R2019-144 2019-06-10 RESOLUTION NO. R2019-144
A Resolution of the City Council of the City of Pearland,Texas,authorizing the
City Manager or his designee to enter into a Subrecipient Agreement, in the
amount of$140,350.00,with the Forgotten Angels Foundation for the purpose
of providing Community Development Block Grant Funding to construct a
4,000 square foot vocational services building.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Subrecipient Agreement, a copy of which is attached hereto as
Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved.
Section 2. That the City Manager or his designee is hereby authorized to execute and
the City Secretary to attest the attached Subrecipient Agreement.
PASSED, APPROVED and ADOPTED this the 10th day of June, A.D., 2019.
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TOM REID
MAYOR
ATTEST:
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APPROVED AS TO FORM: '/III"""'��```````
DARRIN M. COKER
CITY ATTORNEY
CDBG SUBRECIPIENT AGREEMENT
between
THE CITY OF PEARLAND, TEXAS
and
FORGOTTEN ANGELS FOUNDATION
PREABLE AND RECITALS
THIS AGREEMENT, entered to be made effective on the 10th day of June, 2019, by and
between the City of Pearland (herein called the "Grantee" and/or "City") and Forgotten
Angels Foundation (herein called the "Subrecipient").
WHEREAS, the Grantee has applied for and received funds from the United States
Government under Title 1 of the Housing and Community Development Act of 1974,
Public Law 97-383 Unit of Government Code number 484080, application number B-16-
MC-48-0400;
WHEREAS, the primary purpose of the Community Development Block Grant (CDBG)
Program, pursuant Title 1 of the Housing and Community Development Act of 1974, is to
benefit low- to moderate income individuals and families;
WHEREAS, the Subrecipient has submitted an application to the Grantee for PY 2016
CDBG funds to provide the above program, that has subsequently endured successful
review and approval by U.S. Department of Housing and Urban Development, and will
perform the services in a manner satisfactory to the Grantee and the Grantor;
WHEREAS, the Subrecipient has stated its intention to ensure the completion and
compliance with federal, State and local requirements, to document compliance with
service area and low- and moderate-income persons and households that meet one of
the criteria for National Objectives set out in 24 C.F.R. 570.208 (a), in addition to the
federal Uniform Administrative Requirements as set forth in 2 CFR Part 200; and
WHEREAS, the Subrecipient shall ensure recognition of the role of the Grantee in
providing services through this contract, prominently labeling all activities, facilities, and
items utilized pursuant to this contract recognizing the source of funds as City of Pearland
CDBG.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained, it is agreed between the parties hereto that:
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Subrecipient Agreement
ARTICLE 1- PROJECT
SECTION 1: SCOPE OF SERVICE
A. Activities
1. Program Delivery
Activity #1 Construction of a 4,000 square foot gross floor area foundation
metal building, with ADA-accessibility. The building will be
constructed to applicable local code standards, permitted by the
City, and with a CDBG allocation not to exceed $118,350, This
activity will be completed with the intent to provide the following
units of service, at the following cost per unit:
Total Units of Service Cost Per Unit
60 Units of Service $1,972.50
Activity #2 Supply furnishings, fixtures and equipment (FFE) to the effect that
the programmatic functions of the facility will be met upon
completion of construction, including but not limited to: ADA-
compliant bathroom and service areas, industrial fans, work sinks
and mop sinks, wheelchair ramps, door handles, and other eligible
materials and supplies that can be procured within budgeted
funding amounts. The approved budget for this activity is limited to
$22,000. This activity will be completed with the intent to provide
the following units of service, at the following cost per unit:
Total Units of Service Cost Per Unit
6O Units of Service $366.66
Activity #3 Utilize the completed facility for the purpose of providing training
for eligible mentally-disabled adults on various vocational activities,
specifically those that emphasize horticultural program modalities
in a manner that fosters actual productivity towards individual and
group functionality in the area of workforce development. This
activity is currently unbudgeted for, but the Subrecipient shall be
able to apply for funding to support these costs in future CDBG
Program Years. The Subrecipient is required to implement
activities #1 and #2 on its own accord to justify the allocation of
HUD funds, and meet HUD National Objectives. This activity will
be completed with the intent to provide the following units of
service, at the following cost per unit:
Total Units of Service Cost Per Unit
260 Units of Service $TBD
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Subrecipient Agreement
2. Administration
The Subrecipient is required to administer the financial, programmatic and
regulatory compliance measures necessary to meet HUD National Objectives as
an independent contractor, and not as an officer, agent, servant or employee of
the Grantee.
3. Income Benefit Goals
It is anticipated that approximately 60 unduplicated low- to moderate-income
clients will be served over the course of this 12-month Agreement. The goal is to
serve: 60 clients at the 0-30% areas median income (AMI) level (very low-income).
B. National Objectives
All activities funded with CDBG funds must meet one of the CDBG program's National
Objectives: benefit low- and moderate-income persons; aid in the prevention or
elimination of slums or blight; or meet community development needs having a
particular urgency, as defined in 24 CFR 570.208.
The Subrecipient certifies that the activity/activities carried out under this Agreement
will meet the HUD Low-Moderate Income National Objective via Matrix Code 03B
(Handicapped Centers), tracking accomplishments in area codes "11" (Public
Facilities) and "13" (Jobs).
C. Goals and Performance Measures
The Subrecipient agrees to provide the following levels of program services:
Activity Units per Month Total UnitslYear
Activity:#1:: [5 Units) . .:;::::.::.:: :: .:::.:: 160.:Ur ts]
Acfivrty#2 (5°Units] 160 Units)
AetMty:#3: :.!::f22 Units] Pa():Units]
D. Performance Monitoring
The Grantee will monitor the performance of the Subrecipient against goals and
performance standards as stated above. Substandard performance as determined
by the Grantee will constitute noncompliance with this Agreement. If action to correct
such substandard performance is not taken by the Subrecipient within a reasonable
period of time after being notified by the Grantee, suspension or termination
procedures will be initiated.
E. Special Conditions
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Subrecipient Agreement
The City requires that any and all activities involving construction projects be subject to
local permitting and planning ordinances/requirements, and that the Subrecipient incur
such costs. The federal rules governing federally-assisted construction projects shall
apply, and the City is not responsible for the Subrecipient's compliance with any federal,
State and/or local rules, regulations and/or laws.
SECTION 2: PROJECT DESCRIPTION
Type of Project: Facility Improvement — Handicapped Center
Project Location: 3309 Industrial Drive, Pearland TX 77581
Service Area: 3309 Industrial Drive, Pearland TX 77581
Matrix Code: 03B (Handicapped Centers)
Basic Eligibility Citation: 24 CFR 570.201(c): Public Facilities and Improvements
Amount Funded: $118,350 for facility improvements, and (pending further approval upon
completion of facility construction and availability of funds) $22,000 for furnishings,
fixtures and equipment. This contract is limited to $140,350.
SECTION 3: TERM OF AGREEMENT
The term of this Agreement is October 1, 2017 through September 30, 2018. The term of
this Agreement may be extended should additional time for auditing this project be
required, in accordance with law; this Agreement shall be deemed automatically extended
until such time as the said audit shall be completed. The provisions herein shall be
extended to cover any additional time period during which the Subrecipient remains in
control of CDBG funds or other CDBG assets, including program income.
Additionally, the Subrecipient must comply with a "Continuing Use" requirement, which
assures that capital investments will provide long-term, continuous benefits to low- and
moderate-income persons or areas. The contractually-obligated project described herein
shall be subject to a period of minimum continuing use of five (5) years from the date(s)
that:
A. The Subrecipient has successfully been cleared by the Grantee that the
Subrecipient may certify completion of any and all construction activities (Activity
#1) the Subrecipient is obligated to perform; and
B. The Subrecipient has successfully been cleared by the Grantee that the
Subrecipient may certify completion of any and all activities requiring furnishings,
fixtures and equipment to be installed in regard to the facility described in Activity
#1 (Activity #2); and
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Subrecipient Agreement
C. The issuance of a Certificate of Occupancy (CO)to the Subrecipient for this project
(subject to completion of Activity #1 and Activity #2) has been provided by the
Grantee; and
D. The Grantee has monitored and cleared the Subrecipient of any and all applicable
audit findings and/or concerns related to review and inspection of the
SubrecipienVs management and oversight of CDBG funds.
