CC Resolution 2016-004 CDBG FY 2015/16RESOLUTION NO. 2016 - 004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA
QUINTA, CALIFORNIA, APPROVING A SUPPLEMENTAL
AGREEMENT WITH THE COUNTY OF RIVERSIDE FOR THE
USE OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
FOR AMERICANS WITH DISABILITIES ACT IMPROVEMENTS
AT VARIOUS CITY OWNED PARKS AND PUBLIC SERVICE
FUNDS FOR THE BOYS AND GIRLS CLUB OF THE
COACHELLA VALLEY — LA QUINTA UNIT.
WHEREAS, the Community Development Block Grant funds for Fiscal Year
2015/16 is identified to be $130,489; and,
WHEREAS, the City of La Quinta must submit to the County of Riverside
Economic Development Agency a signed Supplemental Agreement to utilize the
Community Development Block Grant Funds (Exhibit A); and,
WHEREAS, the use of the Community Development Block Grant Fund was
openly discussed and considered by the City Council at their regular meeting on
November 18, 2014; and,
WHEREAS, on November 18, 2014, by a majority vote of the City Council of the
City of La Quinta, California, the following proposal(s), were selected:
PROJECT NAME
SPONSOR AMOUNT
1. Miscellaneous Parks ADA City of La Quinta $112,221
Improvements
2. Fee Waiver/Reduction Program Coachella Valley
Boys and Girls Club
La Quinta Unit
$ 18,268
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta,
California, as follows:
SECTION 1. That the City of La Quinta does hereby approve the Supplemental
Agreement (Exhibit A) for the use of Community Development Block Grant Funds for
Fiscal Year 2015/16 for the above names project(s).
SECTION 2. That the City Council hereby directs the City Manager to disperse the
funding amounts in accordance with the programming procedures of the Community
Development Block Grant program.
Resolution No. 2016-O04j
Community Development Block Grant - Supplemental Agreement
Adopted: February 2, 2016
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PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City
Council held on this 2nd day of February 2016, by the following vote:
AYES: Councilmembers Franklin, Osborne, Pena, Radi, Mayor Evans
NOES: None
ABSENT: None
ABSTAIN: None
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
frk44(1111i
SUSAN MAYSELS, City Cler
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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DCH I BI T A
File No.: 4.LQ.23-15 and 4.LQ.24-15
SUPPLEMENTAL AGREEMENT FOR THE USE OF
2015-2016 COMMUNITY DEVELOPMENT BLOCK GNT FUNDS
This Supplemental Agreement ("Agreement") is entered into this day of
, 2015, by and between the COUNTY OF RIVERSIDE, a political subdivision
of the State of California, herein called, "COUNTY," and the CITY OF LA QUINTA, herein
called "CITY." COUNTY and CITY are collectively referred to as "Parties" and individually as
"Party."
y.
The COUNTY and CITY mutually agree as follows:
1. GENERAL. COUNTY and CITY have executed a Cooperation Agreement, dated
July 15, 2015 ("Cooperation Agreement"), whereby CITY elected to participate with COUNTY,'
which has qualified as an "Urban County" for purposes of receiving Community Development
Block Grant (CDBG) funds ("CDBG"), and to assist and undertake essential community
development and housing assistance activities pursuant to the Housing and Community
Development Act of 1974, Title 1, as amended, Public Law 93-383 hereinafter referred to as
"Act." Said Cooperation Agreement, dated July 15, 2015, is incorporated herein by reference and
made a part of this Agreement as if each and every provision was set forth herein.
2. PURPOSE. CITY promises and agrees to undertake and assist with the
community development activities, within its jurisdiction, by utilizing the sum of $130,489,
CDBG Entitlement Funds, as specifically identified in Exhibits A and B, attached hereto, and are
incorporated herein by this reference, for the following projects (collectively, the "Projects"):
4.LQ.23-15 City of La Quinta ADA Improvements, $112,221
4.LQ.24-15 Boys and Girls Club - Coachella Valley, $18,268
3. TERM OF AGREEMENT. The term of this Agreement for the
implementation of the Projects shall be for a period of one (1) year from July 1, 2015 to
termination on June 30, 2016. City shall proceed consistent with the completion schedule set
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forth in Exhibits A and B, attached hereto and incorporated herein. In the event the Projects are
not substantially completed by the time set forth in the applicable completion schedules due to a
force majeure event (See Section 24 below), the COUNTY may consider extending the schedule
for the completion of the project(s). Times of performance for other activities may also be
extended in writing by COUNTY. If substantial progress toward completion in conformance
with the completion schedule, as determined by COUNTY in its discretion, of the projects are
not made during the term of this Supplemental Agreement, COUNTY may suspend or terminate
this Supplemental Agreement pursuant to the termination procedures set forth in the section
titled "Termination," and the entitlement funds associated with the Projects may be
reprogrammed by the COUNTY after appropriate notice is provided to the City.
4. DISPOSITION OF FUNDS.
A. COUNTY's Board of Supervisors shall determine the final disposition and
distribution of all funds received by COUNTY under the Act consistent with Sections 2 and 3 of
this Supplemental Agreement. COUNTY, through its Economic Development Agency, shall
make payment of the CDBG funds to CITY as set forth in the attached Exhibits A and B. It is
the CITY's responsibility to monitor all project activities set forth in the attached Exhibits A
and B, and to ensure compliance with applicable federal regulations and the terms of this
Supplemental Agreement.
B. CITY shall comply with timely drawdown of CDBG Entitlement funding
by expeditiously implementing and completing the COUNTY -approved, CDBG-funded Projects.
CITY acknowledges that CITY's drawdown performance directly impacts the COUNTY's
overall program drawdown rate. If the CITY's unobligated CDBG fund balance, as of January
31, 2016, exceeds two-times (200%) the CITY's 2015-2016 CDBG allocation, the COUNTY
may, in its sole discretion, take the necessary administrative actions to reduce the CITY's CDBG
fund balance. Necessary actions include, but are not limited to, reprogramming the excess CDBG
fund balance to other eligible activities as selected by COUNTY. COUNTY may, in its sole and
absolute discretion, authorize CITY in writing, prior to January 31, 2016, to exceed the CDBG
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fund balance requirement.
C. CITY shall comply with timely drawdown of CDBG funds by submitting
monthly requests for reimbursement or other COUNTY approved reimbursement schedules. All
disbursements of CDBG funds will be on a reimbursement basis and made within thirty (30)
days after the COUNTY has received the CITY's reimbursement request including
documentation supporting expenditures.
D. All authorized obligations incurred in the performance of the
Supplemental Agreement for projects eligible under the following CDBG regulations must be
reported in writing to COUNTY no later than by June 15, 2016:
1. Public Services [24 CFR 570.201 (e)]
2. Acquisition [24 CFR 570.201 (a)]
3. Clearance Activities [24 CFR 570.201 (d)]
4. Interim Assistance [24 CFR 570.201 (f)]
5. Code Enforcement [24 CFR 570.202 (c)]
All other eligible activities under this Supplemental Agreement must be implemented,
completed, and obligations reported in writing to the COUNTY by the CITY no later than the
completion schedules set forth in the attached Exhibits to this Supplemental Agreement. "CFR"
as used herein refers to the Code of Federal Regulations.
5. COOPERATION WITH HOUSING ACTIVITIES. CITY shall cooperate with
COUNTY in undertaking essential community development and housing assistance activities,
specifically urban renewal and public assistance housing, and shall assist COUNTY in
implementing and undertaking the goals and strategies identified in the 2014-2019 Five Year
Consolidated Plan, pursuant to 24 CFR Part 91 and other requirements of the Community
Development Block Grant Program.
6. LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA). Pursuant to Section 15051(d) of Title 14 of the
California Administrative Code, the CITY is designated as the lead agency for the projects that
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are the subject matter of this Supplemental Agreement.
7. HOLD HARMLESS AND INDEMNIFICATION. In contemplation of the
provisions of Section 895.2 of the California Government Code imposing certain tort liability
jointly upon public entities solely by reason of such entities being parties to an agreement as
defined by Section 895 of the Code, the Parties hereto, pursuant to the authorization contained in
Section 895.4 and 895.6 of the Code, agree that each Party shall be liable for any damages
including, but not limited to, claims, demands, losses, liabilities, costs and expenses including
reasonable attorneys' fees, resulting from the negligent or wrongful acts or omissions of their
employees or agents in the performance of this Agreement, and each Party shall indemnify,
defend and hold harmless the other Parties from such claims, demands, damages, losses or
liabilities for their negligence
8. INSURANCE. Without limiting or diminishing the CITY obligation to
indemnify or hold the COUNTY harmless, CITY shall procure and maintain or cause to be
maintained, at its sole cost and expense, the following insurance coverage's during the term of
this Agreement.
a. Workers' Compensation:
If the CITY has employees as defined by the State of California, the CITY shall
maintain statutory Workers' Compensation Insurance (Coverage A) as prescribed by the laws of
the State of California. Policy shall include Employers' Liability (Coverage B) including
Occupational Disease with limits not less than $1,000,000 per person per accident. The policy
shall be endorsed to waive subrogation in favor of the County of Riverside.
b. Commercial General Liability:
Commercial General Liability insurance coverage, including but not limited to,
premises liability, contractual liability, products and completed operations liability, personal and
advertising injury, and cross liability coverage, covering claims which may arise from or out of
CITY'S performance of its obligations hereunder. Policy shall name the County of Riverside as
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Additional Insured. Policy's limit of liability shall not be less than $1,000,000 per occurrence
combined single limit. If such insurance contains a general aggregate limit, it shall apply
separately to this agreement or be no less than two (2) times the occurrence limit.
c. Vehicle Liability:
If vehicles or mobile equipment are used in the performance of the obligations
under this Agreement, then CITY shall maintain liability insurance for all owned, non -owned or
hired vehicles so used in an amount not less than $1,000,000 per occurrence combined single
limit. If such insurance contains a general aggregate limit, it shall apply separately to this
agreement or be no less than two (2) times the occurrence limit. Policy shall name the County of
Riverside as Additional Insured.
d. General Insurance Provisions - All lines:
(i). Any insurance carrier providing insurance coverage hereunder
shall be admitted to the State of California and have an A M BEST rating of not less than A: VIII
(A:8) unless such requirements are waived, in writing, by the County Risk Manager. If the
County's Risk Manager waives a requirement for a particular insurer such waiver is only valid
for that specific insurer and only for one policy term.
(ii). The CITY'S insurance carrier(s) must declare its insurance
self-insured retentions. If such self-insured retentions exceed $500,000 per occurrence such
retentions shall have the prior written consent of the County Risk Manager before the
commencement of operations under this Agreement. Upon notification of self-insured retention
unacceptable to the COUNTY, and at the election of the Country's Risk Manager, CITY'S
carriers shall either; 1) reduce or eliminate such self-insured retention as respects this Agreement
with the COUNTY, or 2) procure a bond which guarantees payment of losses and related
investigations, claims administration, and defense costs and expenses.
(iii). CITY shall cause CITY'S insurance carrier(s) to furnish the
County of Riverside with either 1) a properly executed original Certificate(s) of Insurance and
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certified original copies of Endorsements effecting coverage as required herein, and 2) if
requested to do so orally or in writing by the County Risk Manager, provide original Certified
copies of policies including all Endorsements and all attachments thereto, showing such
insurance is in full force and effect. Further, said Certificate(s) and policies of insurance shall
contain the covenant of the insurance carrier(s) that thirty (30) days written notice shall be given
to the County of Riverside prior to any material modification, cancellation, expiration or
reduction in coverage of such insurance. In the event of a material modification, cancellation,
expiration, or reduction in coverage, this Agreement shall terminate forthwith, unless the County
of Riverside receives, prior to such effective date, another properly executed original Certificate
of Insurance and original copies of endorsements or certified original policies, including all
endorsements and attachments thereto evidencing coverage's set forth herein and the insurance
required herein is in full force and effect. CITY shall not commence operations until the
COUNTY has been furnished original Certificate (s) of Insurance and certified original copies of
endorsements and if requested, certified original policies of insurance including all
endorsements and any and all other attachments as required in this Section. An individual
authorized by the insurance carrier to do so on its behalf shall sign the original endorsements
for each policy and the Certificate of Insurance.
(iv). It is understood and agreed to by the parties hereto that the CITY'S
insurance shall be construed as primary insurance, and the COUNTY'S insurance and/or
deductibles and/or self-insured retention's or self-insured programs shall not be construed as
contributory.
(v). If, during the term of this Agreement or any extension thereof,
there is a material change in the scope of services; or, there is a material change in the equipment
to be used in the performance of the scope of or, the term of this Agreement, including any
extensions thereof, exceeds five (5) years, the COUNTY reserves the right to adjust the types of
insurance required under this Agreement and the monetary limits of liability for the insurance
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coverage's currently required herein, if; in the County Risk Manager's reasonable judgment, the
amount or type of insurance carried by the CITY has become inadequate.
(vi). CITY shall pass down the insurance obligations contained herein
to all tiers of subcontractors working under this Agreement.
(vii). The insurance requirements contained in this Agreement may be
met with a program(s) of self-insurance acceptable to the COUNTY.
(viii). CITY agrees to notify COUNTY of any claim by a third party or
any incident or event that may give rise to a claim arising from the performance of this
Agreement.
9. RECORDS AND INSPECTIONS.
A. CITY shall establish and maintain financial, programmatic, statistical, and
other supporting records of its operations and financial activities in accordance with the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (2 CFR Part 200.333), and 24 CFR Part 84 and 85, as amended, as they relate to the
acceptance and use of federal funds under this Agreement. Said records shall be retained for a
period of three (3) years from the date that the activity or program funded with the CDBG Grant
is closed out by the COUNTY and reported as complete in the Comprehensive Annual
Performance and Evaluation Report (CAPER). Exceptions to the three (3) year retention period
requirement, pursuant to 2 CFR 200.333 include the following:
i. if any litigation, claim, or audit is started prior to the expiration of
the three year period;
ii. when the CITY is notified in writing by the COUNTY, HUD, or
other Federal agency to extend the retention period;
iii. records for real property and equipment acquired with CDBG
funds must be retained for three (3) years after final disposition;
iv. when the records are transferred by the CITY to the COUNTY,
HUD, or other Federal agency, the three (3) year period is not applicable.
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B. CITY shall obtain an external audit in accordance with the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (2 CFR Part 200.500) and HUD's single audit regulations (24 CFR Part 44.6). Audits
shall usually be performed annually but not less frequently than every two years. Nonprofit
institutions and government agencies that expend less than $750,000 a year in Federal awards are
exempt from Federal audit requirements, but records must be available for review by appropriate
officials of the Federal grantor agency or subgranting entity. The audit report shall be submitted
to the COUNTY within 180 days after the end of the COUNTY'S fiscal year.
C. CITY shall maintain a separate account for the CITYS CDBG Entitlement
funds received as set forth in Exhibits A and B, attached hereto.
D. Pursuant to 2 CFR 200.336, CITY shall, during the normal business hours,
make available to COUNTY, the U.S. Department of Housing and Urban Development (HUD),
or other authorized representative, for the examination and copying, all of its records and other
materials with respect to matters covered by this Agreement and provide reasonable access to
CITY staff for the purpose of interview and discussion related to the records and documents.
E. CITY shall not retain any program income as defined in Section 570.500
of Title 24 of the Code of Federal Regulations. Said program income shall be used only for the
activities that are the subject of this Agreement. Further, all provisions of this Agreement shall
apply to such activities.
F. The CITY shall ensure that at least fifty-one percent (51%) of the persons
benefiting from all CDBG-funded activities or projects designated as serving limited clientele
[570.208(a)(2)(i)] are of low and moderate -income and meet the applicable household income
guidelines. The CITY shall provide the required income certification and direct benefit
documentation, in writing, to the COUNTY pursuant to the reporting requirement of each
activity as set forth in Exhibits A and B, attached hereto. In the event that CITY engages the
services of a sub -contractor to implement CDBG-funded activities, the CITY must collect, in
writing, all required income certification and direct benefit documentation from subcontractors
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prior to submittal to the COUNTY pursuant to the reporting requirement of each activity as set
forth in Exhibits A and B, attached hereto.
10. COMPLIANCE WITH LAWS. CITY shall comply with all applicable federal,
state, and local laws, regulations, and ordinances and any amendments thereto and the federal
regulations and guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY
is to comply with those regulations found in the Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), and 24 CFR Part
84 and 85, as amended, or any subsequent replacement. CITY is to abide by the provisions of the
Community Development Block Grant Manual, prepared by COUNTY and cited in the above-
mentioned Cooperation Agreement. CITY shall comply, if applicable, with Section 3 of the
Housing & Urban Development Act of 1968, as amended, attached hereto as Exhibit "S" and
incorporated herein by this reference. CITY shall also comply with the provisions of 24 CFR
Part 570.200 (j), attached hereto as Exhibit "R," and incorporated herein by this reference,
pertaining to inherently religious activities.
11. INDEPENDENT CONTRACTOR. The CITY is, for purposes relating to this
Supplemental Agreement, an independent contractor and shall not be deemed an employee of the
COUNTY. It is expressly understood and agreed that the CITY (including its employees, agents
and subcontractor's) shall in no event be entitled to any benefits to which the COUNTY
employees are entitled, including but not limited to overtime, any retirement benefits, worker's
compensation benefits, and injury leave or other leave benefits. There shall be no employer-
employee relationship between the parties; and the CITY shall hold the COUNTY harmless from
any and all claims that may be made against the COUNTY based upon any contention by a third
party that an employer-employee relationship exists by reason of this Supplemental Agreement.
It is further understood and agreed by the parties that the CITY in the performance of this
Supplemental Agreement is subject to the control or direction of the COUNTY merely as to the
results to be accomplished and not as to the means and methods for accomplishing the results.
12. TERMINATION.
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A. CITY. CITY may not terminate this Agreement except upon express
written consent of COUNTY, pursuant to CFR Part 200.339 (a)(3).
B. COUNTY. Notwithstanding the provisions of Paragraph 12a, COUNTY
may suspend or terminate this Supplemental Agreement upon a ten (10) day written notice to
CITY of action being taken and the reason for such action including, but not limited to, the
following reasons:
(1) In the event CITY fails to perform the covenants herein contained
at such times and in such manner as provided in this Supplemental Agreement; and
(2) In the event there is a conflict with any federal, state or local law,
ordinance, regulation or rule rendering any of the provisions of this Supplemental Agreement
invalid or untenable; or
(3)
In the event the funding from the Department of Housing and
Urban Development referred to in Sections 1 and 2 above is terminated or otherwise becomes
unavailable.
C. This Agreement may be terminated and/or funding suspended, in whole or
in part, for cause in accordance with the Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (2 CFR Part 200.339). Cause shall
be based on the failure of the CITY to materially comply with either the terms or conditions of
this Agreement. Upon suspension of funding, the CITY agrees not to incur any costs related
thereto, or connected with, any area of conflict from which the COUNTY has determined that
suspension of funds is necessary. CITY acknowledges that failure to comply with Federal
statutes, regulations, or the terms and conditions of this Agreement may be considered by the
COUNTY in evaluating future CDBG and non-CDBG funding applications submitted by CITY.
D. Upon suspension or termination of this Supplemental Agreement, CITY
shall return any unencumbered funds which it has been provided by COUNTY. In accepting said
funds, COUNTY does not waive any claim or cause of action it may have against CITY for
breach of this Supplemental Agreement.
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E. Reversion of Assets
1. Upon expiration or termination of this Supplemental Agreement,
the CITY shall transfer to the COUNTY any CDBG funds on hand at the time of expiration of
the Supplemental Agreement as well as any accounts receivable held by CITY which are
attributable to the use of CDBG funds awarded pursuant to this Supplemental Agreement.
2. Any real property under the CITY'S control that was acquired or
improved in whole or in part with CDBG funds (including CDBG funds provided to the CITY in
the form of a loan) in excess of $25,000 is either:
(i) Used to meet one of the National Objectives pursuant to 24
CFR Part 570.208 until five years after expiration of this agreement, or for such longer period of
time as determined to be appropriate by the COUNTY; or
(ii) Not used in accordance with Clause (i) above, in which
event the CITY shall pay the COUNTY an amount equal to the current market value of the
property less any portion of the value attributable to expenditures of non-CDBG funds for the
acquisition of, or improvement to, the property.
13. NONDISCRIMINATION. CITY shall abide by 24 CFR 570.601 and 570.602 of
Title 24 of the Code of Federal Regulations which requires that no person in the United States
shall on the grounds of race, color, national origin, or sex, be excluded from participation in, be
denied the benefits of, or be subjected to discrimination under any program or activity funded in
whole or in part with Community Development funds. CITY shall abide by and include in any
subcontracts to perform work under this Supplemental Agreement, the following clause:
"During the performance of this Supplemental Agreement, CITY and its subcontractors
shall not unlawfully discriminate against any employee or applicant for employment
because of race, religion, color, national origin, ancestry, physical handicap, medical
condition, marital status, age (over 40) or sex. CITY and subcontractors shall insure that
the evaluation and treatment of their employees and applicants for employment are free
of such discrimination. CITY and subcontractors shall comply with the provisions of the
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Fair Employment and Housing Act (Government Code, Section 12900 et seq.). The
applicable regulations of the Fair Employment and Housing Commission implementing
Government Code, Section 12990, set forth in Chapter 5 of Division 4 of Title 2 of the
California Administrative Code are incorporated into this Agreement by reference and
made a part hereof as if set forth in full. CITY and its subcontractors shall give written
notice of their obligations under this clause to labor organizations with which they have a
collective bargaining or other agreement."
14. PROHIBITION AGAINST CONFLICTS OF INTEREST
A. CITY and its assigns, employees, agents, consultants, officers and elected
and appointed officials shall become familiar with and shall comply with the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (2 CFR Part 200) and the CDBG regulations prohibiting conflicts of interest contained
in 24 CFR 570.611, a copy of which is attached hereto as Exhibit "CI" and incorporated herein
by this reference.
B. CITY understands and agrees that no waiver of exception can be granted
to the prohibition against conflict of interest except upon written approval of HUD pursuant to
24 CFR 570.611 (d). Any request by CITY for an exception shall first be reviewed by COUNTY
to determine whether such request is appropriate for submission to HUD in the COUNTY'S sole
and absolute discretion. In determining whether such request is appropriate for submission to
HUD, COUNTY will consider the factors listed in 24 CFR 570.611 (e).
C. Prior to the distribution of any CDBG funding under this Supplemental
Agreement, CITY shall provide COUNTY, in writing, a list of all employees, agents,
consultants, officers and elected and appointed officials who are in a position to participate in a
decision making process, exercise any functions or responsibilities, or gain inside information
with respect to the CDBG activities funded under this Agreement. CITY shall also promptly
disclose to COUNTY any potential conflict, including even the appearance of conflict that may
arise with respect to the CDBG activities funded under this Supplemental Agreement.
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E. Any violation of this Section 14 shall be deemed a material breach of this
Supplemental Agreement, and the Supplemental Agreement shall be immediately terminated by
the COUNTY.
15. PROJECT ELIGIBILITY. As to CITY or its claimants, COUNTY shall bear no
liability for any later determination by the United States Government, the U.S. Department of
Housing and Urban Development, or any other person or entity that CITY is or is not eligible
under 24 CFR Part 570 to receive CDBG entitlement funds from the COUNTY.
16. USE OF PROPERTY. Whenever federal CDBG funds or program income are
used, in whole or in part, for the purchase of equipment or personal property, the property shall
not be transferred from its originally funded use, by CITY or the CITY'S subcontractor
implementing the CDBG-funded activity, for a period of five (5) years from the close-out date of
the grant from which CDBG assistance was provided. The CITY shall maintain a current
inventory for COUNTY monitoring and review.
17. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY
agrees to notify in writing, and to cause any subcontractor implementing CDBG-funded Projects
to notify, in writing, the Riverside County Workforce Development Center of any and all job
openings that are caused by the CDBG-funded Projects under this Supplemental Agreement.
18. PUBLICITY. Any publicity generated by CITY for the Projects funded pursuant
to this Supplemental Agreement will make reference to the contribution of the COUNTY, the
Economic Development Agency, and the Community Development Block Grant Program in
making the project possible.
19. PROGRAM MONITORING AND EVALUATION. CITY and its subcontractors
shall be monitored and evaluated in terms of its effectiveness and timely compliance with the
provisions of this Supplemental Agreement and the effective and efficient achievement of the
CDBG National Objectives as set forth in Exhibits A and B, attached hereto. Quarterly reports
shall be due on the last day of the month immediately following the end of the quarter being
reported. The quarterly written reports shall include, but shall not be limited to, the following
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data elements:
A. Title of program, listing of components, description of
activities/operations.
B. The projected goals, indicated numerically, and also the goals achieved
(for each report period). In addition, identify by percentage and description, the progress
achieved towards meeting the specified goals and identify any problems encountered in meeting
goals.
C. If the CDBG-funded activity meets a National Objective under 24 CFR
570.208 (a)(2)(i), CITY will report the following:
1) Total number of direct beneficiaries (clientele served) with
household incomes at:
• Above 80%MHI
• Between 50% and 80% MHI (Low -Income)
• Between 30% and 50% MHI (Very Low -Income)
• Less than 30% MHI (Extremely Low -Income)
2) Total number and percent (%) of the clientele served that have
household incomes at or below 80% MHI
3) Racial ethnicity of clientele
4) Number of Female -Headed Households
D. CITY shall report, in writing, and cause its subcontractors to report, in
writing, beneficiary statistics monthly to the Economic Development Agency (EDA) on the pre -
approved Direct Benefit Form and Self -Certification Form (certifying income, family size, and
racial ethnicity) as required by HUD. Updated forms are to be provided to CITY by EDA should
HUD implement changes during the term of this Supplemental Agreement. CITY and
subcontractors will collect and provide all necessary data required by HUD pertaining to the
Specific Outcome Indicators as identified in HUD's Community Planning and Development
(CPD) Outcome Performance Measurement System.
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20. SOURCE OF FUNDING. CITY acknowledges that the source of funding
pursuant to this Supplemental Agreement is Community Development Block Grant funds
(CFDA 14.218), and the Grant Award Number is B -15 -UC -06-0506.
21. ENTIRE AGREEMENT. This Supplemental Agreement, including any
attachments or exhibits hereto constitutes the entire Supplemental Agreement of the parties with
respect to its subject matter and supersedes all prior and contemporaneous representations,
proposals, discussions and communications, whether oral or in writing. No oral understanding or
agreement not incorporated herein shall be binding on any of the parties hereto. Each of the
attachments and exhibits attached hereto is incorporated herein by this reference.
22. MINISTERIAL ACTS. The Assistant County Executive Officer/EDA or
designee(s) are authorized to take such ministerial actions as may be necessary or appropriate to
implement the terms, provisions, and conditions of this Supplemental Agreement as it may be
amended from time -to -time by COUNTY.
23. PRIOR AUTHORIZATION. CITY shall obtain COUNTY's written approval
from the COUNTY'S Economic Development Agency prior to implementing the following
"high risk" activities funded with CDBG assistance:
A. Construction of public facilities (project plans and specifications
B. Acquisition of real property;
C. Historic Preservation;
D. Relocation; and
F. Economic Development
24. FORCE MAJEURE.
A. Performance by either party hereunder shall not be deemed to be in default
where delays or defaults are due to war, insurrection, strikes, lock -outs, riots, floods,
earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine
restrictions, freight embargoes, lack of transportation, governmental restrictions or priority,
litigation, unusually severe weather, inability to secure necessary labor, material or tools, delays
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of any contractor, sub -contractor or supplier, acts of the other party, acts or failure to act of a
public or governmental agency or entity, or any causes beyond the control or without the fault of
the party claiming an extension of time to perform.
B. An extension of time for any such cause (a "Force Majeure Delay") shall
be for the period of the enforced delay and shall commence to run from the time of the
commencement of the cause, if notice by the party claiming such extension is sent to the other
party within thirty (30) calendar days of knowledge of the commencement of the cause.
Notwithstanding the foregoing, none of the foregoing events shall constitute a Force Majeure
Delay unless and until the party claiming such delay and interference delivers to the other party
written notice describing the event, its cause, when and how such party obtained knowledge, the
date the event commenced, and the estimated delay resulting therefrom. Any party claiming a
Force Majeure Delay shall deliver such written notice within thirty (30) calendar days after it
obtains knowledge of the event.
25. JURISDICTION AND VENUE: Any action at law or in equity arising under this
Supplemental Agreement or brought by a party hereto for the purpose of enforcing, construing or
determining the validity of any provision of this Supplemental Agreement shall be filed in the
consolidated Courts of Riverside County, State of California, and the parties hereto waive all
provisions of law providing for the filing, removal or change of venue to any other court or
jurisdiction
26. SEVERABILITY. Each paragraph and provision of this Supplemental
Agreement is severable from each other provision, and if any provision or part thereof is
declared invalid, the remaining provisions shall remain in full force and effect.
27. WAIVER. Failure by a party to insist upon the strict performance of any of the
provisions of this Supplemental Agreement by the other party, or the failure by a party to
exercise its rights upon the default of the other party, shall not constitute a waiver of such party's
rights to insist and demand strict compliance by the other party with the terms of this
Supplemental Agreement thereafter.
Page 16 of 20
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28. NOTICES. Each notice, request, demand, consent, approval or other
communication (hereinafter in this Section referred to collectively as "notices" and referred to
singly as a "notice") which the CITY or COUNTY is required or permitted to give to the other
party pursuant to this Agreement shall be in writing and shall be deemed to have been duly and
sufficiently given if: (a) personally delivered with proof of delivery thereof (any notice so
delivered shall be deemed to have been received at the time so delivered); or (b) sent by Federal
Express (or other similar national overnight courier) designating early morning delivery (any
notice so delivered shall be deemed to have been received on the next Business Day following
receipt by the courier); or (c) sent by United States registered or certified mail, return receipt
requested, postage prepaid, at a post office regularly maintained by the United States Postal
Service (any notice so sent shall be deemed to have been received two days after mailing in the
United States), addressed to the respective parties as follows:
COUNTY CITY
Assistant County Executive Officer/EDA Edie Hylton
Economic Development Agency City of La Quinta
P.O. Box 1180 78-495 Calle Tampico
Riverside, CA 92502 La Quinta, CA 92253
28. LOBBYING. CITY certifies to the best of its knowledge and belief, that:
a. No federally -appropriated funds have been paid or will be paid, by or on
behalf of the CITY, to any person for influencing or attempting to influence an officer or
employee of any agency, a member of Congress, an officer or employee of Congress, or an
employee of a member of Congress in connection with the awarding of any federal contract, the
making of any federal grant, the making of any federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment, or modification of any federal
contract, grant, loan, or cooperative agreement.
b. If any funds other than federally -appropriated funds have been paid or will
Page 17 of 20
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be paid to any person for influencing or attempting to influence an officer or employee of any
agency, a member of Congress, an officer or employee of Congress, or an employee of a member
of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the
CITY shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions.
c. CITY shall require that the language of this certification be included in the
award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts
under grants, loans, and cooperative agreements) and that all sub -recipients shall certify and
disclose accordingly. This certification is a material representation of fact upon which reliance
was placed when this transaction was made or entered into.
29. INTERPRETATION AND GOVERNING LAW. This Supplemental Agreement
and any dispute arising hereunder shall be governed by and interpreted in accordance with the
laws of the State of California. This Supplemental Agreement shall be construed as a whole
according to its fair language and common meaning to achieve the objectives and purposes of the
parties hereto, and the rule of construction to the effect that ambiguities are to be resolved
against the drafting party shall not be employed in interpreting this Supplemental Agreement, all
parties having been represented by counsel in the negotiation and preparation hereof.
30. AUTHORITY TO EXECUTE. The persons executing this Supplemental
Agreement or exhibits attached hereto on behalf of the parties to this Supplemental Agreement
hereby warrant and represent that they have the authority to execute this Supplemental
Agreement and warrant and represent that they have the authority to bind the respective parties
to this Supplemental Agreement to the performance of its obligations hereunder.
31. EFFECTIVE DATE. The effective date of this Supplemental Agreement is the
date the parties sign the Supplemental Agreement. If the parties sign the Supplemental
Agreement on more than one date, then the last date the Supplemental Agreement is signed by a
party shall be the effective date.
32. COUNTERPARTS. This Supplemental Agreement may be signed by the
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different parties hereto in counterparts, each of which shall be an original but all of which
together shall constitute one and the same agreement.
33. LETTER TO PROCEED. CITY shall not initiate nor incur expenses for the
CDBG-funded Projects or activities covered under the terms of this Supplemental Agreement as
set forth in Exhibits A and B, attached hereto, prior to receiving written authorization from
COUNTY to proceed.
34. ASSIGNMENT. The CITY shall not make any assignment or transfer in any form
with respect to this Supplemental Agreement, without prior written approval of the COUNTY.
35. MODIFICATION OF AGREEMENT. This Supplemental Agreement may be
modified or amended only by a writing signed by the duly authorized and empowered
representative of COUNTY and CITY respectively.
Remainder of Page Intentionally Blank
[Signatures on Following Page]
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IN WITNESS WHEREOF, the COUNTY and the CITY have executed this Agreement as
of the dates set forth below.
COUNTY OF RIVERSIDE,
a political subdivision of the
State of California
BY:
Suzanne Holland, Assistant County
Executive Officer/EDA
Date:
CITY OF LA QUINTA,
a municipal corporation and charter city
BY:
FRANK J. SP ACEI ity Manager
City of La uin
Date:) f6—
APPROVED AS TO FORM: ATTEST:
Gregory P. Priamos, County Counsel
By: BY:SIM/AAy
Jhaila R. Brown, Susan Maysels, City Cle , City of La Quints
Deputy County Counsel
Page 20
APPROVED AS TO FORM:
BY: tel./ tai .•e.t.
WILLIAM H. IHRKE, City Attorney
EXHIBIT A
File No.: 4.LQ.23-15
SUPPLEMENTAL AGREEMENT
SCOPE OF WORK
(NON-PUBLIC SERVICE)
I. GENERAL INFORMATION
CITY NAME: city of La Ouinta DUNS #: 158241765
ADDRESS: 78-495 Calle Tampico
La Quinta, CA 92253
PROGRAM CONTACTS: Les Johnson, Program Manager
PHONE: (760) 777-7100 FAX: (760) 777-7155
E-MAIL:
PROJECT NAME: City of La Quinta ADA Improvements
PROJECT LOCATION: Citywide
LEVEL OF ENVIRONMENTAL CLEARANCE: Categorical Exclusion 24 CFR 58 .35
CDBG ELIGIBILITY CODE: 570.201 (c) Public Facilities
PROJECT FUNDING SUMMARY: $112,221
Project to be administered by County (EDA) on behalf of City: YES ❑ NO
II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2015-2016 Community Development Block Grant for the
City of La Quinta ADA Improvements in a manner satisfactory to the County of Riverside
and consistent with any standards required as a condition of providing these funds. Such program will
include the following activities eligible under the Community Development Block Grant program:
Activity#1 The City of La Quinta will use CDBG funds to pay for costs
associated with the construction of ADA improvements at
City public parks, intersection curb ramps, and sidewalks,
prioritized improvements recommended in the City's ADA
Transition Plan report. CDBG funds will be used for design,
construction, and inspection/testing costs.
Page 1 of 7
EXHIBIT A
File No.: 4.LQ.23-15
B. National Objective
All activities funded with CDBG funds must comply with one of more of the CDBG program's National
Objective Criteria as required under 24 CFR 570.200(a)(2). City certifies that the activity(ies) carried out
under this Agreement will meet the following National Objective:
National Objective Criteria: 5 7 0 .2 0 8 (a) (2) (i) (A)
CFR Reference: Low Mod Limited Clientele Presumed
C. Levels of Accomplishment — Goals and Performance Measures
The City agrees to implement and complete the following activity(ies):
Activity #1 Prepare design and specifications for facility improvements.
Activity #2 Implement and complete construction activities.
CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives (select one): ! 1 Creating Suitable Living Environments
❑ Providing Decent Affordable Housing
❑ Creating Economic Opportunities
Outcome (select one): ® Availability/Accessibility
❑ Affordability
❑ Sustainability (promoting livable or viable communities)
D. City Capacity
By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained
and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and
sufficient amount of financial resources necessary to implement and carry out the activities funded with
CDBG funds.
City will immediately notify County of any significant changes in organizational management, assigned
staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact
the City or subrecipient's performance under this Agreement. Any changes in the above items are subject to
the prior approval of the County.
E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against goals and
performance standards as stated above. Substandard performance as determined by the
County will constitute noncompliance with this Agreement. If action to correct such substandard
performance is not taken by the City within a reasonable period of time after being notified by the
County, contract suspension or termination procedures will be initiated.
Page 2 of 7
EXHIBIT A
File No.: 4.LQ.23-15
F. Program Budget
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement
shall not exceed $112,221 Drawdowns for the payment of eligible expenses shall be made against the line
item budgets specified in this Section and in accordance with performance. Payments may be contingent
upon certification of the Subrecipient's financial management system in accordance with the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2
CFR Part 200), and 24 CFR Part 84 and 85, as amended.
The County may require a more detailed budget breakdown than the one contained herein, and the City
shall provide such supplementary budget information in a timely fashion in the form and content
prescribed by the County. Any amendments to the budget must be approved in writing by both the
County and City.
Line Item
CDBG Granted
Funds
Total of Non-
CDBG Funds
Total Activity/Project
Budget
Notes
Design/Engineering Costs
Project Administration Costs
Construction Costs
Acquisition Costs
Relocations Costs
Capital Equipment Costs
Code Enforcement
Clearance
Interim Assistance
Indirect Costs:
$112,221
$21,193
$133,414
Page 3 of 7
G.
1~ E: DE R::LL
STATEfLOC
Total Amount of Non- CDBG Leveraging
PRIVATE
EXHIBIT A
File No.: 4.LQ.23-15
SOURCE AMOUNT
SOURCE
AMOUNT
SOURCE [ AMOUNT
TOTAL
L
City of LQ.
Gen. Fund
$21,193
$21,193
OTIIE;R
III. ADMINISTRATIVE REQUIREMENTS
TOTAL: $21,193
A. Accounting Standards
The City agrees to comply with the Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (2 CFR Part 200), and 24 CFR Part 84 and 85, as
amended, and agrees to adhere to the accounting principles and procedures required therein,
utilize adequate internal controls, and maintain necessary source documentation for all costs
incurred.
B. Cost Principles
The City shall administer its program in conformance with the Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part
200), and 24 CFR Part 84 and 85, as amended. These principles shall be applied for all costs
incurred whether charged on a direct or indirect basis.
C. Documentation and Record Keeping
1. Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR
570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall
include but not be limited to:
I Records providing a full description of each activity undertaken;
ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the
CDBG program;
iii. Records required to determine the eligibility of activities;
iv. Records required to document the acquisition, improvement, use or disposition of real property
acquired or improved with CDBG assistance;
v. Records documenting compliance with the fair housing and equal opportunity components of the
CDBG program;
vi. Financial records as required by 24 CFR 570.502, and 2 CFR 200; and
vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570.
Page4of7
EXHIBIT A
File No.: 4.LQ.23-15
2. Records Retention
The City shall retain all CDBG-related financial records, supporting documents, contracts, and
agreements for a period of three (3). The retention period begins on the date of the submission of the
County's annual performance and evaluation report to HUD in which the activities assisted under the
Agreement are reported for the final time. The City will retain all National Objective documentation,
including low -moderate income certification, ethnicity, other pertinent data for a period of five (5)
years after submission of the County's annual performance and evaluation report to HUD.
Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that
involve any of the records cited and that have started before the expiration of the five-year period, then
such records must be retained until completion of the actions and resolution of all issues.
3. Client Data
The City shall maintain client data demonstrating client eligibility for services provided. Such data
shall include, but not be limited to, client name, address, income level or other basis for determining
eligibility, and description of service provided. Such information shall be made available to County
monitors or their designees for review upon request.
4. Disclosure
The City understands that client information collected under this contract is private and the use or
disclosure of such information, when not directly connected with the administration of the County's or
City's responsibilities with respect to services provided under this contract, is prohibited by applicable
federal and State law unless written consent is obtained from such person receiving service and, in the
case of a minor, that of a responsible parent/guardian.
5. Close-outs
The City's obligation to the County shall not end until all close-out requirements are completed.
Activities during this close-out period shall include, but are not limited to: making final payments,
disposing of program assets (including the return of all unused materials, equipment, unspent cash
advances, program income balances, and accounts receivable to the County), and determining the
custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in
effect during any period that the City has control over CDBG funds, including program income.
6. Audits & Inspections
All City records with respect to any matters covered by this Agreement shall be made available to the
County, HUD, and the Controller General of the United States or any of their authorized
representatives, at any time during normal business hours, as often as deemed necessary, to audit,
examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports
must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply
with the above audit requirements will constitute a violation of this contract and may result in the
withholding of future payments. The City hereby agrees to have an annual agency audit conducted in
accordance with current County policy concerning subrecipient audits and Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part
200.500) and HUD's single audit regulations (24 CFR Part 44.6).
Page 5 of 7
EXHIBIT A
File No.: 4.LQ.23-15
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre -approved by County, City will perform and complete the activities described
in Section II in conformance with the schedule of tasks and milestones listed below:
Tasks / Milestone Start Date Completion Date
Complete Online Training September 2015 October 2015
Implement Project Activities Upon Notification from EDA
Execute Supplemental Agreement October 2015 November 2015
& Notice to Incur Cost
Tasks / Milestone Start Date Completion Date
Submit Quarterly Performance
Reports to County
October 15, 2015
January 15, 2016
April 15, 2016
July 8, 2016
County Monitoring of City To be determined by Program Manager
Program/Performance
Specific Project Activities
1. City executes Sponsor's Agreement; receives authorization to incur cost letter
2. City prepares final construction/equipment documents (incorporating Special Federal
Provisions) for EDA review and approval
3. EDA authorizes City to advertise for bids
4. EDA reviews and approves bidding process
5. City awards construction/equipment contract
6. City and EDA conduct "pre -construction meeting"
7. EDA authorizes City to issue "Notice to Proceed"
City Submits Reimbursement
Requests
Monthly Submittal ❑
Other Schedule
CDBG-funded Project Complete
City Submits Monthly
Direct Benefit Reports
No Later than May 15, 2016
April 30, 2016
Upon Notification by EDA
Page 6 of 7
EXHIBIT A
File No.: 4.LQ.23-15
V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS
City is not to proceed with bidding or contracting, for design or construction services, prior to
contacting the County to obtain Special Federal Provisions for bidding and contract procurement.
EDA must review and approve (in writing) all construction bid documents prior to notice
inviting bids.
Page7of7
EXHIBIT B
File No.: 4.LQ.24-15
SUPPLEMENTAL AGREEMENT
SCOPE OF WORK
(PUBLIC SERVICE)
I. GENERAL INFORMATION
CITY NAME: City of La Quinta DUNS#:968847715
ADDRESS: 78-495 Calle Tampico
La Quinta,CA92253
CITY PROGRAM CONTACTS: Les Johnson, Program Manager
SUBRECIPIENT NAME: Boys and Girls Clubs of the Coachella Valley
ADDRESS: 49-995 Moon River Drive, La Quinta, CA 92253
PHONE: (760) 564-5555 FAX: (760) 776-9111
E-MAIL:
PROJECT NAME: Boys and Girls Club - Coachella Valley
PROJECT LOCATION•
46 " U0411
LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT [24 CFR 58.34 (a)(4)]
CDBG ELIGIBILITY CODE: 24 CFR 570.201 (e) Public Services
PROJECT FUNDING SUMMARY: $18,268
Project to be administered by County (EDA) on behalf of CITY: YES ❑ NO
II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2015-2016 Community Development Block Grant
for the Boys and Girls Club - Coachella Valley in a manner satisfactory to the
County of Riverside and consistent with any standards required as a condition of providing these
funds. Such program will include the following activities eligible under the Community
Development Block Grant program:
Activity#1 The Boys and Girls Club will use CDBG funds to provide
membership "scholarships" to youth from low-income
families. These scholarships will allow eligible
individuals to participate in after-school programs
including concerts, recreation, and arts and crafts
activities.
Page 1 of 7
EXHIBIT B
File No.: 4.LQ.24-15
B. National Objective
All activities funded with CDBG funds must comply with one of more of the CDBG program's
National Objective Criteria as required under 24 CFR 570.200(a)(2). CITY certifies that the
activity (ies) carried out under this Agreement will meet the following National Objective:
National Objective Criteria: 570.208 (a) (2) (i) (B)
CFR Reference: Low Mod Limited Clientele Income Certification
C. Levels of Accomplishment — Goals and Performance Measures
The City agrees to provide the following levels of program services:
Activity
Units Total Total
per Month Units/Year Unduplicated Persons
Activity #1 12 72 72
Unit of Service is defined as: Scholarships Provided
CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives (select one): [Z]Creating Suitable Living Environments
n Providing Decent Affordable Housing
❑ Creating Economic Opportunities
Outcome (select one): ❑ Availability/Accessibility
Affordability
❑ Sustainability (promoting livable or viable communities)
D. City Capacity
By executing this Supplemental Agreement, the City certifies that it and its subrecipients have the
appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment,
required licensing and permitting, and sufficient amount of financial resources necessary to
implement and carry out the activities funded with CDBG funds.
City will immediately notify County of any significant changes in organizational management,
assigned staff, change in facilities, loss or change in matching funds, or any other event that could
potentially impact City's performance under this Agreement. Any changes in the above items are
subject to the prior approval of the County.
E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against
goals and performance standards as stated above. Substandard performance as determined by the
County will constitute noncompliance with this Agreement. If action to correct such substandard
performance is not taken by the City within a reasonable period of time after being notified by
the County, contract suspension or tennination procedures will be initiated.
Page 2 of 7
EXHIBIT B
File No.: 4.LQ.24-15
F. Program Budget
It is expressly agreed and understood that the total amount to be paid by the County under this
Agreement shall not exceed 518,268. Drawdowns for the payment of eligible expenses shall be
made against the line item budgets specified in this Section and in accordance with performance.
Payments may be contingent upon certification of the Subrecipient's financial management
system in accordance with the standards specified in Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), and 24 CFR
Part 84 and 85, as amended.
The County may require a more detailed budget breakdown than the one contained herein, and
the City shall provide such supplementary budget information in a timely fashion in the form and
content prescribed by the County. Any amendments to the budget must be approved in writing
by both the County and City.
Line Item
Total Direct Program
Expenses
Salaries
Fringe
Office Space (Program Only)
Utilities
Communications
Reproduction/Printing
Supplies and Materials
Mileage
Equipment (Program Only)
Audit
Transportation
Other: Scholarships
Total Indirect Program
Expenses
Indirect Costs (Specify)*
CDBG Granted
Funds
$18,268
$18,268
Total Non-
CDBG Funds
Total
Activity/Project
Budget
Notes
* All indirect costs must be pre -approved by the County. City must submit an
Indirect Cost Allocation Plan to County, in a form specified by County,
demonstrating the appropriate share of general and administrative costs.
Page 3 of 7
AMOUNT
STATE LOCA
G. Total Amount of Non- CDBG Leveraging
TYPE
FEDERAL
PRIVATE
OTHER
SOURCE
AMOUNI SOURCE
EXHIBIT B
File No.: 4.LQ.24-15
SOURCE
AMOUNT r TOTAL
TOTAL:.
III. ADMINISTRATIVE REQUIREMENTS
A. Accounting Standards
The City agrees to comply with the 24 Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), and 24
CFR Part 84 and 85, as amended, and agrees to adhere to the accounting principles and
procedures required therein, utilize adequate internal controls, and maintain necessary
source documentation for all costs incurred.
B. Cost Principles
The City shall administer its program in conformance with the Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR
Part 200), and 24 CFR Part 84 and 85, as amended. These principles shall be applied for
all costs incurred whether charged on a direct or indirect basis.
C. Documentation and Record Keeping
1. Records to be Maintained. The City and its subrecipients will maintain all records
required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the
activities to be funded under this Agreement. Such records shall include but not be limited to:
Records providing a full description of each activity undertaken;
ii. Records demonstrating that each activity undertaken meets one of the
National Objectives of the CDBG program;
iii. Records required to determine the eligibility of activities;
iv. Records required to document the acquisition, improvement, use or
disposition of real property acquired or improved with CDBG assistance;
v. Records documenting compliance with the fair housing and equal
opportunity components of the CDBG program;
vi. Financial records as required by 24 CFR 570.502, and 2 CFR 200; and
vii. Other records necessary to document compliance with Subpart K of 24
CFR Part 570.
Page 4 of 7
EXHIBIT B
File No.: 4.LQ.24-15
2. Records Retention: The City shall retain all CDBG-related financial records,
supporting documents, contracts, and agreements for a period of three (3). The retention period
begins on the date of the submission of the County's annual performance and evaluation report
to HUD in which the activities assisted under the Agreement are reported for the final time. The
City will retain all National Objective documentation, including low -moderate income
certification, ethnicity, other pertinent data for a period of five (5) years after submission of the
County's annual performance and evaluation report to HUD. Notwithstanding the above, if there
is litigation, claims, audits, negotiations or other actions that involve any of the records cited and
that have started before the expiration of the five-year period, then such records must be retained
until completion of the actions and resolution of all issues.
3. Client Data: The City shall maintain client data demonstrating client eligibility for
services provided. Such data shall include, but not be limited to, client name, address, income
level or other basis for determining eligibility, and description of service provided. Such
information shall be made available to County monitors or their designees for review upon
request.
4. Disclosure: The City understands that client information collected under this
contract is private and the use or disclosure of such information, when not directly connected
with the administration of the County's or City's responsibilities with respect to services
provided under this contract, is prohibited by applicable federal and State law unless written
consent is obtained from such person receiving service and, in the case of a minor, that of a
responsible parent/guardian.
5. Close-outs: The City's obligation to the County shall not end until all close-out
requirements are completed. Activities during this close-out period shall include, but are not
limited to: making final payments, disposing of program assets (including the return of all
unused materials, equipment, unspent cash advances, program income balances, and accounts
receivable to the County), and determining the custodianship of records. Not withstanding the
foregoing, the terms of this Agreement shall remain in effect during any period that the City has
control over CDBG funds, including program income.
6. Audits & Inspections: All City records with respect to any matters covered by this
Agreement shall be made available to the County, HUD, and the Controller General of the
United States or any of their authorized representatives, at any time during normal business
hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all
relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30
days after receipt by the City. Failure of the City to comply with the above audit requirements
will constitute a violation of this contract and may result in the withholding of future payments.
The City hereby agrees to have an annual agency audit conducted in accordance with current
County policy concerning subrecipient audits and the Uniform Administrative Requirements ,
Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200.500) and
HUD's single audit regulations (24 CFR Part 44.6).
Page 5 of 7
EXHIBIT B
File No.: 4.LQ.24-15
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre -approved by County, CITY will perform and complete the activities described in
Section II in conformance with the schedule of tasks and milestones listed below:
Tasks / Milestone
Complete Online Training
Execute Subrecipient Agreements
(EDA must approve)
Implement Program Activities
Execute Supplemental Agreement
& Notice to Incur Cost
City Submit Quarterly
Performance Reports to County
Start Date Completion Date
September 2015 October 2015
August 2015 October 2015
July 1, 2015 March 30, 2016
October 2015 November 2015
October 15, 2015
January 15, 2016
April 15, 2016
County Monitoring of City TBD TBD
Performance
City submit Monthly
Direct Benefit Reports
City Submits Reimbursement
Requests
September 2015 April 15, 2016 (Final)
Monthly Submittal 11 September 2015 April 15, 2016 (Final)
Other Schedule
CDBG Program Services Complete
March 2016
V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS
Subrecipient must collect income self -certifications and verifications from every parent or legal
guardian of every child participating in CDBG-funded activities. This includes family income,
family size, and ethnicity. Subrecipient is required to collect income verification documentation
from the persons submitting the certifications. All of this documentation must be submitted to
EDA on a monthly basis.
Page 6 of 7
EXHIBIT B
File No.: 4.LQ.24-15
(Special Conditions continued on Page 7 of 7)
Due to the funding amount allocated to this project, program year-end deadlines, and
Subrecipient's past performance, Subrecipient is expected to complete CDBG funded
activities by March 30, 2016, with the City's fmal reimbursement request and reports to be
submitted no later than April 15, 2016.
Page 7 of 7
File No.: 4.LQ.23-15 and 4.LQ.24-15
EXHIBIT CI
Prohibition Against Conflicts of Interest
Page 1 of 4
§ 570.611 Conflict of interest.
(a) Applicability.
(1) In the procurement of supplies, equipment, construction, and
services by recipients, and by subrecipients (including those specified at §
570.204(c), the conflict of interest provisions in Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR
Part 200.318), and 24 CFR Part 84 and 85, as amended, shall apply.
(2) Subrecipient must maintain written standards of conduct covering
conflict of interest and governing the performance of its employees engaged in
the selection and award of contracts.
(3) In all cases not governed by Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part
200.318), and 24 CFR Part 84 and 85, as amended, the provisions of this section
shall apply. Such cases include the acquisition and disposition of real
property and the provision of assistance by the recipient, by its
subrecipients, or to individuals, businesses and other private entities under
eligible activities which authorize such assistance (e.g., rehabilitation,
preservation, and other improvements of private properties or facilities
pursuant to § 570.202, or grants, loans and other assistance to businesses,
individuals and other private entities pursuant to § 570-203, § 570.204 or §
570.455).
(b) Conflicts prohibited. Except for the use of CDBG funds to pay salaries
and other related administrative or personnel costs, the general rule is that
no persons described in paragraph (c) of this section who exercise or have
exercised any functions or responsibilities with respect to CDBG activities
assisted under this part or who are in a position to participate in a decision
making process or gain inside information with regard to such activities, may
obtain a personal or financial interest or benefit from a CDBG assisted
activity, or have an interest in any contract, subcontract or agreement with
respect thereto, or the proceeds thereunder, either for themselves or those
with whom they have family or business ties, during their tenure or for one
year thereafter. For the UDAG program, the above restrictions shall apply to
all activities that are a part of the UDAG project, and shall cover any such
interest or benefit during, or at any time after, such person's tenure.
(c) Persons covered. The conflict of interest provisions of paragraph (b) of
this section apply to any person who is an employee, agent, consultant,
officer, or elected official or appointed official of the recipient, or of any
designated public agencies, or subrecipients which are receiving funds under
this part.
EXHIBIT CI
Prohibition Against Conflicts of Interest
Page 2 of 4
(d) Exceptions: threshold requirements. Upon the written request of the
recipient, HUD may grant an exception to the provisions of paragraph (b) of
this section on a case-by-case basis when it determines that such an exception
will serve to further the purposes of the Act and the effective and efficient
administration of the recipient's program or project. An exception may be
considered only after the recipient has provided the following:
(1) A disclosure of the nature of the conflict, accompanied by an
assurance that there has been public disclosure of the conflict and a
description of how the public disclosure was made; and
(2) An opinion of the recipient's attorney that the interest for which
the exception is sought would not Violate State or local law.
(e) Factors to be considered for exceptions. In determining whether to grant
a requested exception after the recipient has satisfactorily met the
requirements of paragraph (d) of this section, HUD shall consider the
cumulative effect of the following factors, where applicable:
(1) Whether the exception would provide a significant cost benefit or an
essential degree of expertise to the program or project which would otherwise
not be available;
(2) Whether an opportunity was provided for open competitive bidding or
negotiation;
(3) Whether the person affected is a member of a group or class of low
or moderate income persons intended to be the beneficiaries of the assisted
activity, and the exception will permit such person to receive generally the
same interests or benefits as are being made available or provided to the group
or class;
(4) Whether the affected person has withdrawn from his or her functions
or responsibilities, or the decision making process with respect to the
specific assisted activity in question;
(5) Whether the interest or benefit was present before the affected
person was in a position as described in paragraph (b) of this section;
(6) Whether undue hardship will result either to the recipient or the
person affected when weighed against the public interest served by avoiding the
prohibited conflict; and
(7) Any other relevant considerations.
Exhibit CI
Prohibition Against Conflicts of Interest
Page 3 of 4
Community Development Block Grant
Policy Manual
I.D. # A-11
(pg. 1 of 2)
TOPIC: CONFLICT OF INTEREST CODED
RIVERSIDE COUNTY
ECONOMIC DEVELOPMENT AGENCY
DATE: June 2015
This Conflict of Interest Code is written to comply with the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (2 CFR Part 200.318), and 24 CFR Part 84 and 85, as amended.
These regulations require that grantees and sub -grantees to maintain a written
code of standards of conduct governing the performance of their employees
engaged in the award and administration of contracts.
1) No employee, officer or agent of the grantee shall participate in the
selection, in the award or in the administration of a contract supported by
Federal Funds if a conflict of interest, real or apparent, would be involved.
2) Such a conflict will arise when:
i) The employee, officer or agent;
ii) Any member of the immediate family;
iii) His/Her partners, or;
iv) An organization which employs, or is about to employ any of the
above has a financial or other interest in the firm's selection
for award.
3) The grantee's or sub -grantee's officers, employees or agents will neither
solicit nor accept gratuities, favors or anything of monetary value from
contractors or parties to sub -agreements except as noted in Section 4.
4) A grantee's or sub -grantee's officers, employees or agents will be presumed
to have a financial interest in a business if their financial interest exceeds
the following:
Any business entity in which the official has a direct or indirect
investment worth one thousand dollars ($1,000) or more.
ii) Any real property in which the official has a direct or indirect
interest worth one thousand dollars ($1,000) or more.
EXHIBIT CI
TOPIC: CONFLICT OF INTEREST CODE
RIVERSIDE COUNTY
ECONOMIC DEVELOPMENT AGENCY
DATE: June 2015
5
Prohibition Against Conflicts of Interest
Page 4 of 4
Community Development Block Grant
Policy Manual
I.D. # A-11
(pg. 2 of 2)
iii) Any source of income, other than gifts and other than loans by a
commercial lending institution in the regular course of business on
terms available to the public without regard to official status,
aggregating two hundred fifty dollars ($250) or more in value provided
to, received by or promised to the official within 12 months prior to
the time when the decision is made.
iv) Any business entity in which the official is a director, officer,
partner, trustee, employee, or holds any position of management.
Any donor of, or any intermediary or agent for a donor of, a gift or
gifts aggregating two hundred fifty dollars ($250) or more in value
provided to, received by, or promised to the official within 12 months
prior to the time when the decision is made.
For purposes of Section 4, indirect investment or interest means any
investment or interest owned by the spouse or dependent child of an
official, by an agent on behalf of an official, or by a business entity or
trust in which the official, the official's agents, spouse, and dependent
children own directly, indirectly, or beneficially a 10 -percent interest or
more.
EXHIBIT "R"
CONSTITUTIONAL PROHIBITION
Page 1 of 2
In accordance with First Amendment Church/State Principles, as a general
rule, CDBG/ESG assistance may not be used for religious activities or
provided to primarily religious entities for any activities, including
secular activities. The following restrictions and limitations therefore
apply to the use of CDBG/ESG funds.
(1) CDBG/ESG funds may not be used for the acquisition of property
or the construction or rehabilitation (including historic preservation and
removal of architectural barriers) of structures to be used for religious
purposes or which will otherwise promote religious interests. This
limitation includes the acquisition of property for ownership by primarily
religious entities and the construction or rehabilitation (including
historic preservation and removal of architectural barriers) of structures
owned by such entities (except as permitted under paragraph (j) (2) of
this section with respect to rehabilitation and under paragraph (j) (4) of
this section with respect to repairs undertaken in connection with public
services) regardless of the use to be made of the property or structure.
Property owned by primarily religious entities may be acquired with
CDBG/ESG funds at no more than fair market value for a non -religious use.
(2) CDBG/ESG funds may be used to rehabilitate buildings owned by
primarily religious entities to be used for a wholly secular purpose under
the following conditions:
(i) The building (or portion thereof) that is to be improved
with the CDBG/ESG assistance has been leased to an existing or newly -
established wholly secular entity (which may be an entity established by
the religious entity);
(ii) The CDBG/ESG assistance is provided to the lessee (and not
the lessor) to make the improvements;
(iii) The leased premises will be used exclusively for secular
purposes available to persons regardless of religion;
(iv) The lease payments do not exceed the fair market rent of
the premises as they were before the improvements are made;
(v) The portion of the cost of any improvements that also
serve a non -leased part of the building will be allocated to and paid for
by the lessor;
(vi) The lessor enters into a binding agreement that unless the
lessee, or a qualified successor lessee, retains the use of the leased
premises for a wholly secular purpose for at least the useful life of the
improvements, the lessor will pay to the lessee an amount equal to the
residual value of the improvements;
EXHIBIT "R"
CONSTITUTIONAL PROHIBITION
Page 2 of 2
(vii) The lessee must remit the amount received from the lessor
under subparagraph (2)(vi) of this section to the recipient or
subrecipient from which the CDBG/ESG funds were derived.
The lessee can also enter into a management contract authorizing the
lessor religious entity to use the building for its intended secular
purpose, e.g., homeless shelter, provision of public services. In such
case,
the religious entity must agree in the management contract to carry out
the secular purpose in a manner free form religious influences in
accordance with the principles set forth in paragraph (j)(3) of this
section.
(3) As a general rule, CDBG/ESG funds may be used for eligible
public services to be provided through a primarily religious entity, where
the religious entity enters into an agreement with the recipient or
subrecipient from which the CDBG/ESG funds are derived that, in connection
with the provision of such services:
(i) It will not discriminate against any employee or applicant
for employment on the basis of religion and will not limit employment or
give preference in employment to persons on the basis of religion.
(ii) It will not discriminate against any person applying for
such public services on the basis of religion and will not limit such
services or give preference to persons on the basis of religion;
(iii) It will provide no religious instruction or
counseling, conduct no religious worship or services, engage in no
religious proselytizing, and exert no other religious influence in the
provision of such public services;
(iv) The portion of a facility used to provide the public
services shall contain no religious symbols or decorations, other than
those permanently affixed to or part of the structure.
(4) Where the public services provided under paragraph (j) (3) of
this section are carried out on property owned by the primarily religious
entity, CDBG/ESG funds may also be used for minor repairs to such property
which are directly related to carrying out the public services where the
cost constitutes in dollar terms only an incidental portion of the
CDBG/ESG expenditure for the public services.
EXHIBIT "S"
Page 1 of 2
Economic Opportunities for Section 3 Residents and Section 3 Business
Concerns
Sec. 135.38 Section 3 clause.
All section 3 covered contracts shall include the following clause
(referred to as the section 3 clause):
A. The work to be performed under this contract is subject to the
requirements of section 3 of the Housing and Urban Development Act of
1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is
to ensure that employment and other economic opportunities generated by
HUD assistance or HUD -assisted projects covered by section 3, shall, to
the greatest extent feasible, be directed to low- and very low-income
persons, particularly persons who are recipients of HUD assistance for
housing.
B. The parties to this contract agree to comply with HUD's
regulations in 24 CFR part 135, which implement section 3. As evidenced by
their execution of this contract, the parties to this contract certify
that they are under no contractual .or other impediment that would prevent
them from complying with the part 135 regulations.
C. The contractor agrees to send to each labor organization or
representative of workers with which the contractor has a collective
bargaining agreement or other understanding, if any, a notice advising the
labor organization or workers' representative of the contractor's
commitments under this section 3 clause, and will post copies of the
notice in conspicuous places at the work site where both employees and
applicants for training and employment positions can see the notice. The
notice shall describe the section 3 preference, shall set forth minimum
number and job titles subject to hire, availability of apprenticeship and
training positions, the qualifications for each; and the name and location
of the person(s) taking applications for each of the positions; and the
anticipated date the work shall begin.
EXHIBIT "S"
Page 2 of 2
D. The contractor agrees to include this section 3 clause in every
subcontract subject to compliance with regulations in 24 CFR part 135, and
agrees to take appropriate action, as provided in an applicable provision
of the subcontract or in this section 3 clause, upon a finding that the
subcontractor is in violation of the regulations in 24 CFR part 135. The
contractor will not subcontract with any subcontractor where the
contractor has notice or knowledge that the subcontractor has been found
in violation of the regulations in 24 CFR part 135.
E. The contractor will certify that any vacant employment positions,
including training positions, that are filled (1) after the contractor is
selected but before the contract is executed, and (2) with persons other
than those to whom the regulations of 24 CFR part 135 require employment
opportunities to be directed, were not filled to circumvent the
contractor's obligations under 24 CFR part 135.
F. Noncompliance with HUD's regulations in 24 CFR part 135 may result
in sanctions, termination of this contract for default, and debarment or
suspension from future HUD assisted contracts.
G. With respect to work performed in connection with section 3
covered Indian housing assistance, section 7(b) of the Indian Self -
Determination and Education Assistance Act (25 U.S.C. 450e) also applies
to the work to be performed under this contract. Section 7(b) requires
that to the greatest extent feasible (i) preference and opportunities for
training and employment shall be given to Indians, and (ii) preference in
the award of contracts and subcontracts shall be given to Indian
organizations and Indian -owned Economic Enterprises. Parties to this
contract that are subject to the provisions of section 3 and section 7(b)
agree to comply with section 3 to the maximum extent feasible, but not in
derogation of compliance with section 7(b).