R-2012-119-2012-08-13RESOLUTION NO. R2012-119
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, APPROVING A 5 YEAR CONSOLIDATED PLAN, INCLUDING A
SIXTH ANNUAL ACTION PLAN, ASSOCIATED WITH THE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain 5 Year Consolidated Plan, including an Annual Action
Plan, associated with the Community Development Block Grant Program, attached hereto
as Exhibits "A" and "B," respectively, are hereby authorized and approved.
PASSED, APPROVED and ADOPTED this the 13th day of August, A.D., 2012.
ATTEST:
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41SE l' ETARY
APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
44EpRLq;.,
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Honorable Tom Reid
Mayor of Pearland
3519 Liberty Drive
Pearland, Texas 77581
Dear Mayor Reid:
U.S. Department of Housing and Urban Development
Houston Field Office, Region VI
Office of Community Planning & Development
1301 Fannin, Suite 2200
Houston, Texas 77002
(713) 718-3199 - FAX (713) 718-3247
www.hud.gov
SUBJECT: Fiscal Year (FY) 2012 Funding Approval
The review of the FY 2012 Action Plan has been completed and determined to be in
compliance with the Consolidated Plan regulations at 24 CFR 91.220 and I am pleased to
transmit the approval package. We believe that by following the strategies contained in the City
of Pearland's Consolidated Plan and Annual Action Plan, the ability to enhance and shape HUD
formula grant programs into effective, coordinated community and economic development plans
of action for community revitalization can be realized.
The U. S. Department of Housing and Urban Development (HUD) is pleased to announce
an award of funds to Pearland, Texas totaling $284,818 for the program year that begins on
October 1, 2012. As a result, the following dollar amount is now available to the city for this
Community Planning and Development (CPD) administered program:
Community Development Block Grant (CDBG) $284,818
Enclosed are three copies of the FY 2012 Funding Grant Agreement that incorporate the
CDBG Entitlement Agreement and the Funding Approval for the CDBG (HUD 7082). This
constitutes the contract between HUD and the City of Pearland. You should note any special
conditions included in the Funding Approvals (Item 8 for the CDBG program).
Please sign the enclosed set of Grant Agreements, each with an original signature, in
accordance with the instructions. Retain one copy for your records and return the other two
copies to our office. Failure to execute and return the grant agreement within 60 days of the date
of this letter may be deemed to constitute rejection of the grants and cause for HUD to determine
that the funds are available for reallocation to other grantees. Once HUD receives the executed
grant agreements, you may proceed to have the proposed FY 2012 projects created in IDIS.
We also bring to your attention that the Consolidated Annual Performance and
Evaluation Report (CAPER) is due in this office no later than 90 days following the end of the
2011 program year. Therefore, your submission of the CAPER is to be in our office on or before
December 29, 2012. At the same time as the CAPER is due, the City needs to send its Section 3
Summary Reports (Form HUD -60002) to Washington, D.C. Some helpful information is
contained at www.hud.aov/section3. Additional guidance can be located at:
http://www.hud.Qov/offices/theo/section3/Sec3-Reporting-Guidance-cud-final.pdf. The
preferred method of submission is electronically; however, a hard copy may be submitted to the
following address: U.S. Department of Housing and Urban Development ATTN: Economic
Opportunity Division 451 Seventh Street, SW, Room 5235 Washington, D.C. 20410.
HUD congratulates the City of Pearland on the grant award and we are looking forward
to assisting you in accomplishing your program's identified goals designed to primarily benefit
low and moderate -income persons. If you have any questions or desire assistance regarding this
grant notification letter, the enclosures or other items related to HUD's programs, please contact
Mary Elo, Community Planning and Development Representative, at (713) 718-3124.
Sincerely,
Sandra H. Warren
Director, Community Planning and
Development
Enclosures
FY 2012 GRANT AGREEMENT
This Grant Agreement is made by and between the United States Department of Housing
and Urban Development (HUD) and the City of Pearland, Texas, Grantee. The Grantee's Tax
Identification Number is 74-6028909.
Community Development Block Grant (CDBG) Proeram
Grant Number: B -12 -MC -48-0400
DUNS# 020796397
The terms of the CDBG award in the amount of $284,818 which are the subject of this
part of this Agreement are set forth in the attached executed HUD Form 7082, Funding
Approval/Agreement.
The special condition in your Grant Agreement and Funding Approval concerning the
review procedures under Executive Order (EO) 12372, Intergovernmental Review of Federal
Programs, and HUD's implementing regulations at 24 CFR Part 52 restricts the obligation or
expenditure of funds for the planning or construction of water or sewer facilities until the
completion of the review process and receipt of written notification of release of funds for such
activities from HUD. The condition requires that in the event you amend or otherwise revise
your Consolidated and/or Action Plan to use funds for the planning or construction of water or
sewer facilities, you must receive written release of funds from HUD before obligating or
expending funds for such activities.
In order to establish a Line of Credit for the Fiscal Year 2012 grant, it will be necessary
for you to execute and return two copies of the Grant Agreement. In addition, if there is a need
to delete or add individuals authorized to access the Voice Response System (VRS), a VRS
Security Access Authorization Form (HUD -27054) must be prepared, notarized, and returned to
this office with the Grant Agreement. Also, if there is a need to establish or change the
depository account to which these grant funds are to be wired, a Direct Deposit Sign -Up Form
(SF -1199A) must be completed by you and your financial institution and mailed to this office.
You are reminded that CDBG entitlement funds must be drawn on a first in first out
(FIFO) basis. This means that before requesting CDBG entitlement funds from a newly
established Line of Credit, you should have first drawn all the funds from the previous years'
Line(s) of Credit. Please note that the FIFO method only applies to CDBG entitlement program
funds.
You are reminded that certain activities are subject to the provisions of 24 CFR Part 58
(Environmental Review Procedures). Funds for such activities may not be obligated or expended
until the environmental process has been completed, a Request for Release of Funds and
Certification (form HUD 7015.15) submitted and HUD has provided written authorization.
Appropriate forms are available from www.hudclips.ora. The environmental regulations and
HUD guidance should be reviewed to ensure that a Request for Release of Funds is submitted
only for applicable projects.
The Grantee shall comply with requirements established by the Office of Management
and Budget (OMB) concerning the Dun and Bradstreet Data Universal Numbering System
(DUNS), the Central Contractor Registration (CCR) database, and the Federal Funding
Accountability and Transparency Act, as set forth in Appendix A to Part 25—Award Term,
Financial Assistance Use of Universal Identifier and Central Contractor Registration, 75 Fed.
Reg. 55671 (Sept. 14, 2010) (to be codified at 2 CFR part 25), and Appendix A to Part 170—
Award Term, Requirements for Federal Funding Accountability and Transparency Act
Implementation, 75 Fed. Reg. 55663 (Sept. 14, 2010) (to be codified at 2 CFR part 170).
The following parties execute this Grant Agreement on the dates set forth below as follows:
UNITED STATES OF AMERICA
Department of Housing and Urban Development
The Secretary
By:
�� W4)�t •4 q'oD2
Signature and Date
Sandra H. Warren
Typed Name of Signatory
Director of Community Planning and Development
Title
GRANTEE
City of Pearland
By:
Signature and Date
Tom Reid
Typed Name of Signatory
/t23 20/ -
Mayor - City of Pearland
Title
SPECIAL CONDITIONS
Notwithstanding any other provisions of this agreement, no funds
provided under this agreement may be obligated or expended for
the planning or construction of water or sewer facilities until
receipt of written notification from HUD of the release of funds on
completion of the review procedures required under Executive
Order (EO) 12372, Intergovernmental Review of Federal
Programs, and HUD's implementing regulations at 24 CFR Part
52. The recipient shall also complete the review procedures
required under E012372 and 24 CFR Part 52 and receive written
notification from HUD of the release of funds before obligating or
expending any funds provided under this agreement for any new
or revised activity for the planning or construction of water or
sewer facilities not previously reviewed under EO 12372 and
implementing regulations.
Funding Approval/Agreement
Title 1 of the Housing and Community
Development Act (Public Law 930383)
Hl -00515R of 20515R
1. Name of Grantee (as shown in item 5 of Standard Form 424)
City of Pearland
2. Grantee's Complete Address (as shown in item 5 of Standard Form 424)
3519 Liberty
Pearland, TX 77581
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Community Development Block Grant Program
3a. Grantee's 9 -digit Tax 3b. Grantee's DUNS Number:
ID Number: 020796397
74-6028909
5a. Project/Grant No. 1
B -12 -MC -48-0400
5b. Project/Grant No. 2
5c. Project/Grant No. 3
4. Date use of funds may
begin (mm/dd/yyyy):
10/1/2012
6a. Amount Approved
$284,818
6b. Amount Approved
Amount Approved
Grant Agreement: This Grant Agreement between the Department of Housing and Urban Development (HUD) and the above named Grantee is made pursuant to the
authority of Title 1 of the Housing and Community Development Act of 1974, as amended, (42 USC 5301 et seq.). The Grantee's submissions for Title 1 assistance, the
HUD regulations at 24 CFR Part 570 (as now in effect and as may be amended from time to time), and this Funding Approval, including any special
conditions/addendums, constitute part of the Agreement. Subject to the provisions of this Grant Agreement, HUD will make the funding assistance specified here
available to the Grantee upon execution of the Agreement by the parties. The funding assistance specified in the Funding Approval may be used to pay costs incurred
after the date specified in item 4 above provided the activities to which such costs are related are carried out in compliance with all applicable requirements. Pre -
agreement costs may not be paid with funding assistance specified here unless they are authorized in HUD regulations or approved by waiver and listed in the special
conditions to the Funding Approval. The Grantee agrees to assume all of the responsibilities for environmental review. decision making, and actions, as specified and
required in regulations issued by the Secretary pursuant to Section 104(g) of Title 1 and published in 24 CFR Part 58. The Grantee further acknowledges its
responsibility for adherence to the Agreement by sub -recipient entities to which it makes funding assistance hereunder available.
U.S. Department of Housing and Urban Development (By Name) Grantee Name
Sandra H. Warren City of Pearland
Title Title
Director Community Planning and Development Ma
Signal / Date (mm/dd/ ) Signature
7. Category of Title I Assistance for this Funding Action
(check only one)
® a. Entitlement, Sec 106(b)
❑ b. State -Administered, Sec 106(d)(1)
❑ c. HUD -Administered Small Cities, Sec 106(d)(2)(B)
❑ d. Indian CDBG Programs, Sec 106(a)(1)
❑ e. Surplus Urban Renewal Funds, Sec 112(b)
❑ f. Special Purpose Grants, Sec 107
❑ g. Loan Guarantee, Sec 108
12a. Amount of Loan Guarantee Commitment now being Approvec
(check one)
❑ None
® Attached
11. Amount of Community Development
Block Grant
a. Funds Reserved for this Grantee
b. Funds now being Approved
c. Reservation to be Cancelled
(11a mi rus 11b)
12b. Name and complete Address of Public Agency
Loan Guarantee Acceptance Provisions for Designated Agencies:
The public agency hereby accepts the Grant Agreement executed by the
Department of Housing and Urban Development on the above date with
respect to the above grant number(s) as Grantee designated to receive
loan guarantee assistance, and agrees to comply with the terms and
conditions of the Agreement, applicable regulations, and other
requirements of HUD now or hereafter in effect, pertaining to the
assistance provided it.
HUD Accounting use Only
Batch
11
11
TAC
53
76
Program Y A Reg Area Document No.
Date Entered PAS (mm/dd/yyyy)
Y
Y
&Ye?
9a. Date HUD Received Submission
08/15/12
9b. Date Grantee Notified
9/28/12
9c. Date of Start of Program Year
10/01/12
FY (2012) I FY (
$284,818
$284,818
12c. Name of Authorized Official for Designated Public Agency
Title
Signature
Project Number Category
1111 1
Project Number
1 1 1 1 1 1
Proiect Number
1111 I 1
Transaction Code I Entered By
24 CFR 570
Date Entered LOCCS (mm/dd/yyyy) ( Batch Number
Amount
Amount
Amount
Date (mm/dd/yyyy)
10. check one
a. Orig. Funding
Approval
❑ b. Amendment
Amendment Number 1
FY ( )
Effective Date
(mm/dd/yyyy)
Verified By
F
form HUD -7082 (4/93)
AGENDA REQUEST
BUSINESS OF THE CITY COUNCIL
CITY OF PEARLAND, TEXAS
AGENDA OF: August 13, 2012 ITEM NO.: Resolution No. R2012-119
DATE SUBMITTED: August 3, 2012 DEPT. OF ORIGIN: Finance
PREPARED BY: Joel Hardy PRESENTOR: Bill Eisen
REVIEWED BY: Bill Eisen REVIEW DATE:
8/6/12
SUBJECT: CDBG Plan Year 2012-2017 5 -Year Consolidated Plan and Annual
Action Plan — Projects and Future Allocation Year Priorities
EXHIBITS: R2012-119
Exhibit A — PY 2012-2017 5 -Year Consolidated Plan — City of Pearland
Exhibit B — PY 2012 Annual Action Plan (AAP)
(hard copies of Exhibits distributed with packet)
FUNDING:
®Grant ❑Developer/Other ['Cash
❑Bonds To Be Sold ❑Bonds- Sold OUP — Sold OUP — To Be Sold
EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: $284,818
AMOUNT AVAILABLE: $284,818 PROJECT NO.:
ACCOUNT NO.: Fund 110
ADDITIONAL APPROPRIATION REQUIRED: N/A
ACCOUNT NO.:
PROJECT NO.:
To be completed by Department:
X Finance X Legal Ordinance X Resolution
EXECUTIVE SUMMARY
BACKGROUND
In 2007, the City became a CDBG entitlement City. At that time, the City prepared its
first Five -Year Consolidated Plan. It is time to update and submit another Five -Year
Consolidated Plan. For HUD Plan Year 2012, City Fiscal Year 2013, the City has been
allocated $284,818 from U.S. Department of Housing & Urban Development —
Community Planning and Development (CPD) for the Community Development Block
Grant program for FY 2012-2013; CPD Program Year 2012. This is $7,716 higher than
last year's award of $277,102, despite CDBG overall funding that was reduced by more
than $600 million in FY11. Pearland's FY2013 increase could possibly be due to an
anomaly or correction within the formula calculation used to determine annual
allocations. This increase may not be a sign of future trends and staff will monitor the
funding as it relates to future changes. Staff is presenting to Council two important
documents put together by the City and used by HUD to allocate our upcoming CDBG
funds: (1), the City's 2nd 5 -Year Consolidated Plan; and (2), the City's 6tn Annual Action
Plan (AAP). The attachments required for inclusion with each plan will be included in the
packets to be submitted to HUD and are consistent with those sent in prior plan years.
5 -YEAR CONSOLIDATED PLAN
The City's 2nd 5 -year Consolidated Plan for its HUD CDBG program consists of many of
the same elements traditionally included in the Annual Action Plans Pearland has
submitted to HUD in past years. The major difference is that the Con -Plan must include:
• an overview of Pearland demographics;
• an analysis of the housing market and housing needs;
• barriers and impediments to affordable and fair housing;
• neighborhood infrastructure & facility needs; and
• social service and special population needs (elderly, disabled, etc...)
The CDBG consultant Peg Purser was contracted to work with the City to meet the
requirement of completing and submitting this document to Council for approval and
then to the local HUD field office for their review and approval. Public hearings have
been held on March 14th and July 25th to allow local organizations to apply for funding
and to update citizens on the progress of the allocation plan and the City's 5 -year
priorities. A brief was held on April 13th to allow citizens to become familiar with the
CDBG survey and the Con -Plan process. A public comment period to allow residents to
provide input to the City began on July 9th and ended on August 10th. Comments not
included in attachments will be inserted into the plans before submission to HUD.
These priorities were identified by disseminating an electronic, online survey to solicit
input from local stakeholders and citizens. This year's survey was promoted heavily by
the City's Public Affairs Manager and the result was significantly improved response
and involvement from citizens over prior years. A total of 143 responses were gathered.
Elected officials, advocacy groups, non -profits, HOAs, realtors, developers and other
members of the residential population participated in the survey.
The available types of projects are restricted to those included in the CDBG regulatory
code and all are designed to allow Entitlement Jurisdictions to benefit low -moderate
income residents, reduce or eliminate slum or blight, or to meet an urgent need such as
rehabilitation or recovery following a natural disaster. The local survey that was
distributed in the month of April has allowed staff to categorize eligible projects and
activities into high, medium and low priorities. Legal services, tenant/landlord
counseling, and lead-based paint screening made up the three low priorities and should
not be considered in future year annual allocation plans.
The following table of high and medium priorities came from this year's survey:
I 03A Senior Centers 570.201(c)
1 03F Parks, Recreational Facilities 570.201(c)
1 031 Flood Drainage Improvements 570,201(c)
1 03K Street Improvements 570.201(c)
031 Sidewalks 570.201(c)
19C CDBG Non-profit Organization Capacity Building
21A General CDBG Administration
121 0 Fair Housing Activities
105A Senior Services 570.201(e)
05B Handicapped Services 570.201(e)
050 Youth Services 570.201(e)
05E Transportation Services 570.201(e)
1050 Battered and Abused Spouses 570.20119.)
1 05H Employment Training 570.201(e)
05N Abused and Neglected Children 570.201(e)
05Q Subsistence Payments 570.204
-
14A Minor Rehabilitation of Owner -Occupied Housing (elderly) 570.202
13 Direct Home Ownership Assistance 570.201(h)
31 J Facility -based housing for the elderly
05 Public Services (General) 570.201(e)
05F Substance Abuse Services 570.201(e)
05G Battered Spouses 570.201(i)
051 Crime Awareness 570.201(e)
05J Fair Housing Activities (if CDBG, then subject to 570.201(e)
05L Child Care Services 570.201(e)
05M Health Services 570.201(e)
050 Mental Health Services 570.201(e)
05R Homeownership Assistance (not direct) 570.204
05S Rental Housing Subsidies (if HOME, not part of 5% 570.204
05T Security Deposits (if HOME, not part of 5% Administration)
03 Public Facilities and Improvements (General) 570.201(c)
03B Handicapped Centers 570.201(c)
03D Youth Centers 570.201(c)
03E Neighborhood Facilities 570.201(c)
03J Water/Sewer Improvements 570.201(c)
03M Child Care Centers 570.201(c)
030 Fire Stations/Equipment 570.201(c)
04 Clearance and Demolition 570.201(d)
06 Interim Assistance 570.201(f)
10 Removal of Architectural Barriers 570.201(k)
12 Construction of Housing 570.201(m)
13 Direct Homeownership Assistance 570.201(n)
14A Rehab; Single -Unit Residential 570.202
141 Lead-Based/Lead Hazard Test/Abatement 570.202
15 Code Enforcement 570.202(c)
17B CI Infrastructure Development 570.203(a)
19D CDBG Assistance to Institutes of Higher Education
HUD PROGRAM YEAR 2012 (FY'13) ACTION PLAN — CITY OF PEARLAND
The Annual Action Plan is a detailed outline of how Pearland intends to meet the 5 -year
priorities established in its Con -Plan during the coming year and includes:
• funding amounts to be expended by each project and activity;
• the number of individuals and/or households to be served by projects and
activities; and
• the status of prior projects and fair housing activities to be undertaken.
Projects that serve particular areas of Pearland should be located within Census
boundaries (blocks, block groups, and/or split block groups) that contain 45.61 percent
low -moderate income households. Individuals and/or households benefiting from such
funding must fall within the allowable income limits, unless homeless, for the number of
household members in their residence, based on Metropolitan Statistical Area income
limits for Brazoria County.
HUD restricts the use of these funds, allowing up to 15% of the total for social services
programs and no more than 20% for planning and administration, leaving the remainder
for infrastructure, public facilities, code enforcement and/or housing. For FY 2012-2013,
the Social Services programs are capped at $42,723, Administration at $56,964, with
the remaining $185,131 available for Public Facilities and Infrastructure. Public facilities
and infrastructure projects must be located within the low to moderate income
geographical areas. There is no cap on infrastructure spending should a jurisdiction
choose to spend less funding on administration and public services that the caps allow.
On June 11th, Council approved the projects and activities submitted for inclusion
in this coming year's Annual Action Plan and the City will use these to meet HUD
National Objectives during the 2012 HUD Program Year which begins October 1,
2012. Council approved the following activities to be included in the Action Plan:
• Adult Reading Center — $20,040 for Literacy/GED/Workforce Development;
• Pearland Neighborhood Center — $15,000 in funds for emergency subsistence
payments for rental and utility assistance; and
• Pearland Parks & Recreation Department - $7,552 for its Adaptive Recreation
Program that allows physically -disabled youth and adults opportunities to
participate in various recreation modalities that maintain/improve physical fitness.
Funding these three programs results in use of $42,592 and represents most of the
$42,723 public services cap. Forgotten Angels Council -approved request for $40,000 to
expand its Day Flab Center by 1,000 square feet is also included in the Action Plan for
the upcoming program year, but is not subject to the public services cap due to it being a
construction project. Add the $56,964 allowable portion of HUD funding being used for
planning and program administration to the proposed expenditures for Forgotten Angels
and public services activities, leaves $145,262 remaining that can be used towards plans
to improve areas of Pearland's Old Townsite with sidewalk and drainage. Council
approved projects and costs for these North Houston and East Orange improvements
are equivalent the remaining available CDBG allocation.
SCOPE OF CONTRACT/AGREEMENT
The CDBG contract between the City and HUD will be for one year beginning October
1, 2012 and ending September 30, 2013 and will only restrict the use of program
administration and public services funds for that period of performance.
Infrastructure/improvement monies may be carried over and used in following years as
projects may take longer to complete. The 5 -year Con -Plan sets the parameters for
projects for approval by the City and HUD through Program Year 2017 (COP FY '18).
These funds are to be used for community development activities that benefit low -
moderate income households and individuals.
BID AND AWARD
The award/allocation from HUD will be $284,818 and will be issued to the City upon the
successful completion of its Annual Action Plan and this year's presentation of the
Consolidated 5 -year Plan, which will contain the priorities and anticipated generalities of
our CDBG efforts over the next several years. This plan will include overall objectives
for administrative, public services and infrastructure activities, including our efforts to
continue affirmatively furthering fair housing. Recent communications from HUD
indicate that plans are due to HUD on August 16, 2012 and are on the proper course for
completion. However, the City notes that the regulatory requirements for this year place
the due date on August 15th and will utilize this date and the deadline for submission to
HUD. Staff is prepared to quickly package these submissions and have them delivered
to the Houston HUD Field Office upon Council action. Future year funding allocation
amounts will be announced by HUD during the 2nd quarter of each fiscal year.
POLICY/GOAL CONSIDERATION
Policy/Goal considerations at the local and federal funding levels are met by completing
these projects. At the local level, general improvements in connectivity dramatically
improve quality of life for Pearland residents and visitors. Using eligible federal dollars
has mitigated the impact on local taxpayer dollars. HUD's National Objectives are met,
in that these sections of sidewalk propose to improve accessibility for low -moderate
income residents of Pearland, as they all are located in their respective program year
target area sections of town. Public services activities also meet National Objectives
and continue to assist the citizens in need. The use of funds with the aforementioned
agencies and their activities will ensure that low -moderate income families in Pearland
benefit in the best way possible.
RECOMMENDED ACTION
Council consideration and approval of a resolution approving the CDBG Five -Year
Consolidated and CDBG PY12/FY13 Annual Action Plan for the City of Pearland.
CDBG SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF PEARLAND, TEXAS
and
FORGOTTEN ANGELS FOUNDATION
for work to be performed at
3309 Industrial Resolution No. R2012-119
Pearland, TX 77581
I. RECITALS
Exhibit "A"
THIS AGREEMENT is made and entered by and between City of Pearland, a body politic and corporate
under the laws of the State of Texas, hereinafter referred to as the "Grantee" and FORGOTTEN ANGELS
FOUNDATION. a Texas non-profit corporation, hereinafter referred to as 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 -12 -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 2014 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 monthly submission of
the Individual Eligibility Form OR other acceptable form of income verification 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); 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:
II. SCOPE OF SERVICES
A. Eliaible Activities
Subrecipient agrees to provide the activities described in Exhibit "A," attached hereto and
incorporated herein for all purposes, in accordance with the provisions of this Agreement and in
compliance with the requirements of the Title 1 of the Housing and Community Development Act of
1974 and all regulations issued therein.
1 or;i
B. Proiect Requirements
Subrecipient will be responsible for administering a Program Year 2014 Community Development
Block Grant (CDBG) in a manner satisfactory to the Grantee and the Grantor; consistent with any
standards required as a condition of providing these funds. This agreement may provide only
partial funding for this program. Subrecipient qualifies for the receipt and expenditure of such
funding because it serves households of low- and moderate -income persons that are residents of
the City of Pearland that meet one of the criteria for National Objectives set out in 24 C.F.R.
570.208 (a).
The Subrecioient certifies that the activities carried out with funds provided under this Aareement
will meet one or more of the CDBG oroaram's National Obiectives — 1) benefit low- and moderate -
income persons and households. 2) aid in the prevention or elimination of slums or blight. 3t meet
community development needs having a particular urgency — as defined in 24 C.F.R. 570.208. The
Subrecipient aarees to maintain documentation that demonstrates that the activities carried out
with funds provided under this Aareement meet one or more of the CDBG oroaram's national
objectives.
C. Performance Monitorina
The Subrecipient agrees to cooperate with program and financial monitoring visits and/or
investigations performed by the City of Pearland staff and/or the U.S. Department of Housing and
Urban Development (HUD). Substandard performance as determined by the Grantee and/or HUD
will constitute non-compliance or breach of this Agreement. Subrecipient's failure to correct
substandard performance within a reasonable period of time after being notified by the Grantee will
result in further corrective action by City of Pearland including, but not limited to, termination of the
Agreement, pursuant 24 C.F.R. 85.43, and subsequent de -obligation and recapture of CDBG
Program funds. Subrecipient agrees to cooperate with monitoring and/or investigations performed
by the U.S. Department of Housing and Urban Development (HUD) and comply with requirements
for resolving any and all HUD findings or be subject to further review and investigation, de -
obligation of funds or applicable laws.
The Subrecipient also agrees to participate in program and financial monitoring visits and/or
investigations by the City of Pearland staff and/or the U.S. Department of Housing and Urban
Development (HUD) by making relevant staff, fiduciaries, governing body members, executive
governance members, program activity files, client information files, financial documents,
governance records, policies and procedures, source documentation justifying payments for
service delivery, and regulatory correspondences available for review by such representatives. The
Subrecipient agrees that formal monitoring activities will be conducted in a scheduled
manner, but that the City or its designee(s), representatives from U.S. Department of
Housing and Urban Development, Office of Inspector General, or other official
representatives acting on behalf of local, state and/or federal government regulatory
enforcement agencies have the option of conducting unscheduled reviews of the
Subrecipient.
D. Leveraged Funds
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Subrecipient shall maintain source documentation for any leveraged funds contained in Exhibit 'B"
of this Agreement. Source documentation for leveraged funds may be requested at anytime by
Grantee and must be provided in a timely manner.
III. TIME OF PERFORMANCE
Services of the Subrecipient shall start, retroactively if applicable, on the 1st day of October. 2015
and shall end on the 30th day of September 2016. This Agreement has been extended upon
written approval from the City of Pearland's Finance Director, but does not require the City's
elected governing body's approval since the revised allocation amount for this Agreement will not
exceed $50,000.00 (Fifty Thousand Dollars).
IV. EXPENSES AND PAYMENT
A. Budaet and Budaet Revisions
The Subrecipient has submitted a detailed budget (Exhibit "B") in a form and content prescribed by
the Grantee. Any proposed reallocation of funds among various budget line items or to new line
items must be treated as an Agreement Amendment requiring approval of the Grantee.
Subrecipient will provide narrative for justification of budget revision in an electronic email from the
agency's authorized official submitted to the City's CDBG point of contact OR on letterhead and
signed by the representative identified in Exhibit "A." A budget revision is not approved for
expenditure until Subrecipient receives written approval from the City of Pearland Finance Director
or designee. Budget revisions cannot change the scope of work approved by the City's elected
governing body. Upon approval of a budget revision, Subrecipient will provide a revised Exhibit "B"
to City of Pearland, which must be received by the City no later than the Subrecipient's submission
of any subsequent Request for Reimbursement.
B. Maximum Amount to be Paid
It is expressly agreed and understood that the total amount to be paid by the Grantee under this
Agreement shall not exceed the amount shown in Exhibit "B" in the section entitled "Maximum
amount to be paid under this Agreement." Respective of the U.S. Department of Housing and
Urban Development's spending timeliness standards (24 CFR 570.902), of which the City of
Pearland must adhere to, the Subrecipient is subsequently responsible for expending awarded
funds in a consistent and timely manner. The City of Pearland and/or U.S. Department of Housing
& Urban Development reserve the right to reduce any or all of the awarded CDBG funds due to
untimely expenditure of said funds.
C. Payment Continaent on Receipt of Funds from HUD
It is expressly understood that unless the Grantee has specifically allocated City funds for the
payment of services to be rendered under this Agreement, the Grantee's payment obligation under
this Agreement is contingent upon receipt of funds from HUD. Accordingly, notwithstanding
anything herein to the contrary, the maximum liability of the Grantee under this Agreement shall not
exceed the amount shown in Exhibit "B" in the section entitled "Maximum amount to be paid under
this Agreement" or the amount actually received by the Grantee from HUD pursuant to the Grant,
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whichever is less, and Subrecipient, by execution of this Agreement, acknowledges its
understanding of this fact.
D. Payment for Eligible Expenses
The Subrecipient understands and agrees that Grantee shall reimburse the Subrecipient for only
those costs that are eligible under applicable federal rules, regulations, cost principles, and other
requirements relating to reimbursement with HUD grant funds. The Grantee may reimburse the
Subrecipient for the costs of those items that serve only clients from the City of Pearland service
areas; provided that all reimbursements shall be limited to the actual out-of-pocket expenses
incurred by the Subrecipient in the performance of this Agreement. No reimbursement shall be
made for goods or services received by the Subrecipient as in-kind contributions from third parties
for assistance to the program. Pre -development costs are eligible expenses pursuant 24 CFR
570.200(h).
E. Payment Procedures
The Grantee will reimburse the Subrecipient based upon information submitted by the Subrecipient
and consistent with any approved budget and city policy concerning payment for eligible activities
as set forth in 24 CFR 570.200. Drawdowns for the payment of eligible expenses and general
administration shall be made against the line item budget attached hereto as Exhibit "B" and in
accordance with performance. Reimbursement requests must include an invoice with
required source documentation and/or supportive information, and be submitted on a form
approved by the Grantee and submitted no less frequently than quarterly. Prior to payment,
the City of Pearland must approve all invoices. Acceptable forms of source documentation
and/or supporting information shall include working papers, receipts, participation logs,
certifications, invoices, purchase orders, photographs, videography, meeting minutes, emails,
canceled checks, policies and procedures, accounting records, financial statements, audits,
certified payroll documents, timesheets, Internet website documentation, bid documents, interoffice
communications, letters, plans, proposal documents, telephone records, utility bills or other
credentials that verify the occurrence of eligible expenses, events or activities. Incorrect
reimbursement requests may be returned to the Subrecipient for correction and resubmission.
Payments will be adjusted in accordance with advance fund and program income balances
available in Subrecipient accounts. In addition, the Grantee reserves the right to liquidate funds
available under this Agreement for costs incurred by the Grantee on behalf of the Subrecipient.
Final reimbursement requests for Subrecipient shall be received by Grantee no later than
the 21St day following the end of this Agreement's period of performance. Any requests
received after October 21, 2016 will not be processed for payment and this Agreement will
become void, unless prior approval has been granted by the City. All unexpended CDBG
funds by Subrecipient will be de -obligated and recaptured.
Re -allocation of de -obligated and recaptured CDBG funds may be approved for CDBG
Infrastructure/Improvement/Public Facilities projects or Public Services activities and will
be approved only on a case-by-case basis by the Finance Director. Requests for re-
allocation of funds to the Subrecipient, otherwise projected for de -obligation and recapture,
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must be received in writing by the City prior to August 31, 2016. Subrecipient projects
allocated Public Services funds will not be eligible for re -allocation of de -obligated and
recaptured CDBG funds. Subrecipient projects allocated Program Administration funds
from the City of Pearland's CDBG Allocation may only be eligible for re -allocation in the
event that allowable encumbrances and obligations exist that require payment to be made
to the Subrecipient, consultant, vendor, subcontractor or contractor after the official end of
the CDBG Program Year.
F. Suoolementina a Reauest for Payment
A Supplemental Request amending a payment or reimbursement request may be filed with the City
of Pearland within thirty (30) days after the submission or receipt of the original request. Any
Supplemental Request for payment or reimbursement submitted after thirty (30) days from the date
of submission or receipt of the original request may only be submitted with prior approval from the
City. Supplemental Requests for payment(s) to be made to the Subrecipient submitted after
October 21, 2016 may be subject to denial if the City has officially closed the Subrecipient's CDBG
Program Activity in the Integrated Disbursement Information System (IDIS) with the U.S.
Department of Housing and Urban Development.
1. If additional payment(s) to the Subrecipient are required, the City will administer such
payment(s) in accordance with its normal cycle of administering account payments.
2. If the Supplemental Request amending a payment or reimbursement to the
Subrecipient requires that payment be made to the City by the Subrecipient, such
payment must be received no later than October 21, 2016.
3. Failure to submit Supplemental Requests requiring repayment of CDBG funds to the
City may result in additional monitoring, penalties, de -obligation and recapture of
funds, and/or applicable punitive sanctions.
G. Proaram Income
The Subrecipient shall report all program income as defined at 24 C.F.R. 570.500(a) generated by
activities carried out with CDBG funds made available under this Agreement. The use of program
income by the Subrecipient, either that which has been derived directly from Subrecipient program
activities and/or that which has been indirectly derived from Grantee program activity and re-
allocated to the Subrecipient, shall comply with the requirements set forth at 24 C.F.R. 570.504.
By way of further limitations, the Subrecipient may use such income during the contract period for
activities permitted under this Agreement. All unused program income indirectly derived from the
Grantee that has been re -allocated to the Subrecipient shall be returned to the Grantee at the end
of the contract period. Any interest earned on cash advances from the U.S. Treasury is not
program income and shall be remitted promptly to the Grantee.
H. Withholdina Payments and Repayment of Ineliaible Payments
If HUD initiates an investigation into any matter covered under this Agreement, the Grantee may
withhold all payments to the Subrecipient until the results of the investigation have been revealed.
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Reimbursement to the Subrecipient will be determined upon resolution of the investigation by HUD.
In the event HUD determines through investigations and/or monitoring that any grantee
payment or reimbursement to subrecipient is ineligible or disallowed, subrecipient shall
immediately and without delay fully reimburse grantee, and grantee will reimburse HUD for
disallowed or ineligible costs. If HUD informs grantee that it is required to refund monies
previously awarded or drawn down from the U.S. Treasury in reference to this agreement,
the subrecipient agrees to pay an equal amount to grantee prior to the demand date of
payback.
Funding Period Obligations
The grantee may charge to the award only costs resulting from obligations of the funding period
unless carryover of unobligated balances is permitted, in which case the carryover balances may
be charged for costs resulting from obligations of the subsequent funding period (24 CFR 85.23).
Consequently, the Subrecipient must adhere to all Payment Procedures expressed herein or
subaward funds may be subject to de -obligation.
V NOTICES
Any communication concerning this Agreement shall be directed to the representatives of the
Grantee and Subrecipient, as provided in Exhibit "A," Scope of Services, and in an order that is
respectful of the chain of command of the Grantee and Subrecipient.
VI. SPECIAL CONDITIONS
A. Compliance
The Subrecipient agrees to comply with the requirements of 24 C.F.R. Part 570 and all federal
regulations and policies issued concerning the CDBG program as applicable. The Subrecipient
further agrees to utilize funds available under this Agreement to supplement rather than supplant
funds otherwise available. Failure to adhere to these conditions may result in termination of
agreement.
B. Central Contractor Registration (CCR)
As required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA),
information on subawards made by federal grantees must be made publicly available. All recipients
of federal grant awards, made on or after October 1, 2010, will implement FFATA reporting
requirements utilizing the FFATA Subaward Reporting System (FSRS). The Subrecipient must
acquire and maintain a valid Central Contractor Registration for each year the Subrecipient
receives a subaward of CDBG funds. No reimbursement of funds shall be administered to CDBG
Subrecipients without a valid CCR registration. The City shall provide each Subrecipient with any
necessary technical assistance in completing this requirement. Central Contractor Registration
(CCR) is the primary registrant database for the U.S. Federal Government and shall be accessed
via internet at www.SAM.gov.
VII. GENERAL CONDITIONS
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A. State Review — E.O. 12372
The Subrecipient agrees to comply with all applicable federal, state and local laws and
regulations governing the funds provided under this Agreement, including Executive Order
12372, governing the review and coordination of federally assisted programs and projects.
Failure to adhere to these conditions or with any provision of this Agreement may result in
the Grantee taking one of the following actions: (1) declaring Subrecipient ineligible to
participate for future awards; (2) withholding funds; (3) termination of agreement; or (4) any
combination of the aforementioned actions.
B. Independent Contractor
Subrecipient shall at all times operate as an independent contractor and not as an officer, agent,
servant or employee of Grantee. Subrecipient shall have exclusive control of, and the exclusive
right to control, the details of the work and services performed and shall be solely responsible for
the acts and omissions of its officers, members, agents, servants, employees, sub-Subrecipients,
program participants, licensees or invitees. The doctrine of respondeat superior shall not apply as
between Grantee and Subrecipient, its officers, members, agents, servants, employees, sub-
Subrecipients, program participants, licensees or invitees, and nothing herein shall be construed as
creating a partnership or joint enterprise between Grantee and Subrecipient. It is expressly
understood and agreed that no officer, member, agent, employee, sub-Subrecipient, licensee or
invitee of the Subrecipient, nor any program participant hereunder, is in the paid service of Grantee
and that Grantee does not have the legal right to control the details of the tasks performed
hereunder by Subrecipient, its officers, members, agents, employees, sub-Subrecipients, program
participants, licensees or invitees.
Grantee shall in no way nor under any circumstances be responsible for any property belonging to
Subrecipient, its officers, members agents, employees, subcontractors of the Subrecipient,
program participants, licensees or invitees, which may be lost, stolen, destroyed or in any way
damaged.
C. Indemnity
SUBRECIPIENT COVENANTS AND AGREES TO INDEMNIFY, HOLD HARMLESS AND
DEFEND, AT ITS OWN EXPENSE, GRANTEE AND ITS OFFICERS, AGENTS AND
EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR PROPERTY LOSS
OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS,
OF WHATSOEVER KIND OF CHARACTER, WHETHER REAL OR ASSERTED. ARISING OUT
OF OR IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED
PERFORMANCE OR NONPERFORMANCE OF THIS AGREEMENT AND/OR THE
OPERATIONS, ACTIVITIES AND SERVICES OF THE PROGRAM DESCRIBED HEREIN,
WHETHER OR NOT CAUSED, IN WHOLE OR IN PART, BY ALLEGED NEGLIGENCE OF
OFFICERS, AGENTS, EMPLOYEES, SUBRECIPIENTS OR SUB-SUBRECIPIENTS OF
GRANTEE; AND SUBRECIPIENT HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY
OF GRANTEE AND ITS OFFICERS, AGENTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS
OR SUITS FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING
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DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KIND OR CHARACTER, WHETHER
REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE EXECUTION,
PERFORMANCE, ATTEMPTED PERFORMANCE OR NONPERFORMANCE OF THIS
AGREEMENT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES OF THE PROGRAMS
DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART, BY ALLEGED
NEGLIGENCE OF OFFICERS, AGENTS, EMPLOYEES, SUBRECIPIENTS OR SUB-
SUBRECIPIENTS OF GRANTEE. SUBRECIPIENT LIKEWISE COVENANTS AND AGREES TO
AND DOES HEREBY INDEMNIFY AND HOLD HARMLESS GRANTEE FROM AND AGAINST
ANY AND ALL INJURY, DAMAGE OR DESTRUCTION OF PROPERTY OF GRANTEE, ARISING
OUT OF OR IN CONNECTION WITH ALL ACTS OR OMISSIONS OF SUBRECIPIENT, ITS
OFFICERS, MEMBERS, AGENTS, EMPLOYEES, SUB-SUBRECIPIENTS, INVITEES,
LICENSEES, OR PROGRAM PARTICIPANTS, OR CAUSED, IN WHOLE OR IN PART, BY
ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, EMPLOYEES, SUBRECIPIENTS OR SUB-
SUBRECIPIENTS OF GRANTEE.
D. Waiver of Immunity
If Subrecipient, as a charitable or nonprofit organization, has or claims an immunity or exemption
(statutory or otherwise) from and against liability for damages or injury, including death, to persons
or property, Subrecipient hereby expressly waives its rights to plead defensively such immunity or
exemption as against Grantee. This section shall not be construed to affect a governmental
entity's immunities under constitutional, statutory or common law.
E. Insurance and Bondina
1. Public Liability Insurance
Subrecipient shall furnish the City of Pearland with a Certificate of Insurance as proof that
it has secured and paid for policies of public liability and automobile insurance covering all
risks incident to or in connection with the execution, performance, attempted performance
or nonperformance of this Agreement. The amounts of such insurance shall not be less
than the maximum liability that can be imposed on Grantee under the laws of the State of
Texas. At present, such amounts are as follows:
Bodily injury or death. per person $100,000
Bodily injury or death, per occurrence $300,000
Property damage, per occurrence $100,000
Subrecipient understands that such insurance amounts shall be revised upward at
Grantee's option and that Subrecipient shall revise such amounts within thirty (30) days
following notice to Subrecipient of such requirements.
2. Worker's Compensation Insurance
The Subrecipient also covenants and agrees to furnish the Grantee with a Certificate of
Insurance as proof that it has obtained and paid for a policy of Workers' Compensation
Insurance in the amounts required by State law, covering any and all employees of
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Subrecipient active in the program funded under this Agreement; and Subrecipient agrees
to require any sub-Subrecipients to carry adequate Workers' Compensation Insurance in
the amounts required by State law.
Accordingly, if Subrecipient has obtained worker's compensation insurance coverage
through self-insurance, as provided by Chapter 406, Workers' Compensation Insurance
Coverage, Subchapter A. Coverage Election; Security Procedures (§406.003), such
documentation of self-insurance shall be provided to Grantee prior to, or with the
submission of, first reimbursement request.
3. Bonding and Documentation of Insurance Coverage
Subrecipient shall submit to Grantee documentation that it has obtained insurance
coverage as required in this Agreement within thirty (30) days of the execution of this
Agreement and prior to payment of any monies hereunder. Subrecipient only agrees to
provide bonding to the extent applicable under OMB Circular A-122.
F. Publicity and Publication Inventory
The Subrecipient shall ensure acknowledgement of the role of Grantee in making services
available through this Agreement. All facilities, publications and other items used, made available,
or made possible through funds obtained pursuant to this Agreement shall be prominently tagged
or labeled as having been funded by the City of Pearland CDBG Program. Subrecipient shall
maintain a file which inventories all publications, products, articles, curriculum materials, equipment
inventory tagging records and/or other items funded by City of Pearland CDBG Program dollars.
Copies of such documents or photographs shall be maintained in accordance with HUD guidance
on retention of records and source documentation. Original documents are the preferred means of
documentation, but photocopies or photographs may be used when and where appropriate.
Activities involving public dissemination of information. the media, news publications or other
widely distributed materials shall require that the Subrecipient publicize the City of Pearland CDBG
Program as the source of funds for the project. The Subrecipient shall provide the City with a copy
of CDBG program -related materials for review prior to distribution.
