HomeMy WebLinkAbout2012 CDBG Grant Funds Bet Cnty of SLO & City of SLO 12.26.12AMcity of
sAn WIS OBISPo
Final City Manager Approval
Approver Name
Date Approved
City Administration
Michael Codron
December 18, 2012
Reviewer Routing List
Reviewer Name
Date Reviewed
City Attorney
Andrea Visveshwara
12/11/12
Finance & Information Technology
Rachel McClure
12/18/12
December 4, 2012
VIA: Kim Murry, Deputy Director of Community Development XEN
FROM: Tyler Corey, Housing Programs Manager
PREPARED BY: Michelle Bokeo, Housing Intern
SUBJECT: 2012 CDBG Subrecipient Agreement with County of San Luis Obispo
RECOMMENDATION
Sign the attached Subrecipient agreement, which details the City's administrative requirements
for use of 2012 CDBG funds.
DISCUSSION
HUD requires agencies that administer CDBG funds to enter into subrecipient agreements,
which outline the requirements of the CDBG program. The City and County enter into a
subrecipient agreement each year - a required step before any CDBG funds can be obligated.
The City, in turn, will enter into contracts with service providers who have been awarded these
funds to carry out their projects.
SECTION 3. City Manager Authority.
As authorized by Council Resolution No. 10349 (2012 Series), the City Manager acts on behalf
of the City in executing agreements and other actions necessary to implement the approved
Consolidated Plan and CDBG Program.
FISCAL IMPACTS
By entering into the agreement, the City takes a necessary step towards enabling allocation of
$506,588 in CDBG funds to approved projects (See page 2 of the agreement). Use of CDBG funds
for the approved projects reduces the demand on the City's General Fund to meet these community
needs.
ATTACHMENT
1. Council Resolution No. 10349 (2012 Series)
2. Subrecipient Agreement for 2012 CDBG Grant funds
Subrecipient Agreement Page 2
T: \City Manager Reports \Community Development\2012 \Subrmipent Agreement \Subrecipient Agreement CM Report 2012.doc
SUBRECIPIENT AGREEMENT FOR 2012 CDBG GRANT FUNDS BETWEEN
THE COUNTY OF SAN LUIS OBISPO AND THE CITY OF SAN LUIS OBISPO
THIS AGREEMENT is made and entered into this � day of, 2012,
by and between the County of San Luis Obispo, a political subdivision of the State of California,
hereinafter called "County" or "Recipient," and the City of San Luis Obispo, a municipal
corporation of the State of California, located in the County of San Luis Obispo, hereinafter
called "City" or "Subrecipient'; jointly referred to as "Parties."
WITNESSETH
WHEREAS, on June 21, 2011 the Recipient and the Subrecipient entered into a
Cooperative Agreement to implement the Housing and Community Development Act of 1974,
herein called the "Act' (herein the "Cooperative Agreement'). Said Act is omnibus legislation
relating to federal involvement in a wide range of housing and community development
activities and is administered by the federal Department of Housing and Urban Development
(herein "HUD "); and
WHEREAS, the Parties' participation in the programs funded by the Act is pursuant to
compliance with all applicable federal laws, regulations and executive orders; and
WHEREAS, according to federal regulations 24 CFR - 570.503, before disbursing any
Community Development Block Grant (CDBG) funds to a Subrecipient, a written agreement
shall be signed by the Recipient and Subrecipient; and
WHEREAS, the agreement shall remain in effect throughout the implementation of
projects specified in the 2012 CDBG Consolidated Plan and any amendments thereto; and
WHEREAS, Subrecipient is a "Subrecipient" as defined in the Code of Federal
Regulations at 24 CFR 570.500(c).
NOW THEREFORE, pursuant to the provisions of Title 24, Chapter V, of the Code
of Federal Regulations, the Parties agree as follows:
1. Federal Regulations
All references in this agreement to federal regulations refer to numbered sections of the current
edition of Title 24, Chapter V, of the Code of Federal Regulations.
2. Statement of Work - Section 570.503
The following statement of work provides information for the Recipient to effectively monitor
performance of all projects being completed under this agreement. The Program Year 2012
Action Plan includes a project description and a budget for each project funded wholly, or in
COMMUNITY DEVELOPMENT BLOCK GRANT, 2012 PROGRAM SUBRECIPIENT AGREEMENT
CITY OF SAN LUIS OBISPO PAGE 2
part, by CDBG funds. The Subrecipient may request modification of the tasks, schedule or
budget in writing to the Recipient. The Recipient shall review each request to modify tasks,
schedule or budget on a case -by -case basis and will respond to the Subrecipient within 30 days
of the request. The projects listed below shall be implemented by the Subrecipient. For a concise
description of each project (i.e., project location, project scale, and clientele to be served) please
refer to the Urban County of San Luis Obispo's 2012 Action Plan of the Consolidated Plan,
specifically the Appendix entitled "U.S. Department of Housing and & Urban
Development /CPD Consolidated Plan/Listing of Proposed Projects."
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Property Acquisition to Develop Affordable Housing, 313
$39,282
July 1, 2012
December 31, 2013
South St. — ROEM Development
Property Acquisition (3212 Rockview) — Habitat for
$30,000
July 1, 2012
December 31, 2013
Humanity
Property Acquisition (542 Hathway) — Tri- Counties
$95,000
July 1, 2012
December 31, 2013
Community Housing Corporation
Operation of the Maxine Lewis Memorial Shelter —
$75,988
July 1, 2012
June 30, 2013
CAPSLO
ADA Street Improvements, Curb Ramps by the City of
$105,000
July 1, 2012
December 31, 2013
San Luis Obispo
Homeless Campus Project by CAPSLO
$50,000
July 1, 2012
December 31, 2013
Women's Business Center by Mission Community
$10,000
July 1, 2012
December 31, 2013
Services Corporation
Implementation of Housing Programs — City of San Luis
$60,787
July 1, 2012
June 30, 2013
Obispo
Administration
$40,5351
July 1, 2012
June 30, 2013
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3. Records
Federal regulation 570.503(b)(2) requires that this agreement set forth the required records and
record keeping responsibilities that the Subrecipient assumes upon receiving CDBG funds. All
records and record keeping activities required of the Recipient by section 570.506 of the federal
regulations shall be created and maintained by the Subrecipient and shall be, on the request of
Recipient, submitted to the Recipient. To effectively monitor projects for compliance with
CDBG regulations, all records must be available for review, or may be required for submittal to
the Recipient.
COMMUNITY DEVELOPMENT BLOCK GRANT, 2012 PROGRAM SUBRECIPIENT AGREEMENT
CITY OF SAN LUIS OBISPO PAGE 3
4. Reports
All reports required by federal regulations 570.507 shall be prepared and maintained by the
Subrecipient. The following reports shall be maintained and /or submitted by the Subrecipient to
the Recipient:
A. The Subrecipient shall submit an annual performance and evaluation report no later than
30 days after the completion of the most recent program year showing the status of all
activities as of the end of the program year. The purpose of the performance and
evaluation report is to assist the Recipient in complying with its reporting obligations
under 24 Code of Federal Regulations section 570.507(a) and under 24 Code of Federal
Regulations Part 91. The Recipient shall specify the content and format of this report.
B. Quarterly progress reports shall be submitted by the Subrecipient to the Recipient on, or
before, the thirtieth day following the quarter end. The quarterly report shall include a
description of the approved activities completed, any problems encountered and
corrective actions taken.
C. As to CDBG funds covered by the agreement, the Subrecipient agrees to provide the
Recipient access to its accounting records and documents and to provide non - financial
assistance needed by Recipient in the performance of its monitoring function.
D. Subrecipients who receive at least $300,000 of CDBG funds will contract with an
independent certified public accountant to conduct a financial audit of their whole
organization and will include an audit with a separate report of the projects funded by
CDBG funds in accordance with federal OMB Circular A -133, also otherwise known as
the single audit.
E. Copies of any audited financial reports and the single audit report will be provided to the
Recipient.
F. The Subrecipient will require any of its non - profit Subrecipients that receive at least
$300,000 of CDBG funds to procure an audit of their financial records in accordance
with federal OMB circular A -133.
COMMUNITY DEVELOPMENT BLOCK GRANT, 2012 PROGRAM SUBRECIPIENT AGREEMENT
CITY OF SAN LUIS OBISPO PAGE 4
G. Other reports and information may be required as determined necessary by HUD to
carry out its responsibilities under the Act or other applicable laws. The Subrecipient
agrees to provide any HUD required reports.
5. Payments
The information required by HUD for cash disbursements shall be provided by the Subrecipient
to request payment from the Recipient. The Recipient shall review payment claims for
compliance with the statement of work and the other provisions of this agreement. All payment
of claims are subject to the availability of funds to the Recipient from HUD. If claims are
approved, the Recipient shall make payment to the Subrecipient.
6. Program income - Section 570.504
A. The Subrecipient shall notify the Recipient on a quarterly basis of any income generated
by the expenditure of CDBG funds and received by the Subrecipient. Such income may
be retained by the Subrecipient subject to the provisions of the Cooperative Agreement,
the Act, and its regulations. Any program income retained must only be used for eligible
activities in accordance with all CDBG requirements.
