HomeMy WebLinkAboutR-2005-087 CBDG grant for Rural Community Development ResourceA RESOLUTION
RESOLUTION NO. R-2005- 87
authorizing the City Manager of the City of Yakima to execute a CDBG
project grant agreement with Rural Community Development Resources,
a Washington non-profit corporation, to provide technical assistance to
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 businesses; and
WHEREAS, RCDR has requested twenty-five thousand dollars ($25,000.00) in 2005
Community Development Block Grant funding to provide technical assistance services to
businesses in the City of Yakima, with emphasis on Renewal Community businesses; and
WHEREAS, the City has received and is responsible for the administration of annual
Entitlement Grants 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 regulations 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 with projects that provide an appropriate level of public benefit; and
WHEREAS, the City has determined that the CDBG assistance described below is
necessary and appropriate to ensure that RCDR can provide technical assistance services to
businesses in the City of Yakima; and
WHEREAS, the provision of technical assistance to businesses would provide
substantial appropriate public benefits to the City, particularly by creating new businesses and
jobs; and
WHEREAS, accordingly, the City wants to encourage RCDR to establish such an
operation in the City of Yakima's Renewal Community Area as a special economic development
project and is willing to use CDBG funds to assist RCDR through a performance grant of not
more than $25,000 over the course of six months according to the following terms and
conditions of the attached project agreement; and
WHEREAS, the City Council deems it to be in the best interest of the City to authorize
execution of a CDBG project grant agreement with RCDR, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager of the City of Yakima is hereby authorized and directed to execute a
CDBG project grant agreement with RCDR to provide technical assistance services to
businesses in the City of Yakima. The City Attomey shall approve the final form of the
Agreements.
ADOPTED BY THE CITY COUNCIL this 7th day of June, 2005.
ATTEST:
City Clerk
Paul P George, Mayor
CITY OF YAKIMA
OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES
1. Contracting Organization: Rural Community Development Resources
2. Address: 24 South 3`d Avenue: Yakima, WA 98902
3. Phone: 509/453-5133
4. Contact Person: Luz Bazan Gutierrez
5. Title of Service or Program being Funded:
6. Micro-enterprise/Small Business Technical Assistance
6. Amount of Contract Award: $25,000 (CDBG)
7. The term of this Contract shall commence upon execution hereof and shall terminate at
midnight December 31, 2005 unless sooner terminated by either party in accordance with
Section XXII of incorporated Exhibit "A".
8. This contract award and the rights and obligations of both parties hereto shall be subject to and
govemed by the following:
1) "Terms and conditions" attached hereto as Exhibit "A" and incorporated herein by this
reference; and
2) Operating budget including sources and uses statement, work plan and all attached
hereto as Exhibit "B" and incorporated herein by this reference.
3) City of Yakima Resolution No.2005-87 , a copy 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 project described in
Exhibit B, Contractor/Subcontractor lien releases, and satisfaction of all contract terms and
conditions as stated in Exhibit "A" and Exhibit "C".
This written document and incorporated exhibits constitutes the entire Contract between the parties.
IN WITNESS THEREOF the parties have executed this Contract as of the day and year indicated
below.
William ok, CED i -ctor
R.A. Zais, Jr., ity Manager
ATTEST: Pkat .4W
City Clerk:
City Contract No.:
kesoitti704 R aDOS-817
EXHIBIT "A"
TERMS AND CONDITIONS
DESIGNATION
The City of Yakima, as recipient of a housing and community development grant from the U.S.
Department of Housing and Urban Development, hereby designates Contractor to undertake,
and the Contractor hereby agrees to undertake that certain community development or housing
assistance project described in Exhibit "B", Scope of Work.
II SUB -GRANT
A. NOTICE TO PROCEED
No work on the project shall occur prior to or without written approval from the City of
Yakima Office of Neighborhood Development Services (ONDS) shall furnish the
Contractor with written notice to proceed upon release of funds from HUD related to
the project pursuant to 24 § CFR Part 58.
B. AMOUNT OF GRANT
The City hereby sub -grants to the Contractor $25,000.00 for said project.
III GENERAL BUDGET PROVISIONS
The Contractor agrees to the following provisions in satisfying the terms and conditions of this
contract:
A. 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 obligation 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 provided 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
OMB Circular A — 87 "eligible costs" and come within the Project Budget.
3. The contractor agrees to comply with 24 § CFR 610, Uniform Administrator
Requirements and Cost Principles. Contractors are to comply with policies,
guidelines, and requirements of 24 § CFR part 85 and OMB Circular A-87, A-
110, A-122, A-133 (implemented at 24 § CFR part 45), and A-128
(implemented at 24 § CFR Part 44), as applicable. The applicable section of
24 CFR Parts 84 and 85 are set forth at 24 § CFR 570.502.
B. 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.
C. 1. Approval of budget revision when a proposed revision would result in an
increase or decrease of ten percent (10%) or more in an approved budget
subject category. Written budget revision approval must be received by the
Contractor prior to the Contractor incurring any expenditures against the
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revised budget sub -object categories.
2. When the revision of the Contractor budget does not exceed ten percent (10%)
of an approved budget sub -object category, the Contractor must submit a
revised budget to the City of Yakima ONDS prior to the submittal of claims
against the budget.
IV COMMENCEMENT OF WORK
The City of Yakima ONDS shall furnish the Contractor with written notice to proceed upon
release of funds from HUD related to the project. No work on the project shall occur prior to
the notice to proceed without written approval from the City of Yakima ONDS.
V BILLING PROCEDURES
A. The Contractor shall submit monthly written claims for reimbursement of services
performed under this contract in the manner prescribed in paragraph III above, and as
prescribed by the City of Yakima ONDS.
VI LOCAL FINANCIAL SUPPORT
The sub -grant shall not be utilized to reduce substantially the amount of local financial support
for community development activities below the level of such support prior to the availability of
such assistance.
VII BUDGET SURPLUS
The Contractor agrees that funds determined by the City of Yakima ONDS to be surplus at the
end of the project within the budget of this Contract will be subject to cancellation by the City of
Yakima ONDS and may be negotiated if they are to be included in future Contracts. Assets
purchased with CDBG funds shall continue to be used in accordance with its original purpose
as provided in 24 CFR § 570.503 (b)(8).
VIII COMPLIANCE WITH LAWS
A. GENERAL
The Contractor, in performance of this Contract, agrees to comply with all applicable
Federal, State and Local Laws and ordinances, and the rules and regulations
promulgated by the U.S. Department of Housing and Urban Development, including,
but not limited to, Federal CDBG Regulations including the uniform administrative
requirements listed in 24 CFR § 570.502, and in 24 § CFR 570, subpart K., and other
policies and guidelines established by the City of Yakima ONDS.
B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT REQUIREMENTS
The following federal provisions may apply, among others, to this Contract:
1. 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).
2. The Lead Based Paint Poisoning (570.608) 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 the regulations including but
not limited to 24 CFR § 570.608.
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3. 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).
4. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq.,
implementing regulations, and Chapter 70.92 RCW.
5. 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.
6. 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).
7. Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333,
(Overtime Compensation).
8. Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and RCW
Chapter 3 — 12 (Prevailing Wage Rates).
9. 24 CFR part 84, 85 and OMB Circular A-87, A-110, A-122, A-128, and A-133
as specified in 24 CFR § 570.502
10. The Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970, as amended, and regulations contained in 24 CFR Parts 42 and §
570.
11. 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, and 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, 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.
12. Age Discrimination Act of 1975 (24 CFR § 146).
13. Fair Housing Act (24 CFR § 100, CFR 107 and 24 § CFR 1).
14. Housing Quality Standards (24 CFR § 882.109).
15. WBE/MBE (24 CFR § 85.36 (e)
16. ENVIRONMENTAL REVIEW
A. NEPA
As specified in 24 CFR 570.503(b)(5)(i) and (ii), the City of Yakima
ONDS retains environmental review responsibility for purposes of
fulfilling requirements of the National Environmental Policy Act, under
which the City of Yakima ONDS may require the Contractor to furnish
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data, information and assistance for the City's review and assessment
in determining whether the City must prepare an Environmental Impact
Statement.
B. SEPA
The Contractor retains responsibility for fulfilling the requirements of
the State Environmental Policy Act and regulations and ordinance
adopted thereunder.
C. COMPLIANCE AS PRE -CONDITION
Performance by either the City of Yakima ONDS or the Contractor
under this Agreement shall be contingent upon satisfaction of all
applicable requirements of the National and State Environmental
Policy Acts.
IX NON-DISCRIMINATION IN EMPLOYMENT
A. The City of Yakima is an Equal Opportunity Employer.
B. The Contractor agrees that it shall not discriminate against any employee or applicant
on the grounds of race, creed, color, religion, national origin, sex, marital status, age,
or the presence of any sensory, mental or physical handicap. Such action shall
include, but not be limited to: employment, upgrading, demotion or transfer;
recruitment or recruitment advertising, layoff or termination; rates of pay or other forms
of compensation; and programs for training including apprenticeships.
The Contractor specifically agrees to abide by the Office of Federal Contract
Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as
amended by Executive Order 12086, and HUD Anti Discrimination Requirements, 24
CFR § 570.601.
X NON-DISCRIMINATION IN CLIENT SERVICES
A. The Contractor agrees to affirmatively market units made available through this
contract (24 CFR § 92.352), and shall not, on the grounds of race, color, sex, religion,
national origin, creed, marital status, or age:
1. Deny a qualified individual any facilities, financial aid, services or other benefits
provided under this Contract;
2. Provide any service(s) or other benefits to a qualified individual which are
different, or are provided in a different manner, from those provided to others
under this Contract; separate treatment in any manner related to his receipt of
any service(s) or other benefits provided under this Contract;
3. Deny any qualified individual an opportunity to participate in any program
provided by this Contract through the provision of service(s) or otherwise, or
will afford him an opportunity to do so which is different from that afforded
others under this Contract.
B. The Contractor shall abide by all provisions of Section 504 of the HEW Rehabilitation
Act of 1973 prohibiting discrimination against handicapped individuals either through
purpose or intent.
C. If assignment and/or subcontracting has been authorized, said assignment or
subcontract shall include appropriate safeguards against discrimination in client
services binding upon each Contractor or Subcontractor. The Contractor shall take
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such action as may be required to ensure full compliance with the provisions of this
clause, including sanctions for noncompliance.
XI LICENSING AND PROGRAM STANDARDS
The Contractor agrees to comply with all applicable Federal, State, County and Municipal
standards for licensing, certification and operation of facilities and programs, and accreditation
and licensing of individuals, and any other standards or criteria as described in the Contract to
assure quality of services.
XII MONITORING AND ACCESS TO RECORDS
A. Contractor agrees that City may carry out monitoring and evaluation activities so as to
ensure compliance by Contractor with this Contractor agreement, with the CDBG
Compliance Documents, and with all other laws, regulations, and ordinances related to
the performance hereof.
Contractor agrees to provide City with any data determined by City to be necessary for
its effective fulfillment of its monitoring and evaluation responsibilities.
B. At any reasonable time and as often as City may deem necessary, Contractor shall
make all of its records available to City, HUD, the Comptroller General of the United
States, or any of their authorized representatives, and shall permit City, HUD, the
Comptroller General of the United States, or any of their authorized representatives to
audit, examine, and make excerpts and/or copies of same. Contractor records shall
include, but shall not be limited to, the following: payroll, personnel and employment
records; procurement bidding documents; contracts; sales closing statements; and
invoices.
C. The Contractor shall be required to make reasonable changes in the services as
completed or to be completed if said services fall below the standards and
specifications set forth in the Special Terms and Conditions, Project Description, or
Statement of Work.
XIII SAFEGUARDING OF CLIENT INFORMATION
The use or disclosure by any party of any confidential information concerning a recipient or
client for any purpose not directly connected with the City's or the Contractor's responsibilities
with respect to services provided under this Contract is prohibited except on written consent of
the recipient or client, his/her attorney or his/her responsible parent or guardian or as otherwise
provided by law.
XIV ASSIGNMENT AND/OR SUBCONTRACTING
The Contractor shall not assign or subcontract any portion of the services provided within the
terms of this Contract without obtaining prior written approval from the City. All terms and
conditions of this Contract shall apply to any approved subcontract or assignment related to the
Contract.
XV STANDARDS FOR FISCAL ACCOUNTABILITY
A. In order to comply with 24 CFR 570.503(b)(2), the Contractor agrees to provide project
line item draw requests, annual verification of rents, annual audited financial statement
to compare income and expenses, records, documents and accounting procedures
which accurately reflect all direct and indirect costs related to the performance of this
Contract. Such fiscal books, records, documents, reports and other data shall be
retained in a manner consistent with the "Budgeting, Accounting, Reporting System for
Counties and Cities, and Other Local Governments", hereinafter referred to as "BARS",
as issued by the Office of State Auditor, State of Washington. The Contractor further
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agrees that the City of Yakima ONDS shall have the right to monitor and audit the
fiscal components of the organization to insure that actual expenditures remain
consistent with the terms of this Contract. The Contractor shall retain all books,
records, documents and other material relevant to the Contract for seven (7) years
after settlement of this Contract. The Contractor agrees that the City of Yakima, the
U.S. Department of Housing and urban Development, the Washington State Auditor, or
their designees, shall have full access to and a right to examine any of said materials
at all reasonable times during said period.
B. The Contractor agrees that any contributions or payments made for services furnished
under this Contract shall be used for the sole benefit of this program.
XVI PROGRAM PROPERTY
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.
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 CDBG 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 lose,
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
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 9 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
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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 accepted.
XVII RELATIONSHIP OF THE PARTIES
The parties intend that an independent contractor/city relationship will be created by this
Contract. The City of Yakima ONDS is interested only in the results to be achieved, the
implementation of services will lie solely with the Contractor. No agent, employee, or
representatives of the Contractor shall be deemed to be an employee, agent, servant or
representative of the City of Yakima for any purpose, and the employees of the Contractor are
not entitled to any of the benefits the City of Yakima provides for City Employees. The
Contractor will be solely and entirely responsible for its acts and for the acts of its agents,
employees, servants, Subcontractors, or otherwise during the performance of this Contract.
XVIII TAXES AND ASSESSMENTS
Contractor shall be solely responsible for and shall pay all taxes, deductions, and
assessments, including but not limited to, sales tax, federal income tax, FICA, social security
tax, assessments for unemployment and industrial injury insurance, and other deductions from
income which may be required by law or assessed against either party as a result of this
Contract. In the event the City is assessed a tax or assessment as a result of this Contract,
Contractor shall pay the same before it becomes due.
XIX QUARTERLY REPORT
The Contractor agrees to submit a written quarterly report outlining the progress towards
completion of activities included in Exhibit B, to the City of Yakima.
XX INSURANCE
A. NO INSURANCE
It is understood that the City does not maintain liability insurance for the Contractor
and/or its employees, agents, officers, and subcontractors.
B. COMMERCIAL LIABILITY INSURANCE
On or before the effective date of this Contract, the Contractor shall provide the City
with a certificate of insurance as proof of liability insurance in the amount of One Million
Dollars ($1,000,000.00) that clearly states who the provider is, the amount of
coverage, the policy number, and when the policy and provisions provided are in effect
(any statement in the certificate to the effect of "this certificate is issued as a matter of
information only and confers no right upon the certificate holder" shall be deleted).
Said policy shall be in effect for the duration of this Contract. The policy shall name
the City, its elected officials, officers, agents and employees as additional insureds,
and shall contain a clause that the insurer will not cancel or change the insurance
without first giving the City thirty (30) calendar days prior written notice (any language
in the clause to the effect of "but failure to mail such notice shall impose no obligation
or liability of any kind upon the company" shall be crossed out and initiated by the
insurance agent). The insurance shall be with an insurance company or companies
rated A -VII or higher in Best's Guide and admitted in the State of Washington.
C. COMMERCIAL AUTOMOBILE LIABILITY INSURANCE
On or before the date this Contract is fully executed by the parties, Contractor shall
provide the City with a certificate of insurance as proof of commercial automobile
liability insurance with minimum liability limit of One Million Dollars ($1,000,000.00)
combined single limit bodily injury and property damage. The certificate shall clearly
state who the provider is, the amount of coverage, the policy number, and when the
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policy and provisions provided are in effect (any statement in the certificate to the
effect of "this certificate is issued as a matter of information only and confers no right
upon the certificate holder" shall be deleted). Said policy shall be in effect for the
duration of this Contract. The policy shall name the City, its elected officials, officers,
agents, and employees as additional insureds, and shall contain a clause that the
insurer will not cancel or change the insurance without first giving the City thirty (30)
calendar days prior written notice (any language in the clause to the effect of "but
failure to mail such notice shall impose no obligation or liability of any kind upon the
company" shall be crossed out and initialed by the insurance agent). The insurance
shall be with an insurance company or companies rated A -VII or higher in Best's Guide
and admitted in the State of Washington.
D. WORKERS' COMPENSATION
The Contractor agrees to pay all premiums provided for by the Workman's
Compensation Act of the State of Washington. Evidence of the contractors workers'
compensation coverage will be furnished to the City. The contractor holds the City
harmless for any injury or death to the contractor's employees while performing this
Contract.
E. INSURANCE PROVIDED BY SUBCONTRACTORS
The Contractor shall ensure that all subcontractors it utilizes for work/services
rendered under this Contract shall comply with all of the above insurance
requirements.
F. SURVIVAL
The provisions of this Section shall survive the expiration or termination of this Agreement with
respect to any event occurring prior to such expiration or termination.
XXI INDEMNIFICATION AND HOLD HARMLESS
All services to rendered or performed under this Contract will be performed or rendered entirely
to the Contractor's own risk and the Contractor expressly agrees to defend, indemnify and hold
harmless the City of Yakima and all of its officers, agents, employees and elected officials from
any and all liability, Toss, fines, penalties or damage, inducing reasonable cost of defense, they
may suffer as a result of claims, demands, actions, or damages to any and all persons or
property, costs or judgments against the City of Yakima which result from, arise out of, or are in
any way connected with the services to be preformed by the Contractor under this Contract.
Nothing in this section of the Contract shall be construed to create a liability or a right of
indemnification in any third party.
The provisions of this Section shall survive the expiration or termination of this Agreement with
respect to any event occurring prior to such expiration or termination.
XXII CONTRACT, TERMINATION AND CLOSE OUT
If the Contractor fails to comply with the terms and conditions of this Contract, the City of
Yakima ONDS may pursue such remedies as are legally available including but not limited to,
the termination of this Contract in the manner specified herein. In accordance with 24 CFR §
85.43 and 44.
A. TERMINATION FOR CAUSE
If the Contractor fails to comply with the terms and conditions of this Contract and any
of the following conditions exist:
1. The lack of compliance with the provisions of this Contract are of such scope
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and nature that the City of Yakima ONDS deems continuation of this Contract
to be substantially non -beneficial to the public interest;
2. The Contractor has failed to take satisfactory corrective action as directed by
the City of Yakima ONDS or its authorized representative within the time
specified by same;
3. The Contractor has failed within the time specified by the City of Yakima
ONDS or its authorized representative to satisfactorily substantiate its
compliance with the terms and conditions of this Contract, then:
The City of Yakima ONDS may terminate this Contract in whole or in part, and
thereupon shall notify the Contractor of the termination, the reasons therefore and the
effective date provided such effective date shall not be prior to notification to the
Contractor. After this effective date, no charges incurred under any terminated
portions are allowable.
B. TERMINATIONS ON OTHER GROUNDS
This Contract may also be terminated in whole or in part by mutual agreement of the
parties.
C. TERMINATION FOR WITHDRAWAL, REDUCTION OR LIMITATION OF FUNDING
In the event that funding from the Federal government is withdrawn, reduced or limited
in any way after the effective date of this Contract, and prior to its normal completion,
the City of Yakima ONDS may summarily terminate this Contract as to the funds
reduced or limited, nonwithstanding any other termination provision of this Contract. If
the level of funding so reduced or limited is so great that the City of Yakima ONDS
deems that the continuation of the program covered by this Contract is no longer in the
best interest of the public, the City of Yakima ONDS may summarily terminate this
Contract in whole nonwithstanding any other termination provisions of this Contract.
Termination under this Section shall be effective upon receipt of written notice by the
Contractor or its representative.
The City of Yakima ONDS agrees to promptly notify the Contractor of any proposed
reduction in funding by Federal or other officials. The Contractor agrees that upon
receipt of such notice it shall take appropriate and reasonable action to reduce its
spending in the affected funding area so that expenditures do not exceed the funding
level which would result if said proposed reduction became effective.
This Contract may further be terminated by the City of Yakima upon written demand by
the City of Yakima ONDS for assurances that the terms of the Project Description are
being timely complied with, if such assurances are not made to the City's satisfaction
within thirty (30) days of the date of such written demand.
D. CLOSE-OUT
In the event that this Contract is terminated in whole or in part for any reason, the
following provisions shall apply:
1. Upon written request by the Contractor, the City of Yakima shall make or
arrange for payment to the Contractor of allowable reimbursable costs not
covered by previous payments.
2. The Contractor shall submit within thirty (30) days after the date of expiration
of this Contract, all financial, performance and other reports required by this
Contract, and in addition, will cooperate in a program audit by the City of
Yakima or its designee.
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3. In the event a financial audit has not been performed prior to close-out of this
Contract, the City of Yakima ONDS retains the right to withhold a just and
reasonable sum from the final payment to the Contractor after fully considering
the recommendation on disallowed costs resulting from the final audit.
XXIII COVENANT AGAINST CONTINGENT FEES
The Contractor warrants that no person or selling agency has been employed or retained to
solicit or secure this contract upon an agreement or understanding for a commission,
percentage, brokerage or contingent fee, excepting bona fide employees or bona fide
established commercial or selling agency maintained by the Contractor for the purpose of
securing business. The City of Yakima ONDS shall have the right, in the event of breach of
this clause by the Contractor, to annul this Contract without liability or, in its discretion, to
deduct from the Contract price or consideration or otherwise recover the full amount of such
commission, percentage, brokerage or contingent fee.
XXIV CONFLICT OF INTEREST
The City may, by written notice to the Contractor:
A. In accordance with 24 CFR § 570.611, no member, officer, or employee of the City of
Yakima, or the contractor, or assignees or agents, no member of the governing body of
the City of Yakima, and no other public official of the City of Yakima or such other
localities who exercise any functions or responsibilities with respect to the program
during his tenure or for one year thereafter, shall have any interest, direct or indirect, in
any contract or Subcontract, or the proceeds thereof, for work to be performed in
connection with a City of Yakima CDBG funded program
B. Terminate this Contract if it is found, after due notice and hearing, by the City that
gratuities in the form of entertainment, gifts, or otherwise offered or given by the
Contractor, or agent or representative of the Contractor, to any officer or employee of
the City of Yakima, with a view towards securing this Contract or securing favorable
treatment with respect to the awarding or amending or the making of any
determinations with respect to this contract.
C. In the event this Contract is terminated as provided in (A) above, the City of Yakima
shall be entitled to pursue the same remedies against the Contractor as it could pursue
in the event of a breach of the Contract by the Contractor. The rights and remedies of
the City of Yakima provided for in this clause shall not be exclusive and are in addition
to any other rights and remedies provided by law.
XXV RIGHTS IN DATA
The City of Yakima ONDS may duplicate, use and disclose in any manner and for any
purposes whatsoever, and have others so do, all data delivered under this agreement. The
Contractor hereby grants to the City of Yakima, a royalty -free, non-exclusive, and irrevocable
license to publish, translate, reproduce, deliver, perform, dispose of, and to authorize others to
do so, all data now or hereinafter covered by copyright: Provided, that with respect to data not
originated in the performance of this Contract such license shall be only to the extent that the
Contractor has the right to grant such license without becoming liable to pay compensation to
others because of such grant. The Contractor shall exert all reasonable effort to advise the
City of Yakima ONDS, at the time of delivery of data furnished under this agreement, of all
invasions of the right of privacy contained therein
and of all portions of such data copied from work not composed or produced in the
performance of this agreement and not licensed under this clause. The Contractor shall report
to the City of Yakima ONDS, promptly and in written detail, each notice or claim of copyright
infringement received by the Contractor with respect to all data delivered under this agreement.
The Contractor shall not affix any restrictive markings upon any data, and if such markings are
affixed, the City of Yakima ONDS shall have the right at any time to modify, remove, obliterate,
Page 11 of 15 05-31-05
or ignore such markings.
XXVI RULE OF CONSTRUCTION
In the event of an inconsistency in this contract/grant award unless otherwise provided herein,
the inconsistency shall be resolved by giving precedence in the following order:
1. Appropriate provisions of state and federal statutes and regulations including HUD
CDBG Regulations.
2. General Terms and Conditions (Exhibit A).
3. Those attachments incorporated by reference herein, including the statement of
work/project description, approved HUD grant budget, in the order in which attached,
(Exhibit B),
4. City of Yakima Resolution No. 2002-72 (Exhibit C), and
5. Any other provisions whether incorporated by reference herein or otherwise provided
that nothing herein shall be construed as giving preference to provisions of this
contract/grant award over any provisions of law.
XXVII GOVERNING LAW
This Contract has been and shall be construed as having been entered into and delivered
within the State of Washington, and it is mutually understood and agreed by each party hereto
that this Contract shall be governed by laws of the State of Washington, both as to
interpretation and performance.
XXVIII VENUE
The venue for any action to enforce or interpret this Contract shall lie in the Superior Court of
Washington for Yakima County, Washington.
XXIX MODIFICATION
Either party may request changes in this Contract, however, no change or addition to this
Contract shall be valid or binding upon either party unless such change or addition be in
writing, and executed by both parties, except budget adjustments as specified in Section IV of
this Contract.
XXX SEVERABILITY
It is understood and agreed by the parties hereto that if any part, term, or provision of this
Contract is held by the courts to be illegal, the validity of the remaining provisions shall not be
affected; and the rights and obligations of the parties shall be construed and enforced as if the
Contract did not contain the particular provision held to be invalid. If it should appear that any
provision hereof is in conflict with any statutory provision of the United States or the State of
Washington, said provision which may conflict, therewith, and shall be deemed modified to
conform to such statutory provision.
XXXI PROGRAM INCOME
Program income, if any, shall be retained by the contractor. Any program income shall be
accounted for by the Contractor, over the contract time period, shall be reported to the City.
Income is to be used to continue or benefit the program, as determined by the intent and
purpose of the project. Program income is to be used as specified in 24 § CFR 570.503(b)(3)
and 24 § CFR 570.504(c).
Page 12 of 15 05-31-05
EXHIBIT "B"
RURAL COMMUNITY DEVELOPMENT RESOURCES
2005 MICRO -ENTERPRISE TECHNICAL ASSISTANCE GRANT
A.) PROPOSAL SUMMARY/PROJECT ABSTRACT
Rural Community Development Resources will provide technical assistance to micro -
enterprise and small businesses within the City of Yakima, with a particular emphasis
on Renewal Community businesses.
B.) ASSESSMENT OF NEED/PROBLEM STATEMENT
Small businesses and micro -enterprise are the fastest growing segment of the
economy, especially among the first generation Hispanic immigrant population.
RCRD was established to provide technical assistance and financing to this industry,
and has established a successful track record of leveraging private, state and federal
dollars for these activities.
A significant percentage of RCDR's clients and others in need of assistance are from
the City of Yakima. The technical assistance funding currently available to RCDR is
restricted for use in areas of Yakima County outside of the city limits. For this reason,
RCDR needs CDBG funding to provide technical assistance and financing if it is to
continue to help Yakima businesses to qualify for its financing programs.
C.) PROGRAM GOAL AND OBJECTIVES
Goal
Create and sustain micro -enterprise businesses in the City of Yakima.
Objectives
1. Provide technical assistance to qualified micro -enterprise businesses in
Yakima in the areas of business planning, taxes and reporting, labor issues
and accounting.
2. Assist businesses in accessing loan funds from various public and private
sources.
3. Provide loans directly from RCDR to qualified businesses.
D.) METHODOLOGY
From July 1 through December 31, 2005, RCDR will seek reimbursement for time
spent assisting Yakima businesses, based on the attached cost allocation model used
to monitor CDBG funds received from the State of Washington. The activities that
comprise the cost allocation include: Intake, eligibility determination, interviews,
training, and loan processing.
E.)
OUTCOMES & EVALUATION
As a condition of reimbursement, RCDR will report on its outcomes for each
reimbursement period as follows:
1. Inquiries/intake of Yakima businesses. Target: 20 per month
2. Technical Assistance provided to Yakima businesses.
Target: 5 per month
3. Loan applications processed for Yakima businesses.
Target: 5 per month
4. Loans approved/made to Yakima businesses. Target: 5 per month.
G.) BUDGET
RCDR will reimbursed up to $25,000 between July 1, 2005 and December 31, 2005
for eligible activities. The formula for reimbursement is based on the attached cost
allocation model used for CDBG funds that RCDR receives from the State of
Washington.
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
r3
For Meeting Of: June 7, 2005
ITEM TITLE: Consideration of a resolution authorizing the City Manager to
execute a grant agreement with Rural Community Development
Resources to provide technical assistance services to small
businesses in Yakima.
SUBMITTED BY: { ook, Director of Community and Economic Development
CONTACT: Y Bill Cook, 575-6113
SUMMARY EXPLANATION:
Rural Community Development Resources (RCDR) is a local non-profit corporation that
provides a combination of services, including: small business training, technical
assistance and a revolving loan fund program for new and emerging businesses
throughout Yakima County. RCDR is also a Community Development Financial
Institution (CDFI), designated by the U.S. Department of the Treasury. RCDR's
financial resources come from a variety of federal, state and private bank funds,
including a recent $250,000 award for small businesses loans from Banner Bank.
RCDR has requested $25,000 in CDBG funds to provide technical assistance services
to small businesses and micro -enterprise operations in the City of Yakima, with the goal
of qualifying businesses for its Banner Bank loan funds, or other sources of financing.
RCDR currently has a CDBG grant from Washington State CTED to provide these
services in Yakima County, with the exception of businesses within the Yakima city
limits. This restriction is due to the fact that Yakima is an entitlement community, and
the stated CDBG funds are designated for rural, non -entitlement communities.
CONTINUED ON NEXT PAGE
Resolution _X_ Ordinance _ Contract _ Other: ONDS Contract
Funding Source: 2005 CDBG
A.. royal for Submittal:
City anager
STAFF RECOMMENDATION: Staff recommends approval of the resolution.
BOARD RECOMMENDATION: Economic Development Committee recommends
approval
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2005-87
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