G. Travel
No funds allocated to the Subrecipient via this Agreement shall be used for travel purposes.
Mileage, airfare, meals, beverages. lodging, and/or travel per diems of any sort shall be
considered ineligible expenses and will not be reimbursable to the Subrecipient.
H. Relocation, Acquisition and Displacement
The Subrecipient agrees to comply with 24 C.F.R. 570.606 relating to the acquisition and
disposition of all real property utilizing grant funds, and to the displacement of persons, businesses,
non-profit organizations and farms occurring as a direct result of any acquisition of real property
utilizing grant funds. The Subrecipient agrees to comply with applicable Grantee Procedures and
Policies concerning displacement of individuals from their residences, including The Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970. The Subrecipient agrees
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to provide the City with prior notice, in writing, of any relocation or acquisition actions that will
directly or indirectly impinge on eligible program activities, participants or vested improvements to
real property owned and/or operated by the Subrecipient.
I. Copyright
If this Agreement results in any copyrightable material, the Grantee and/or grantor agency reserves
the right to royalty -free, non-exclusive and irrevocable license to reproduce, publish or otherwise
use and to authorize others to use, the work for government purposes.
VIII. ADMINISTRATIVE REQUIREMENTS
The Subrecipient shall comply with the policies, guidelines, and requirements of 24 CFR
part 84 A-122, A-133 (implemented at 24 CFR part 45 ), and A-128 2 (implemented at 24 CFR
part 44 ), as applicable, as they relate to the acceptance and use of Federal funds under this
part. The applicable sections of 24 CFR part 84 is set forth at § 570.502.
A. Financial Management
The Subrecipient agrees to (1) comply with Subpart C of OMB Circular A-110; (2) adhere to the
accounting principles and procedures required therein; (3) utilize adequate internal controls; and
(4) maintain necessary source documentation for all costs incurred. The Subrecipient shall
administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non -Profit
Organizations," for all costs incurred whether charged on a direct or indirect basis.
B. Record -Keeping. Reports. and Audits
1. Records to be Maintained
The Subrecipient shall maintain all records required by this Agreement, 24 C.F.R. 570.506
and records that are pertinent to the activities to be funded under this Agreement, including
but not be limited to:
a. Records providing a full description of each activity undertaken;
b. Records demonstrating that each activity undertaken meets one of the
National Objectives of the CDBG program;
c. Records required determining the eligibility of activities;
d. Records required to document the acquisition, improvement, use or
disposition of real property acquired or improved with CDBG
assistance;
e. Records documenting compliance with the fair housing and equal
opportunity components of the CDBG program;
f. Records documenting compliance with the Davis -Bacon Act;
g. Financial records as required by 24 C.F.R. 570.502, and OMB Circular A-
110; and
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h. Other records necessary to document compliance with Subpart K of 24
C.F.R. Part 570.
2. Property Records
The Subrecipient shall maintain real property inventory records, which clearly identify
property purchased, improved or sold. Properties retained shall continue to meet eligibility
criteria and shall conform to the "changes in use" restrictions specified in 24 C.F.R.
570.503(b)(8). Subrecipient must insure that any independent audit required hereunder
include a report on real property inventory as a supplemental schedule in the audit.
3. Retention
The Subrecipient shall retain all records pertinent to expenditures incurred under this
Agreement for a period of five (5) years after the termination of all activities funded under
this Agreement, or after the resolution of all Federal audit findings, whichever occurs later.
Records for non -expendable property acquired with funds under this Agreement shall be
retained for five (5) years after final disposition of such property. Records for any
displaced person, as defined at 42 U.S.C. 4601, must be kept for five (5) years after
he/she has received final payment. All client records are property of the Grantee and must
be forwarded to the Grantee at the end of each quarter.
4. Reports
Reimbursement and Client Data reports shall be submitted monthly, but not less than
quarterly, to the Grantee:
a. Financial Reimbursement Report, including supportive/source documentation
(canceled checks, receipts, invoices, purchase orders, payroll/timesheets).
b. Client List and Certified Participation Roster(s) as applicable
c. Client Summary
d. Employee Data Report
e. Board Minutes
f. Weekly labor reports reflecting Davis -Bacon wage rates, as applicable
The Subrecipient shall maintain in client files for review by Grantee Individual Eligibility
Forms.
5. Source Documentation
The general standard is that all accounting records must be supported by source
documentation, pursuant to 24 CFR 85.20(b)(6) and 84.21(b)(7). Supporting
documentation is necessary to show that the costs charged against CDBG funds were
incurred during the effective period of the Subrecipient's agreement with the grantee, were
actually paid out, were expended on allowable items, and had been approved by the
responsible official(s) in the Subrecipient organization. Subrecipient shall seek technical
assistance from the City's CDBG Program staff or refer to Section IV, Part F in this
Agreement for further guidance, if needed.
The source documentation must explain the basis of the costs incurred, as well as show
the actual dates and amount of expenditures. For example:
• With respect to payrolls, source documentation should include employment letters
and all authorizations for rates of pay, benefits, and employee withholdings. Such
documentation might include union agreements or minutes from board of directors'
meetings where salary schedules and benefit packages are established, copies of
written personnel policies, W-4 forms, etc. For staff time charged (hours
actually worked) to the CDBG program, time and attendance sheets should
be available. If an employee's time is split between CDBG and another
funding source, there must be time distribution records supporting the
allocation of charges among the sources. Note that paid leave is not an
eligible charged activity against the CDBG account and that staff
expenditures do not have to be distributed equally over the duration of the
contract. Canceled checks from the employees, insurance provider, etc., or
evidence of direct deposits will document the actual outlay of funds.
• With respect to the cost of space and utilities, space costs must be supported by
documentation such as rental or lease agreements. Utility costs will be supported
by bills from the utility companies. Both types of expenses will be supported by
canceled checks.
• With respect to supplies. documentation should include purchase orders or
requisition forms initiated by an authorized representative of the Subrecipient, an
invoice from the vendor (which has been signed -off by the subrecipient to indicate
the goods were received), the canceled check from the vendor demonstrating
payment was made, and information regarding where the supplies are being
stored and for what cost objective(s) they are being used.
• Deadlines
a. Reports are to be submitted within ten (10) working days after the end of
the monthly reporting period.
b. The bi-annual progress report is due within ten (10) days after the end of
the sixth (6'h) reporting month.
c. The annual performance report is due within one month after the end of
the contract period.
d. Reimbursement requests received more than 30 days after the reporting
period may not be honored.
• Audits & Inspections
All Subrecipient records relevant to any matters covered by this Agreement shall be made
available to the Grantee, its designees or the Federal Government, at any time during
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normal business hours, as often as the Grantee or other agency deems 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 30 days after receipt
by the Subrecipient. Subrecipient hereby agrees to have an annual agency audit
conducted in accordance with OMB Circular A-133 if applicable. Subrecipient agrees to
conduct regular reviews of federal grant expenditures for compliance with threshold
monitoring requirements set forth in the City of Pearland CDBG Subrecipient A-133
Compliance Certification.
• Failure to Meet Record-keeping, Reporting, Audit, and/or Inspection Requirements
Subrecipient's failure to comply with record-keeping, reporting, audits, and/or inspections
as required by this Agreement is a breach of this Agreement and funding will be withheld
from the Subrecipient until such time as the reports are timely and accurately submitted.
Grantee maintains the right to terminate this Agreement with the Subrecipient for failure to:
keep records properly, submit reports for three consecutive months, and/or cooperate with
audits/inspections.
C. Procurement
1. Compliance
The Subrecipient shall comply with the (1) public notice and (2) award of contract to the
lowest and best responsible bidder. The Subrecipient shall maintain an inventory record of
all non -expendable personal property that may be procured with funds provided
hereunder. The Subrecipient shall procure materials in accordance with the requirements
of Subpart C of OMB Circular A-110, Procurement Standards, and shall subsequently
follow Subpart C, Property Management Standards, covering utilization and disposal of
property. Any real or personal property under Subrecipient's control with a value greater
than $25,000 that was acquired or improved in whole or in part with CDBG funds must
either be:
a. Used by the Subrecipient to meet one of the national objectives in 24 C.F.R.
570.200(a)(2) and (3) until five years after expiration or termination of the
Grantee's CDBG Entitlement Agreement with HUD; or
b. Transferred to the Grantee; or
c. Disposed of in a manner, consistent with 24 C.F.R. 85.31, which results in the
amount of the then current fair market value of the property Tess any portion
thereof attributable to expenditures of non-CDBG funds for acquisition thereof,
or improvements to, the property being reimbursed to the Grantee. Such
reimbursement is not required if disposed of more than five (5) years after the
expiration or termination of this Agreement.
Further, if within five (5) years of the termination or expiration of this Agreement, the
Subrecipient ceases to use any or all personal property attributable to CDBG funds to
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meet a national objective, the personal property shall, in accordance with 24 C.F.R. 85.32,
either revert to the Grantee or be disposed of in accordance with the applicable federal
rules and regulations, including but not limited to OMB Circular A-110, Subpart C. After
the expiration of five years, the Subrecipient shall have no obligation to comply with this
section regarding real or personal property.
Nothing contained herein shall be construed to conflict with the duties of the Subrecipient
as set forth in the Texas Non -Profit Corporation Act (TEX. ANN. CIV. ST. art.1396-1.01, et
seq.) or any other applicable statute.
2. Subcontracts
The Subrecipient must require all Subcontract Agreements to contain specific language in
reference to the requirements for Subcontractors and/or Purchasers regarding debarment,
exclusion, suspension, anti -collusion, drug-free workplace, Davis -Bacon Act, and Buy
American Provisions, if applicable. If CDBG-R funds are utilized in any amount and in
combination with any other source of funds, public or private, such language shall be
consistent with the terms of the Purchaser's bid solicitation and the provisions of Section
1605 of the American Recovery and Reinvestment Act of 2009. The Subrecipient shall
seek guidance from the City if any form of clarification is necessary regarding the
applicability of these provisions.
Grantees and subgrantees/Subrecipients must not make any award or permit any
award (subgrant or contract) at any tier to any party which is debarred or suspended
or is otherwise excluded from or ineligible for participation in Federal assistance
programs under Executive Order 12549, Debarment and Suspension (24 CFR 85.35).
All Purchasers and/or Subcontractors must be reviewed for eligibility to conduct
business involving the disbursement of federal awards. The Subrecipient is
responsible for conducting reviews of Purchasers and/or Subcontractors using the
U.S. General Services Administration's Excluded Parties List System (EPLS) at
www.SAM.gov. EPLS reviews must be conducted prior to the issuance of a
contractual agreement or purchase is made and documentation of such review must
be maintained in printed form within the files maintained by the Subrecipient.
IX. GENERAL LABOR AND PARTICIPANT REQUIREMENTS
A. Civil Rights
1. 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 109 of Title 1 of
the Housing and Community Development Act of 1974; Section 504 of the Rehabilitation
Act of 1973; the Americans with Disabilities Act of 1990; the Architectural Barriers Act;
the Age Discrimination Act of 1975; Executive Order 11063; and Executive Order 11246 as
amended by Executive Orders 11375 and 12086; and all other applicable requirements of
24 C.F.R. Part 570, Subpart K (24 CFR 570.614).
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The Subrecipient, further, agrees to comply with any federal regulations issued pursuant to
Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 706), which prohibits
discrimination against the handicapped in any federally assisted program. Restrictions
for serving certain resident aliens with CDBG funds exist and the Subrecipient is
admonished to comply with 24 CFR 570.613.
Section 110(a) of the Act contains labor standards that apply to non -volunteer labor
financed in whole or in part with assistance received under the Act. In accordance
with section 110(a) of the Act, the Contract Work Hours and Safety Standards Act
(40 U.S.C. 327 et seq.) also applies. However, these requirements apply to the
rehabilitation of residential property only if such property contains not less than 8
units.
2. Nondiscrimination
Section 109 of the Act requires that no person in the United States shall on the
grounds of race, color, national origin, religion, or sex be excluded from
participation in, be denied the benefits of, or be subjected to discrimination under
any program or activity receiving Federal financial assistance made available
pursuant to the Act. Section 109 also directs that the prohibitions against
discrimination on the basis of age under the Age Discrimination Act and the
prohibitions against discrimination on the basis of disability under Section 504 shall
apply to programs or activities receiving Federal financial assistance under Title I
programs. The policies and procedures necessary to ensure enforcement of section
109 are codified in 24 CFR part 6.
The Subrecipient 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 insure 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 to be provided by the
Subrecipient setting forth the provisions of this nondiscrimination clause. Subrecipient
shall also abide by Title IX of the Education Amendments of 1972 (20U.S.C. § 1681 et
seq.) which prohibits sex discrimination in federally assisted education programs.
In accordance with the Fair Housing Act, the Secretary requires that grantees
administer all programs and activities related to housing and community
development in a manner to affirmatively further the policies of the Fair Housing
Act. Furthermore, in accordance with section 104(b)(2) of the Act, for each
community receiving a grant under subpart D of this part, the certification that the
grantee will affirmatively further fair housing shall specifically require the grantee to
15 o 3
assume the responsibility of fair housing planning by conducting an analysis to
identify impediments to fair housing choice within its jurisdiction, taking appropriate
actions to overcome the effects of any impediments identified through that analysis,
and maintaining records reflecting the analysis and actions in this regard.
B. Fair and Equal Employment Opportunity
1. Approved Ran
The Subrecipient agrees that it shall utilize the principles provided in President's Executive
Order 11246 of September 24, 1965, as amended by Executive Orders 11375, 11478,
12086, and 12107 ( 3 CFR 1964-1965 Comp. p. 339; 3 CFR, 1966-1970 Comp., p. 684;
3 CFR, 1966-1970., p. 803; 3 CFR, 1978 Comp., p. 230; 3 CFR, 1978 Comp., p. 264
(Equal Employment Opportunity), and Executive Order 13279 (Equal Protection of
the Laws for Faith -Based and Community Organizations), 67 FR 77141, 3 CFR, 2002
Comp., p. 258; and the implementing regulations at 41 CFR chapter 60. The Grantee
shall provide Affirmative Action guidelines to the Subrecipient to assist in the formulation of
such program, if necessary and upon request.
The Subrecipient agrees to maintain required and/or applicable Affirmative Action Plan on
file and available to the Grantee and other local, state and/or federal authorized officials
upon request.
2. Women/Minority Business Enterprise
The Subrecipient will put forth identifiable efforts to afford minority- and women -owned
business enterprises the maximum practicable opportunity to participate in the
performance of this contract. As used in this contract, the term "minority and women
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 women business
enterprises in lieu of an independent investigation. Documentation of these efforts may be
requested by federal authorities and the Subrecipient shall maintain a file that includes
such records.
3. EEO/AA Statement
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 Employer, as applicable.
The Subrecipient shall provide the City with a copy of its employment solicitation and/or
advertisement.
C. Labor Standards
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1. Wages
The Subrecipient agrees to comply with the requirements of the Secretary of Labor
issued in accordance with the provisions of Contract Work Hours and Safety
Standards Act [40 U.S.C. 327-330] as supplemented by Department of Labor
regulations, the Copeland "Anti -Kickback" Act [18 U.S.0 874], the Davis -Bacon Act
[40 U.S.C. 276(a) to a-7], 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 shall maintain documentation that
demonstrates compliance with hour and wage requirements of this section. Such
documentation shall be made available to the Grantee for review upon request. The
Subrecipient shall also abide by Chapter 11 of Title 18 of the U.S. Code (18 U.S.C. 201-
224) which prohibits a number of criminal activities, including bribery, graft and conflict of
interest.
2. Drug Free Workplace
All profit or non-profit agencies or organizations receiving state or federal grant funds
under the official sponsorship of the City of Pearland must certify on an annual basis their
compliance with the requirements of the "Drug Free -Workplace Act of 1988." Employees
are specifically prohibited from manufacturing, distributing, possessing, purchasing, and
using illegal drugs or controlled substances in the workplace or in any other facility,
location or transport in which the employee is required to be present in order to perform his
or her job function.
D. Prohibited Activity
The Subrecipient is prohibited from using CDBG funds or personnel employed in the
administration of the program for political activities, sectarian/religious activities, lobbying,
political patronage, and/or activities of nepotism.
1. 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 United States Code.
2. Religious Organizations
The Subrecipient agrees that funds provided under this Agreement will be utilized in a
manner consistent with that which is outlined in 24 C.F.R. 570.200(j). Financial support of
secular religious activities, promotion of secular religious interests, or the financial benefit
of a religious organization in accordance with federal regulations are all specifically
prohibited uses of federal funds. Only non -secular program activity costs shall be
supported by this Agreement, and in accordance with federal regulations.
E. Conflict of Interest
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The Subrecipient agrees to abide by the provisions of 24 C.F.R. 570.611 with respect
to conflicts of interest, and covenants that it presently has no financial interest and
shall not acquire any financial interest, direct or indirect, which would conflict in any
manner or degree with the performance of services required under this Agreement.
The Subrecipient further covenants that in the performance of this Agreement no
person having such a financial interest shall be employed or retained by the
Subrecipient hereunder. These conflict of interest provisions apply to any person
who is an employee, agent, consultant, officer, or elected official or appointed
official of the Grantee, or of any designated public agencies or Subrecipients that
are receiving funds under the CDBG Entitlement program.
In applying for CDBG funds, the Subrecipient provided the City of Pearland with
disclosure of the nature of any perceived or actual conflict of interests. If at any
time during the course of the term of this Agreement any actual or perceived conflict
of interest arises, Subrecipient agrees to provide a new Conflict of Interest
Disclosure form (Exhibit D) to the City of Pearland. Failure to disclose any
perceived or actual conflicts of interest may result in termination of this Agreement.
F False Claims
The Subrecipient also agrees to abide by 18 U.S.C. 286, which provides for conspiracy to
defraud the Federal Government with Respect to Claims. In addition, the Subrecipient will
also abide by the False Claims Act (31 U.S.C. 3729 et seq.); 18 U.S.C. 287 relating to
False, Fictitious and Fraudulent Claims; 18 U.S.C. 245 Federally Protected Activities; 18
U.S.C. 1001 regarding General Statements or Entries; the Program Fraud Civil Remedies
Act (31 U.S.C. 3801-3812); the Federal Claims Collection Act of 1966 (31 U.S.C. 952) as
amended by the Derby Collection Act of 1982; the Meritorious Claims Act (31 U.S.C.
3702); the Tucker Act (28 U.S.C. 1346, 1491, and 2501); the Wunderlich Act (41 U.S.C.
321-322); the Anti -Deficiency Act (31 U.S.C. 1341); and Section 208(a) of the
Intergovernmental Personnel Act of 1970, as amended.
G. "Section 3" Clause
Compliance
The Subrecipient agrees to comply with Section 3 of the Housing and Urban Development
Act of 1968, as amended, the regulations set forth in 24 C.F.R. Part 135, and all applicable
rules and orders. Subrecipient understands that compliance shall be a condition of the
federal assistance provided under this Agreement and binding upon the Grantee, the
Subrecipient and any sub-Subrecipients. Failure to comply with these requirements shall
subject the Grantee, the Subrecipient and any sub-Subrecipients, their successors and
assigns, to those sanctions specified by the Agreement through which federal assistance
is provided, and as set out in 24 C.F.R. Part 135. The Subrecipient agrees that no
contractual or other disability exists which would prevent compliance with these
requirements. The Subrecipient shall include the following language in all subcontracts
executed under this Agreement:
IX or LI
"The work to be performed under this contract 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 lower income residents of the project area and contracts for work in
connection with the project be awarded to business concerns which are
located in, or owned in substantial part, by persons residing in the areas of
the project."
2. Notifications
The Subrecipient shall 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.
3. Subcontracts
The Subrecipient shall include this Section 3 clause in every subcontract and will take
appropriate action pursuant to the subcontract upon a finding that the sub-Subrecipient is
in violation of regulations issued by the Grantee. The Subrecipient will not subcontract
with any sub-Subrecipient where it has notice or knowledge that the latter has been found
in violation of regulations under 24 C.F.R. Part 135 and will not let any subcontract unless
the sub-Subrecipient has first provided it with preliminary statement of ability to comply
with the requirements of these regulations.
H. Subcontracts
1. Approvals
The Subrecipient shall not enter into any subcontracts with any agency or individual in the
performance of this Agreement without the expressed consent of the Grantee prior to the
execution of such agreement.
2. Monitoring
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. Subrecipient monitoring of subcontracted services will conform to the
monitoring and review standards
3. Content
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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.
4. Selection Process
The Subrecipient shall insure that all subcontracts let in the performance of this Agreement
shall be awarded on a fair, open, and competitive manner. Executed copies of all
subcontracts shall be forwarded to the Grantee along with documentation concerning the
selection process. Subrecipient must adopt and utilize written selection criteria for use in
the selection of subcontractors, which selection criteria must conform to the procurement
requirements of 24 C.F.R. 85.36.
X. ENVIRONMENTAL CONDITIONS
For purposes of section 104(g) of the Act, the regulations in 24 CFR part 58 specify the
other provisions of law which further the purposes of the National Environmental Policy Act
of 1969, and the procedures by which grantees must fulfill their environmental
responsibilities. In certain cases, grantees assume these environmental review, decision-
making, and action responsibilities by execution of grant agreements with the Secretary.
A. Air and Water
The Subrecipient agrees to comply with the following regulations insofar as they apply to
the performance of this Agreement, as applicable:
■ Clean Air Act, 42 U.S.C. 1857, et seq., and § 7401 et seq.
• Clean Water Act, 33 U.S.C. 1368
• Executive Order 11738
• Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq.. and 1318,
relating to inspection, monitoring, entry, reports, and information, and all regulations
guidelines issued therein.
• Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 50. as
amended.
• National Environmental Policy Act of 1969 (42 U.S.C. 432 et seq.; as amended)
■ HUD Environmental Review Procedures (24 C. F. R., Part 58).
B. Flood Disaster Protection
The Subrecipient agrees to comply with the requirements of the Flood Disaster Protection
Act of 1973 (P.L.-2234) in regard to the sale, lease or other transfer of land acquired,
cleared or improved under the terms of this Agreement, as it may apply to the provisions of
this Agreement.
Lead -Based Paint
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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 C.F.R. 570.608, and 24 C.F.R. Part 35, and in
particular Sub -Part B thereof. Such regulations pertain to all HUD -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 of the advisability and availability of blood -
level screening for children less than 7 years of age.
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 C.F.R., 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 Texas Historical
Commission and Antiquities Committee 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.
E. Wildlife Protection
The Subrecipient agrees to comply with the requirements of the Endangered Species Act
of 1973 as listed in 50 C.F.R. 17.11 and 50 C.F.R. Part 451; the Lacey Act (18 U.S.C. 42);
the Migratory Bird Treaty Act (16 U.S.C. 703-12); the Fish and Wildlife Coordination Act
(16 U.S.C. 661-667e); Section 4(f) of the Department of Transportation Act (49 U.S.C.
1653(f); the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.); the Coastal
Zone Management Act of 1972, as amended (16 U.S.C. 1451); and the Safe Drinking
Water Act of 1974 (42 U.S.C. 300f to j-10), insofar as they apply to the performance of this
Agreement.3.
XI. ASSIGNMENTS AND AMENDMENTS
A. Assianabilitv & Amendments
The Subrecipient shall not assign or transfer any interest in this Agreement without the
prior written consent of the Grantee. Notice of any such permitted assignment or transfer
shall be furnished promptly to the Grantee.
Grantee or Subrecipient may amend this Agreement at any time provided that such
amendments make specific reference to this Agreement, are executed in writing, and
signed by a duly authorized representative of each organization. Amendments of
Subrecipient Agreements may be subject to approval by the Grantee's governing body in
certain cases where additional funding is awarded and/or major changes in the
Subrecipient's scope of work is a consideration. Such amendments shall not invalidate
21 of 34
this Agreement, nor relieve or release Grantee or Subrecipient from its obligations under
this Agreement, unless specifically noted by the Grantee.
Additionally. Grantee may, in its discretion, amend this Agreement to conform with federal,
state or local governmental guidelines, policies and available funding amounts, or for other
reasons. If such amendment results 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 put into effect only by written amendment signed by both Grantee and Subrecipient.
Multiple requests for amendments over the course of one program year are discouraged,
but will be handled on a case-by-case basis.
XII. TERMINATION OF AGREEMENT
A. Automatic Termination
This Agreement automatically terminates at the end of the time of performance as
specified in paragraph III. TIME OF PERFORMANCE of this Agreement.
B. Termination Without Cause
Either party may terminate this Agreement at any time by giving written notice to the other
party of such termination and specifying the effective date thereof at least 30 days before
the effective date of such termination. In the event of termination for convenience, all
finished or unfinished documents, data, studies, surveys, maps, models, photographs,
reports or other materials prepared by Subrecipient under this Agreement shall become
the property of Grantee, and Subrecipient shall be entitled to receive just and equitable
compensation for any satisfactory work completed on such documents or materials prior to
the termination, unless HUD has determined through monitoring and/or investigative
practices, that Subrecipient is not entitled to such compensation.
C. Breach of the Agreement & Termination With Cause
Termination of this Agreement shall not relieve Subrecipient of liability for any breach of
this Agreement that occurs prior to such termination or expiration. Grantee may terminate
this Agreement for cause, in whole or in part, if Subrecipient fails to comply with any term
of this Agreement, or with any of the rules, regulations or provisions referred to herein; and
the Grantee may declare the Subrecipient ineligible for any further participation in Grantee
CDBG Entitlement Agreements, in addition to other remedies as provided by law. If
Grantee has cause to believe the Subrecipient is in noncompliance with this Agreement or
any applicable rules and regulations, the Grantee may withhold up to twenty-five (25)
percent of said Agreement funds until such time as the Subrecipient is found to be in
compliance by the Grantee, or is otherwise adjudicated to be in compliance.
D. Partial Terminations
Partial terminations of the Scope of Services in Exhibit "A" may be approved and/or denied
at the discretion of the Grantee. Should the Subrecipient request a partial termination of
22 of 34
the Scope of Services in Exhibit "A" and the Grantee denies the request, the Subrecipient
shall have the option to maintain its obligation to completing the full scope of work herein
or choose to discontinue as a service -provider and fully terminate this Agreement.
E. Close-outs
Subrecipient's obligation to the Grantee shall not end until all closeout requirements
described in 24 C.F.R. 85.50 are completed to the satisfaction of the City of Pearland.
Activities during this close-out period shall include, but are not limited to, making final
payments, disposing of program assets, including the return to the Grantee of all unused
materials, equipment, unspent cash advances, program income balances, and accounts
receivable, and determining the custodianship of records.
F. Reversion of Assets
a. Unless otherwise instructed:
i. unused CDBG funds as well as any program income received after close-out
must be returned to the Grantee unless the Subrecipient has been authorized
by the City to retain such funds;
ii. if sold, the proceeds from the sale of equipment purchased all or in part with
CDBG funds must be retumed to the Grantee unless costs were shared or
when the equipment purchased is less than 5 years old, in which case the pro
rata share of CDBG funds must be returned to the City; and,
iii. excess equipment must be returned to the Grantee or retained after paying
the Grantee current market value unless costs were shared in which case the
pro rata share of CDBG funds must be returned to the City.
b. Upon expiration or termination of the term of this Agreement, the Subrecipient shall
transfer to the Grantee any CDBG funds on hand and accounts receivable at the time
of expiration for the use of CDBG funds.
XIII. AGREEMENT REQUIREMENTS
Notwithstanding any provision of this agreement, Subrecipient is required to comply with
only the federal, state, and local regulations applicable to the specific federally assisted
program associated with this agreement.
IN WITNESS WHEREOF, the Parties have executed this Agreement this day of
. 200
23 of 34
APPROVED: CITY OF PEARLAND, TEXAS
By: .
Jon Bran
City of Pearland
SUBRECIPIENT:
By //I— J/-2
Name, title:President
24 of 34
Exhibit A, SCOPE OF SERVICES
I. Application
This Scope of Services is based on the proposal prepared and submitted by the Subrecipient through the City of
Pearland's annual Request for Proposal (RFP) process. However, in the event of any conflict between the
proposal and any provision contained herein, this Agreement shall control. In addition to the activities listed below,
the Subrecipient agrees to operate this Community Development Block Grant Program consistent with the
program delivery stated in the approved proposal.
II. Principal Task
Forgotten Angels Foundation agrees to expend no less than $38,320 in federal assistance awarded via the City's
CDBG grant funds to construct a 1,997 square foot concrete patio, a 1,008 fabric shade "sail" structure, 103 linear
feet of steel painted fence, and ADA compliant rampways, all adjacent to the north and northwest corner of the
facility. The Subrecipient will administer all activities in the provision of the aforementioned public services in
compliance with all applicable Federal, state, and local rules and regulations goveming these funds, and in a
manner satisfactory to the Grantee.
III. Activities
Subrecipient must document demographic information, including race, sex, and proof of income for all
participants, 70% of which must be from low- and moderate -income households. Subrecipient agrees to collect
documentation prior to providing services verifying that each person served resides within the City of Pearland
service area and meets the specified requirement that at least 70% of all persons served are of low and moderate
income. The Scope of Services to be provided by Subrecipient may be amended to include other activities
authorized under federal law that are approved in writing by the City of Pearland Finance Director, and within the
same general type of services described herein. In addition to the normal administrative services required as part
of this Agreement, the Subrecipient agrees to document progress using reporting requirements specified in
Paragraph VIII (8)(1)(2)(3)(5) of this agreement by providing the following levels of program services:
IV. Notice
Activity Units of service Der Month Total Units of services for Year Cost oer unit of service
Activity #1 40 40 unduplicated $958.00
Grantee
Initial Contact (Contact 1st)
Joel Hardy — Grants Coordinator
City of Pearland
3519 Liberty Drive
Pearland, Texas 77581
Supervising Contact (Contact 2^d)
Tara Kilpatrick — Budget Officer
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Subrecipient
Initial Contact (Contact 1st)
Holly McDonald
FORGOTTEN ANGELS FOUNDATION
2335 N. Texas
Pearland, TX 77581
Supervising Contact (Contact 2^d)
Renee McGuire — President
Exhibit B, BUDGET
for
Forgotten Angels Foundation
Pearland, TX
It is expressly agreed and understood that the Maximum Amount to be Paid by the Grantee under this Agreement
shall not exceed THIRTY-EIGHT THOUSAND. THREE HUNDRED AND TWENTY Dollars (38.3201.
IEXPENSE CATEGORIES
Personnel
Professional Fees/Contract
Services
Travel
Space Costs
Consumables and Supplies
Rent, Lease, Purchase Equipment
Project Budget Detail
BUDGET
CITY OF PEARLAND SHARE
Administrative I Operations
$o
AGENCY
LEVERAGE TOTAL BUDGET
so
so $0
$0 $0
$o $o
so $0
$0 $0
$o
$0
so
so
so
so
Construction
OTHER
IOperations Total:
PROJECT BUDGET TOTAL:
CITY OF PEARLAND
Total Award
$38,320
I SO
$38,320
$38,320
$38,320
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$49,742
$0
$0
$11,422 1 $49,742
$11,422
$49,742
Exhibit C
Certification for Contracts, Grants, Loans and Cooperative Agreements
The undersigned certifies, to the best of his or her knowledge and belief that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person
for influencing or attempting to influence an officer or employee of any agency affiliated with the:
a. allocation or distribution of CDBG funds involving the City of Pearland;
b. a Member of Congress in connection with the awarding of any Federal contract;
c. the making of any Federal grant;
d. the making of any Federal loan;
e. the entering into of any cooperative agreement; and
f. the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan, or
cooperative agreement.
(2) 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 Congress, or an employee of a Member of Congress in connection
with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit
Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the award documents for all
sub awards at all tiers (including subcontracts, sub grants, and contracts under grants, loans, and cooperative
agreements) and that all Subrecipients shall certify and disclose accordingly.
This certification is 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. Code. 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.
Executed this day of
Covered Action:
By
G i
(Signature)
P1Q-4C0 OAP
(Type or Print Name)
Pro ra m � ef� ►'
)0i,
0f, pa42 (Title)
Program, Project or Activity) ?"),0
27 of 34
EXHIBIT D, CONFLICT OF INTERESTS
All Applicants
The standards in OMB Circular A-110, Subpart C, provide that no employee, officer, or agent shall participate in the
selection, award, or administration of a contract supported by Federal funds if real or apparent conflict of interest
would be involved. Such a conflict would arise when an employee, officer, or agent, any member of his or her
immediate family, his or her partner, or an organization which employs or is about to employ any of the parties
indicated herein, has a financial or other interest in the firm selection for an award.
CDBG and HOME Applicants Only
The CDBG regulations at 24 CFR 570 570.611 and HOME regulations at 24 CFR 92.356 provide that no person who
is an employee, agent, consultant, officer, or elected official or appointed official of the recipient or Subrecipient that
are receiving CDBG or HOME funds and (1) who exercises or has exercised any functions or responsibilities with
respect to activities assisted with CDBG funds; or (2) who is in a position to participate in a decision-making process
or gain inside information with regard to these activities , may obtain a financial interest from a CDBG-assisted or
HOME -assisted activity, or have any interest in any contract, subcontract, or agreement with respect thereto, or the
proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure
or for one (1) year thereafter.
IF NO CONFLICTS EXIST, COMPLETE THE FOLLOWING:
❑' I certify that no conflict of interest exists between the City of Pearland and
Fo ..} o Atwtts Fout.iaA, c"
(Name of Organization)
I certify that no conflictx
of interest exists the subcontractors of and
ft)r0�}er1 A�eA. rojActct+ic✓1
(Name of Organization)
IF THERE IS A CONFLICT, COMPLETE THE FOLLOWING:
I certify that a conflict of interest does exist between the City of Pearland and
(Name of Organization)
I certify that a conflict of interest does exist between
and
(Name of subcontractor)
(Name of Organization)
Describe the nature of the conflict of interest below: (Please identify the individual, employment, and the conflict or
potential conflict [their affiliation with vour organizationp.
1 Si nature of Authorized Agency Official
1 Ae,ot€. Ole rQ jrts,cient
1 Typed Name and Title
28 of 34
Date
Exhibit E
EQUAL OPPORTUNITY
IS THE LAW
This Subrecipient is prohibited from discriminating on the ground of race, color, religion, sex, national origin, age, disability,
political affiliation or belief, and for beneficiaries only, citizenship or participation in programs funded under the Housing and
Community Development Act, Stewart B McKinney Homeless Assistance Act, or Title II of the Cranston Gonzalez National
Affordable Housing Act, in admission or access to, opportunity or treatment in, or employment in the administration of or in
connection with, any CDBG, ESG, or HOME -funded program or activity.
The City of Pearland is the primary recipient of CDBG funds that have been subawarded to this Subrecepient and does not
receive ESG or HOME funding. The City of Pearland receives CDBG program funding and hereby informs individuals that
believe they have been subjected to discrimination under the CDBG program or activity to file a complaint with the
Subrecipient. The complainant must await the Subrecipient's issuance of a decision, except for in the event that 90 days has
passed and the Subrecipient has failed to issue a decision.
Upon receipt of a decision or after no decision has been rendered by the Subrecipient, the party alleging discrimination shall
contact the Houston District Office of the U.S. Equal Opportunity Commission and file an official complaint. The City of
Pearland requests that a copy of the official complaint be submitted to our Finance Department for our records.
Subrecipients of CDBG funds are required to update the City on the status of discrimination claims and/or complaints.
The City of Pearland does not investigate discrimination claims involving non -City employees. Copies of complaints filed
with a CDBG Subrecipient and/or the Houston District Office of the U.S. Equal Opportunity Commission shall be sent directly
to:
Joel Hardy
Grants Coordinator
City of Pearland
Pearland, Texas 77581
Telephone: (281) 652-1795
GRIEVANCE INFORMATION FORM
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PLEASE PRINT OR TYPE ALL INFORMATION
I. Complainant: Please provide the following information concerning the person or organization filing the complaint.
Social Security Number: I I
Name: Telephone Number(s):
Address. Homo
Work:
II. Action Complained of: Please describe in detail the action(s) that you are complaining about. (Attach additional
pages if necessary)
Do you believe that your complaint involves a violation of the CDBG regulations. the CDBG grant or other
agreement under the Housing and Community Development Act? Yes No
If yes, please reference the provision(s) violated:
III. Respondent(s): Please name the person(s) or organization(s) that you believe to be responsible for the action(s)
that you complained about:
Name(s)
Address(es).
Explain how each Respondent is responsible for the action(s) that you are complaining about: (attach additional
pages if necessary)
Purpose
Complainant's Signature
SAMPLE
COMPLAINT PROCESS
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Date
This complaint process provides for the prompt review and equitable disposition of complaints alleging violations of the City of
Pearland's CDBG Program. These procedures are used by the City of Pearland and all its Subrecipient agencies.
General Policy
1. A complaint, as recognized by this process, is defined as an individual or organization's allegation of a violation of: the
Housing and Community Development Act, Stewart B McKinney Homeless Assistance Act, or the Title II of the
Cranston Gonzalez National Affordable Housing Act; the CDBG regulations; the City's contract with the U.S.
Department of Housing and Urban Development; and CITY OF PEARLAND contracts with its Subrecipient agencies.
A complaint must be filed within 180 days of the alleged occurrence.
2. The person or organization filing a complaint will be free from restraint, coercion, discrimination, or reprisal.
Complaints are not considered as reflecting unfavorably on either the complainant or management, but are to be
considered the expression of a lawful right.
3. The City of Pearland does not act as the recipient of any official complaints alleging employment discrimination and will
not conduct investigations involving discrimination where non -City employees are concerned. Subrecipients are urged
to handle matters involving discrimination complaints and/or allegations privately and shall not direct such matters to
the City of Pearland. Applicants attempting to receive CDBG-funded assistance or citizens participating in Subrecipient
programs funded by CDBG program dollars shall direct their complaints and/or allegations to the Subrecipient for
review and/or response and, subsequently, shall file their complaint(s) with the CDBG representative for the City of
Pearland, in the event the Subrecipient is unable to provide the citizen and/or participant with an acceptable remedy or
valid response.
4. All information and complaints involving allegations of fraud, abuse, or other criminal activity shall be reported directly
and immediately to the City of Pearland, Finance Director, 3519 Liberty Drive, City of Pearland, Texas 77581, (281)
652-1755.
Complaints not covered by this procedure:
1. Complaints alleging discrimination because of disability, race, color, national origin, age, sex, religion, political affiliation
or belief, retaliation, and citizenship are not covered by this procedure.
2. Complaints that do not allege a violation of the Acts and regulations cited above.
Procedure
1. Applicants are encouraged to resolve complaints informally with the Subrecipient, then providing the Subrecipient with
a written description of the allegation of violations and/or complaint.
2. If an applicant or participant in a CDBG-funded Subrecipient program activity decides to pursue an employment
discrimination complaint formally, the complaint must be submitted to the Houston District Office of the U.S. Equal
Employment Opportunity Commission in accordance with its policies and procedures.
3. If an applicant or participant in a CDBG-funded Subrecipient program activity decides to pursue a complaint regarding
matters other than employment discrimination, the complainant is urged to pursue resolution of the complaint through
the internal complaint procedures of the Subrecipient agency or through the federal agencies having jurisdiction over
the substance of the complaint.
4. Complainants should provide the City of Pearland with copies of their official complaints involving CDBG funded
programs and/or Subrecipients that operate such programs as part of the City of Pearland's CDBG program. These
shall be submitted to the following contact person:
Claire Bogard — Finance Director
City of Pearland
3519 Liberty Drive
Pearland, Texas 77581
Telephone: (281) 652-1755
SAMPLE
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IF APPLICABLE
BUY AMERICAN CERTIFICATION
Section 1605 of the American Recovery and Reinvestment Act states that:
"None of the funds appropriated or otherwise made available by this Act may be used for a project for
the construction, alteration, maintenance, or repair of a public building or public work unless all of the
iron, steel, and manufactured goods used in the project are produced in the United States."
To meet this requirement, the undersigned hereby certifies that all of the material, equipment and
accessories which are to be incorporated into the ( name of construction contract ), to be wholly
or partially funded by monies from the American Recovery and Reinvestment Act, has been
manufactured from domestic construction material as defined by 40 CFR 35.936-13 (D).
Name of Contractor
Signature of Authorized Official
Title
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Date
12/21/99
EXECUTION OF BID, NONCOLLUSION AFFIDAVIT, AND DEBARMENT CERTIFICATION NI 14
6414 -
The person executing the bid, on behalf of the Bidder, being duly sworn, solemnly swears (or affirms) that r�ayl�' i- w;ts
neither he, nor any official, agent or employee of the bidder has entered into any agreement, participated in any Cc�s�(
collusion, or otherwise taken any action which is in restraint of free competitive bidding in connection with this 8 Cr
and that the Bidder intends to do the work with its own bona fide employees or subcontractors and is not bidding for pfaqtttAt1
the benefit of another contractor.
In addition, execution of this bid in the proper manner also constitutes the Bidder's certification of "Status"
under penalty of perjury under the laws of the United States in accordance with the Debarment Certification
included elsewhere in the proposal form, provided that the Debarment Certification also includes any required
statements concerning exceptions that are applicable.
Attest
(Secretary) (Assistant Secretary)
Delete inappropriate title
SIGNATURE OF CONTRACTOR
(If a corporation uses this sheet)
(Print full name of corporation)
(Address as Prequalified)
By
(President) (Vice President)
(Asst. Vice President)
Delete inappropriate title
Print Signer's Name Print Signer's Name
NOTE - AFFIDAVIT MUST BE NOTARIZED
Subscribed and sworn to before me this the
day of , 20 .
SEAL:
o'f County.
State of
My Commission Expires:
Signature Sheet 1 (Bid) - Corporation
IF APPLICABLE
(Signature of Notary Public) NOTARY
CORPORATE SEAL
City of Pearland
OMB Circular A-133 Certification — Statement of Compliance, Certification and Assurances
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Overview
Each year, the Federal Government provides over $400 billion in grants to State, local and tribal governments,
colleges, universities and other non-profit organizations (non -Federal entities). The Single Audit Act of 1984 (with
amendment in 1996) and OMB Circular A-133 ("Audits of State, Local Governments, and Non -Profit Organizations")
provide audit requirements for ensuring that these funds are expended properly. All non -Federal entities that expend
$750,000 or more of Federal awards in a year ($500,000 for fiscal year ending on or before December 26, 2015 or
300,000 for fiscal year ending on or before December 30, 2003) are required to obtain an annual audit in accordance
with the Single Audit Act Amendments of 1996, OMB Circular A-133, the OMB Circular Compliance Supplement and
Government Auditing Standards. City of Pearland CDBG Subrecipients are required to certify and assure that their
current spending of federal government grant funds is, or is not, beyond the $750,000 threshold, per 2 CFR 200.
Agency Information
Organization Name.
Statement of Compliance
EIN:
On behalf of . I , hereby agree to
comply with the requirements set forth by the U.S. Department of Housing & Urban Development as promulgated by
the U.S. Office of Management and Budget - Office of Federal Financial Management Single Audit OMB Circular A-
133.
Certification (check one. complete and authorized official's initials)
Assurance
hereby certifies that it expects to meet the OMB Circular A-
133 spending threshold for the fiscal year and agrees to provide adequate documentation to
the City of Pearland upon completion of the FY Independent Single Audit.
hereby certifies that it does not expect to meet the OMB
Circular A-133 spending threshold for the fiscal year and will not be required to conduct an
Independent Single Audit.
The undersigned agrees to execute the necessary measures to comply with OMB Circular A-133 Single Audit if at
any time during its contractual period for operating CDBG grant funds and assures the City of Pearland that it will
conduct an Independent Single Audit of its federal government grant funds. The undersigned assures the City of
Pearland that it will provide a certified copy of the Single Audit for the appropriate fiscal year.
Authorized Official Signature & Title Date
Rev 2015
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