B. Instead of the Recipient, it shall be the Subrecipient's responsibility to manage and use
the program income in compliance with the standards and requirements set forth in
section 570.504(a) & (b)(1) through (b)(3). The transfer of CDBG funds from the
Recipient to the Subrecipient shall be adjusted to reflect any program income in
accordance with the principles set forth in section 570.504(b)(2)(i) and (ii). In addition,
all of the provisions of this Agreement shall apply to the management and use of the
program income.
C. Recipient shall monitor the use of any program income, requiring appropriate record
keeping and reporting by the Subrecipient as may be needed for this purpose, and shall
report the use of such program income to HUD. In the event of close -out as defined in
section 570.509 of the federal regulations or change of status of the Subrecipient, (i.e.,
from Subrecipient to entitlement), all program income on hand or received by the
Subrecipient subsequent to the close -out or change of status shall be paid to the
Recipient.
D. Any program income on hand when this Agreement expires, or received after this
Agreement's expiration, shall be paid to the Recipient as required by section 570.503.
COMMUNITY DEVELOPMENT BLOCK GRANT, 2012 PROGRAM SUBRECIPIENT AGREEMENT
CITY OF SAN LUIS OBISPO PAGE 5
7. Uniform Administrative Requirements
The Subrecipient shall comply with all sections of the Uniform Administrative Requirements
described in 24 Code of Federal Regulation section 570.502(a).
8. Other pro¢ram requirements
The Subrecipient shall carry out each activity in compliance with all federal laws and
regulations described in subpart K of the CDBG federal regulations, except that Subrecipient
does not assume the Recipient's environmental responsibility described in federal regulations
section 570.604; and Subrecipient does not assume Recipient's responsibility for initiating the
review process under the provisions of 24 CFR part 52 per federal regulation 570.503(5)(ii).
Subrecipient shall assist Recipient in conducting environmental reviews for activities identified
in Paragraph two of this agreement. The Subrecipient is responsible for spending all funds in
compliance with all applicable regulations, laws and executive orders, and warrants it will do
so. In the event that the Subrecipient violates any such regulations, laws and /or executive
orders, and such violation(s) result in the Recipient incurring expenses and /or making payments
to HUD attributable to some or all of the CDBG funds received by Subrecipient, then the
Subrecipient shall pay to Recipient, on the demand of Recipient, all of the said expenses
incurred by Recipient and all of the payments made by Recipient as a result of Subrecipient's
said violation(s).
9. Suspension and Termination
In accordance with 24 CFR 85.43, suspension or termination may occur if Subrecipient
materially fails to comply with any term of the award, and the award may be terminated for
convenience in accordance with 24 CFR 85.44.
10. Reversion of assets - Section 570.503
All transfers of assets are subject to the provisions of the Cooperative Agreement. Upon the
expiration of this agreement, the Subrecipient shall transfer to the Recipient any CDBG funds
on hand at the time of expiration and any accounts receivable attributable to the use of CDBG
funds. Any real property under Subrecipient's control that was acquired or improved in whole or
in part with CDBG funds in excess of $25,000 (whether in the form of a grant or loan) must be
used to meet one of the national objectives in federal regulations section 570.208 until five
years after the expiration of this Agreement. If Subrecipient chooses not to use the real property
to meet one of the national objectives for five years then Subrecipient shall pay Recipient upon
expiration of this Agreement an amount equal to the current market value of the real property
less any portion of the value attributable to expenditures of non -CDBG funds for the acquisition
of, or improvement to, the property.
COMMUNITY DEVELOPMENT BLOCK GRANT, 2012 PROGRAM SUBRECIPIENT AGREEMENT
CITY OF SAN LUIS OBISPO PAGE 6
NOW, THEREFORE, the parties hereto have caused this Subrecipient agreement to be
executed and attested by their proper officer thereunder duly authorized, and their official seals
to be hereunto affixed, all as of the day first above written.
APPROVED AS TO FORM:
CITY OF SAN LUIS OBISPO, J. CHRISTINE DIETRICK
CITY ATTORNEY
BY
Christine Dietrick, City Attorney
DATED:
City of San Luis Obispo
BY: ° /t-- — A "�" j
Katie ' ig, City Manager
DATED: / 2A ( kz.___
ATTEST:
Verk
COMMUNITY DEVELOPMENT BLOCK GRANT, 2012 PROGRAM SUBRECIPIENT AGREEMENT
CITY OF SAN LUIS OBISPO PAGE 7
COUNTY OF SAN LUIS OBISPO
F-W
Jason H. Giffen
Director, Department of Planning and Building
DATED:
APPROVED AS TO FORM AND EFFECT:
RITA L. NEAL
County Counsel
IC
Deputy County Counsel
DATED: