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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." z Y � 1 . i ra R Efll . .. _ nt , . »' h 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 HRM c1 `� s..�x .tp, Qi4 c v ..E�^ ... , w. e'N r h �:� ..i.m:�i e�H i._„�� -..hm, :..i _...._ "}� j^u�i`. 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: