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R-2016-138 2016-08-08RESOLUTION NO. R2016-138 A Resolution of the City Council of the City of Pearland, Texas, approving the U. S. Department of Housing and Urban Development Community Development Block Grant Program year 2016/fiscal year 2017 Annual Action Plan. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Community Development Block Grant Program 10th Annual Action Plan, attached hereto as Exhibit "A", is hereby authorized and approved. PASSED, APPROVED and ADOPTED this the 8'h day of August, A.D., 2016. ATTEST: APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY TOM REID MAYOR 5 Pearland Texas Tenth Program Year Action Plan Resolution No. R2016-138 Exhibit "A" The CPMP Tenth Annual Action Plan includes the SF 424 and Narrative Responses to Action Plan questions that CDBG, HOME, HOPWA, and ESG grantees must respond to each year in order to be compliant with the Consolidated Planning Regulations. Narrative Responses GENERAL Executive Summary The City of Pearland will enter its 10th year as a HUD Entitlement Jurisdiction with the implementation of Program Year 2016 activities. Life -to -date, the City has been allocated a total of $2,742,987 in regular and Recovery Act CDBG funding prior to Program Year 2016, has spent $2,092,588 as of the time of submission of this Action Plan, and has been notified by HUD of its Program Year 2016 Annual CDBG Allocation of $325,431. The City has completed the process of developing its Annual Action Plan per 24 CFR 91.220 of Subpart C: Local Governments; Contents of Consolidated Plans. Pearland officials have identified, considered and approved eight (8) activities, in addition to program administration, for funding in PY 2017. The activities being funding with the Pearland PY 2016 CDBG allocation from HUD will meet HUD National Objectives by providing eligible residents within the Entitlement Jurisdiction mental health services, a handicapped facility, youth services, access to emergency subsistence resources, and senior services; in addition to the ongoing code enforcement and housing repair/rehabilitation program activities that were initiated in Program Year 2014. The City's plan allocates $48,814 (15%) of the $325,431 for Public Services activities; $65,086 (20%) to the City and professional services providers for program administration (CDBG Matrix Code 21); and, the remaining $211,531 (65%) for infrastructure, code compliance and housing rehabilitation activities. A total of $118,150 (56%) of the $211,531 budgeted for infrastructure will go towards the construction of a vocational training facility at a local public service agency. The City anticipates spending 43.69% of its allocation in the CDBG Target Area, with no less than 71% of the PY '16 CDBG funds benefiting low -moderate income residents. Considering the technical assistance provided by City CDBG program administration staff, as well as the work performed to conduct Fair Housing Activities, some portions of the 20% expenditures for program administration will additionally benefit low -moderate income communities. Table 1 below highlights the PY 2016 allocation amounts and activities. Ninth Program Year Action Plan City of Pearland 1 6 Community Development Block Grant Projected Use of PY 2016 Funds Below is a list of percentages allocated for each program category: Percent of Allocation for Each Category Category Maximum Allowed Actual Public Services 15% 15% Infrastructure/Public Facilities N/A 65% Administration 20% 20% This Annual Action Plan outlines the citizen involvement in the planning process, the need for the services, facility improvements and infrastructure installations to be accomplished and the proposed outcomes for each project. All projects are within the priorities of the City's 2nd 5 -Year Consolidated Plan, adopted by Pearland City Council in PY 2012 and presently in use by the City. The City of Pearland has utilized past funds for assisting nonprofit agencies in improving facilities of local public service agencies, providing emergency assistance, employment training and education to the low -to -moderate income, and improving pedestrian safety through sidewalks. During the past 20 months, the City has funded a number of infrastructure, public facility and public service projects. Ninth Program Year Action Plan City of Pearland 2 7 Proposed Units of Service PY 2016 Recommended Allocation CDBG Project Code Projects People Housing 14H Single Family Housing Rehabilitation/Repair N/A 8 S 53,000 14A Single Family Housing Rehab Program Coordination N/A 8 S 10,381 03B Forgotten Angels Vocational Training Facility 50 N/A $ 118,150 15 Code Enforcement N/A 100 $ 30,000 Subtotal $ 211,531 05Q Pearland Neighborhood Center's Emergency Assistance 48 N/A S 15,612 05A ActionS, Inc. -Meals on Wheels" for Seniors 225 N/A $ 11,205 05D HEROS Youth Health & Wellness 30 N/A S 12.000 050 Counseling Connections Mental Health Services 16 N/A S 9,997 Subtotal $ 48,814 21 General administration. contract consultants. in - house staff & regulatory compliance expenditures. N/A N/A S 65.086 Subtotal 369 116 $ 65,086 Total PY 2016 Related CDBG Expenditures $ 325,431 Below is a list of percentages allocated for each program category: Percent of Allocation for Each Category Category Maximum Allowed Actual Public Services 15% 15% Infrastructure/Public Facilities N/A 65% Administration 20% 20% This Annual Action Plan outlines the citizen involvement in the planning process, the need for the services, facility improvements and infrastructure installations to be accomplished and the proposed outcomes for each project. All projects are within the priorities of the City's 2nd 5 -Year Consolidated Plan, adopted by Pearland City Council in PY 2012 and presently in use by the City. The City of Pearland has utilized past funds for assisting nonprofit agencies in improving facilities of local public service agencies, providing emergency assistance, employment training and education to the low -to -moderate income, and improving pedestrian safety through sidewalks. During the past 20 months, the City has funded a number of infrastructure, public facility and public service projects. Ninth Program Year Action Plan City of Pearland 2 7 General Questions • Describe the geographic areas of the jurisdiction (including areas of low income families and/or racial/minority concentration) in which assistance will be directed during the next year. Where appropriate, the jurisdiction should estimate the percentage of funds the jurisdiction plans to dedicate to target areas. The City of Pearland is located primarily in Brazoria County, Texas with a portion of its western edge in Fort Bend County, Texas and a portion of its northwest and northeast edges in Harris County, Texas. All three counties are CDBG Entitlement Jurisdictions and HOME Participating Jurisdictions. It also abuts Galveston County, which is not an Entitlement Jurisdiction. The map below illustrates the location of the City, its corporate limits and the location of its low - to moderate -income residents. City of Pearland and 2016 CDBG Target Areas Most entitlement jurisdictions throughout the United States are required to have a concentration of low -mod population of more than 51 percent for target areas. However, the City of Pearland is an exception and its accepted minimum has been set at 40.93 percent. Ninth Program Year Action Plan City of Pearland 3 8 City of Pearland, Texas PY 2016 Thus, the map above illustrates the areas with 40.93 percent or more low- to moderate - income persons, as defined by HUD. According to the U.S. Bureau of the Census, the 2010 population of the City of Pearland was 91,252, up 142% from 37,640 in 2000. Some growth has been due to annexation, but the majority of the population increase can be attributed to build out of and new subdivisions within the City Limits. Based on the data provided by the U.S. Department of Housing and Urban Development, per the 2010 U.S. decennial census, the eligible Census Tract Block Group populations comprise 17,840 of the Pearland population, with 9,860 (56.33%) being low -moderate income. However, because one of these is located in an area that is not the primary County the jurisdiction is located, the City does not consider that section of town part of its CDBG Target Area. Therefore, the focus of our efforts will involve the locations primarily in Brazoria County, comprised of 15,890 people, 8,545 of which (53.78%) are low -moderate income. • Describe the basis for allocating investments geographically within the jurisdiction (or within the EMSA for HOPWA) (91.215(a)(1)) during the next year and the rationale for assigning the priorities. All area -based projects are located within established CDBG Target Areas with at least 40.93% low -moderate -income households. The primary basis for allocating investments being the City's 2nd 5 -Year Consolidated Plan, other supportive activities produce specific priorities each year towards meeting longer term goals and objectives. These include observational research by local code enforcement support groups such as the Eyes of Pearland and the Citizen Patrol, the City's Capital Improvement Program (CIP), the Pearland Citizen Survey, Subrecipient funding applications, and demographic indications of the need for specific investments. Therefore, in addition to Fair Housing activities, the City will plan for the implementation of four projects that serve low -moderate income residents of the City of Pearland. The City proposes to use Community Development Block Grant funds from HUD for: • Continuation of its Code Enforcement in Low -Moderate Income Target Areas; • Continuation of its single-family housing rehabilitation program for low -moderate income Pearland residential homeowners that occupy such residences; • Continuation of a program to provide short-term emergency financial assistance to eligible, local, low -moderate income residents that are facing evictions, utility shut- offs, or even prescription medicines for the elderly or mentally -disabled adults; • Mental health services to low -moderate income residents; • Senior services programs that provide basic meals to transportation or mobility challenged elderly residents; • Youth services that improve local health and wellness levels among children; and • Vocational training facility development to promote opportunities for high -functioning mentally -disabled adults in Pearland. Code Enforcement (CDBG Eligibility Matrix Code 15) Code Enforcement is an eligible expense under 24 CFR 570.202(c), and will be used to remediate the beginning signs of slum and blight. Evidence -based programs demonstrate the effectiveness of removing code violations through enforcement preserve the existing sustainable living conditions and prevent impediments. A Code Enforcement Officer will continue to be deployed to low -moderate income areas of town (CDBG Target Area) to identify code violations, improve education and awareness of local standards, cite violators of local ordinances, and encourage violators to self -remediate code infractions to avoid citations. Tenth Program Year Action Plan City of Pearland 4 9 Location of PY 2016 Code Enforcement Activities and Local Facility Improvements faI Vocational Training Facility for Mentally - Disabled Adults Legend //, Code Enforcement Ninth Program Year Action Plan City of Pearland 5 10 City of Pearland, Texas PY 2016 Area Benefit Activities by 2010 Census Tract Block Group Project Census Tract Block Group Total Population Low -Mod Income Population % Low - Mod Income Code Enforcement 660200 1 550 245 44.55% 660300 1 745 505 67.79% 660500 2 1,045 565 54.07% 660500 4 1,505 655 43.52% 660500 5 1,965 810 41.22% 660500 6 2,665 1,250 46.90% 660702 3 1,085 590 54.38% 660900 1 1,585 1,105 69.72% 660900 3 1,500 950 63.33% 660900 4 1,315 1,080 82.13% 661900 1 1,930 790 40.93% Totals 15,890 8,545 53.78% Tenth Program Year Action Plan City of Pearland 6 11 • Describe actions that will take place during the next year to address obstacles to meeting underserved needs. Limited Clientele (LMC) and Low -Moderate Income Housing (LMH) strategies will be used to address obstacles to meeting underserved needs. The City will continue serving citizens with emergency subsistence payments and handicapped facility improvements, but has also added new activities designed to meet underserved needs in the community. 1. Single Family Owner -Occupied Home Rehabilitation (CDBG Eligibility Matrix Code 14A) Alongside Code Enforcement activities, an additional $10,381 in PY 2016 CDBG funding will be used to continue the staffing of an existing Single Family Owner -Occupied Housing Rehab/Repair program. Code Enforcement and home repair/rehab activities will continue to work hand-in-hand. This will help the City address local violations of residential building codes and the emergence of dilapidation or blighted conditions. No funds will be delivered directly to homeowners, and only those that qualify based on an intensive review of their socioeconomic status will be approved for participation in the program. Income -limited, qualified Pearland residents that own and occupy their homes can become eligible for forgivable loans or grants through the City's CDBG Program, for the express purpose of having a properly solicited and contracted entity perform repair and/or rehabilitation of their home. City staff and administration will continue to use HUD funds originally allocated in PY 2014 to conduct actual repair/rehab activities, with unspent funds from PY 2015 and the PY 2016 allocations being used to continue program delivery activities via staff. 2. Subsistence Payments (CDBG Eligibility Matrix Code 05Q) The City is proposing to utilize 31.98% of its allowable $48,814 on social service program activities designed to assist local low-income residents in avoiding evictions, utility shut- offs, and limited access to expensive and necessary prescription medication. One agency has qualified for providing such services, and based on their request, history of capacity incurring expenditures for reimbursement, and ability to effectively meet local and federal requirements, the Pearland Neighborhood Center will receive $15,612 of these funds. 3. Senior Services A "meals on wheels" program will provide eligible, local, elderly residents that are sick, "shut in," or face mobility and transportation challenges with meal delivery services. The program will be operated by ActionS, Incorporated, which will receive $11,205 of the City's Public Service CDBG Program allocation. 4. Youth Services A local effort to improve health and wellness among youth will do so by increasing assistive resources that promote exercise and physical activity in low -moderate income Pearland children. Helping Emergency Response Officers and Students (HEROS) will receive $12,000 to enroll eligible youth in exercise classes and health improvement activities in Pearland. Ninth Program Year Action Plan City of Pearland 7 12 City of Pearland, Texas PY 2016 5. Mental Health Services Counseling for low -moderate income individuals and families is important for our community, as those without employment or income that is supportive of mental health services often face the challenge of going through life without help. Counseling Connections will provide such services to eligible Pearland residents, and will be allocated $9,997 for that purpose. 6. Handicapped Facilities The mentally -disabled adults in Pearland include a population that are high -functioning and capable of employment and vocationally -rewarding activities. Most desire to be a functioning part of society, and all are an important part of our community. Therefore, the City will allocate $118,150 towards the construction of a 4,000 square foot metal building to be used to house vocational training activities for those served by the Forgotten Angels Foundation. • Identify the federal, state, and local resources expected to be made available to address the needs identified in the plan. Federal resources should include Section 8 funds made available to the jurisdiction, Low -Income Housing Tax Credits, and competitive McKinney-Vento Homeless Assistance Act funds expected to be available to address priority needs and specific objectives identified in the strategic plan. It is anticipated that federal funds allocated to the City from the U.S. Department of Housing and Urban Development's Community Development Block Grant program will provide the majority of resources aimed at addressing the needs identified in this Annual Action Plan. Local resources will include time and effort from staff, management, elected officials, and volunteers that participate in the decision-making and citizen involvement aspects of the City's CDBG program activities. Staff representatives from Finance, Fire, Capital Projects, Community Development, and other departments will participate in the delivery of local standards for completing infrastructure improvements and housing activities. Managing the Process 1. Identify the lead agency, entity, and agencies responsible for administering programs covered by the consolidated plan. The City of Pearland is the lead agency for the CDBG program. The City's Finance Department will continue to oversee the planning and implementation of all CDBG-funded projects. Community development projects, such as parks acquisition/ enhancement, infrastructure and facility improvements, will be managed in-house by the appropriate City department. Public service projects will be managed by nonprofit subrecipient agencies under contract with the City. All projects will be monitored by the Finance Department, which will provide direct administration of all CDBG funding/financing. Two activities will be conducted to provide oversight and management of the process: General Program Administration (21A) and Single Family Housing Program Administration (14A). The Tenth Program Year Action Plan City of Pearland 8 13 City of Pearland, Texas PY 2016 General Program Administration activities will produce the management and oversight for the overall CDBG program, while the administrative activities designed to coordinate housing repairs will take place under the Housing Program Administration activity. 2. Identify the significant aspects of the process by which the plan was developed, and the agencies, groups, organizations, and others who participated in the process. For PY 2016 the City used the 2nd Consolidated Plan's needs and priorities to set its current year focus. Since these are very similar to those outlined in the 1st Consolidated Plan, the activity focus is also similar. The Finance Department's CDBG Grants Coordinator met with staff from other City departments to determine priority projects for the PY 2016 funding cycle. Each project falls within the priorities set forth in the 5 -Year Consolidated Plan and addresses the needs of the CDBG Target Areas and low- to moderate -income residents. A budget for the projects was developed and presented to the City Manager along with the scope of each project. In addition, the City sent emails to public service and housing agencies in the area, as well as posting information about the application process on the City's website and various social media, explaining the CDBG program and inviting them to apply for subrecipient funds and providing a copy of the grant application. Also included was an invitation to the first public hearing and pre -application workshop. The public hearing focused on the CDBG process and asked the attendees for their determination of priority needs in the areas of housing, special needs populations (including homeless), public services and community development. The pre -application workshop, which immediately followed the public hearing, included a round- table discussion with attending agencies and answers to questions regarding project scope, beneficiaries and funding availability. The agreed-upon infrastructure/improvement and public service projects were then presented to City Council for approval prior to the release of the Annual Action Plan. In May of 2015, City CDBG staff presented at a local community forum held at the Pearland Neighborhood Center, for the purpose of informing all area non-profit agencies about the funding opportunities for eligible, charitable organizations, and the local efforts in place to meet HUD National Objectives. A second, docketed public hearing was held during the 30 -day public comment period for the Action Plan, giving attendees the opportunity to comment on the priorities developed and the proposed allocation of funds. Both public hearings included a section on the Fair Housing Act and fair housing issues. Both public hearings were advertised in the first section of the general circulation newspaper for Pearland. A copy of each ad is included in the attachments. A second City Council meeting included the Annual Action Plan's proposed projects for approval. The City Council agenda is posted for public review before each meeting and there is a time for citizen comments at each meeting. At that time residents were afforded the opportunity to speak at both of the City Council meetings regarding the proposed funding allocations and Annual Action Plan. 3. Describe actions that will take place during the next year to enhance coordination between public and private housing, health, and social service agencies. Tenth Program Year Action Plan City of Pearland 9 14 City of Pearland, Texas PY 2016 Code Enforcement and housing rehabilitation activities will enhance coordination between local social service agencies, neighborhood organizations, and the City. Citizen Participation 1. Provide a summary of the citizen participation process. The Citizen Participation process will continue to be an on-going element of the CDBG program. Each year, the City makes a concerted effort to involve the residents in all of its planning activities. In preparation for PY 2016, the City hosted two public hearings and a pre -application workshop for public service providers. Both public hearings and the workshop were advertised in the front section of the general circulation newspaper and posted on the City's website. The two public hearings were conducted at or after 6:00 PM, one on April 20, 2016 and the second on July 11, 2016, to allow participation by residents that work during the day. The public hearings included an overview of the CDBG process with time given to receive the comments of every attendee regarding housing, special population, community development and fair housing issues in Pearland. There was an opportunity for discussion on better ways to collaborate and reach more residents with services and opportunities to become involved in CDBG planning. The first public hearing was in conjunction with the pre -application workshop for potential subrecipients. The second public hearing was conducted in a docketed presentation before the public at a Regular Meeting of the Pearland City Council. A copy of the notices and the Power Point presentations are included in the attachments. In addition to the public hearings, the City staff presented the funding recommendations, Con -Plan priorities, and later the Action Plan, to City Council for review, comment and approval. The City Council agenda is available to the public and anyone wishing to speak on a topic is welcome. This afforded two more opportunities for residents and service providers to speak publicly about the needs in Pearland. The Action Plan was scheduled for approval by City Council on August 8, 2016. The City has attended various meetings of public service agencies and provided information and contacts for them to share with their staff, volunteers and program participants regarding the CDBG program. The City is committed to working with public service agencies in identifying needs, priorities, funding opportunities and opportunities to collaborate. One of the most effective avenues to involving residents in the planning process is through the agencies that directly serve them. Pearland will continue to encourage citizen participation, with particular emphasis on participation by persons of very -low, low, and moderate income and those who are residents of target areas in which funds are allocated or proposed to be allocated. 2. Provide a summary of citizen comments or views on the plan. Citizen comments were mainly provided at the 2nd Docketed Public Hearing on July 11, 2016, and were summarily in support of the City's plan to diversify the Subrecipients providing Public Services. A strong sense of consensus from the community and elected officials was in place for this 10th Annual Action Plan and its contents. Tenth Program Year Action Plan City of Pearland 10 15 City of Pearland, Texas PY 2016 3. Provide a summary of efforts made to broaden public participation in the development of the consolidated plan, including outreach to minorities and non-English speaking persons, as well as persons with disabilities. The City of Pearland has been involved in the public participation process and has relied on the social service agencies to assist in outreach to the community, particularly minorities, non-English speakers, elderly and persons with disabilities. The social service agencies were asked to provide to their program participants information about CDBG and contact information and notices of public hearings. 4. Provide a written explanation of comments not accepted and the reasons why these comments were not accepted. *Please note that Citizen Comments and Responses may be included as additional files within the CPMP Tool. The City's policy is to accept all comments and consider them in developing the Annual Action Plan or other CDBG plans and activities. Institutional Structure 1. Describe actions that will take place during the next year to develop institutional structure. The City of Pearland manages the CDBG program through the Finance Department and its Grants Coordinator. By assigning a centralized person to investigate, apply for and manage grants for the City, the Finance Department has been able to increase efficiency and use multiple funding streams to create a more comprehensive approach to serving the low- to moderate -income in Pearland. To ensure that the HUD regulations were followed and that the program ran smoothly, the City contracted with a consultant who has more than a decade of CDBG experience. The consultant worked closely with the city staff and has now stepped back for the Grants Coordinator to take a more comprehensive role in managing the program. During PY 2014, the Grants Coordinator will continue to attend HUD -sponsored workshops and trainings, to work closely with the City's HUD representative and to provide technical assistance to other City staff members and subrecipients. Monitoring 1. Describe actions that will take place during the next year to monitor its housing and community development projects and ensure Tong -term compliance with program requirements and comprehensive planning requirements. The City of Pearland's monitoring strategy is designed to assist staff in fulfilling its regulatory obligation in monitoring subrecipients, including City departments, as well as assist subrecipients in best serving their consumers. The primary purpose for this monitoring strategy is to ensure proper program performance, financial performance and regulatory compliance in accordance with HUD Regulations. The secondary purpose is to ensure that Tenth Program Year Action Plan City of Pearland 11 16 City of Pearland, Texas PY 2016 the funded agencies are providing the best and most cost effective services possible and that they are positioned to access additional funding from non -HUD sources. Staff monitors to ensure that each subrecipient is adhering to its approved scope of service, budget and schedule of service. Lags in spending or in submission of reimbursement requests result in additional monitoring actions or staff support provided to subrecipients in the form of technical assistance. Each subrecipient and City department must also abide by the regulatory guidelines set forth by HUD in providing benefits to low -moderate income persons and/or eliminating a slum or blighted condition. The monitoring process is an on-going one of planning, implementation, communication and follow-up. Under normal circumstances, on-site monitoring is conducted semi-annually. However, if the activity or program is considered to have a high-risk of non-compliance, a more frequent monitoring schedule is developed. High risk programs include housing rehabilitation, economic development programs undertaken by any subrecipient for the first time, and programs undertaken by an agency or department with a history of staff turnovers, reporting problems, or monitoring findings. Additionally, all subrecipients must submit reimbursement requests at least quarterly, though are encouraged to submit monthly. These packets include information regarding clients served, agency organization, Board meetings, agency activities as well as actual financial requests. The packets are reviewed by the staff member in charge of CDBG and the Director of Finance before any reimbursements are made. Monitoring provides a basis for assessing a program's operations and identifying problems. Another goal of monitoring is to obtain ongoing data for use in determining program achievement and success. Evaluations summarize monitoring findings and program goals, and measure progress toward those goals during the provision of services. Clear record keeping requirements for programs are essential for grant accountability. Responsibility for maintaining many of the records is assigned to the subrecipients. This includes responsibility for documenting activities with special requirements, such as necessary determinations, income certifications or written agreements with beneficiaries, where applicable. The monitor(s) make site visits to the activities or projects of each subrecipient. The monitoring process consists of the monitors examining time records, randomly selecting client files, financial records, Federally -funded equipment and machinery. At the beginning of each Program Year, the staff meets with each subrecipient to provide reporting forms, discuss expectations and enter into a 12 -month contract for services. A pre - monitoring contact is made with the designated person(s) of the subrecipient agency to discuss the overall expectations, information to be viewed and site visits. This also allows staff an opportunity to discuss solutions to possible problems that may have occurred from past experiences with a particular subrecipient. The procedure for conducting the monitoring consists of the following: 1. Prior to the actual award contracts, the staff holds one-on-one workshops for all subrecipients. At that time monitoring procedures, reporting procedures and expectations are discussed and reporting forms provided in hard -copy and electronic formats. Tenth Program Year Action Plan City of Pearland 12 17 City of Pearland, Texas PY 2016 2. Mid -year, each subrecipient is notified of a date, time and place for a monitoring visit and the information to be viewed and discussed. 3. A conference is held with a Board Member or Executive Director and their designated staff members who are working with the activity being funded. 4. The actual monitoring visit is conducted by completing the monitoring interview form, and viewing documentation. If applicable, had there been housing rehabilitation completed, the monitors would have visited each house receiving HUD -funded repair. 5. Monitoring visits conclude with monitor(s) advising the subrecipient of any deficiencies. 6. Within 10 business days, the City provides the subrecipient agency with written notice via mail or email of the results of the monitoring and corrective measures, if any, to be taken. Any agency with deficiencies is given 30 days to make the necessary changes and document the corrections. 7. Prior to the approval of any payments, the staff reviews all reimbursement requests and back-up documentation for accuracy, eligibility of activities/clientele and proper supporting information. Any errors or deficiencies are reported to the subrecipient and the documentation corrected and resubmitted. Subrecipients are required to submit the following forms before reimbursements can be made: • Monthly Beneficiary, Progress and Expenditure Reports provide quarterly information and are due to the City no later than the 10th day of the month following each quarter. • Any subrecipient that expends $500,000 or more in federal funds in one (1) year must have an independent audit performed which complies with the OMB Circular A-133 Single Audit Act. This does not impact any of Pearland's subrecipients at this time, but the City reviews each subrecipient's budget at the time of annual application to ensure that A-133 does not apply or to require the single audit if it does apply. Lead-based Paint 1. Describe the actions that will take place during the next year to evaluate and reduce the number of housing units containing lead-based paint hazards in order to increase the inventory of lead -safe housing available to extremely low- income, low-income, and moderate -income families, and how the plan for the reduction of lead-based hazards is related to the extent of lead poisoning and hazards. The City of Pearland is now proposing housing rehabilitation projects that could lead to the evaluation or reduction of the number of housing units containing lead-based paint hazards. The City will provide information on lead poisoning to all social service agencies. The City will encourage the agencies to use the information to educate their clients and program participants. Any and all rehabilitation activities will include the proper measures to remediate violations of laws addressing the hazards presented by lead-based paint. HOUSING Tenth Program Year Action Plan City of Pearland 13 18 City of Pearland, Texas PY 2016 Specific Housing Objectives *Please also refer to the Housing Needs Table in the Needs.xls workbook. 1. Describe the priorities and specific objectives the jurisdiction hopes to achieve during the next year. A major priority for the City during PY 2014 was to implement code enforcement and single family home rehabilitation programs for CDBG funded in PY 2014. As the City has grown and more new homes have become available, small numbers of older homes have become neglected. The City charged itself with enforcing more code violations in low -moderate income target areas and encouraging low -moderate income homeowners to bring dilapidated residential and commercial properties into compliance with local code, all beginning in PY 2014. The City will continue Code Enforcement and Single Family Housing Rehab activities in PY 2016. 2. Describe how Federal, State, and local public and private sector resources that are reasonably expected to be available will be used to address identified needs for the period covered by this Action Plan. The City of Pearland is within the Brazoria County Housing Authority jurisdiction and the City will refer City residents to BCHA to apply for Section 8 vouchers. Additionally, because the City is no longer under the jurisdiction of the County's HOME program, community stakeholders have encouraged a local housing nonprofit to become a State of Texas CHDO to expand its inventory of housing for the disabled. Needs of Public Housing 1. Describe the manner in which the plan of the jurisdiction will help address the needs of public housing and activities it will undertake during the next year to encourage public housing residents to become more involved in management and participate in homeownership. There is no public housing in Pearland and the only Public Housing Authority that serves the Pearland area, is the Brazoria County Housing Authority, which provides Section 8 Housing Choice Vouchers only. As part of the administrative process, the City will continue to refer citizens to Brazoria County Housing Authority to ensure access by Pearland residents to the Section 8 program. Currently, only one apartment complex accepts Section 8 vouchers and the City will continue to assist BCHA in educating other apartment managers about the program and encourage them to accept the housing choice vouchers. 2. If the public housing agency is designated as "troubled" by HUD or otherwise is performing poorly, the jurisdiction shall describe the manner in which it will provide financial or other assistance in improving its operations to remove such designation during the next year. Not Applicable — Brazoria County Housing Authority is not troubled Tenth Program Year Action Plan City of Pearland 14 19 Housing Problems by Elderly. Ethnicity and Disability* Total Households All HHs Disabled African American Hispanic Elderly Renters 248 149 0 40 Other Renters 2,409 235 105 403 Elderly Owners 1,807 596 15 68 Other Owners 8,684 779 494 1,025 Total 13,148 1,759 614 1,536 With Housing Problems Elderly Renters 46.0 33.6 0.0 50.0 Other Renters 35.7 44.7 52.4 34.5 Elderly Owners 18.2 23.3 100.0 5.9 Other Owners 17.3 23.6 30.5 27.3 Total 21.3 27.2 34.2 28.8 City of Pearland, Texas PY 2016 Barriers to Affordable Housing 1. Describe the actions that will take place during the next year to remove barriers to affordable housing. Fair Housing Choice: The Census Bureau and HUD collaborate each decade to provide a set of Comprehensive Housing Affordability Strategy (CHAS) tables detailing the number of units with one or more housing problems. Housing problems are defined in the CHAS as overcrowding, without complete kitchen or plumbing, and/or housing cost burden. The CHAS data are available for housing problems for the disabled and minorities for Pearland. Approximately 40 percent of all physically disabled renters are living in housing with housing problems. Just over half (52.4%) of the African American renters and 35.9 percent of the Hispanic renters had housing problems in 2000. The CHAS data for disabled and minority do not differentiate between cost burdens and structural problems, however, based on the age of the housing stock and the small number of units overall lacking some plumbing or kitchen facilities, it can be assumed that the vast majority of the housing problems are cost burdens and/or overcrowding. Considerably fewer elderly homeowners (18.2%) than elderly renters had housing problems. Likewise, 30.5 percent of African American homeowners and 26 percent of Hispanic homeowners had housing problems, compared with 52.4 percent and 35.9 percent respectively for renters. While 40.4 percent of physically disabled renters had housing problems, 23.5 percent of owners had similar problems. *Summarized from CHAS tables for Elderly, Disabled and by Ethnicity Tenth Program Year Action Plan City of Pearland 15 20 City of Pearland, Texas PY 2016 African Americans and physically disabled had a minor, yet duly notable, disproportionate share of housing with problems — either cost burdens, overcrowding, structural issues or any combination of these problems. Hispanic homeowners also had a disproportionate share of housing with problems. It should be noted, however, that the disproportion in percentages with housing problems is a factor of the low number of total units in those categories. Areas of Minority Concentration and Programs Addressing the Needs of Protected Classes: The map below shows the percent minority population by block group from the 2005-2009 American Community Survey of the Census Bureau. 2005-2009 Average Percent Minority Population Legend 2000 Census Block Groups 2005.9 ACS % Minority • :5% - 25.01-37 5% - 37 51-50% -=50% (—_ City inti Utilization of CDBG funds for Fair Housing Activities: The City will utilize CDBG administration funds for Fair Housing activities through educational materials related to Fair Housing that are discussed at the public hearings held in connection with the CDBG program. In 2012, the City submitted a new Consolidated Plan and Analysis of Impediments to Fair Housing Choice/Fair Housing Plan and both documents contain as much public input as possible, including surveys of resident and stakeholders/advocates in the services, housing choice and policies regarding all protected classes. In PY 2016, the City will provide the public with information and awareness materials designed to affirmatively further fair housing in Pearland. All materials will be posted on the City's website upon Council approval. Information about fair housing choice will also be posted on the City's website and during Fair Housing Month, and will also be disseminated to citizens via the City's municipal access channel. The City will make HUD's brochure and complaint form available upon request. The public library and each of the subrecipients' offices are other locations that complaint forms are made available to citizens. Tenth Program Year Action Plan City of Pearland 16 21 City of Pearland, Texas PY 2016 Activities relating to affirmatively furthering fair housing: The City submitted its Analysis of Impediments to Fair Housing to HUD in November of 2012 and is committed to Affirmatively Furthering Fair Housing with 5% of its Program Planning and Administration funds being devoted to Fair Housing Activities. Staff will dedicate this percentage of time towards the development of educational information documenting Fair Housing laws that will be distributed via the City's website and investigate the need to enhance or improve the City's capacity for responding to complaints about Fair Housing matters. The City presents the Action Plan and other HUD -required evaluation and outcome measurement reports, including but not limited to the CAPER, Consolidated Plan, and Environmental Review Record, in English. However, public notices and other advertisements relative to the Citizen Participation Plan (CPP) are produced to serve non-English speaking populations and the City announces its preparedness to provide translation services upon request if Spanish, Asian, Indian or disabled language barriers require such efforts. Visually - impaired citizens of the jurisdiction may request that staff read the document(s) to them, or an audio -recording of these documents can be provided. The City will work towards achieving the following strategies to address public and private impediments to fair housing as identified in its Analysis of Impediments to Fair Housing. Others unaddressed in this Action Plan will be addressed in following years. Local Codes, Ordinances and Policies; Public Facilities/Infrastructure; and Housing • During 2016, Pearland will continue to determine the benefits of developing a Fair Housing local ordinance, based on its review ordinances of other Texas cities in PY 2014. • The City of Pearland will continue to work with Brazoria County and Houston -Galveston Area Council in the development of a regional transportation plan. • The City of Pearland will continue to provide infrastructure and facility improvements and upgrades to CDBG Target Areas, which are those neighborhoods of lowest income; some of which may have high concentrations or protected classes. • The City of Pearland will work with Brazoria Housing Authority and Pearland landlords to make referrals to the Brazoria Housing Authority for any resident wishing Section 8 and any landlord wishing to accept Section 8 vouchers. • The City of Pearland will participate in the development process of private subsidized units for the elderly and disabled, and will certify those which are consistent with the Consolidated Plan, zoning ordinance and building codes. • In the event that any complaints involving deed restrictions come to the City's attention, the Fair Housing Officer will assist the complainant in completing HUD's Fair Housing Complaint form and will refer the complainant to the Houston Field Office of HUD. HOME/ American Dream Down payment Initiative (ADDI) 1. Describe other forms of investment not described in § 92.205(b). Tenth Program Year Action Plan City of Pearland 17 22 City of Pearland, Texas PY 2016 2. If the participating jurisdiction (P3) will use HOME or ADDI funds for homebuyers, it must state the guidelines for resale or recapture, as required in § 92.254 of the HOME rule. 3. If the P3 will use HOME funds to refinance existing debt secured by multifamily housing that is that is being rehabilitated with HOME funds, it must state its refinancing guidelines required under § 92.206(b). The guidelines shall describe the conditions under which the PJ will refinance existing debt. At a minimum these guidelines must: a. Demonstrate that rehabilitation is the primary eligible activity and ensure that this requirement is met by establishing a minimum level of rehabilitation per unit or a required ratio between rehabilitation and refinancing. b. Require a review of management practices to demonstrate that disinvestments in the property has not occurred; that the Tong -term needs of the project can be met; and that the feasibility of serving the targeted population over an extended affordability period can be demonstrated. c. State whether the new investment is being made to maintain current affordable units, create additional affordable units, or both. d. Specify the required period of affordability, whether it is the minimum 15 years or longer. e. Specify whether the investment of HOME funds may be jurisdiction -wide or limited to a specific geographic area, such as a neighborhood identified in a neighborhood revitalization strategy under 24 CFR 91.215(e)(2) or a Federally designated Empowerment Zone or Enterprise Community. f. State that HOME funds cannot be used to refinance multifamily loans made or insured by any federal program, including CDBG. 4. If the PJ is going to receive American Dream Down payment Initiative (ADDI) funds, please complete the following narratives: a. Describe the planned use of the ADDI funds. b. Describe the PJ's plan for conducting targeted outreach to residents and tenants of public housing and manufactured housing and to other families assisted by public housing agencies, for the purposes of ensuring that the ADDI funds are used to provide down payment assistance for such residents, tenants, and families. c. Describe the actions to be taken to ensure the suitability of families receiving ADDI funds to undertake and maintain homeownership, such as provision of housing counseling to homebuyers. Not Applicable - City of Pearland is not a HOME Participating Jurisdiction Tenth Program Year Action Plan City of Pearland 18 23 City of Pearland, Texas PY 2016 HOMELESS Specific Homeless Prevention Elements *Please also refer to the Homeless Needs Table in the Needs.xls workbook. 1. Sources of Funds—Identify the private and public resources that the jurisdiction expects to receive during the next year to address homeless needs and to prevent homelessness. These include the McKinney-Vento Homeless Assistance Act programs, other special federal, state and local and private funds targeted to homeless individuals and families with children, especially the chronically homeless, the HUD formula programs, and any publicly -owned land or property. Please describe, briefly, the jurisdiction's plan for the investment and use of funds directed toward homelessness. The City of Pearland is not an ESG Participating Jurisdiction and no agency in Pearland is receiving State of Texas ESG funds. The City is within the service area of the Gulf Coast Homeless Coalition but no homeless agencies serving Pearland are funded through Supportive Housing, Shelter Plus Care or SRO Moderate Rehabilitation. The City of Pearland has no shelter or transitional living beds. In May 2011, the Gulf Coast Homeless Coalition voted to discontinue its Continuum of Care process so that its counties - Galveston, Brazoria, Liberty and Chambers would come under the "Balance of State" program for the Continuum of Care. This will allow non -funded agencies to apply for new Continuum of Care dollars through the Texas Homeless Network. The City of Pearland assisted Pearland nonprofits, particularly Forgotten Angels and Petra, with any local data or statistics required to submit their application to Texas Homeless Network for inclusion in the PY 2011 Continuum of Care application. There are 64 shelter beds in Brazoria County, with only 16 in the northern half of the county near Pearland, all for female victims of domestic violence and their children. The Salvation Army in Freeport, approximately 50 miles from Pearland, is the only shelter within Brazoria County for men. There are only 5 transitional living beds in Brazoria County. Funding for these projects come from a variety of non -HUD sources. It can be expected that approximately 4 of these northern Brazoria County beds will continue to serve Pearland residents, providing a total of $8,000 a month or $96,000 a year in homeless services to the residents of Pearland. Gulf Coast Center, the area's MHMR agency does receive McKinney-Vento funds for permanent housing for the chronically mentally ill homeless but neither project is located in or near Pearland. The Gulf Coast Center has 15 permanent supportive housing beds through the Continuum of Care funding process and Pearland residents are eligible for the program. However, it is anticipated that no Pearland resident will enroll in the program. While the Gulf Coast Center serves Galveston and Brazoria Counties, it focuses its housing and resources on the City of Galveston. Forgotten Angels provides nine single family group homes for adults with mental disabilities to prevent them from becoming homeless. Each home houses three to six individuals and is supported through a variety of private funding sources. The agency is investigating the potential of accessing other state and federal funds to construct a multi -family supportive housing project for this clientele as well as to construct a transitional living center for Tenth Program Year Action Plan City of Pearland 19 24 City of Pearland, Texas PY 2016 adjudicated youth and those aging out of the foster care system. The development of these two projects will involve several years and several sources of funding. The Pearland Neighborhood Center provides approximately $200 per household to 250 Pearland households each year for emergency assistance in an attempt to help prevent homelessness. This translates into $50,000 per year in homeless prevention. For PY 2014, 40% of this effort will be funded with CDBG dollars that are administered through the grantee. 2. Homelessness—In a narrative, describe how the action plan will address the specific objectives of the Strategic Plan and, ultimately, the priority needs identified. Please also identify potential obstacles to completing these action steps. The City of Pearland receives no McKinney-Vento Homeless Assistance Act funds and no CDBG funds are allocated during this year for services directly to the homeless. However, the City is providing $15,612 00 in CDBG funds to Pearland Neighborhood Center for emergency rental, utility and prescription assistance that is a form of homeless prevention. Pearland Neighborhood Center, through other sources, will be providing an estimated $50,000 in additional emergency assistance for homeless prevention to residents of Pearland. This includes "food pantry" services that provide canned goods and other food items to low-income families and the homeless. In addition, the City will provide ActionS, Incorporated with $11,205 for meal delivery services to eligible, elderly low-income residents of Pearland. 3. Chronic homelessness—The jurisdiction must describe the specific planned action steps it has taken over the years aimed at eliminating chronic homelessness by 2013. Again, please identify barriers to achieving this. According to the Gulf Coast Homeless Coalition, there have been no identified chronically homeless in the City of Pearland. However, the City is committed to assisting housing and service providers in addressing the issue should individuals be identified. One of the causes of chronic homelessness is disability and the City of Pearland is providing CDBG funding to Forgotten Angels, Inc., an agency that provides group homes for mentally and physically disabled adults. By providing permanent supportive housing in a group home environment, Forgotten Angels helps in preventing chronic homelessness. Their nine homes provide supportive housing for approximately 36 disabled adults. The agency has a day center for its residents and non-resident disabled. The City has used CDBG funds to provide transportation to supportive services, medical appointments and other necessary appointments to those living in three of the group homes. In PY 2013, the Ci ty funded the completion of a 1,000 square foot expansion of the Day Habitation Center which provides supportive services to all of Forgotten Angels' residents. In the past, the City has funded improvements to a bathroom, including an adult changing table; and the installation water and sewer lines to connect to existing City lines. The City receives no ESG funds and no Pearland agency receives ESG, SHP, S+C or SRO Mod Rehab funding from the State of Texas or through the Continuum of Care. Without being an ESG Participating Jurisdiction and without a local homeless coalition responsive to the City's needs, the City and its agencies have no real access to any McKinney-Vento funding and without being a HOME Participating Jurisdiction or a local Housing Authority, the City has no access to providing subsidies or other options to make housing affordable to the homeless. Tenth Program Year Action Plan City of Pearland 20 25 City of Pearland, Texas PY 2016 4. Homelessness Prevention—The jurisdiction must describe its planned action steps over the next year to address the individual and families with children at imminent risk of becoming homeless. During PY 2016, the City will fund Pearland Neighborhood Center to provide emergency assistance to those in danger of homelessness. This short-term assistance will pay past -due rent for those facing eviction, utilities for those facing utility cut-offs, medications for those who must choose between paying for housing or prescription drugs. This will help to prevent homelessness, at least on a short-term basis. Dilapidated housing conditions are growing, as growth in the amount of aging infrastructure and older homes occurs. The City's efforts to remediate the effects of neglect that stem from limited or non-existent financial capacity of older or low -moderate income homeowners will create more sustainable housing conditions, preventing the potential for homelessness that dilapidating housing conditions often result in. The goal of the City's program will be to remove unlivable, unsafe, and unhealthy housing conditions for those in Pearland that cannot afford to do so themselves. In addition, repairs of eligible single family homes for low -moderate income owner -occupants, as well as code enforcement activities, will prevent and mitigate health and safety problems in structures that pose a threat to the "roof over the heads" of low -moderate income families in Pearland. 5. Discharge Coordination Policy—Explain planned activities to implement a cohesive, community -wide Discharge Coordination Policy, and how, in the coming year, the community will move toward such a policy. The City of Pearland does not receive ESG, SHP, S+C or Section 8 SRO funds and does not have a discharge coordination policy. However, the City falls within the jurisdiction of the Gulf Coast Homeless Coalition which does have a discharge coordination policy as outlined in the Exhibit 1 of their annual CofC application and in the City's 5 -Year Consolidated Plan. However, none of the CofC funds are expended in Pearland. With the Continuum of Care process moving to Balance of State from the Gulf Coast Homeless Coalition, the City of Pearland will work with Texas Homeless Network to ensure that Pearland is included in the community -wide Discharge Coordination Policy. A Pearland agency, Petra, is working with the Darrington Unit of the Texas Department of Criminal Justice, located in Brazoria County. One aspect of the agency's efforts will be the provision of housing and supportive services for offenders exiting the Darrington Unit and remaining in the Pearland/Brazoria area. Emergency Shelter Grants (ESG) (States only) Describe the process for awarding grants to State recipients, and a description of how the allocation will be made available to units of local government. Not Applicable Tenth Program Year Action Plan City of Pearland 21 26 City of Pearland, Texas PY 2016 COMMUNITY DEVELOPMENT Community Development *Please also refer to the Community Development Table in the Needs.xls workbook. 1. Identify the jurisdiction's priority non -housing community development needs eligible for assistance by CDBG eligibility category specified in the Community Development Needs Table (formerly Table 2B), public facilities, public improvements, public services and economic development. Through public participation, meeting with service providers and reviewing Census and other data, the City has determined which eligible services have a high, medium or low priority. The table below, extracted from the CPMP Needs table from the PY 2012-2016 Consolidated Plan, lists the activities and their priorities. Not all of the services, including those with a high priority, will be funded using CDBG dollars, but the City is committed to funding as many eligible projects that apply through the competitive grant process as possible. As more public service agencies build capacity, more services may be funded through CDBG. The table below outlines the public service programs eligible under CDBG, the ones the City intends to fund during the next five years and the ones that the City will fund in PY 2016. Non -Housing Public Service Priorities 03F Parks Recreational Facilities 570.201 c H 05A Senior Services 570.201 e Ma- AIL IIIL 05B Handica..ed Services 570.201 e H H 05D Youth , ,.201 e 05E Transportation Services 570.201 e 05G Battered and Abused Spouses 570.201 e H 05H Emilo mentTrainin• 570.201 e H kthli _1:11MFTiTIRT•1CTpZiTS[gi lEntiM11 EI e H M 05 Public Services General 570.201 e 05F Substance Abuse Services 570.201 e M 05I Crime Awareness 570.201 e M air ' ousin • • ctivities i ' : then su .'ect to 0.201 e M 05L Child Care Services 570.201 e M 05M Health Services 570.201 e M Er M Health 70.2 `i 1(rfiiiiail_ 111 05R Homeownership Assistance not direct 570.204 05S Rental Housin• Subsidies if HOME not •art of 5% 570.204 M 05T Securit Deposits if HOME not •art of 5% Admin c M 05C Le•al Services 570.201 E L 05K Tenant Landlord Counselin• 570.201 e L 05P Screenin• for Lead -Based Paint Lead Hazards Poison 570.201 e L Note: those items in dark green are being funded this year (as per table below). Tenth Program Year Action Plan City of Pearland 22 27 Hiah and Medium Priority Capital & Administrative Projects 03A Senior Centers 570.201(c) H 03F Parks, Recreational Facilities 570.201(c) H 03I Flood Drain Improvements 570.201(c) H 03K Street Improvements 570.201(c) H 03L Sidewalks 570.201(c) H 19C CDBG Non-profit Organization Capacity Building H 21A General CDBG Administration H 21D Fair Housing Activities H 03 Public Facilities and Im.rovements General 570.201 c M M 03D Youth Centers 570.201(c) 03E Neighborhood Facilities 570.201(c) M 03) Water/Sewer Improvements 570.201(c) M 03M Child Care Centers 570.201(c) M 030 Fire Stations/Equipment 570.201(c) M 04 Clearance and Demolition 570.201(d) M 06 Interim Assistance 570.201(f) M 10 Removal of Architectural Barriers 570.201(k) M 12 Construction of Housing 570.201(m) M 13 Direct Homeownershi. Assistance 570.201 n M M 14I Lead -Based Lead Hazard Test Abate 570.202 17B CI Infrastructure Development 570.203(a) M 19D CDBG Assistance to Institutes of Higher Education M City of Pearland, Texas PY 2016 The table below outlines the priorities for capital projects and administrative tasks under the Non -Housing Community Development determination. As with the previous table, the dark green rows are the areas to be funded with PY 2016 CDBG funds. Tenth Program Year Action Plan City of Pearland 23 28 2. Identify specific Tong -term and short-term community development objectives (including economic development activities that create jobs), developed in accordance with the statutory goals described in section 24 CFR 91.1 and the primary objective of the CDBG program to provide decent housing and a suitable living environment and expand economic opportunities, principally for low- and moderate -income persons. *Note: Each specific objective developed to address a priority need, must be identified by number and contain proposed accomplishments, the time period (i.e., one, two, three, or more years), and annual program year numeric goals the jurisdiction hopes to achieve in quantitative terms, or in other measurable terms as identified and defined by the jurisdiction. The long-term and short-term objectives for the City of Pearland include objectives to be funded by CDBG and those to be carried out through other funding mechanisms, such as the City's General Fund and various regional nonprofits and foundations. The City's primary objectives are: • Increase education to qualify for jobs • Enhance infrastructure (drainage, sidewalks, streets, park space) to enhance suitable living environment • Provide services to disabled, homeless, elderly and low-income residents • Provide an environment to support the availability of affordable and fair housing. During PY 2016, the City will be funding projects that improve infrastructure, and provide supportive services (job training, emergency assistance). Antipoverty Strategy 1. Describe the actions that will take place during the next year to reduce the number of poverty level families. The City of Pearland's anti -poverty strategy is not only aimed at lifting existing residents out of poverty but also preventing others from falling into poverty. Poverty is a two-edged sword — lack of income and high costs of living. Therefore, the 5 -year strategy is aimed at helping residents increase their incomes and reduce their costs of living. During PY 2016, the strategies will be: Living Costs: The City of Pearland will fund Pearland Neighborhood Center to provide emergency assistance and homeless prevention activities in Pearland through their emergency rental, utility and prescription assistance program. In addition, the City will assist with the repair and rehabilitation of local housing owned and occupied by low -moderate income residents in Pearland, upon eligibility review and approval of the applicants. Elderly and sick/shut-in will receive "meals on wheels. Other: The City of Pearland is committed to referring citizens to Brazoria County Housing Authority for its Section 8 Housing Choice Voucher Program. By educating Pearland residents and apartment complexes about the program, more Pearland citizens will be able to take advantage of Section 8 without having to relocate to other areas of the county. Ninth Program Year Action Plan City of Pearland 24 29 City of Pearland, Texas PY 2016 NON -HOMELESS SPECIAL NEEDS HOUSING Non -homeless Special Needs (91.220 (c) and (e)) *Please also refer to the Non -homeless Special Needs Table in the Needs.xls workbook. 1. Describe the priorities and specific objectives the jurisdiction hopes to achieve for the period covered by the Action Plan. The City is not in a financial position, given the limited CDBG funds, to support housing options for any of the special needs populations. However, it places a high priority on both housing and supportive services to these populations. 2. Describe how Federal, State, and local public and private sector resources that are reasonably expected to be available will be used to address identified needs for the period covered by this Action Plan. The City will continue to conduct facility reviews of its CDBG subrecipients for compliance with ADA and Section 504 of the Rehabilitation Act. Agencies are committed to improving their facilities in ways that increase accessibility to their programs and services. Housing Opportunities for People with AIDS *Please also refer to the HOPWA Table in the Needs.xls workbook. 1. Provide a Brief description of the organization, the area of service, the name of the program contacts, and a broad overview of the range/ type of housing activities to be done during the next year. 2. Report on the actions taken during the year that addressed the special needs of persons who are not homeless but require supportive housing, and assistance for persons who are homeless. 3. Evaluate the progress in meeting its specific objective of providing affordable housing, including a comparison of actual outputs and outcomes to proposed goals and progress made on the other planned actions indicated in the strategic and action plans. The evaluation can address any related program adjustments or future plans. 4. Report on annual HOPWA output goals for the number of households assisted during the year in: (1) short-term rent, mortgage and utility payments to avoid homelessness; (2) rental assistance programs; and (3) in housing facilities, such as community residences and SRO dwellings, where funds are used to develop and/or operate these facilities. Include any assessment of client outcomes for achieving housing stability, reduced risks of homelessness and improved access to care. Tenth Program Year Action Plan City of Pearland 25 30 City of Pearland, Texas PY 2016 5. Report on the use of committed leveraging from other public and private resources that helped to address needs identified in the plan. 6. Provide an analysis of the extent to which HOPWA funds were distributed among different categories of housing needs consistent with the geographic distribution plans identified in its approved Consolidated Plan. 7. Describe any barriers (including non -regulatory) encountered, actions in response to barriers, and recommendations for program improvement. 8. Please describe the expected trends facing the community in meeting the needs of persons living with HIV/AIDS and provide additional information regarding the administration of services to people with HIV/AIDS. 9. Please note any evaluations, studies or other assessments that will be conducted on the local HOPWA program during the next year. Not Applicable - City of Pearland receives no HOPWA funding Specific HOPWA Objectives Describe how Federal, State, and local public and private sector resources that are reasonably expected to be available will be used to address identified needs for the period covered by the Action Plan. Not Applicable - City of Pearland receives no HOPWA funding Tenth Program Year Action Plan City of Pearland 26 31 City of Pearland, Texas PY 2016 Other Narrative Include any Action Plan information that was not covered by a narrative in any other section. Tenth Program Year Action Plan City of Pearland 27 32 r — • Exhibit "A" Resolution No. R2016-138 FY 2016 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) Program Grant Number: B -16 -MC -48-0400 Duns Number: 020796397 The terms of the CDBG award in the amount of $325,431 which are the subject of this part of this Agreement are set forth in the attached executed form HUD -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 2016 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 eLOCCS, a 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. CDBG grants funds have historically been disbursed through the Integrated Disbursement and Information System (IDIS) on a "first -in, first -out" basis (FIFO). Under this methodology, CDBG grantees do not designate a specific fiscal year grant in IDIS when funding an activity or when creating an expenditure voucher. In general, all obligations and disbursements are recorded against the earliest annual grant with an available balance, thereby exhausting the oldest grant available before recording expenditures against the next grant. However, the HUD Inspector General has deemed this approach to be inconsistent with generally accepted government accounting principles and CPD is in the position of having to the adjust the disbursement approach in IDIS from FIFO to a grant -based approach. CPD believes that this change should not cause significant disruptions to grantee processes as many grantees' accounting systems typically track expenditures according to each annual grant. However, some grantees may have to make some adjustments and certain new steps have been programmed into IDIS to accommodate the change. CPD is in the process of r finalizing a rule to implement these changes for the CDBG program to be published in the Federal Register. CPD will issue alternative guidance to ensure that grantees have appropriate instructions for beginning to draw upon their FY 2016 CDBG funds. Please do not draw funds until such guidance is issued; otherwise grantees may have to correct information in IDIS once the guidance is public. As a recipient of HUD financial assistance covered by Section 3 of the HUD Act of 1968, it is required that Section 3 Summary Reports (Form HUD -60002) be submitted to HUD in accordance with the guidelines given. Please refer to HUD's website at www.hud.gov/section3 for additional information. The following parties execute this Grant Agreement on the dates set forth below as follows: UNITED STATES OF AMERICA Secretary of Housing and Urban Development �� 1ida4- 4,-) 11/03/2016 Signature and Date Sandra H. Warren Typed Name of Signatory Director, Community Planning and Development Title GRANTEE By: c 7 �``� /�- /f- Signature f Signature and Date TOM REID Typed Name of Signatory MAYOR "Title I ib Funding Approval/Agreement Title I of the !lousing and Community De%elopment Act (Public Law 930383) 11I-0)5I5R of 205158 1. Name of Grantee (as shown in item 5 of Standard Form 424) Pearland 2. Grantee's Complete Address (as shown in item 5 of Standard Form 424) 3519 Liberty Dr Pearland, TX 77581-5416 U.S. Department of !lousing and Urban Development Office of Community Planning and Development Community Development Block Grant Program OMB Approval No. 2506-0193 (exp 5131/2018) 3a. Grantee's 9 -digit Tax ID Number 3b. Grantee's 9 -digit DUNS Number 74-6028909 020796397 4. Date use of funds may begin (mmldd/yyyy) 10/01/2016 5a. Project/Grant No. 1 6a. Amount Approved B -16 -MC -48-0400 $325,431.00 6b. Amount Approved 5b. Project/Grant No. 2 Grant Agreement: This Grant Agreement between the Department of Housing and Urba Development (HUD) and the above nan cd Grantee is made pursuant to the authority of Title I of the Housing and Community Development Act of 1974, as amended (42 USC 5301 et seq.). The Grantee's submissions for Title !assistance. the HUI) regulations at 24 CFR Pan 570 (as now in effect and as may be amended from time to time), and this Funding Approval, including any special conditions, constitute pan of the Agnx:mcnt. 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 panics. 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 arc 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 I and published in 24 CFR Pan 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) Sandra H. Warren Grantee Name Pearland Title HUD Community Planning and Development Director Title TOM REID, YOR Signatu Tom' Date (mm/dd/yyyy) 11/03/2016 Signature • /Yit? Le S9 Date (mm/dd/yyyy) 11/14/2016 7. Category of Title I Assistance for this Funding Action (check only one) 8. Special Conditions (check one) 9a. Date HUD Received Submission (mmlddryyyy) 08/15/2016 10. check one Org. Funding Approval Amendment Amendment Number -i a. ►,1 a. Entitlement, Sec 106(b) • None 9b. Date Grantee Notified (mmldd/yyyy)11 /03/2016 ❑ 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 _I Attached ■ b. 9c. Date of Start of Program Year (mmldd/yyyy) 10/01/2016 11 • Amount of Community Development Bek Grant FY (2016) 0 FY ( ) a. Funds Reserved for this Grantee $325,431.00 b. Funds now being Approved $325,431.00 c. Reservation to be Cancelled (11a minus 11b) 12a. Amount of Loan Guarantee Commitment now being Approved N/A 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 nuniber(s) as Grantee designated to receive loan guarantee assistance. and agrees to comply with the teens and conditions of the Agreement, applicable regulations. and other requirements of HUI) now or hereafter in effect, pertaining to the assistance provided it. - 12c. Name of Authorized Official for Designated Public Agency Tide Signature HUD Accounting use Only Batch TAC Program Y A Reg Area 5 3 1 7 6 DO 0 0 Document No. Project Numbe Category Date Entered PAS (mmldd/yyyy) Date Entered LOCCS (mmldd/yyyy) Project Number Pro Number Batch Number Amount Amount Amount Transaction Code Effective Date (mm/dd/yyyy) Entered By F Verified By 8. Special Conditions. (a) The period of performance for the funding assistance specified in the Funding Approval ("Funding Assistance") shall begin on the date specified in item 4 and shall end on September 1, 2023. The Grantee shall not incur any obligations to be paid with such assistance after September 1, 2023. (b) If Funding Assistance will be used for payment of indirect costs pursuant to 2 CFR 200, Subpart E - Cost Principles, attach a schedule in the format set forth below to the executed Grant Agreement that is returned to HUD. The schedule shall identify each department/agency that will carry out activities with the Funding Assistance, the indirect cost rate applicable to each department/agency (including if the de minimis rate is charged per 2 CFR §200.414), and the direct cost base to which the rate will be applied. Do not include indirect cost rates for subrecipients. Administering Direct Department/Agency Indirect cost rate Cost Base* *Specify the type of cost base utilized - e.g., Modified Total Direct Costs (MTDC). Do not include amounts. (c) In addition to the conditions contained on form HUD 7082, 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 System for Award Management (SAM.gov), and the Federal Funding Accountability and Transparency Act as provided in 2 CFR Part 25, Universal Identifier and System for Award Management, and 2 CFR Part 170, Reporting Subaward and Executive Compensation Information. (d) The grantee shall ensure that no CDBG funds are used to support any Federal, State, or local projects that seek to use the power of eminent domain, unless eminent domain is employed only for a public use. For the purposes of this requirement, public use shall not be construed to include economic development that primarily benefits private entities. Any use of funds for mass transit, railroad, airport, seaport or highway projects as well as utility projects which benefit or serve the general public (including energy-related, communication -related, water- related and wastewater -related infrastructure), other structures designated for use by the general public or which have other common -carrier or public -utility functions that serve the general public and are subject to regulation and oversight by the government, and projects for the removal of an immediate threat to public health and safety or brownsfield as defined in the Small Business Liability Relief and Brownsfield Revitalization Act (Public Law 107-118) shall be considered a public use for purposes of eminent domain. (e) The Grantee or unit of general local government that indirectly receives CDBG funds may not sell, trade, or otherwise transfer all or any such portion of such funds to another such entity in exchange for any other funds, credits or non -Federal considerations, but must use such funds for activities eligible under title I of the Act. (f) E.O. 12372 -Special Contract Condition - Notwithstanding any other provision 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 (E.O.) 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 E.O. 12372 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 E.O. 12372 and implementing regulations. Exhibit "A" Pant Resolution No. R2016-138 Contract for Professional Services This Contractual Agreement (the "Contract") is made and entered into as of the last date specified herein by the signatures by and between the City of Pearland, Texas, a home -rule city of the State of Texas situated in Brazoria County, Texas (the "City") and MKP Consulting, a Texas sole proprietorship (the "Consultant"). The initial addresses of the parties are as follows: City of Pearland 3519 Liberty Dr. Pearland, TX 77581 MKP Consulting 8950 Shoreview Lane Humble, TX 77346 WITNESSETH: WHEREAS, in May 2006 City Council originally agreed to participate in the Community Development Block Grant Entitlement Program (hereinafter "CDBG") of the U.S. Department of Housing and Urban Development (hereinafter "HUD"); WHEREAS, the CDBG program allows for the use of 20 percent of the City's allocated funds for the City to carry out certain HUD program administration requirements, and other housing program funding that can be used to secure professional services; WHEREAS, the City has determined that its efforts to meet HUD National Objectives requires assistance from the Consultant, particularly in areas that involve housing program administration and general compliance with federal requirements; WHEREAS, the Consultant agrees to comply with applicable laws, rules and regulations in connection with the requirements of HUD and disbursement of CDBG funds; and WHEREAS, the City has agreed to accept Community Development Block Grant funding from HUD for CDBG Program Year 2016 Grant Number B -16 -MC -48-0400 for the purposes included in its 10`h Annual Action Plan as approved by Pearland City Council in Resolution R2016-138. NOW THEREFORE, for and in consideration of the mutual covenants, agreements and benefits to the City and the Consultant, it is hereby agreed as follows: ARTICLE I. Contacts and Notices 1.1. Local. The primary day-to-day CDBG Program points of contact for the City shall be the Grants Coordinator and/or the Housing Enforcement & Rehabilitation Officer (HERO). The secondary points of contact shall be the Budget Officer and/or the Code Enforcement Supervisor. The tertiary points of contact shall be the Finance Director and/or the Fire Marshal. Official complaints, grievances, disputes or other documentation of concerns shall be directed to the City's Assistant Director of Finance. Page 1 of 9 1.2. State and/or Federal. This Contract is for direct professional services activities and does not require or request the Consultant serve in an advocacy, legislative affairs, or lobbying capacity. The Consultant shall not represent the City with regard to local, State and/or Federal officials, and shall be required to disclose lobbying activities pursuant to 31 U.S.C. 1352. The Consultant is being paid as a subcontractor with federal funds and shall be registered with the System for Award Management at www.SAM.gov. 1.3. Subrecipients and/or Contractors. The Consultant may directly contact any and all Pearland CDBG Subrecipients and/or Contractors in accordance with the need to perform the duties and activities subscribed to in this Contract for Professional Services. ARTICLE II. Scope of Services 2.1. Specific Services. During the term of this Agreement, the Consultant shall provide complete services set forth in the Scope of Services and Budget attached hereto as Exhibit #1. 2.2. Personnel to Perform Services. The Consultant hereby represents that it has obtained at its sole expense all personnel necessary to perform the services required hereunder. None of such personnel shall be employees of the City. All personnel engaged in performing services hereunder shall be fully qualified and shall possess the necessary licenses and/or permits required by law to perform the services described in the Scope of Services and Budget. ARTICLE III. Time of Performance 3.1. Commencement of Services. The Consultant agrees to commence the services required hereunder upon the issuance of a Notice to proceed by the City, as the City shall not be responsible for the initiation of the Consultant's specific work schedules or activities. The Notice to Proceed referenced herein will be transmitted to the Consultant by the City upon execution of this Contract by the City and the Consultant. 3.2. Completion of Services. Consultant's services shall be completed by September 30, 2017, the end of the term of this Contract, unless this Contract is terminated earlier in accordance with the terms provided herein. Technical adjustments, corrections, clarification or additional information required to close-out projects and/or duties associated with the scope of work herein may not be restricted to the completion date expressed herein. Page 2 of 9 ARTICLE IV. Terms 4.1. Term. The term of this Contract shall be applicable to the period encompassing the City's CDBG Program Year 2016, which is October 1, 2016 — September 30, 2017. 4.2. Retroactivity. Any prior written agreements between the City and the Consultant for the performance of HUD - eligible work, applicable to the CDBG Program Year 2016 activities as approved by the City's governing body and HUD, may be invoiced by Consultant for payment of such work, provided that the work shall be subject to the terms and conditions of this Contract for Professional Services. ARTICLE V. Compensation and Payment 5.1. General Terms. Subject to the Consultant's compliance with the terms and conditions of this Contract, the City agrees to pay the Consultant a total sum not to exceed FORTY-TWO THOUSAND DOLLARS ($42,000) from CDBG funds subject to HUD CDBG Activity Matrix Codes #21A — General Program Administration, 14A — Housing Rehabilitation, and 14H Housing Rehabilitation Administration. Orders for changes in budget and/or scope shall comply with requirements in 24 CFR 570.427(b)...(c) — Program Amendments, and must be approved in writing by the undersigned and the City's governing body if the amount of this Contract ever exceeds $50,000. 5.2. Basis of Compensation. A Basis of Compensation covering the services, activities and cost categories of the Consultant is attached hereto as part of the Scope of Services and Budget in Exhibit #1. The Consultant warrants that this attached Basis of Compensation constitutes a true and accurate representation of the information contained therein. Consultant agrees to specify the detailed nature of work performed, on a cost -calculated basis, in writing with each submission of an invoice for payment. For the services rendered in accordance with the terms of this Contract, and subject to the terms set forth in provisions of Section 5.1 above, the City shall reimburse the Consultant the aforementioned sum, at the rate set forth in the Scope of Services and Budget attached hereto as Exhibit #1. The Consultant agrees to invoice the City monthly based on actual performance of work at a rate of $150 per hour. For projects or activities that do not involve on-going services (Consolidated Annual Performance Evaluation Report and Environmental Reviews), all invoices submitted to the City for payment on "work in progress" must indicate the percentage of work completed towards final completion of a task. This percentage should equate to the amount of time and effort expended towards final completion of a task before a payment can be made to the Consultant by the City. Page 3 of 9 5.4. Billing and Method of Payment. The form of the invoice shall include the name and all postal contact information for the vendor, name and address of the payer, purchase order number, quantity of hours provided, description of work completed, hourly rate for services performed, line total for work completed, due date and payment terms, and a total amount due to the vendor. The Consultant may also attach or cover the required forms with their proprietary invoice style or format if desired. Payment shall be made to the Consultant within thirty (30) days of the Finance Department's receipt of the invoice. The Consultant shall provide supporting documents to support the invoices and disbursements made from CDBG funds. The City requires that all invoices be submitted to the Finance Department at the following address: P.O. Box 2719, Pearland, TX 77588-2719, OR electronic invoices to: accountspayable@pearlandtx.gov. A duplicate electronic invoice shall be sent to the Grants Coordinator and Budget Officer for information purposes, but official payment will be based on the invoice that has been received by the Accounts Payable division of the Finance Department. Inquiries about outstanding invoices beyond the 30 -day agreed-upon payment period may be directed to the Grants Coordinator and Budget Officer. 5.5. Right to Reduce Funds. The City reserves the right to reduce the services, and therefore the related payments, awarded to the Consultant under this Contract. In such event, the City shall provide the Consultant with thirty (30) day written notice of the amount of services and payments, to be reduced under this provision. ARTICLE VL Quality and Characteristics of Work 6.1. Errors and Omissions. Errors and omissions that require the Consultant to make redactions, resubmissions, or take other corrective action shall be provided by the Consultant at no cost to the City. 6.2. Compliance with Federal Regulations and Standards of Practice. HUD Federal regulations shall be the basis for the standards of practice for the Consultant's creation and submission of documents or other work product involving the use of HUD funds. The Consultant shall refer to the most up-to-date guides, regulations, terms and conditions for performing the work herein. These include, but are not limited to, if applicable: • 24 CFR 570.507 (CAPER) and 24 CFR 91.220 (Action Plan) • 24 CFR Part 58 (Environmental Review) • 24 CFR 570.200 (General Policies — Regulations) • 2 CFR Part 200 (Uniform Administrative Federal Requirements for Grants) • "Best Practices" guidance from the Region VI HUD CPD Office — Field Representative(s) • Terms and Conditions of the City's Subrecipient Agreements Page 4 of 9 6.3. Execution and Signature. Should appropriate City staff be unavailable, the Consultant is authorized to initiate the process of securing the proper signatures or endorsements on City -approved HUD reports, forms, letters, and other documents, with the exception of those involving the city's senior management (City Manager, Deputy City Manager, Assistant City Manager) or elected officials (Mayor and/or Council). The Consultant is authorized to sign and submit City -approved letters "initiating contact" with State and/or local officials solely for the express purpose of completing HUD Environmental Review requirements in 24 CFR 58.14 (Interaction with State, Federal and non -Federal entities), so long as to provide the City's contact information as the entity to which responses should be forwarded to. In doing so, the Consultant shall provide the City with verifiable evidence that such contacts have been made. 6.4. Forms. The Consultant shall, at all times, use the most up-to-date revisions/versions of HUD, federal, State, and/or local forms when completing documentation on the City's behalf, for approval by the City, and/or for the Consultant's authorized purposes in fulfilling certain approved responsibilities. 6.5. Meetings and Conferences. The Consultant agrees to be available via email, for face-to-face meetings at the City's primary offices, and for teleconferences on a regular basis. These and other types of meetings, teleconferences or discussions associated with the performance of CDBG activities are considered billable activities. Written responses for technical assistance requests submitted to the Consultant by the City via email can be billable to the City in 15 minute increments, unless they exceed this amount of time in actual amount of required time and effort. ARTICLE VII. Records 7.1. Record Keeping. The Consultant shall keep a record of all funds received and disbursed under this Agreement and provide to the City all information, records, papers, reports and other documents regarding any aspect of the services furnished as may be requested by the City of Pearland. The Consultant shall be required to adhere to HUD and federal record -retention regulations, such that the City complies with 24 CFR 85.42, its Subrecipients comply with 24 CFR 84.53, and that support the City's Internal/Single/Independent Audit procedures. 7.2. Record Inspection and Examination. The Consultant will make all records, and other information associated with this Agreement, available for inspection, audit, examination and copying by the City, the City's auditor, the Comptroller General of the United States, the U.S. Department of Housing and Urban Page 5 of 9 Development, the U.S. Department of Justice, Office of Inspector General, and/or other duly authorized representatives. 7.3. HUD Monitoring - Findings and Deficiencies The Consultant agrees to participate in any and all HUD monitoring discussions or meetings involving HUD regulatory -related findings, deficiencies and errors or omissions related to Consultant's performance pursuant this Agreement, so as to provide the City with the ability to clear and resolve such matters as soon as possible. The Consultant, to the extent responsible, agrees to assist with the clearance and resolution of such findings or deficiencies at no cost to the City, per ARTICLE VI. Quality and Characteristics of Work - 6.2 Errors and Omissions. ARTICLE VIII. Insurance Requirements 8.1. Liability Coverage. The Consultant certifies to its obligation to carry a minimum of one million dollars ($1,000,000) in liability and errors and omissions insurance. The Consultant is a sole proprietor with no paid staff, therefore is not subject to the applicable statutes regarding Worker's Compensation and Employer's Liability Insurance. 8.2. Proof of Insurance. Proof of insurance documentation shall be provided to the City's Purchasing Office upon execution of this Agreement. Any updates, changes, or adjustments in coverage must be documented and submitted to the City upon occurrence. Notice to Proceed will not be provided to the Consultant without Proof of Insurance. ARTICLE IX. Termination 9.1. Termination With and Without Cause. If the Consultant materially fails to comply with any term of this Contract, the City may exercise any of the remedies set forth by law including suspension or termination of this Contract. In addition, the City may terminate this Contract for convenience according to the terms of 24 CFR 85.44. Termination must be provided to the Consultant in writing at least thirty (30) days before the effective date of the termination. The Consultant may terminate this Contract for convenience by giving the City thirty (30) days written notice. Termination by the Consultant shall require that any and all duties scheduled for completion within thirty (30) days following such termination notice shall be completed and submitted to the City, unless otherwise provided in writing by the City. 9.2. Circumstances Constituting Material Breach. The following shall be considered a material breach of this Contract: Page 6 of 9 9.2.1. Failure to comply with the reporting and record-keeping requirements of the U.S; 9.2.2. Department of Housing & Urban Development and as set forth herein; 9.2.3. Failure to account for CDBG sums provided to the Consultant; 9.2.4. Failure to comply with the laws, regulations and standards known to be required by the U.S. Department of Housing & Urban Development and applicable to the Consultant's performance of services hereunder; and/or, 9.2.5. The dissolution, bankruptcy or liquidation of the Consultant. 9.3. Method of Exercising Remedies. The City shall have the right to terminate this Contract upon thirty (30) days written notice to the Consultant. If the termination is being exercised as a result of the Consultant's breach of the Contract, Consultant may be allowed, at the sole discretion of the City, to commence services to cure the breach within the thirty -day notice period. Such actions must be constituted in writing, agreed upon by all parties, and with specific terms required for meeting the need to remedy or cure the breach. 9.4. Payment upon Termination. Upon termination by either party, the Consultant must submit any and all working papers, material, documents, substantially -completed or otherwise, within a mutually -agreeable and reasonable timeframe, not to exceed five (5) business days, to the City for its use in meeting HUD CDBG National Objectives, and payment shall be made to Consultant for any and all work performed up to the date of termination, or for a period of time and/or completion of any and all scope of work activities agreed upon by the parties. ARTICLE X. Close -Out 10.1. Year -End Close Out. The Consultant agrees to support the City's year-end close-out procedures by submitting a payment estimate for work to be performed in the month of September, 2017, including a listing of duties remaining and estimated remaining Contract value. This information shall be provided to the City by August 31, 2017 and must be submitted to the Finance Department in writing and include: Year -to -Date expenses and reimbursements, a listing of each specific Scope of Work and Budget item completed, and the remaining portion of funding and incomplete work items available for completion in the remaining period of performance. 10.2. Deadline for Final Invoice. The Consultant shall invoice the City for Final Payment no later than October 7, 2017. Page 7 of 9 ARTICLE XI. Applicable Law 11.1. Federal and State Laws. This Contract is subject to the applicable federal regulations codified in Title 24 of the Code of Federal Regulations and all applicable laws or regulations of the United States, the State of Texas. This Contract includes the following exhibit and such exhibit is attached hereto and made a part hereof for all purposes: Exhibit # 1 - Scope of Services and Budget. 11.2. Entire Contract. This Contract and the Attachments represent the entire agreement between the City and the Consultant and there are no other effective agreements, representations or warranties between the City and the Consultant that are not contained in the Contract Documents. This excludes any and all written agreements that may have been approved by the undersigned prior to execution of this Contract, per Article IV — Section 4.2 herein. 11.3. Venue. This Contract shall be governed and construed in accordance with the laws of the State of Texas, and all obligations of the Parties created hereunder are performable in Brazoria County, Texas. Venue for any action arising under this Contract shall lie in the state district courts of Brazoria County, Texas. ARTICLE XII. Miscellaneous Provisions 12.1. Independent Consultant. In performing the services hereunder the Consultant shall act as an independent Consultant and not as an agent, representative or employee of the City. Any and all subcontractors under the Consultant shall act as independent contractors and not as agents, representatives or employees of the City or Consultant. 12.2. Publication of Materials. The Consultant agrees that any written materials published in connection with activities related to this Contract must be expressly authorized by the City. Any published notices of public hearings or other public notices shall be approved/authorized and paid for by the City. 12.3. Non -waiver. Failure of either party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies occurring hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on and to enforce by any appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. Page 8 of 9 12.4. Acceptances and Approvals. Any acceptance or approval by the City, or its agents or employees shall not constitute nor be deemed to be a release of the responsibility and liability of the Consultant, its employees, agents, subcontractors or suppliers of the accuracy, competency and completeness of any documents prepared or services performed pursuant to the terms and conditions of this Contract, nor shall acceptance or approval be deemed to be an assumption of such responsibility or liability by the City, its agents or employees for any defect, error or omission in any documents prepared or services performed by the Consultant, its employees, agents, subcontractors or suppliers pursuant to this Contract. 12.5. Hold Harmless. The Consultant shall indemnify and hold harmless the City, its officials and employees from all liability and claims, including attorney fees, for damages because of bodily injury, death, property damage, sickness, disease or loss and expense suffered or alleged to have been suffered by the Consultant or any person arising from the Consultant's operations under this Contract, where such operations be by the Consultant or any lower -tier subcontractor. To the extent allowed by law, the City shall indemnify and hold harmless the Consultant from all liability and claims, including attorney fees, for damages because of bodily injury, death, property damage, sickness, disease or loss and expense suffered or alleged to have been suffered by any person as a result of operations, equipment, structures owned and/or operated by the City. Consultant/Contractor: City: MKP Consulting, Inc. City of Pearland Margaret Purser — Principal Cynthia A. Pearson — Finance Director By %t /---- Date: «Date: //14/j/e, By: Date: / „_, A • fp.Asco iftiotto \d Clay Pearson — City Manager Bij�Y Date: ��7 ! 6 Page 9 of 9 Exhibit #1 Scope of Work & Budget Professional Consulting Services for the City of Pearland's PY 2016 HUD CDBG Program Prepared by the City of Pearland, TX October 2016 Exhibit 1— Scope of Work General Description of Activities PY 2015 CAPER: MKP Consulting will provide technical assistance for the City's PY 2015 Consolidated Annual Performance Evaluation Report (CAPER). This will be primarily restricted to the need for support for completion of the financial reconciliation documents to be submitted with the CAPER. The information will be provided by City staff, and a coordinated effort will be made to complete the: 1. Financial Summaries; 2. LOCCS balance documentation, and 3. Financial Attachment. PY 2017 - 2021 5 -Year Consolidated Plan: MKP Consulting will complete the entire 5 -Year Consolidated Plan for submission by the City to HUD in August of 2017, and in accordance with HUD regulations. This will include the entry of the City's PY 2017 Action Plan into the Integrated Disbursement Information System (IDIS). The City has agreed to take on certain duties in cooperation with this effort (see Exhibit 1— Budget). PY 2017-2021 Fair Housing/Affordable Housing Assessment: MKP Consulting will complete the entire Fair Housing/AFFH Plan (Analysis of Impediments) for submission by the City to HUD in January of 2017, and in accordance with HUD regulations. The City has agreed to take on certain duties in cooperation with this effort (see Exhibit 1 — Budget). HERO Program Client/Applicant Participation and Eligibility Reviews: MKP Consulting will evaluate local Pearland applicants that solicit grant -funded repairs and rehabilitation activities for their homes, securing the necessary validation of income levels, deed structure, and other regulatory requirements for homeowners associated with their eligibility for participating in the program. The attached "HERO Scope of Work and Duties" spreadsheet identifies the areas of the HERO program that MKP is directly, indirectly, jointly or independently responsible for providing. Environmental Review Record: MKP Consulting will conduct the Environmental Review process, including the production of the Environmental Review Record. Within two weeks of receiving the final PY 2016 Annual Action Plan, along with detailed information about each project, from the City, MKP Consulting will complete the exempt, categorically excluded or environmental assessment form, whichever is appropriate, for each activity. In addition, the level of clearance data sheet and the Form 7 will be completed. In the event that there are activities that are categorically excluded not converting to exempt or requiring an environmental assessment, MKP Consulting will develop a letter to be sent to environmental agencies asking for comments. These letters will be provided to the City in electronic form for the City to place on letterhead, sign and mail to the agencies. In the event that there are activities that are categorically excluded not converting to exempt or requiring an environmental assessment, MKP Consulting will provide the text of a notice for the City to place in the local newspaper and on the City website giving residents 18 days to comment on the proposed activities; and will provide to the City the Request for Release of Funds for the City to sign and send to HUD no sooner than the 19th day after the notice to the public has been posted. For the housing rehabilitation project, which is a "tiered" project in the Environmental Review Record, MKP Consulting will conduct an environmental review as a part of the review of the homeowner's application. This review is part of the Ownership and ERR Review. If any of the properties for which applications are received were constructed prior to 1979, MKP will notify the City of the need for further lead-based pain investigation. If any of the properties for which applications are received in either round were constructed more than 48 years prior, the City will provide to MKP Consulting photographs of the front of the dwelling and a streetscape view in jpg format. MKP Consulting will develop a letter to the Texas Historical Commission (SHPO) with the addresses and copies of the photographs; and will provide the document in electronic format for the City to place on letterhead and send to the Texas Historical Commission for review. The City will be responsible for assessing the property for hazardous materials during the initial site inspection. Rehabilitation may be denied for any properties for which the SHPO has issue or for which the City staff finds environmental hazards. Documentation will be placed in the applicant's file and referenced in the ERR. For any amendments to the Action Plan as a result of new projects being added during the program year, MKP Consulting will conduct the same level of environmental review as was completed initially. Budget and Basis of Compensation Maximum Amount Not to Exceed: MKP Consulting will provide the aforementioned activities at a maximum contract fee not to exceed FORTY-TWO THOUSAND DOLLARS ($42,000), unless otherwise approved by the City in writing, and shall calculate costs for completing these duties at a billable rate of $150 per hour. All of the aforementioned terms and conditions, including those that are budgetary, must comply with the Contract for Professional Services attached hereto. Exhibit 1- Budget Activity Due Date Discounted Time Estimated Hours CDBG General Admin Housing Rehab Admin Housing Rehab DC Total Vetting Housing Rehab Applications year-round 20 $3,000 $3,000 Housing Rehab Admin year-round 15 $2,250 $2,250 Fair Housing Plan January 2017 200 $25,000 $2,500 $30,000 January 2017 discounted for in-house community involvement' (50) ($7,500) ($7,500) January 2017 discounted for group data download/analysis" (20) ($3,000) ($3,000) Consolidated Plan August 2017 160 $21,500 $2,500 $24,000 August 2017 discounted for in-house community involvement' (10) ($1,500) August 2017 discounted for group data download/analysis" (10) ($2,250) ($2,250) Annual Action Plan Entry into Con Plan August 2017 50 $7,500 discounted for in-house development (30) ($4,500) ($4,500) Total 325 $35,250 $7,250 $3,000 $42,000 * subtraction of hours for City staff to conduct community involvement and public hearings (can be added in or split is necessary) " subtraction of hours saved by downloading and initial analysis for all Jurisdictions simultaneously CDBG "SECOND" SUBRECIPIENT AGREEMENT between THE CITY OF PEARLAND, TEXAS and PEARLAND NEIGHBORHOOD CENTER I. RECITALS THIS SUBRECIPIENT AGREEMENT is made and entered by and between the City of Pearland, a body politic and corporate under the laws of the State of Texas, hereinafter referred to as the "Grantee" and Pearland Neighborhood Center, 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-16-MC-48-0400; WHEREAS, the primary purpose of the Community Development Block Grant (CDBG) Program, pursuant Title 1 of the Housing and Community Development Act of 1974, is to benefit low- to moderate income individuals and families; WHEREAS,the Subrecipient has submitted an application to the Grantee for PY 2016 CDBG funds to provide the above program, that has subsequently endured successful review and approval by U.S. Department of Housing and Urban Development, and will perform the services in a manner satisfactory to the Grantee and the Grantor; WHEREAS,the Subrecipient has stated its intention to ensure the completion and monthly submission of the Individual Eligibility Form 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. Eligible Activities 1 of 33 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. B. Project Requirements Subrecipient will be responsible for administering a Program Year 2016 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 Subrecipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives—1)benefit low-and moderate-income persons and households, 2) aid in the prevention or elimination of slums or blight, or 3) meet community development needs having a particular urgency—as defined in 24 C.F.R. 570.208. The Subrecipient agrees to maintain documentation that demonstrates that the activities carried out with funds provided under this Agreement meet one or more of the CDBG program's national objectives. C. Performance Monitoring 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. 2 of 33 D. Leveraged Funds 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 any time 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, 2016 and end on the 30th day of September 2017. This Agreement may only be extended upon written approval from the City of Pearland's Finance Director or City Manager, and may require the City's elected governing body's approval should any revised allocation amount for this Agreement therefore exceed $50,000.00 (Fifty Thousand Dollars). IV. EXPENSES AND PAYMENT A. Budget and Budget 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, if applicable, 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 Contingent 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 3 of 33 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, 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), but only with the prior approval of the City and with a specified budget in place for such costs.All rules and regulations promulgated herein are applicable. 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 13th day following the end of this Agreement's period of performance. Any requests received after October 13,2017 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. 4 of 33 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 City's Finance Director. Requests for re-allocation of funds to the Subrecipient, otherwise projected for de-obligation and recapture, must be received in writing by the City prior to August 31, 2017. 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. Supplementing a Request 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 13, 2017 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 13, 2017. 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. Program 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. 5 of33 H. Withholding Payments and Repayment of Ineligible 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. 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 6 of 33 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 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 7 of 33 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 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 Bonding 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 8 of 33 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, if applicable, in the amounts required by State law, covering any and all employees of 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 9 of 33 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 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. 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. J. Local Requirements This Agreement is a subset of local terms and conditions, ordinances, standards and practices that the Subrecipient must comply with. Local construction, design and engineering standards apply to any and all work performed per this Subrecipient Agreement. VI II. 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. Revisions to the 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: 10 of33 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, as applicable; g. Financial records as required by 24 C.F.R. 570.502, and OMB Circular A- 110; and 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 11 of 33 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 12 of 33 a. Reports are to be submitted within ten (10) working days after the end of the monthly reporting period. b. Any bi-annual progress reports due must be submitted to the City within ten (10) days after the end of the sixth (6th) 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 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 maybe 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 13 of 33 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 less 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 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. 14 of 33 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 1,968 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). 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 15 of 33 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 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 Plan 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. 16 of 33 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 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 17of33 rA 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 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. The parties shall use the most practicable interpretations of conflicts of interest based on consanguinity,and 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 1. Compliance 18 of 33 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: "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. 19 of 33 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 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). 20 of 33 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. C. Lead-Based Paint The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 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. • Xl. ASSIGNMENTS AND AMENDMENTS A. Assignability&Amendments 21 of 33 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 Subrecipien.t's scope of work is a consideration. Such amendments shall not invalidate 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 thArough 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 22 of 33 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 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 returned 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 23 of 33 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 20 • SUBRECIPIENT: • By: APPROVED: Y OF ARLAND, TEXAS • By: CI a ,��onl . 24 of 33 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 Tasks The Subrecipient will be responsible for providing the Scope of Work outlined in Section II—Technical Specifications of the Request for Proposal#0615-57,including but not limited to the obligations to: • Repair and rehabilitation of single-family owner-occupied housing at no charge to the owner-occupant,as directed by the City and the terms of the Subrecipient Agreement,and in the chronological order that the City has provided the list of eligible properties to the offeror for completion. • Abate lead-based paint,in accordance with local ordinances,State of Texas laws,and federal guidelines in 24 CFR 570.608. • Assist the City with any and all efforts to comply with applicable HUD regulations for activities and undertakings within the scope of work,per HUD National Objectives and 24 CFR 570. • Follow all local building codes and permitting requirements associated with the completion of the scope of work. Ill. 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 (B)(1)(2)(3)(5) of this agreement by providing the following levels of program services: IV. Notice Grantee Subrecipient Initial Contact(Contact 1st) Initial Contact(Contact 1st) Joel Hardy—Grants Coordinator TBD by Subrecipient City of Pearland 3519 Liberty Drive Pearland,Texas 77581 Supervising Contact(Contact 2nd) Supervising Contact(Contact 2nd) City of Pearland Finance Director TBD by Subrecipient (or designee) 25 of 33 Exhibit B, BUDGET for PEARLAND NEIGHBORHOOD CENTER, Incorporated Pearland,TX It is expressly agreed and understood that the Maximum Amount to be Paid by the Grantee under this Agreement shall not exceed Fifteen Thousand Six Hundred and Twelve Dollars . Project Budget Detail EXPENSE CATEGORIES BUDGET Personnel Professional Fees/Contract Services Travel Space Costs Consumables and Supplies Rent, Lease, Purchase Equipment Construction OTHER Facility Improvements OTHER Program Activities-Assistance $15,612 PROJECT BUDGET TOTAL: $15,612 CITY OF PEARLAND $15,612 Total Award 26 of 33 CDBG SUBRECIPIENT AGREEMENT between THE CITY OF PEARLAND, TEXAS and COUNSELING CONNECTIONS FOR CHANGE RECITALS THIS SUBRECIPIENT AGREEMENT is made and entered by and between the City of Pearland, a body politic and corporate under the laws of the State of Texas, hereinafter referred to as the "Grantee" and Counseling Connections For Change, 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-16-MC-48-0400; WHEREAS, the primary purpose of the Community Development Block Grant (CDBG) Program, pursuant Title 1 of the Housing and Community Development Act of 1974, is to benefit low- to moderate income individuals and families; WHEREAS,the Subrecipient has submitted an application to the Grantee for PY 2016 CDBG funds to provide the above program, that has subsequently endured successful review and approval by U.S. Department of Housing and Urban Development, and will perform the services in a manner satisfactory to the Grantee and the Grantor; WHEREAS,the Subrecipient has stated its intention to ensure the completion and monthly submission of the Individual Eligibility Form 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. Eligible Activities 1 of 33 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. B. Project Requirements Subrecipient will be responsible for administering a Program Year 2016 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 Subrecipient certifies that the activities carried out with funds provided under this Agreement will meet one or more of the CDBG program's National Objectives—1)benefit low-and moderate-income persons and households, 2) aid in the prevention or elimination of slums or blight, or 3) meet community development needs having a particular urgency—as defined in 24 C.F.R. 570.208. The Subrecipient agrees to maintain documentation that demonstrates that the activities carried out with funds provided under this Agreement meet one or more of the CDBG program's national objectives. C. Performance Monitoring 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. 2 of 33 D. Leveraged Funds 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 any time 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, 2016 and end on the 30th day of September 2017. This Agreement may only be extended upon written approval from the City of Pearland's Finance Director or City Manager, and may require the City's elected governing body's approval should any revised allocation amount for this Agreement therefore exceed $50,000.00 (Fifty Thousand Dollars). IV. EXPENSES AND PAYMENT A. Budget and Budget 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, if applicable, 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 Contingent 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 3 of 33 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, 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), but only with the prior approval of the City and with a specified budget in place for such costs.All rules and regulations promulgated herein are applicable. 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 13th day following the end of this Agreement's period of performance. Any requests received after October 13,2017 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. 4 of 33 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 City's Finance Director. Requests for re-allocation of funds to the Subrecipient, otherwise projected for de-obligation and recapture, must be received in writing by the City prior to August 31, 2017. 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. Supplementing a Request 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 13, 2017 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 13, 2017. 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. Program 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. 5 of 33 H. Withholding Payments and Repayment of Ineligible 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. 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 dawn 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 6 of 33 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 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 7 of 33 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 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 Bonding 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 8 of 33 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, if applicable, in the amounts required by State law, covering any and all employees of 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 9 of 33 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 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. J. Local Requirements This Agreement is a subset of local terms and conditions, ordinances, standards and practices that the Subrecipient must comply with. Local construction, design and engineering standards apply to any and all work performed per this Subrecipient Agreement. 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. Revisions to the 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: 10 of 33 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, as applicable; g. Financial records as required by 24 C.F.R. 570.502, and OMB Circular A- 110; and 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 11 of 33 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 12 of 33 a. Reports are to be submitted within ten (10) working days after the end of the monthly reporting period. b. Any bi-annual progress reports due must be submitted to the City within ten (10) days after the end of the sixth (6th) 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 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 13 of 33 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 less 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 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. 14 of 33 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). 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 15 of 33 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 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 Plan 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. 16 of 33 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 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 17of33 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 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. The parties shall use the most practicable interpretations of conflicts of interest based on consanguinity,and 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 1. Compliance 18 of 33 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: "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. 19 of 33 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 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). 20 of 33 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. C. Lead-Based Paint The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 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. Xl. ASSIGNMENTS AND AMENDMENTS • A. Assignability&Amendments 21 of 33 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 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 thArough 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 22 of 33 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 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 returned 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 23 of 33 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 4 S f' day of LC Oe , 20 I&. SU BRECI PI ENT: By: APPROVE I• CITY OF ARLAND, TEXAS By: fl., Cli°'e...—.. 24 of 33 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 Tasks The Subrecipient will be responsible for providing mental and emotional health services in the form of professional counseling to local, eligible non-insured Pearland residents, as well as to those that insurance will not cover the entire cost of service. The Subrecipient shall request reimbursement only for those costs not covered by a third party, including but not limited to Medicaid and/or Medicare. Cost reimbursement will be based on the attached Financial Determination and Fee Schedule Form—2017, as provided by and agreed upon as being reasonable, allocable and allowable costs for the services being provided. 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 (B)(1)(2)(3)(5) of this agreement by providing the following levels of program services: IV. Notice Grantee Subrecipient Initial Contact(Contact 1st) Initial Contact(Contact 1st) Joel Hardy—Grants Coordinator TBD by Subrecipient City of Pearland 3519 Liberty Drive Pearland,Texas 77581 Supervising Contact(Contact 2nd) Supervising Contact(Contact 2nd) City of Pearland Finance Director TBD by Subrecipient (or designee) 25 of 33 Exhibit B, BUDGET for COUNSELING CONNECTIONS FOR CHANGE Pearland,TX It is expressly agreed and understood that the Maximum Amount to be Paid by the Grantee under this Agreement shall not exceed Project Budget Detail EXPENSE CATEGORIES BUDGET Personnel Professional Fees/Contract Services Travel Space Costs Consumables and Supplies Rent, Lease, Purchase Equipment Construction OTHER Facility Improvements OTHER Program Activities-Assistance PROJECT BUDGET TOTAL: CITY OF PEARLAND Total Award 26 of 33 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 ,20 . By ( natu e) (Type r Print Name) �C-ff) (Title) Covered Action: (Program, Project or Activity) 27 of 33 12/21/99 EXECUTION OF BID,NONCOLLUSION AFFIDAVIT,AND DEBARMENT CERTIFICATION The person executing the bid,on behalf of the Bidder,being duly sworn,solemnly swears(or affirms)that neither he,nor any official,agent or employee of the bidder has entered into any agreement,participated in any collusion,or otherwise taken any action which is in restraint of free competitive bidding in connection with this bid, and that the Bidder intends to do the work with its own bona fide employees or subcontractors and is not bidding for 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. • SIGNATURE OF CONTRACTOR (If a corporation uses this sheet) , J�i'1C (Print full n e of corporation) RO Li\ 0j( Ourkt4 ,M6 -7-75g/ (Address as Prequalified) Attes0h) /j'/' / Act,�� {.c By (Secretary)(Assistant Secretary) (President ce President) Delete inappropriate title (Asst.Vice President) Delete inappropriate title tS Print Signer's Name Print Signers Name . • r°•►*�P�� PAMELA G.WATERS + NOTARY PUBLIC ° g CCorae5 O N EXP!E8: '"adtt, 1 1-26-2017 CORPORATE SEAL NOTE-AFFIDAVIT MUST BE NOTARIZED Subscribed and sworn to before me this the day = ,2011 .' (Signature of Notary Public)NOTARY EAL: of ' e ca.j County. State of 11, My Commission Expires: 1(lase lg0 t- Signature Sheet 1 (Bid)-Corporation IF APPLICABLE 32 of 33