•Otherwise, should the aforementioned provisions not be met in a timely manner, pursuant
24 CFR 570.902, any projects or capital improvement cost paid with more than $20,000
and up to $50,000 in CDBG funds must be able to provide benefits to low-and moderate-
income persons or areas for a minimum of five (5) years at the project site. For projects
exceeding $50,000 and up to $100,000 in CDBG funds, the minimum continuing use is
ten (10) years. Projects that exceed $100,000 to $150,000 in CDBG funds must be held
in the same use for at least fifteen (15)years. Projects that are over$150,000 to $200,000
in CDBG funds must be held in the same use for twenty (20) years. Projects that have
$200,000 or more in CDBG funds must continue to serve the low- to moderate-income
population for a minimum of twenty-five (25) years.
SECTION 4: PROGRAM REPORTING
The Subrecipient shall submit such reports as required by the City to meet its local
obligations and its obligations to HUD. The City will prescribe the report format, as well
as the time and location for submission of such reports. Required reports include, but are
not limited to the following:
A. Quarterly reports which shall include the progress made to date, or justification for
lack of progress, in providing the services specified in Article 1, Section 1: Scope
of Services, of this Agreement.
B. Quarterly reports on demographic and income information regarding persons
assisted by the Subrecipient through this Agreement.
C. Closeout reports including a final performance report, inventory of all property
acquired or improved by CDBG funds, and final financial report, upon termination
or completion of the award.
ARTICLE 2- FINANCIAL MANAGEMENT
SECTION 1: PAYMENTS AND BUDGET
A. General Statement
The City shall reimburse the Subrecipient allowable costs for services identified in this
Agreement not to exceed one .hundred:forty4housand, three-hundred'and fifty.Dollars
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Subrecipient Agreement
($140,350), upon presentation of properly executed reimbursement forms provided and
approved by the City. A total of $22,000 within that total amount is still pending approval.
Such reimbursement shall constitute full and complete payment by the City under this
Agreement. Allowable costs shall mean those necessary and proper costs identified in
the Subrecipient's application and budget and approved by the City unless any or all such
costs are disallowed by the State of Texas or HUD.
Any reimbursement made under this Agreement must comply with the applicable
requirements of 24 CFR Part 85. The Subrecipient may not request disbursement of funds
under this Agreement until the funds are needed for payment of allowable costs.
B. Payments
Reimbursement request must be submitted to the City of Pearland in accordance with
instructions to be provided to the Subrecipient under separate cover.
Reimbursement payments shall be made to Forgotten Angels Foundation
Payments may be contingent upon certification of the Subrecipient's financial
management system in accordance with the standards specified in 24 CFR 84.21.
Drawdowns for the payment of allowable costs shall be made against the line item
budgets specified in Paragraph C, below, herein and in accordance with performance.
Expenses for general administration shall also be paid against the line item budgets
specified in Paragraph C and in accordance with performance.
C. Budget
Line Item Amount:
Construction $118,350
TOTAL $118,350
In addition, the Grantee may require a more detailed budget breakdown than the one
contained herein, and the Subrecipient shall provide such supplementary budget
information in a timely fashion in the form and content prescribed by the Grantee. Any
amendments to the budget must be approved in writing by both the Grantee and the
Subrecipient.
D. Closeout
Upon termination of this Agreement, in whole or in part for any reason including
completion of the project, the following provisions may apply:
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Subrecipient Agreement
A. Upon written request by the Subrecipient, the City shall make or arrange for
payments to the Subrecipient of allowable reimbursable costs not covered by
previous payments;
B. Disposition of program assets (including the return of all unused materials,
equipment, unspent cash advances, program income balances, and accounts
receivable to the Grantee);
C. The Subrecipient shall submit within thirty (30) days after the date of expiration of
this Agreement, all financial, performance and other reports required by this
Agreement, and in addition, will cooperate in a program audit by the City or its
designee; and
D. Closeout of funds will not occur unless all requirements of 24 CFR 92.507 are
met and all outstanding issues with the Subrecipient have been resolved to the
satisfaction of the City.
The Subrecipient's obligation to the Grantee shall not end until all closeout requirements
are completed. Notwithstanding the foregoing, the terms of this Agreement shall remain
in effect during any period that the Subrecipient has control over CDBG funds, including
program income.
SECTION 2: DOCUMENTATION OF COSTS AND OTHER FINANCIAL REPORTING
All costs shall be supported by properly executed payrolls, time records, invoices,
vouchers or other official documentation, as evidence of the nature and propriety of the
charges. All accounting documents pertaining in whole or in part to this Agreement shall
be clearly identified and readily accessible, and upon reasonable notice, the City and
HUD shall have the right to audit the records of the Subrecipient as they relate to the
Agreement and the activities and services described herein.
The Subrecipient shall also:
A. Maintain an effective system of internal fiscal control and accountability for all
CDBG funds and property acquired or improved with CDBG funds, and make
sure the same are used solely for authorized purposes.
B. Keep a continuing record of all disbursements by date, check number, amount,
vendor, description of items purchased and line item from which the money was
expended, as reflected in the Subrecipient's accounting records.
C. Maintain payroll, financial, and expense reimbursement records for a period of
five (5) years after receipt of final payment under this Agreement.
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Subrecipient Agreement
D. Permit inspection and audit of its records with respect to all matters authorized by
this Agreement by representatives of the City or HUD at any time during normal
business hours and as often as necessary.
E. Inform the City concerning any funds allocated to the Subrecipient, that the
Subrecipient anticipates will not be expended during the term of this Agreement,
and permit the reassignment of the same by the City to other Subrecipients_
F. Repay the City any funds in its possession at the time of the termination of this
Agreement that may be due to the City or HUD.
G. Maintain complete records concerning the receipt and use of all program income.
Program income shall be reported on a monthly basis on forms provided by the
City.
SECTION 3: REIMBURSEMENT
The City shall reimburse the Subrecipient only for actual incurred costs upon
presentation of properly executed reimbursement forms as provided and approved by
the City. Only those allowable costs directly related to this Agreement shall be paid. The
amount of each request must be limited to the amount needed for payment of eligible
costs.
In the event that the City or HUD determines that any funds were expended by the
Subrecipient for unauthorized or ineligible purposes or the expenditures constitute
disallowed costs in any other way, the City or HUD may order repayment of the same.
The Subrecipient shall remit the disallowed amount to the City within thirty (30) days of
written notice of the disallowance.
A. The Subrecipient agrees that funds determined by the City to be surplus upon
completion of the Agreement will be subject to cancellation by the City.
B. The Subrecipient aggress that upon expiration of this Agreement, the
Subrecipient shall transfer to the City any CDBG funds on hand at the time of the
expiration and any accounts receivable attributable to the use of CDBG funds.
C. The City shall be relieved of any obligation for payments if funds allocated to the
City cease to be available for any cause other than misfeasance of the City itself.
D. The City reserves the right to withhold payments pending timely delivery of
program reports or documents as may be required under this agreement.
SECTION 4: PROGRAM INCOME
The Subrecipient shall report monthly on all program income (as defined at 24 CFR
570.500(a)) generated by activities carried out with CDBG funds made available under
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Subrecipient Agreement
this Agreement. The use of program income by the Subrecipient shall comply with the
requirements set forth at 24 CFR 570.504, 2 CFR 200.80 and 2 CFR 200.307. By way of
further limitations, the Subrecipient may use such income only during the term of this
Agreement and only for activities permitted under this Agreement and shall reduce
requests for additional funds by the amount of any such program income balances on
hand. All unexpended program income shall be returned to the City at the completion of
the Agreement. Any interest earned on cash advances from the U.S. Treasury and from
funds held in a revolving fund account is not program income and shall be remitted
promptly to the Grantee.
ARTICLE 3- GENERAL CONDITIONS AND REQUIREMENTS
SECTION 1: NOTICES
Notices required by this Agreement shall be in writing and delivered via mail (postage
prepaid), commercial courier, personal delivery or sent by facsimile or other electronic
means. Any notice delivered or sent as aforesaid shall be effective on the date of delivery
or sending. All notices and other written communications under this Agreement shall be
addressed to the individuals in the capacities indicated below, unless otherwise modified
by subsequent written notice.
Grantee/City Subrecipient
1st Level Joel Hardy Michelle Forrester
2nd Level Jon Branson Renee West
3rd Level Clay Pearson
Address 3519 Liberty Drive 3301 Industrial Dr, Bldg 2
Pearland, TX 77581 Pearland, TX 77581
SECTION 2: GENERAL CONDITIONS
A. General Compliance
The Subrecipient agrees to comply with the requirements of Title 24 of the Code of
Federal Regulations, Part 570 (the U.S. Housing and Urban Development regulations
concerning Community Development Block Grants (CDBG)) including subpart J and
subpart K of these regulations, except that (1) the Subrecipient does not assume the
recipient's environmental responsibilities described in 24 CFR 570.604 and (2) the
Subrecipient does not assume the recipient's responsibility for initiating the review
process under the provisions of 24 CFR Part 52. The Subrecipient also agrees to comply
with all other applicable Federal, State and local laws, regulations, and policies governing
the funds provided under this Agreement. The Subrecipient further agrees to utilize funds
available under this Agreement to supplement rather than supplant funds otherwise
available.
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Subrecipient Agreement
The Subrecipient shall comply with all applicable Federal laws, regulations, and
requirements and all provisions of this Agreement, which include cornpliance with the
provisions of the HCD Act and all rules, regulations, guidelines, and circulars
promulgated by the various Federal departments, agencies, administrations, and
commissions relating to the CDBG Program. The applicable laws and regulations
include, but are not limited to:
• 2 CFR Part 200
• 24 CFR Part 570;
• 24 CFR Parts 84 and 85;
• OMB Circular A-87 "Cost Principles for State and Local Governments," or
OMB Circular A-110, or ON1B Circular A-122 "Cost Principles for Non-Profit
Organizations," or OMB Circular A-21 "Cost Principles for Educational
Institutions";
• OMB Circular A-128, "Audits of State and Local Governments" or OMB
Circular A-133 "Audits of Institutions of Higher Education and Other Non-
Profit Institutions";
• The Davis-Bacon Fair Labor Standards Act;
• The Contract Work Hours and Safety Standards Act of 1962;
■ Copeland "Anti-Kickback" Act of 1934;
• Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970, as amended (URA);
• Title VI of the Civil Rights Act of 1964: (Public Law 88-352 implemented in 24
CFR Part 1)
• Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (Public Law 90-234
and Executive Order 11063 as amended by Executive Order 12259
(implemented in 24 CFR Part 107);
• Sections 104(b) and 109 of the Housing and Community Development Act of
1974;
• Section 3 of the Housing and Urban Development Act of 1968;
• Equal employment opportunity and minority business enterprise regulations
established in 2 C.F.R. Part 200, Appendix II, ¶ C and24 CFR part 570.904;
• Non-discrimination in employment, established by Executive Order 11246 (as
amended by Executive Orders 11375 and 12086);
■ Section 504 of the Rehabilitation Act of 1973 Uniform Federal Accessibility;
• The Architectural Barriers Act of 1968;
• The Americans With Disabilities Act (ADA) of 1990;
• The Age Discrimination Act of 1975, as amended;
■ National Environmental Policy of 1969 (42 USC 4321 et seq.), as amended;
• Lead Based paint regulations established in 24 CFR Parts 35, 570.608, and
24 CFR 982.401;
• Asbestos guidelines established in CPD Notice 90-44;
• HUD Environmental Criteria and Standards (24 CFR Part 51);
• The Energy Policy and Conservation Act (Public Law 94-163) and 24 CFR
Part 39;
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Subrecipient Agreement
• Historic Preservation Act of 1986, as amended; and related laws and
Executive Orders;
• Executive Order 11988, Floodplain Management, 1977 (42 FR 26951 et
seq.);
• Flood Disaster Protection Act of 1973.
B. "Independent Contractor"
Nothing contained in this Agreement is intended, or shall be construed in any manner to
create or establish the relationship of employer/employee between the Grantee and the
Subrecipient. The Subrecipient shall at all times remain an "independent contractor" with
respect to the services to be performed under this Agreement. The Grantee shall be
exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or
medical insurance and Workers' Compensation Insurance, as the Subrecipient is an
independent contractor.
C. Hold Harmless
To the extent permitted by law, the Subrecipient agrees to hold harmless, defend and
indemnify the City and its appointed and elected officers and employees from and against
any and all liability, loss, costs, damage and expense, including costs and attorney fees
in defense thereof because of any actions, claims, lawsuits, damages, charges and
judgments whatsoever that arise out of the Subrecipient's performance or
nonperformance of the services or subject matter called for in this Agreement.
D. Workers' Compensation
The Subrecipient shall provide Workers' Compensation Insurance coverage for all of its
employees involved in the performance of this Agreement.
E. Insurance & Bonding
The Subrecipient shall carry sufficient insurance coverage to protect Agreement assets
from loss due to theft, fraud and/or undue physical damage, and as a minimum shall
purchase a blanket fidelity bond covering all employees in an amount equal to cash
advances from the Grantee. The Subrecipient shall comply with the bonding and
insurance requirements of 24 CFR 84.31 and 84.48.
The certificates of insurance shall be provided to the City by the Subrecipient's
insurance agent or carrier as evidence that policies providing the required coverages,
conditions, and minimum limits are in full force and effect. Insurance limits must be on
each Certificate of Insurance. Each Certificate of Insurance shall be reviewed and
approved by the City prior to commencement of this Agreement. No other form of
certificate shall be used.
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Subrecipient Agreement
The Subrecipient will not be relieved of any liability, claims, demands, or other obligations
assumed by its failure to procure or maintain insurance, or its failure to procure or maintain
insurance in sufficient amounts, durations, or types.
Failure on the part of the Subrecipient to procure or maintain policies providing the
required coverages, conditions and minimum limits will constitute a material breach of this
Agreement, upon which the City may immediately terminate this contract.
F. Licensing
The Subrecipient agrees to comply with and obtain at its own expense, if necessary, all
applicable Federal, State, City or Municipal standards for licensing, certifications and
operation of facilities and programs, and accreditation and licensing of individuals, and
any other standards or criteria as described in this Agreement to assure quality of
services.
In the event of an investigation or suspension regarding any Subrecipient license
related to the services for which the City is providing funding under this Agreement, the
City may terminate this Agreement and withhold further Agreement funds. In addition,
monies already received under this Agreement may be owed back to the City.
G. Amendments
The parties may amend this Agreement at any time provided that such amendments
make specific reference to this Agreement and are executed in writing, signed by a duly
authorized representative of each organization, and approved by the Grantee's governing
body. Such amendments shall not invalidate this Agreement, nor relieve or release the
Grantee or Subrecipient from its obligations under this Agreement. The Grantee may, in
its discretion, amend this Agreement to conform with Federal, State or local governmental
guidelines, policies or available funding amounts, or for other reasons. If such
amendments result in a change in the funding, the scope of services, or schedule of the
activities to be undertaken as part of this Agreement, such modifications will be
incorporated only by written amendment signed by both Grantee and Subrecipient.
H. Failure to Perform
In the event of a failure by the Subrecipient to comply with any terms or conditions of
this Agreement or to provide in any manner activities or other performance as agreed
herein, the City reserves the right to temporarily withhold all or any part of payment
pending correction of the deficiency, suspend all or part of the Agreement, or prohibit
the Subrecipient from incurring additional obligation of funds until the City is satisfied
that corrective action has been taken or completed. The option to withhold funds is in
addition to, and not in lieu of the City's right to suspend or terminate this Agreement.
The City may consider performance under this Agreement when considering future
awards.
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Subrecipient Agreement
1. Suspension or Termination
The Grantee may pursue such remedies as are available to it in accordance with 2 CFR
Part 200, Appendix II, ¶ A and 24 CFR 85.43, including but not limited to suspension or
termination of this Agreement, if the Subrecipient materially fails to comply with any terms
or conditions of this Agreement, which include, but are not limited to, the following:
A. Failure to comply with any of the rules, regulations or provisions referred to
herein, or such statutes, regulations, executive orders, and HUD guidelines,
policies or directives as may become applicable at any time;
B. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper
manner its obligations under this Agreement;
C. Ineffective or improper use of funds provided under this Agreement;
D. Submission by the Subrecipient to the Grantee reports that are incorrect or
incomplete in any material respect; or
E. Failure to take satisfactory corrective action as directed by the City.
In accordance with 2 C.F.R. Part 200, Appendix II, ¶B and 24 CFR 85.44, this Agreement
may also be terminated for convenience by either the Grantee or the Subrecipient, in
whole or in part, by setting forth the reasons for such termination, the effective date, and,
in the case of partial termination, the portion to be terminated. If, in the case of a partial
termination, however, the Grantee determines that the remaining portion of the award will
not accomplish the purpose for which the award was made, the Grantee may terminate
the award in its entirety.
In the event that funding from the Federal government is withdrawn, reduced or limited in
any way after the effective date of this Agreement but prior to its normal completion, the
City may summarily terminate this Agreement as to the funds reduced or limited,
notwithstanding any other termination provisions of this agreement.
Termination under this Section shall be effective upon receipt of written notice.
In the case of a suspension or termination, monies already received under this Agreement
may be owed back to the City and the City may also declare the Subrecipient ineligible
for further participation in the CDBG program.
SECTION 3: ADMINISTRATIVE REQUIREMENTS
•
A. Financial Management
1. Accounting Standards
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The Subrecipient agrees to comply with 24 CFR 84.21-28 and agrees to adhere
to the accounting principles and procedures required therein, utilize adequate
internal controls, and maintain necessary source documentation for all costs
incurred.
2. Cost Principles
The Subrecipient shall administer its program in conformance with OMB
Circulars A-122, "Cost Principles for Non-Profit Organizations," or A-21, "Cost
Principles for Educational Institutions," as applicable. These principles shall be
applied for all costs incurred whether charged on a direct or indirect basis.
B. Documentation and Record Keeping
1. Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations
specified in 24 CFR 570.506 that are pertinent to the activities to be funded under
this Agreement. Such records shall include but are not be limited to:
• Records providing a full description of each activity undertaken;
• Records demonstrating that each activity undertaken meets one of the
National Objectives of the CDBG program;
• Records required to determine the eligibility of activities;
• Records required to document the acquisition, improvement, use or
disposition of real property acquired or improved with CDBG assistance;
• Records documenting compliance with the fair housing and equal
opportunity components of the CDBG program;
• Financial records as required by 24 CFR 570.502, and 24 CFR
84.21-28; and
• Other records necessary to document compliance with Subpart K of 24
CFR Part 570.
2. Retention
The Subrecipient shall retain all financial records, supporting documents,
statistical records, and all other records pertinent to the Agreement for a period of
five (5) years. The retention period begins on the date of the submission of the
Grantee's annual performance and evaluation report to HUD in which the
activities assisted under the Agreement are reported on for the final time.
•
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Subrecipient Agreement
Notwithstanding the above, if there are litigation, claims, audits, negotiations or
other actions that involve any of the records cited and that have started before
the expiration of the five year period, then such records must be retained until
completion of the actions and resolution of all issues, or the expiration of the five
year period, whichever occurs later.
3. Client Data
The Subrecipient shall maintain client data demonstrating client eligibility for
services provided. Such data shall include, but not be limited to, client name,
address, income level or other basis for determining eligibility, demographic
information and description of service provided. Such information shall be made
available to Grantee monitors or their designees for review upon request.
4. Disclosure
The Subrecipient understands that client information collected under this contract
is private and the use or disclosure of such information, when not directly
connected with the administration of the Grantee's or Subrecipient's
responsibilities with respect to services provided under this Agreement, is
prohibited unless written consent is obtained from such person receiving service
and, in the case of a minor, that of a responsible parent/guardian.
6. Audits & Inspections
All Subrecipient records with respect to any matters covered by this Agreement
shall be made available to the Grantee, HUD, and the Comptroller General of the
United States or any of their authorized representatives at any time during normal
business hours, as often as deemed necessary, to audit, examine, and make
excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports
must be fully cleared by the Subrecipient within thirty (30) days after receipt by the
Subrecipient. Failure of the Subrecipient to comply with the above audit
requirements will constitute a violation of this Agreement and may result in the
withholding of future payments. The Subrecipient hereby agrees to have an annual
agency audit conducted in accordance with current Grantee policy concerning
subrecipient audits and OMB Circular A-133.
C. Citizen Participation
The Subrecipient will have processes in place (satisfaction surveys, Board
representation, grievance procedures, etc.) which receive, document and utilize the
input from low-income persons potentially benefiting or affected by the program or
project covered under this Agreement.
D. Procurement
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Subrecipient Agreement
1. Compliance
The Subrecipient shall comply with current Grantee policy concerning the
purchase of equipment and shall maintain inventory records of all non-expendable
personal property as defined by such policy as may be procured with funds
provided herein. All program assets (unexpended program income, property,
equipment, etc.) shall revert to the Grantee upon termination of this Agreement.
2. OMB Standards
Unless specified otherwise within this agreement, the Subrecipient shall procure
all materials, property, or services in accordance with the requirements of 24 CFR
84.40-48.
2. Debarment and Suspension
Non-federal entities and contractors are subject to the debarment and suspension
regulations implementing Executive Order 12549, Debarment and Suspension
(1986) and Executive Order 12689, Debarment and Suspension (1989) at 2 C.F,R.
Part 180 and the Department of Homeland Security's regulations at 2 C.F.R. Part
3000 (Non-procurement Debarment and Suspension). These regulations restrict
awards, subawards, and contracts with certain parties that are debarred,
suspended, or otherwise excluded from or ineligible for participation in Federal
assistance programs and activities. See 2 C.F.R. Part 200, Appendix 11, 11 H; and
Procurement Guidance for Recipients and Subrecipients Under 2 C.F.R. Part 200
(Uniform Rules): Supplement to the Public Assistance Procurement Disaster '
Assistance Team (PDAT) Field Manual Chapter IV, if 6.d, and Appendix C, ¶ 2
[hereinafter PDAT Supplement]. A contract award must not be made to parties
listed in the SAM Exclusions. SAM Exclusions is the list maintained by the General
Services Administration that contains the names of parties debarred, suspended,
or otherwise excluded by agencies, as well as parties declared ineligible under
statutory or regulatory authority other than Executive Order 12549. SAM
exclusions can be accessed at www.sam,gov. See 2 C.F.R. § 180.530; PDAT
Supplement, Chapter IV, ¶6.d and Appendix C, ¶ 2,
a. In general, an "excluded" party cannot receive a Federal grant award or a
contract within the meaning of a "covered transaction," to include subawards
and subcontracts. This includes parties that receive Federal funding indirectly,
such as contractors to recipients and subrecipients. The key to the exclusion is
whether there is a "covered transaction," which is any non-procurement
transaction (unless excepted) at either a "primary"or"secondary"tier. Although
"covered transactions" do not include contracts awarded by the Federal
Government for purposes of the non-procurement common rule and DHS's
implementing regulations, it does include some contracts awarded by
recipients and subrecipient.
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Subrecipient Agreement
b. Specifically, a covered transaction includes the following contracts for goods or
services:
a. The contract is awarded by a recipient or subrecipient in the amount of
at least $25,000.
b. The contract requires the approval of FEMA, regardless of amount.
c. The contract is for federally-required audit services.
d. A subcontract is also a covered transaction if it is awarded by the
contractor of a recipient or subrecipient and requires either the approval
of FEMA or is in excess of$25,000.
i. The following provides a debarment and suspension clause. It
incorporates an optional method of verifying that contractors are
not excluded or disqualified: "Suspension and Debarment
1. This contract is a covered transaction for purposes of 2
C.F.R. pt. 180 and 2 C.F.R. pt. 3000. As such the
contractor is required to verify that none of the contractor,
its principals (defined at 2 C.F.R. § 180.995), or its
affiliates (defined at 2 C.F.R. § 180.905) are excluded
(defined at 2 C.F.R. § 180.940) or disqualified (defined at
2 C.F.R. § 180.935).
2. The contractor must comply with 2 C.F.R. pt. 180, subpart
C and 2 C.F.R. pt. 3000, subpart C and must include a
requirement to comply with these regulations in any lower
tier covered transaction it enters into.
3. This certification is a material representation of fact relied
upon by (insert name of subrecipient). If it is later
determined that the contractor did not comply with 2 C.F.R.
pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C, in
addition to remedies available to (name of state agency
serving as recipient and name of subrecipient), the
Federal Government may pursue available remedies,
including but not limited to suspension and/or debarment.
4. The bidder or proposer agrees to comply with the
requirements of 2 C.F.R. pt. 180, subpart C and 2 C.F.R.
pt. 3000, subpart C while this offer is valid and throughout
the period of any contract that may arise from this offer.
The bidder or proposer further agrees to include a
provision requiring such compliance in its lower tier
covered transactions."
E. Travel
The Subrecipient shall obtain written approval from the Grantee for any travel outside the
metropolitan area with funds provided under this Agreement.
F. Use and Reversion of Assets
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Subrecipient Agreement
The use and disposition of real property and equipment under this Agreement shall be in
compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502, 570.503, and
570.504, as applicable, which include but are not limited to the following:
A. The Subrecipient shall transfer to the Grantee any CDBG funds on hand and any
accounts receivable attributable to the use of funds under this Agreement at the
time of expiration. cancellation, or termination.
B. Real property under the Subrecipient's control that was acquired or improved, in
whole or in part, with funds under this Agreement in excess of $25,000 shall be
used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208
until five (5) years after expiration of this Agreement [or such longer period of time
as the Grantee deems appropriate]. If the Subrecipient fails to use CDBG assisted
real property in a manner that meets a CDBG National Objective for the prescribed
period of time, the Subrecipient shall pay the Grantee an amount equal to the
current fair market value of the property less any portion of the value attributable
to expenditures of non-CDBG funds for acquisition of, or improvement to, the
property. Such payment shall constitute program income to the Grantee. The
Subrecipient may retain real property acquired or improved under this Agreement
after the expiration of the five-year period [or such longer period of time as the
Grantee deems appropriate].
• C. In all cases in which equipment acquired, in whole or in part, with funds under this
Agreement is sold, the proceeds shall be program income (prorated to reflect the
extent to that funds received under this Agreement were used to acquire the
equipment). Equipment not needed by the Subrecipient for activities under this
Agreement shall be (1) transferred to the Grantee for the CDBG program or (2)
retained after compensating the Grantee in an amount equal to the current fair
market value of the equipment less the percentage of non-CDBG funds used to
acquire the equipment.
SECTION 4: RELOCATION, REAL PROPERTY ACQUISITION AND ONE-FOR-ONE
HOUSING REPLACEMENT
The Subrecipient agrees to comply with (1) the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970, as amended (URA), and implementing
regulations at 49 CFR Part 24 and 24 CFR 570.606(b); (2) the requirements of 24 CFR
570.606(c) governing the Residential Anti-displacement and Relocation Assistance Plan
under section 104(d) of the HCD Act; and (3) the requirements in 24 CFR 570.606(d)
governing optional relocation policies. The Grantee may, however, preempt the optional
policies. The Subrecipient shall provide relocation assistance to displaced persons as
defined by 24 CFR 570.606(b)(2) that are displaced as a direct result of acquisition,
rehabilitation, demolition or conversion for a CDBG-assisted project. The Subrecipient
also agrees to comply with applicable Grantee ordinances, resolutions and policies
concerning the displacement of persons from their residences.
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Subrecipient Agreement
•
Displacement of persons (including families, individuals, businesses, non-profit
organizations and farms) as a result of activities assisted with CDBG funds is generally
discouraged.
SECTION 5: PERSONNEL & PARTICIPANT CONDITIONS
A. Civil Rights
1. General Compliance
The Subrecipient agrees to comply with Title VI of the Civil Rights Act of 1964 as
amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and
Section 109 of Title I of the Housing and Community Development Act of 1974 as
amended, Section 504 of the Rehabilitation Act of 1973, the Americans with
Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order
11063, and Executive Order 11246 as amended by Executive Orders 11375,
11478, 12107 and 12086.
2. Nondiscrimination
The Subrecipient agrees to comply with the nondiscrimination in employment and
contracting opportunities laws, regulations, and executive orders referenced in 24
CFR 570.607, as revised by Executive Order 13279. The applicable
nondiscrimination provisions in Section 109 of the HCDA are still applicable, which
stipulates that no person in the United States shall on the grounds of race, color,
national origin or sex be excluded from participation in, be denied the benefits of,
or be subjected to discrimination under any program or activity funded in whole or
in part pursuant to agreement.
• Additionally, the Subrecipient shall not, on the grounds of race, color, sex/gender,
sexual orientation, familial status, religion, national origin, creed, ancestry, marital
status, age or disability or handicap:
A. Deny a qualified individual any facilities, financial aid, services or other
benefits provided under this Agreement;
B. Provide any facilities, financial aid, services or other benefits which are
different, or are provided in a different manner, from those provided to
others under this Agreement;
C. Subject an individual to segregated or separate treatment in any facility,
or in any matter if process related to receipt of any service or benefit
under this Agreement;
City of Peartand,Texas Page 19 of 33
Subrecipient Agreement
D. Restrict an individual's access to or enjoyment of any advantage or
privilege enjoyed by others in connection with any service or benefit
under this Agreement;
E. Treat anyone differently from others in determining if they satisfy any
admission, enrollment, eligibility, membership or other requirement or
condition which the individual must meet to be provided a service or a
benefit under this Agreement.
F. Deny anyone an opportunity to participate in any program or activity as
an employee which is different from that afforded others under this
agreement.
If assignment and/or subcontracting has been authorized in writing, said
assignment or subcontract shall include appropriate safeguards against
discrimination in client services binding upon each contractor or subcontractor. The
Subrecipient shall take such actions as may be required to ensure full compliance
with the provisions, including sanction for noncompliance.
3. Land Covenants
This contract is subject to the requirements of Title VI of the Civil Rights Act of
1964 (P. L. 88-352) and 24 CFR 570.601 and 570.602. In regard to the sale, lease,
or other transfer of land acquired, cleared or improved with assistance provided
under this Agreement, the Subrecipient shall cause or require a covenant running
with the land to be inserted in the deed or lease for such transfer, prohibiting
discrimination as herein defined, in the sale, lease or rental, or in the use or
occupancy of such land, or in any improvements erected or to be erected thereon,
providing that the Grantee and the United States are beneficiaries of and entitled
to enforce such covenants. The Subrecipient, in undertaking its obligation to carry
out the program assisted hereunder, agrees to take such measures as are
necessary to enforce such covenant, and will not itself so discriminate.
4. Section 504
The Subrecipient agrees to comply with all Federal regulations issued pursuant to
compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794),
which prohibits discrimination against the individuals with disabilities or handicaps
in any Federally assisted program_ The Grantee shall provide the Subrecipient with
any guidelines necessary for compliance with that portion of the regulations in
force during the term of this Agreement.
5. Architectural Barriers Act/Americans with Disabilities Act
The Subrecipient shall meet the requirements, where applicable, of the
Architectural Barriers Act and the Americans with Disabilities Act, as set forth in 24
City of Peartand,Texas Page 20 of 33
Subrecipient Agreement
CFR 570.614. A building or facility designed, constructed, or altered with funds
allocated or reallocated under CDBG program after December 11, 1995 and that
meets the definition of a "residential structure" as defined in 24 CFR Part 40.2 or
the definition of a "building" as defined in 41 CFR Part 101-19.602(a) is subject to
the requirements of the Architectural Barriers Act of 1968 (42 USC 4151-4157) and
shall comply with the Uniform Federal Accessibility Standards. The Americans with
Disabilities Act ("ADA') (42 USC 12131; 47 USC 155, 210, 218, and 255) requires
that the design and construction of facilities for first occupancy after January 26,
1993 must include measures to make them readily accessible and usable by
individuals with disabilities. The ADA further requires the removal of architectural
barriers and communication barriers that are structural in nature in existing
facilities, where such removal is readily achievable—that is, easily accomplishable
and able to be carried out without much difficulty or expense.
B. Affirmative Action
'I. Approved Plan
The Subrecipient agrees that it shall be committed to carry out pursuant to the
Grantee's specifications an Affirmative Action Program, in keeping with the
principles as provided in President's Executive Order 11246 of September 24,
1966.
2. Women- and Minority-Owned Businesses (W/MBE)
The Subrecipient will use its best efforts to afford small businesses, minority
business enterprises, and women's business enterprises the maximum practicable
opportunity to participate in the performance of this Agreement. As used in this
Agreement, the terms "small business" means a business that meets the criteria
set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632),
and "minority and women's business enterprise" means a business at least fifty-
one (51) percent owned and controlled by minority group members or women. For
the purpose of this definition, "minority group members" are Afro-Americans,
Spanish-speaking, Spanish surnamed or Spanish-heritage Americans, Asian-
Americans, and American Indians. The Subrecipient may rely on written
representations by businesses regarding their status as minority and female
business enterprises in lieu of an independent investigation.
3. Access to Records
The Subrecipient shall furnish and cause each of its own subrecipients or
subcontractors to furnish all information and reports required hereunder and will
permit access to its books, records and accounts by the Grantee, HUD or its agent,
or other authorized Federal officials for purposes of investigation to ascertain
compliance with the rules, regulations and provisions stated herein.
City of Pearland,Texas Page 21 of 33
Subrecipient Agreement
4. Notifications •
The Subrecipient will send to each labor union or representative of workers with
which it has a collective bargaining agreement or other contract or understanding
a notice, to be provided by the agency contracting officer, advising the labor union
or worker's representative of the Subrecipient's commitments hereunder, and shall
post copies of the notice in conspicuous places available to employees and
applicants for employment.
5. Equal Employment Opportunity and Affirmative Action (EEO/AA)
Statement
The regulation at 41 C.F.R. § 60-1.3 defines a "federally assisted construction
contract" as any agreement or modification thereof between any applicant and a
person for construction work which is paid for in whole or in part with funds
obtained from the Government or borrowed on the credit of the Government
pursuant to any Federal program involving a grant, contract, loan, insurance, or
guarantee, or undertaken pursuant to any Federal program involving such grant,
contract, loan, insurance, or guarantee, or any application or modification thereof
approved by the Government for a grant, contract, loan, insurance, or guarantee
under which the applicant itself participates in the construction work.
The Subrecipient will, in all solicitations or advertisements for employees placed
by or on behalf of the Subrecipient, state that it is an Equal Opportunity and
Affirmative Action employer.
The Subrecipient shall comply with Executive Order 11246 as amended by
Executive Order 12086 and the regulations issued pursuant thereto (41 CFR
Chapter 60), and will not discriminate against any employee or applicant for
employment because of race, color, creed, religion, ancestry, national origin, sex,
disability or other handicap, age, marital status, or status with regard to public
assistance. The Subrecipient will take affirmative action to ensure that all
employment practices are free from such discrimination. Such employment
practices include but are not limited to the following: hiring, upgrading, demotion,
transfer, recruitment or recruitment advertising, layoff, termination, rates of pay, or
other forms of compensation and selection for training, including apprenticeship.
The Subrecipient agrees to post in conspicuous places, available to employees
and applicants for employment, notices setting forth the provisions of this
nondiscrimination clause.
6. Subcontract Provisions
The Subrecipient will include the provisions of Section 5. A, Civil Rights, and B,
Affirmative Action, in every subcontract or purchase order, specifically or by
City of Pearland,Texas Page 22 of 33
Subrecipient Agreement
reference, so that such provisions will be binding upon each of its own
subrecipients or subcontractors.
C. Employment Restrictions
1. Prohibited Activity
The Subrecipient is prohibited from using funds provided herein or personnel
employed in the administration of the program for: political activities; inherently
religious activities; lobbying; political patronage; and nepotism activities.
The Byrd Anti-Lobbying Amendment, 31 U.S.C. § 1352 (as amended) is applicable
to any and all Contractors who apply or bid for an award of $100,000 or more.
Such Contractors shall file the required certification. Each tier certifies to the tier
above that it will not and has not used Federal appropriated funds to pay any
person or organization for influencing or attempting to influence an officer or
employee of any agency, a member of Congress, officer or employee of Congress,
or an employee of a member of Congress in connection with obtaining any Federal
contract, grant, or any other award covered by 31 U.S.C. § 1352. Each tier shall
also disclose any lobbying with non-Federal funds that takes place in connection
with obtaining any Federal award. Such disclosures are forwarded from tier to tier
up to the recipient.
2. Labor Standards
The Subrecipient agrees to comply with the requirements of the Secretary of Labor
in accordance with the Davis-Bacon Act as amended, the provisions of Contract
Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other
applicable Federal, state and local laws and regulations pertaining to labor
standards insofar as those acts apply to the performance of this Agreement. The
Subrecipient agrees to comply with the Copeland Anti-Kick Back Act (18 U.S.C.
874 et seq.) and it's implementing regulations of the U.S. Department of Labor at
29 CFR Part 3. The Subrecipient shall maintain documentation that demonstrates
compliance with hour and wage requirements of this part. Such documentation
shall be made available to the Grantee for review upon request.
The Subrecipient agrees that, except with respect to the rehabilitation or
construction of residential property containing less than eight (8) units, all
contractors engaged under contracts in excess of $2,000.00 for construction,
renovation or repair work financed in whole or in part with assistance provided
under this contract, shall comply with Federal requirements adopted by the
Grantee in 2 CFR Part 200, Appendix II, ¶ D, pertaining to such contracts and with
the applicable requirements of the regulations of the Department of Labor, under
29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of
apprentices and trainees to journey workers; provided that, if wage rates higher
than those required under the regulations are imposed by state or local law,
City of Pearland,Texas Page 23 of 33
Subreciprent Agreement
nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to
require payment of the higher wage. The Subrecipient shall cause or require to be
inserted in full, in all such contracts subject to such regulations, provisions meeting
the requirements of this paragraph.
3. Drug-Free Workplace
The Subrecipient will or will continue to provide a drug-free workplace by:
A. Maintaining a Zero Tolerance Drug Policy;
B. Posting in conspicuous places, available to employees and applicants
for employment, a statement notifying employees that the unlawful
manufacture, sale, distribution, dispensation, possession, or use of a
controlled substance or marijuana is prohibited in the Subrecipient's
workplace and specifying the actions that will be taken against
employees for violations of such prohibition;
C. Stating in all solicitations or advertisements for employees or
subcontractors placed by or on behalf of the Subrecipient that the
Subrecipient maintains a drug-free workplace;
D. Establishing an ongoing drug-free awareness program to inform
employees about:
• The dangers of drug abuse in the workplace;
• The Subrecipient's policy of maintaining a drug-free workplace;
■ Any available drug counseling, rehabilitation, and employee
assistance-programs; and
The penalties that may be imposed upon employees for drug
abuse violations occurring in the workplace;
E. Including the provisions of the foregoing clauses in all third party
contracts, subcontracts, and purchase orders that exceed ten thousand
dollars ($10,000.00), so that the provisions will be binding upon each
subcontractor or vendor.
4. "Section 3" Clause
A. Compliance
Compliance with the provisions of Section 3 of the HUD Act of 1968, as
amended, and as implemented by the regulations set forth in 24 CFR 135,
City of Pearland,Texas Page 24 of 33
Subrecipient Agreement
•
and all applicable rules and orders issued thereunder prior to the execution
of this contract, shall be a condition of the Federal financial assistance
provided under this contract and binding upon the Subrecipient and any of
the Subrecipient's subrecipients and subcontractors. Failure to fulfill these
requirements shall subject the Subrecipient and any of the Subrecipient's
subrecipients and subcontractors, their successors and assigns, to those
sanctions specified by the Agreement through which Federal assistance is
provided. The Subrecipient certifies and agrees that no contractual or other
disability exists that would prevent compliance with these requirements.
The Subrecipient further agrees to comply with these "Section 3"
requirements and to include the following language in all subcontracts
executed under this Agreement:
"The work to be performed under this Agreement is a project
assisted under a program providing direct Federal financial
assistance from HUD and is subject to the requirements of
Section 3 of the Housing and Urban Development Act of
1968, as amended (12 U.S.C. 1701). Section 3 requires that
to the greatest extent feasible opportunities for training and
employment be given to low- and very low-income residents
of the project area, and that contracts for work in connection
with the project be awarded to business concerns that
provide economic opportunities for low- and very low-income
persons residing in the metropolitan area in which the project
is located."
The Subrecipient further agrees to ensure that opportunities for training and
employment arising in connection with a housing rehabilitation (including
reduction and abatement of lead-based paint hazards), housing
construction, or other public construction project are given to low- and very
low-income persons residing within the metropolitan area in which the
CDBG-funded project is located; where feasible, priority should be given to
low- and very low-income persons within the service area of the project or
the neighborhood in which the project is located, and to low- and very low-
income participants in other HUD programs. The Subrecipient further
agrees to award contracts for work undertaken in connection with a housing
rehabilitation (including reduction and abatement of lead-based paint
hazards), housing construction, or other public construction project to
business concerns that provide economic opportunities for low- and very
low-income persons residing within the metropolitan area in which the
CDBG-funded project is located; where feasible, priority should be given to
business concerns that provide economic opportunities to low- and very
low-income residents within the service area or the neighborhood in which
the project is located, and to low- and very low-income participants in other
HUD programs,
City of Pearland,Texas Page 25 of 33
Subrecipient Agreement
The Subrecipient certifies and agrees that no contractual or other legal
incapacity exists that would prevent compliance with these requirements.
B. Notifications
The Subrecipient agrees to send to each labor organization or
representative of workers with which it has a collective bargaining
agreement or other contract or understanding, if any, a notice advising said
labor organization or worker's representative of its commitments under this
Section 3 clause and shall post copies of the notice in conspicuous places
available to employees and applicants for employment or training.
C. Subcontracts
The Subrecipient will include this Section 3 clause in every subcontract and
will take appropriate action pursuant to the subcontract upon a finding that
the subcontractor is in violation of regulations issued by the grantor agency.
The Subrecipient will not subcontract with any entity where it has notice or
knowledge that the latter has been found in violation of regulations under
24 CFR Part 135 and will not let any subcontract unless the entity has first
provided it with a preliminary statement of ability to comply with the
requirements of these regulations.
B. Conduct
1. Assignability
The Subrecipient shall not assign or transfer any interest in this Agreement without
the prior written consent of the Grantee; provided, however, that claims for money
due or to become due to the Subrecipient from the Grantee under this contract
may be assigned to a bank, trust company, or other financial institution without
such approval. Notice of any such assignment or transfer shall he furnished
promptly to the Grantee. All terms and conditions of this Agreement shall apply to
any approved subcontract or assignment related to the Agreement,
2. Subcontracts
A. Approvals
The Subrecipient shall not enter into any subcontracts with any agency or
individual in the performance of this Agreement without the written consent
of the Grantee prior to the execution of such agreement.
B. Monitoring
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Subrecipient Agreement
The Subrecipient will monitor all subcontracted services on a regular basis
to assure contract compliance. Results of monitoring efforts shall be
summarized in written reports and supported with documented evidence of
follow-up actions taken to correct areas of noncompliance.
C. Content
The Subrecipient shall cause all of the provisions of this Agreement in its
entirety to be included in and made a part of any subcontract executed in
the performance of this Agreement.
D. Selection Process
The Subrecipient shall undertake to insure that all subcontracts let in the
performance of this Agreement shall be awarded on a fair and open
competition basis in accordance with applicable procurement requirements.
Executed copies of all subcontracts shall be forwarded to the Grantee along
with documentation concerning the selection process.
3. Hatch Act
The Subrecipient agrees that no funds provided, nor personnel employed under
this Agreement, shall be in any way or to any extent engaged in the conduct of
political activities in violation of Chapter 15 of Title V of the U.S.C.
4. [Reserved]
5. Conflict of Interest
The Subrecipient agrees to abide by the provisions of 24 CFR 84.42 and 570.611,
which include, but are not limited to the following:
A. The Subrecipient shall maintain a written code or standards of conduct
that shall govern the performance of its officers, employees or agents
engaged in the award and administration of contracts supported by
Federal funds.
B. No employee, officer or agent of the Subrecipient shall participate in the
selection, the award or the administration of a contract supported by
Federal funds if a conflict of interest, real or apparent, would be involved,
C. No covered persons who exercise or have exercised any functions or
responsibilities with respect to CDBG-assisted activities, or who are in a
position to participate in a decision-making process or gain inside
information with regard to such activities, may obtain a financial interest
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Subrecipient Agreement
in any contract, or have a financial interest in any contract, subcontract,
or agreement with respect to the CDBG-assisted activity, or with respect
to the proceeds from the CDBG-assisted activity, either for themselves
or those with whom they have business or immediate family ties, during
•
their tenure or for a period of one (1) year thereafter. For purposes of
this paragraph, a "covered person" includes any person who is an
employee, agent, consultant, officer, or elected or appointed official of
the Grantee, the Subrecipient, or any designated public agency.
6. Lobbying
The Subrecipient hereby certifies that:
A. No Federal appropriated funds have been paid or will be paid, by or on
behalf of it, to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any
cooperative agreement, and the extension, continuation, renewal,
amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement;
B. If any funds other than Federal appropriated funds have been paid or
will be paid to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant, loan, or cooperative
agreement, it will complete and submit Standard Form-LLL, "Disclosure
Form to Report Lobbying," in accordance with its instructions; and
C. It will require that the language of paragraph (d) of this certification be
included in the award documents for all subawards at ail tiers (including
subcontracts, subgrants, and contracts under grants, loans, and
cooperative agreements) and that all Subrecipients shall certify and
disclose accordingly:
D. Lobbying Certification
This certification is a material representation of fact upon which reliance
was placed when this transaction was made or entered into. Submission
of this certification is a prerequisite for making or entering into this
transaction imposed by section 1352, title 31 , U,S,C. Any person who
fails to file the required certification shall be subject to a civil penalty of
not less than $10,000 and not more than $100,000 for each such failure.
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7. Grantee Recognition
The Subrecipient shall ensure recognition of the role of the City in providing
services through this Agreement. All activities, facilities and items utilized pursuant
to this Agreement shall be prominently labeled as to the funding source. In
addition, the Subrecipient will include a reference to the support provided herein in
all publications made possible with funds made available under this Agreement.
8. Copyright
If this Agreement results in any copyrightable material or inventions, the Grantee
reserves the right to a royalty-free, non-exclusive and irrevocable license to
reproduce, publish or otherwise use, and to authorize others to use, the work or
materials for governmental purposes.
9. Religious Activities
The Subrecipient agrees that funds provided under this Agreement will not be
utilized for inherently religious activities prohibited by 24 CFR 570.200(j), such as
worship, religious instruction, or proseiytization.
In addition to, and not in substitution for, other provisions of this Agreement
regarding the provisions of services utilizing CDBG funds the Subrecipient agrees
that, in connection with such services:
A. It will not discriminate against any employee or applicant for employment
on the basis of religion and will not limit employment or give preference in
employment to persons on the basis of religion;
13. It will not discriminate against any person applying for such public services
on the basis of religion and will not limit such services or give preference to
persons on the basis of religion;
C. It will provide no mandatory religious instruction or counseling, conduct no
religious worship or services, engage in no religious proselytizing, and exert
no other religious influence in the provision of such services.
10.Other Program Requirements
The Subrecipient shall carry out each activity in compliance with all Federal laws
and regulations described in 24 CFR 570 Subpart K, regardless if the law is
specifically stated in this Agreement, except that:
A. The Subrecipient does not assume the City's environmental
responsibilities described in Section 570.604; and
City of Pearland,Texas Page 29 of 33
Subrecipient Agreement
B. The Subrecipient does not assume the City's responsibility for initiating the
review process under Executive Order 12372.
SECTION 6: ENVIRONMENTAL.
CDBG regulations require the preparation of a project Environmental Review Record
(ERR) and environmental clearance before funds are expended or costs incurred. The
overall governing legislation is the National Environmental Policy Act (NEPA).
City staff will complete the ERR. The time required for completion of the ERR can vary
from a week to a few months. If the initial Environmental Assessment determines that an
Environmental Impact Statement(EIS) or a Biological Assessment (BA) is necessary, the
Subrecipient will be required to make appropriate budget modifications to assure the
costs of the EIS or BA are paid for from project funds. After completing the ERR, the City
may publish a notice of a Finding of No Significant Environmental Impact (FONSI) in a
local newspaper declaring the intent to request release of project funds from HUD. After
the release of the funds by HUD, the City will send the Subrecipient a written notice to
begin the project. Subrecipients shall not implement any project activities or incur any
project costs until receipt of the notice to proceed.
The City must also determine whether the project meets other applicable statutory and
regulatory requirements which include by are not limited to the following:
A. Air and Water
The Subrecipient agrees to comply with the following requirements insofar as they
apply to the performance of this Agreement:
• Clean Air Act, 42 U.S.C. , 7401 , et seq. and 2 C.F.R. Part 200, Appendix
II, 11G,
• Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et
seq., as amended, 1318 relating to inspection, monitoring, entry, reports,
and information, as well as other requirements specified in said Section
114 and Section 308, and all regulations and guidelines issued
thereunder;
■ Environmental Protection Agency (EPA) regulations pursuant to 40 CFR
Part 50, as amended.
B. Flood Disaster Protection
In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4001), the Subrecipient shall assure that for activities located in an area
identified by the Federal Emergency Management Agency (FEMA) as having special
flood hazards, flood' insurance under the National Flood Insurance Program is
City of Pearland,Texas Page 30 of 33
Subrecipient Agreement
obtained and maintained as a condition of financial assistance for acquisition or
construction purposes (including rehabilitation),
C. Lead-Based Paint
The Subrecipient agrees that any construction or rehabilitation of residential structures
with assistance provided under this Agreement shall be subject to HUD Lead-Based
Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, Subpart B. Such
regulations pertain to all CDBG-assisted housing and require that all owners,
prospective owners, and tenants of properties constructed prior to 1978 be properly
notified that such properties may include lead-based paint. Such notification shall point
out the hazards of lead-based paint and explain the symptoms, treatment and
precautions that should be taken when dealing with lead-based paint poisoning and
the advisability and availability of blood lead level screening for children under seven.
The notice should also point out that if lead-based paint is found on the property,
abatement measures may be undertaken. The regulations further require that,
depending on the amount of Federal funds applied to a property, paint testing, risk
assessment, treatment and/or abatement may be conducted.
D. Historic Preservation
The Subrecipient agrees to comply with the Historic Preservation requirements set
forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470)
and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic
Preservation Procedures for Protection of Historic Properties, insofar as they apply to
the performance of this Agreement. In general, this requires concurrence from the .
State's designated office for dealing with Historic Preservation, for all rehabilitation
and demolition of historic properties that are fifty years old or older or that are included
on a Federal, state, or local historic property list.
SECTION 7: HANDBOOK RECEIPT CERTIFICATION
The Subrecipient certifies that it has received the HUD published "Paying by the Rules-
A Handbook for CDBG Subrecipients on Administrative Systems"in either print or
electronic format from the Grantee. The Subrecipient further certifies and agrees that it
is the Subrecipient's obligation as a part of this Agreement to read and understand the
Handbook.
SECTION 8: SEVERABILITY
It is understood and agreed by the parties that if any part, term, or provision of this
Agreement is held by the courts to be invalid, illegal or in conflict with any law, the
remainder of the Agreement shall not be affected thereby and all other parts of this
Agreement shall nevertheless be in full force and effect.
SECTION 9: SECTION HEADINGS AND SUBHEADINGS
City of Peariand,Texas Page 31 of 33
Subrecipient Agreement
The section headings and subheadings contained in this Agreement are included for
convenience only and shall not limit or otherwise affect the terms of this Agreement.
SECTION 10: WAIVER
The Grantee's failure to act with respect to a breach by the Subrecipient does not waive
its right to act with respect to subsequent or similar breaches. The failure of the Grantee
to exercise or enforce any right or provision shall not constitute a waiver of such right or
provision.
SECTION 11: SUCCESSORS
This Agreement shall be binding upon each of the parties, their assigns, purchasers,
trustees, and successors.
SECTION 12: ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the Grantee and the
Subrecipient for the use of funds received under this Agreement and it supersedes all
prior or contemporaneous communications and proposals, whether electronic, oral, or
written between the Grantee and the Subrecipient with respect to this Agreement.
SECTION 13: NO THIRD-PARTY BENEFICIARIES
Except as expressly provided otherwise, this Agreement is intended to be solely for the
benefit of the parties and shall not otherwise be deemed to confer upon or give to any other
person or third party any remedy, claim, cause or action or other right.
SECTION 14: GOVERNING LAW AND JURISDICTION
This Agreement shall be construed in accordance with the laws of the State of Texas. In
the event of any dispute over the Agreement's terms and conditions, the exclusive venue
and jurisdiction for any litigation arising thereunder shall be in the District Court of Brazoria
County, and, if necessary for exclusive federal questions, the United States District Court
for the District of Texas.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date of
the most recent signatory.
•
City of Pearland,Texas Page 32 of 33
Subrecipient Agreement
Grantee:
City of Pearland, Texas
DateL. q
By � r _
dry City ? anager
Att st:
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\ .
APPROVED AS TO FORM AND LEGAL SUFFICIENCY:
Federal I. D. #
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CITY ATTORNEY
Subrecipient:
Forgotten Angels Foundation
Date Cr '3177
By .,,22/(-4-c-,-4‘..... A
Title
Federal I. D. # t(5 4 b )J U
By
Title
City of Pearland,Texas Page 33 of 33
Subreciptent Agreement