEE shall establish procurement procedures to ensure that materials and services are obtained in a cost-effective manner When procuring for services to be provided under this agreement, the AWARDEE shall comply at a minimum with the nonprofit procurement standards at 24 CFR 84 40 - 48 In addition, the following requirements are imposed on any procurement under this PROJECT: Any personal property having a useful life of more than one year and purchased wholly or in part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall upon its purchase or receipt become the property of the City of Yakima and/or federal government. Final ownership and disposition of such property shall be determined under the provisions of Attachment N of OMB, A-102. The Contractor shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements 1 Property records shall be maintained accurately and provide for A description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of HOME funds used in the purchase of property; location, use, and condition of the property. 2 A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property 3 A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft to the property Any loss, damage, or theft of the property shall be investigated and fully documented. 4. Adequate maintenance procedures shall be implemented to keep the property in good condition. 5 If the Contractor elects to capitalize and depreciate such nonexpendable personal Page 8 of 22 property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Contractor. An election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable 6 Nonexpendable personal property purchased by the Contractor under the terms of this Contract, in which title is vested in the City of Yakima or Federal Government shall not be rented, loaned, or otherwise passed to any person, partnership, corporation, association or organization without the prior express approval of the City of Yakima ONDS. 7. Any nonexpendable personal property furnished to, or purchased by, the Contractor, title to which is vested in the City of Yakima ONDS or federal government shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of activities defined in this Contract. 8 As a condition prerequisite to reimbursement for the purchase of nonexpendable personal property, title to which shall vest in the City of Yakima ONDS or federal government, the Contractor agrees to execute such security agreements and other documents as shall be necessary for the City of Yakima ONDS or federal government to perfect its interest in such property in accordance with the "Uniform Commercial Code -Secured Transactions" as codified in Article 9A of RCW Chapter 62A. 9. The Contractor shall be responsible for any loss or damage to the property of the City of Yakima ONDS or federal government (including expenses entered thereunto) which results from negligence, willful misconduct, or lack of good faith on the part of the Contractor to maintain and administer in accordance with sound management practices that property, to ensure that the property will be returned to the City of Yakima ONDS or federal government in like condition to that in which condition the property was acquired by purchase, fair wear and tear excepted In addition, it is understood that any AWARDEE that can be considered to be a religious organization shall abide by all portions of 24 CFR 92 257 Section IX — Conflict of Interest Provisions The AWARDEE warrants and covenants that it presently has no interest and shall not acquire any interest, directly or indirectly, which could conflict in any manner or degree with the performance of its services hereunder The AWARDEE further warrants and covenants that in the performance of this contract, no person having such interest shall be employed. HOME conflict of interest provisions, as stated in 92 356, apply to the award of any contracts under the agreement and the selection of tenant households to occupy HOME -assisted units. No employee, agent, consultant, elected official, or appointed official of the AWARDEE may obtain a financial interest or unit benefits from a HOME -assisted activity, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter This prohibition includes the following Page 9 of 22 • Any interest in any contract, subcontract or agreement with respect to a HOME -assisted project or program administered by the AWARDEE, or the proceeds thereunder; or • Any unit benefits or financial assistance associated with HOME projects or programs administered by the AWARDEE, including: Occupancy of a rental housing unit in a HOME -assisted rental project; Receipt of HOME tenant -based rental assistance; Purchase or occupancy of a homebuyer unit in a HOME -assisted project, Receipt of HOME homebuyer acquisition assistance; or Receipt of HOME owner -occupied rehabilitation assistance. This prohibition does not apply to an employee or agent of the AWARDEE who occupies a HOME assisted unit as the on-site project manager or maintenance worker In addition, no member of Congress of the United States, official or employee of HUD, or official or employee of the Participating Jurisdiction shall be permitted to receive or share any financial or unit benefits arising from the HOME -assisted project or program. Prior to the implementation of the HOME -assisted activity, exceptions to these provisions may be requested by the AWARDEE in writing to the Participating Jurisdiction The AWARDEE must demonstrate and certify that the policies and procedures adopted for the activity will ensure fair treatment of all parties, and that the covered persons referenced in this policy will have no inside information or undue influence regarding the award of contracts or benefits of the HOME assistance The Jurisdiction may grant exceptions or forward the requests to HUD as permitted by 24 CFR 92.356, 85.36 and 84 42, as they apply. Section X — City Responsibilities CITY shall furnish the AWARDEE with the following services and information from existing CITY records and CITY files A. CITY shall provide to the AWARDEE information regarding its requirements for the PROJECT. B CITY will provide the AWARDEE with any changes in CDBG regulations or program limits that affect the project, including but not limited to income limits, property value limits and rent limits C CITY will conduct progress inspections of work completed to protect its interests as lender and regulatory authority for the project, and will provide information to the AWARDEE regarding any progress inspections or monitoring to assist it in ensuring compliance CITY's review and approval of the WORK will relate only to overall compliance with the general requirements of this Agreement and CDBG regulations, and all CITY regulations and ordinances. Nothing contained herein shall relieve the AWARDEE of any responsibility as provided under this Agreement. Section XI — Equal Employment Opportunity During the performance of this contract, the AWARDEE agrees as follows. Page 10 of 22 A. AWARDEE will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin(s) The AWARDEE will take affirmative action to ensure the applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin(s) Such action shall include, but not be limited to, the following. employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination, rates of pay or other forms of compensation; and selection for training, including apprenticeship. The AWARDEE agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer of the CITY setting forth the provisions of this nondiscrimination clause. B. AWARDEE will, in all solicitations or advertisements for employees placed by or on behalf of the AWARDEE, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin C AWARDEE will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the CITY's contracting officer, advising the labor union or worker's representative of the AWARDEE's commitments under Section 202 of Executive Order No 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. D. AWARDEE will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor E AWARDEE will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to its books, records, and accounts by the AGENCY and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and order F In the event the AWARDEE is found to be in noncompliance with the nondiscrimination clauses of this contract or with any of such rules, regulations or orders, this contract may be canceled, terminated or suspended in whole or in part and the AWARDEE may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965 or by rule, regulations, or order of the Secretary of Labor or as otherwise provided by law G AWARDEE will include the provisions of paragraphs (a) through (g) of this agreement in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor The AWARDEE will take such action with respect to any subcontract or purchase order as the AGENCY may direct as a means of enforcing such provisions, including sanctions for noncompliance, provided, however, that in the event the AWARDEE becomes involved in, or is threatened with litigation with a subcontractor or vendor as a result of such direction by the AGENCY, the AWARDEE may request the United States to enter into such litigation to protect the interest of the United States Section XII — Labor, Training & Business Opportunity Page 11 of 22 AWARDEE agrees to comply with the federal regulations governing training, employment and business opportunities as follows A. It is agreed that the WORK to be performed under this agreement is on a project assisted under a program providing direct Federal financial assistance from the US Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.0 1701 u, as well as any and all applicable amendments thereto. Section 3 requires that, to the greatest extent feasible, opportunities for training and employment be given low and moderate income residents of the project area, and that contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the project area. B AWARDEE shall comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 Code of Federal Regulations and all applicable rules and orders of the AGENCY of Housing and Urban Development issued thereunder as well as any and all applicable amendments thereto prior to the execution of this contract as well as during the term of this contract. The AWARDEE certifies and agrees that it is under no contractual or other disability, which would prevent it from complying with these requirements as well as any and all applicable amendments thereto C AWARDEE will include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the CITY, take appropriate action pursuant to the subcontractor upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, in 24 Code of Federal Regulations. The AWARDEE will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 code of Federal Regulations and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with these requirements as well as with any and all applicable amendments thereto D Compliance with the provisions of Section 3, the regulations set forth in 24 Code of Federal Regulations and all applicable rules and orders of the AGENCY of Housing and Urban Development issued thereunder prior to the execution of the contract shall be a condition precedent to federal financial assistance being provided to the PROJECT as well as a continuing condition, binding upon the applicant or recipient for such assistance, its successors, and assigns Failure to fulfill these requirements shall subject the AWARDEE or recipient, its contractors and subcontractors, its successors, and assigns to those sanctions specified by 24 Code of Federal Regulations as well as with any and all applicable amendments thereto Section XIII — Compliance with Federal, State & Local Laws A. GENERAL. The AWARDEE covenants and warrants that it will comply with all applicable laws, ordinances, codes, rules and regulations of the state local and federal governments, and all amendments thereto, including, but not limited to, Title 8 of the Civil Rights Act of 1968 PL.90-284, Executive Order 11063 on Equal Opportunity and Housing Section 3 of the Housing and Urban Development Act of 1968, Housing and Community Development Act of 1974, as well as all requirements set forth in 24 CFR 92 of the HOME INVESTMENT PARTNERSHIP PROGRAM The AWARDEE covenants and warrants that it will indemnify and hold the City forever free and harmless with respect to any and all damages whether directly or indirectly arising out of the provisions and maintenance of this contract. AWARDEE agrees to Page 12 of 22 comply with all applicable standards, orders, or requirements issued under section 306 of the Clean Air Act (42 U S C 1857(h)), section 508 of the Clean Water Act (33 U S C 1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR part 15). AWARDEE further warrants and agrees to include or cause to be included the criteria and requirements of this section in every non-exempt subcontract in excess of $100,000 AWARDEE also agrees to take such action as the federal, state or local government may direct to enforce aforesaid provisions B PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT REQUIREMENTS The following federal provisions may apply, among others, to this Contract: 1 CERTIFICATION REGARDING DEBARMENT, SUSPENSION OR INELIGIBILITY AND VOLUNTARY EXCLUSION—PRIMARY AND LOWER TIER COVERED TRANSACTIONS (a) AWARDEE, defined as the primary participant and it principals, certifies by signing these General Terms and Conditions that to the best of its knowledge and belief that they: (b) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency. (c) Have not within a three-year period preceding this Agreement, been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction, violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice, (d) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this section, and (i) Have not within a three-year period preceding the signing of this Agreement had one or more public transactions (Federal, State, or local) terminated for cause of default. (ii) Where the AWARDEE is unable to certify to any of the statements in this Agreement, the AWARDEE shall attach an explanation to this Agreement (iii) The AWARDEE agrees by signing this Agreement that it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction Page 13 of 22 (iv) The AWARDEE further agrees by signing this Agreement that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -Lower Tier Covered Transaction," as follows, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. (e) LOWER TIER COVERED TRANSACTIONS (i) Each lower tier contractor certifies, by signing this Agreement that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency (ii) Where the lower tier contractor is unable to certify to any of the statements in this Agreement, such contractor shall attach an explanation to this Agreement 2. Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and 24 CFR 570 601 (Discrimination prohibited). 3 The Lead Based Paint Poisoning Prevention Act, 42 USC Section 4831 et seq , and HUD regulations implementing the Act, 24 CFR Part 35, where, residential structures are involved The Contractor shall provide whatever assistance is necessary to enable the City of Yakima's Building Official to carry out its inspection and certification responsibility under those regulations 4 Historic and Archaeological Preservation requirements as set forth in 24 CFR Section 570.604 36 CFR Part 800, RCW 27 44 010 (Native American Burial Law), RCW 27.53.010-.090 (Protection of Archaeological Resources), and RCW 43 51 750- 820 (Preservation of Historic Properties). 5 Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq , implementing regulations, and Chapter 70 92 RCW 6 Accessibility Standard as set forth in 92 251(a)(3) 7 Clean Air Act as amended, 42 USC Section 1857 et seq; Water Pollution Control Act, as amended, 33 USC Section 1251 et seq , and Environmental Protection Agency regulations, 40 CFR Part 15. 8 Section 3 of the Housing and Urban Development Act of 1968 (12 USC Section 1701u) and 24 CFR Part 135 (Employment opportunities for project area businesses and low income persons). 9 Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333, (Overtime Compensation) Page 14 of 22 10. Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and RCW Chapter 3 — 12 (Prevailing Wage Rates). 11 Attachment 0 of the Office of management and Budget Circular, A-102 (Procurement Standards) and Federal Management Circular, FMC 74-4 12 The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570 13 Title VI of the Civil Rights Act of 1964 (P L. 88-352) as amended, and HUD regulations with respect thereto including the regulations under 24 CFR Part 1 In the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, Contractor shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon, and providing that the Contractor, the County, the City, and the United States are beneficiaries of and entitled to enforce such covenant. The Contractor, in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate. 14. Age Discrimination Act of 1975 (24 CFR 146) 15 Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1). 16 Washington State/Local Building Codes/Housing Quality Standards (24 CFR 882 109) 17. WBE/MBE (24 CFR 85.36 (e)) Section XIV — Suspension & Termination In accordance with 24 CFR 85 43, suspension or termination may occur if the AWARDEE materially fails to comply with any term of the award, and that the award may be terminated for convenience in accordance with 24 CFR 85 44 If, through any cause, the AWARDEE shall fail to fulfill in timely and proper manner its obligations under this contract, or if the AWARDEE shall violate any of the covenants, agreements, or stipulations of this contract, the CITY shall thereupon have the right to terminate this contract by giving written notice to the AWARDEE of such termination and specifying the effective date thereof, at least five (5) days before the effective date of such termination In such event, the AWARDEE may be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder to the date of said termination if all necessary documentation is provided to the CITY. Notwithstanding the above, the AWARDEE shall not be relieved of liability to the CITY for damages sustained by the CITY by virtue of any breach of the contract by the AWARDEE and the CITY may withhold any payments to the AWARDEE for the purpose of setoff until such time as the exact amount of damages due the CITY from the AWARDEE is determined whether by court of competent jurisdiction or otherwise. Page 15 of 22 Section XV — Termination for Convenience of the CITY The CITY may terminate for its convenience this contract at any time by giving at least thirty (30) days notice in writing to the AWARDEE. If the contract is terminated by the CITY, as provided herein, the City will reimburse for any actual and approved expenses incurred, including those costs involved in terminating the contracts and shutting down the work as of the date of notice, and the AWARDEE will be paid as a FEE an amount which bears the same ratio to the total compensation as the services actually performed bear to the total service of the AWARDEE covered by this contract, less payments of compensation previously made Claims and disputes between the parties will be submitted to the American Arbitration Association for resolution Award or judgment may be entered in any court having jurisdiction thereof. Section XVI — Default -Loss of Grant Funds If the AWARDEE fails in any manner to fully perform and carry out any of the terms, covenants, and conditions of the agreement, and more particularly if the AWARDEE refuses or fails to proceed with the work with such diligence as will insure its completion within the time fixed by the schedule set forth in Exhibit B of this agreement, the AWARDEE shall be in default and notice in writing shall be given to the AWARDEE of such default by the AGENCY or an agent of the AGENCY If the AWARDEE fails to cure such default within such time as may be required by such notice, the CITY, acting by and through the AGENCY, may at its option terminate and cancel the contract. In the event of such termination, all grant funds awarded to the AWARDEE pursuant to this agreement shall be immediately revoked and any approvals related to the PROJECT shall immediately be deemed revoked and canceled In such event, the AWARDEE will no longer be entitled to receive any compensation for work undertaken after the date of the termination of this agreement, as the grant funds will no longer be available for this project. Such termination shall not affect or terminate any of the rights of the CITY as against the AWARDEE then existing, or which may thereafter accrue because of such default, and the foregoing provision shall be in addition to all other rights and remedies available to the CITY under the law and the note and mortgage (if in effect), including but not limited to compelling the AWARDEE to complete the project in accordance with the terms of this agreement, in a court of equity The waiver of a breach of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term, covenant, or condition hereof. Section XVII — Reporting Responsibilities AWARDEE agrees to submit any and all quarterly reports required by HUD or the CITY to the AGENCY on the following due dates October 1, January 1, April 1, and July 1, next following the date of this agreement. The AGENCY will send the AWARDEE one reminder notice if the quarterly report has not been received fourteen (14) days after the due date. If the AWARDEE has not submitted a report fourteen (14) days after the date on the reminder notice, the CITY will have the option to terminate the contract as described in this agreement. In addition, the AWARDEE agrees to provide the AGENCY information as required to determine program eligibility, in meeting national objectives, and financial records pertinent to the project. Additional reporting requirements are included in Exhibit B Section XVIII — Inspection, Monitoring & Access to Records CITY reserves the right to inspect, monitor, and observe work and services performed by the AWARDEE at any and all reasonable times CITY reserves the right to audit the records of the AWARDEE any time during the performance of this Agreement and for a period of six (6) years after final payment is made under this Agreement. If required, the AWARDEE will provide the AGENCY with a certified audit of the AWARDEE's records representing the Fiscal Year during Page 16 of 22 which the PROJECT becomes complete whenever the amount listed in SECTION VII is at or exceeds $300,000, pursuant to the requirements of OMB Circular A-133. Access shall be immediately granted to the CITY, HUD, the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, papers, and records of the AWARDEE or its contractors which are directly pertinent to that specific contract for the purpose of making audit, examination, excerpts, and transcriptions Section XIX — General Conditions A. All notices or other communication which shall or may be given pursuant to this Agreement shall be in writing and shall be delivered by personal service, or by certified and regular mail addressed to the other party at the address indicated herein or as the same may be changed from time to time. Such notice shall be deemed given on the day on which personally served, or, if by mail, on the third day (not including Sundays or holidays) after being posted or the date of actual receipt, whichever is earlier City address. Awardee address. City Manager Yakima City Hall 129 North 2nd Street Yakima, Washington 98901: Rural Community Development Resources 24 South 3rd Avenue Yakima, Washington 98902 B Title and paragraph headings are for convenient reference and are not a part of this Agreement. C In the event of conflict between the terms of this Agreement and any terms or conditions contained in any attached documents, the terms in this Agreement shall rule D No waiver or breach of any provision of this Agreement shall constitute a waiver of a subsequent breach of the same or any other provision hereof, and no waiver shall be effective unless made in writing E The parties hereto agree that this Agreement shall be construed and enforced according to the laws of the State of Washington. F Should any provisions, paragraphs, sentences, words or phrases contained in this Agreement be determined by a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable under the laws of the State of Washington or the City of Yakima, such provisions, paragraphs, sentences, words or phrases shall be deemed modified to the extent necessary in order to conform with such laws, or if not modifiable to conform with such laws, then same shall be deemed severable, and in either event, the remaining terms and provisions of this Agreement shall remain unmodified and in full force and effect. G. AWARDEE shall comply with the provisions of the Copeland Anti -Kick -Back Act (18 U S C 874) as supplemented in the AGENCY of Labor Regulations (29 CFR Part 3), as amended H AWARDEE shall comply with the provisions of sections 103 and 107 of the Contract Work Page 17 of 22 Hours and Safety Standard Act (40 U S C 327-330) as supplemented by AGENCY of Labor regulations (29 CFR, Part 5), as amended. I. AWARDEE further warrants and agrees to include or cause to be included the criteria and requirements of paragraphs (G) through (H) of this section in every nonexempt subcontract. The AWARDEE also agrees to take such action as the federal, state or local government may direct to enforce aforesaid provisions J. The obligations undertaken by AWARDEE pursuant to this Agreement shall not be delegated or assigned to any other person or agency unless CITY shall first consent to the performance or assignment of such service or any part thereof by another person or agency K. This Agreement shall be binding upon the parties hereto, their heirs, executors, legal representative, successors and assigns. L. AWARDEE shall indemnify and save CITY harmless from and against any negligent claims, liabilities, losses and causes of action which may arise out of AWARDEE's activities under this Agreement, including all other acts or omissions to act on the part of AWARDEE, including any person acting for or on its behalf, and, from and against any orders, judgments, or decrees which may be entered, and from and against all costs, attorney's fees, expenses and liabilities incurred in the defense of any such claims, or in the investigation thereof M AWARDEE and its employees and agents shall be deemed to be independent contractors, and not agents or employees of the CITY, and shall not attain any rights or benefits under the civil service or pension ordinances of the CITY, or any rights generally afforded classified or unclassified employee; further they shall not be deemed entitled to state Compensation benefits as an employee of the CITY N Funding for this Agreement is contingent on the availability of funds and continued authorization for program activities and is subject to amendment or termination due to lack of funds, or authorization, reduction of funds, and/or change in regulations. Page 18 of 22 October 27, 2016 To: Joan Davenport City of Yakima From: Maria DJ Rodriguez, Executive Director Re: 2017 CDBG Funding Request - Microenterprise Technical Assistance $50,000 Rural Community Development Resources Center for Business Development (Center) is requesting $50,000 from the City of Yakima's 2017 CDBG allocation for economic development within the city of Yakima. These funds will be utilized to provide technical assistance for hard to serve low income individuals that seek technical or financial assistance to start or expand a microenterprise as a form of job creation or retention within the City of Yakima. The Center has an outstanding 25 -year track record in assisting microenterprises with relevant and culturally sensitive business counseling & coaching, business plan development, educational workshops and access to financing. Additionally, the Center has been administering a revolving loan fund for over 20 -years with a Less than 3% default rate and 64% business retention making the Center one of the few successful altemative lenders within Washington State. The Center is also a certified Community Development Financial Institution (CDFI) by the Department of the Treasury and is a certified SBA Intermediary Lender. These designations are hard to obtain and maintaining that certification is based on outcome based performance and adequate and timely reporting requirements. The City of Yakima's continued support to assist microenterprises to create jobs and assets for low income individuals has played a key role in the success of this program. With the CDBG dollars awarded, low income individuals can set up microenterprises, employ low income individuals, create assets and increase wealth. This in tum, gets invested back into the local economy. To date, the Center has leveraged loan outputs of over $1.4 million within the City of Yakima. Year Direct Loans* Total Invested Jobs Created Jobe Retained o /o LMI 2008 7 $105,000 8 11 57% 2009 8 $111,668 9 11 50% 2010 7 $171,612 6 10 71% 2011 5 $ 67,101 3 3 80% 2012^ 5 $234,346 6 5 60% 2013 3 $ 90,000 3 5 66% 2014 3 $121,286 1 5 67% 2015 9 $405,993 3 12 50% 2016# 6 $190,000 12 8 33% TOTAL 53 51,497,006 51 70 59% Average * Borrowers can obtain more than one loan ^ No CDBG TA grant funds received 1 Results are current as of 9-30-16 2017 City of Yakima CDBG Grant Funds Request Page 1 of 2 Of the total inquiries in as of September 30, 2016, 47% were from within the City of Yakima, and of those 68% were considered low income individuals. Inquiries 31% City of Yak - Lower Valley Upper Valley Tri -city Other HUD Income Verification 80% LMI , Job Create/Retain It takes many hours of hands on technical assistance for each entrepreneur. Many times the smaller loans take more time than the bigger loans. The numerous hours spent is needed for long term success of the entrepreneur. Educational workshops on business financial management and business tax reporting are required and important. Learning about asset building as part of the training will create growth and long term sustainability. RCDR has established strong partnerships with local banks. Representatives from banks serve on the Loan Credit Committee (LCC) to review and make recommendations on loan packages requiring funding. These partnerships have enhanced the ability to access loan capital funds. The 2017 TA request will serve microenterprises that have five or fewer employees, which is consistent with HUD regulations. The services will include individual business assistance/ coaching, educational workshops, business plan development, and loan packaging. Loans will be made available from other sources such as federal, state and or private banks for those microenterprises that qualify and reside within the City of Yakima. The objectives for 2017 are as follows: • 24 startups and expanding microenterprises will receive TA • 10 loan packages and business plans will be developed • 2 business tax seminars for 16 attendees • 2 personal financial literacy seminars for 18 attendees • 8 loans will be closed and funded Local support is greatly needed to continue providing the needed TA for niicroenterprises to be successful, grow and create jobs for the local economy. 2017 City of Yakima CDBG Grant Funds Request Page 2 of 2 Exhibit "B" Rural Community Development Resources A.) PROPOSAL SUMMARY/PROJECT ABSTRACT RCDR is providing technical assistance for hard to serve low income individuals that seek technical or financial assistance to start or expand a microenterprise as a form of job creation or retention within the City of Yakima B.) ASSESSMENT OF NEED/PROBLEM STATEMENT RCDR will serve microenterprises that have five or fewer employees. The service will include individual business assistance/coaching, educational workshops, business plan development, and loan packaging Loans will be made available from other sources such as federal, state and or private banks for those microenterprises that qualify and reside within the City of Yakima C.) PROGRAM GOAL AND OBJECTIVES • 24 startups and expanding microenterprises will receive TA • 10 loan packages and business plans will be developed • 2 business tax seminars for 16 attendees • 8 loans will be closed and funded • D.) METHODOLOGY Providing services to microenterprises that have five or fewer employees. To include individual business assistance/coaching, educational workshops, business plan development, and loan packaging Loans will be made available from other sources such as federal, state and or private banks for those microenterprises that qualify and reside within the City of Yakima. E.) OUTCOMES & EVALUATION As a condition of reimbursement, RCDR will, 1. 24 startups and expanding microenterprises will receive TA 2 10 loan packages and business plans will be developed 3 2 business tax seminars for 16 attendees 4 8 loans will be closed and funded F.) BUDGET RCDR will be reimbursed up to $50,000 between the contract execution date and terminate on December 31, 2017 at midnight, for eligible activities, subject to the terms and conditions of the Contract G) QUARTERLY REPORTS RCDR shall provide quarterly reports, starting three months after entering into this Contract, that describe what outcomes have been met (including names of businesses started or expanded or benefitted by this Contract, the dates of tax seminars and the number of loan packages and loans funded, all as of the date of the quarterly report), and any other information that further exhibits actions taken to attain the outcomes listed herein Page 21 of 22 EXHIBIT "C" RESOLUTION Page 22 of 22 ITEM TITLE: SUBMITTED BY: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.N. For Meeting of: September 5, 2017 Resolution authorizing a contract with Rural Community Development Resources (RCDR) in the amount of $50,000 in Community Development Block Grant (CDBG) funds to provide technical assistance to microenterprise businesses Joan Davenport, AICP Community Development Director Archie M. Matthews, ONDS Manager (509) 575-6101 SUMMARY EXPLANATION: This is a contract agreement with Rural Community Development Resources (RCDR), previously approved in the 2017 adopted budget, for economic development purposes. Due to the delay in the Federal allocation of HOME and CDBG funding the City is now executing this 2017 contract. Rural Community Development Resources (RCD R) is a private, non-profit provider of technical assistance, training and financing for small businesses in the Yakima Valley. RCDR has requested Fifty Thousand Dollars ($50,000) in Community Development Block Grant funding to provide technical assistance to microenterprise businesses in the Yakima Renewal Community. Federal regulations governing the use of CDBG funds for economic development activities allow the City to use such funds to provide assistance to private, for-profit businesses. RCDR's proposal and a standard contract are attached. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt resolution. BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date D racoluD-i a31,2017 D RCDR Contract EV1012017 • RCDR FOriungl Loiter Fit9,2017 2 Type COVer Me110 Cciitraci 9[7..k Lip Material