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HomeMy WebLinkAboutRES 06-338 RESOLUTION NO. 06-338 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby authorizes the City Manager to execute a contract with the Southeast Texas Regional Planning Commission to provide for the administration of disaster recovery funds by the Housing & Community Development Department. The contract is substantially in the form attached hereto as Exhibit "A." PASSED BY THE CITY COUNCIL of the City of Beaumont this the 31st day of October, 2006. �tAr6�i - Mayor Guy N. Goodson - A CDBG Sub-Contractor agreement 10 27 2(H)6 CONTRACT BETWEEN SOUTH EAST TEXAS REGIONAL PLANNING COMMISSION Contractor of the TDHCA CDBG Disaster Proffma AND THE CITY OF BEAUMONT,SUB-CONTRACTOR PARTIES TO THE AGREEMENT This Interlocal Agreement is made and entered into by and between South East Texas Regional Planning Commission(hereinafter called the"SETRPC")acting herein by its Executive Director duly authorized by Resolution of Contractor's executive committee,and The City of Beaumont,Jefferson County,Texas. The parties hereto agree,by the execution hereof that they are bound to the mutual obligations and to the performance and accomplishment of the tasks described herein. WITNESSETH THAT: WHEREAS,Chapter 791 of the Texas Government code,also known as the Interlocal Cooperation Act, authorizes all local governments to contract with each other to perform governmental functions or services,including administrative entity functions normally associated with the operation of government, such as administration and management of programs designed to assist its citizens;and WHEREAS,the SETRPC is the Contractor for the Texas Department of Housing and Community Affairs (TDHCA)for the Community Development Block Grant Hurricane Disaster Program that was legislated to assist low income individuals and families recover from the devastating effects of Hurricane Rita and to provide them with decent,safe and sanitary conditions;and WHEREAS,the City of Beaumont currently administers U.S.Department of Housing and Urban Development CDBG and HOME programs whose missions are to provide safe,affordable homes to low to moderate income residents;and WHEREAS,under the terms of the agreement between TDHCA and SETRPC,SETRPC must ensure that all applicable state and federal requirements are met concerning the disbursement of funds;and, WHEREAS,projects undertaken by the City of Beaumont pursuant to this contract must be of direct benefit to low and moderate income persons as has been determined by the parties and is established under the guidelines of the Housing and Community Development Act of 1974, as amended; WHEREAS the SETRPC and the City of Beaumont desire to enter into this Contract for the purpose of fulfilling and implementing their respective public and governmental purposes as agreed to by both parties; WHEREAS SETRPC is of the opinion that cooperation in the implementation of the programs and services to be provided by CDBG Disaster Recovery funds will be beneficial to the citizens and the governments located in the City of Beaumont through the efficiency and potential savings to be realized;and WHEREAS SETRPC certifies that it is the designated TDHCA Contractor of the CDBG Disaster Recovery as allocated by the Texas Department of Housing and Community Affairs;and, WHEREAS the Southeast Texas Regional Planning Commission certifies that it is independently authorized to inter into this Contract as a unit of local government as defined under State of Texas Local Government Code,Subtitle C.,Chapter 391; Page 1 of 14 CDBG Sub-Contractor agreement 10 27 2(X6 NOW THEREFORE,the parties hereto,in consideration of the mutual covenants and conditions contained herein,promise and contract as follows: 1. STATEMENT OF RESPONSIBILITIES—Administrative Entity 1.1. As administrative entity,the South East Texas Regional Planning Commission(SETRPC)shall have certain legal and administrative entity responsibilities to the Texas Department of Housing and Community Affairs as defined by: 1.1.1. The National Affordable Housing Act of 1990,as amended 1.1.2. Notices of the Office of Community Planning and Development(CPD Notices) 1.2. As administrative entity,SETRPC shall receive CDBG funds designated for Disaster Assistance for Hurricane Rita. 1.3. As administrative entity,the following specific responsibilities are required and reserved to SETRPC: 1.3.1. Execution and approval of all TDHCA documents necessary to request and receive funds; 1.3.2. Receive and respond to citizen input regarding CDBG Program 1.3.3. Receive recommendations from CDBG Disaster Recovery Advisory Committee; 1.3.4. Review budgets; 1.3.5. Authorize vouchers and draw-downs for TDHCA reimbursement 1.3.6. Disbursement of funds to sub-contractors; 1.3.7. Execute and approve all TDHCA documents necessary to submit annual compliance and performance reports 1.3.8. Completion of all reports to TDHCA; 1.3.9. Provide fiscal accountability duties in compliance with federal regulations; 1.3.10. Respond to all TDHCA inquiries regarding CDBG Program; 1.3.11. Monitoring and evaluation of services and projects provided by any entity receiving CDBG Program funds; 1.3.12. Final approval of all contracts 1.4. SETRPC will provide financial administrative and management functions for the CDBG Disaster Recovery Program. These services will include,but are not limited to: 1.4.1. Preparation of vouchers and draw-downs for reimbursement of CDBG Program funds; 1.4.2. Completion of all strategic planning documents; 1.4.3. Preparation of annual project budgets; 1.4.4. Accounting requirements in accordance with applicable OMB Circulars; Page 2 of 14 CDBG Sub-Contractor agreement 10 27 2(.N)6 1.4.5. Documenting Environmental Review and other compliance regulations; 1.4.6. Development of program guidelines; 1.4.7. Development of projects and activities; 1.4.8. Selection and implementation of activities; 1.4.9. Review of audits for other entities receiving CDBG Program funds; 1.4.10. Maintenance and provision of project and program file documentation in accordance with federal requirements; 1.4.11. MonitoringTrogram Evaluation of contractors receiving CDBG Program funds, 1.4.12. Conducting of Public Hearings to obtain citizen input;and 1.4.13. Other administrative entity compliance requirements as needed to meet the CDBG Disaster Recovery Program regulations. 2. PERFORMANCE 2.1. Time of Performance: 2.1.1. Services of the City of Beaumont designated herein are to commence on the 280,day of July,2006,and end on the latter date of the 27°i Day of July,2008,or the expiration of any extended period for the receipt of CDBG Disaster Recovery funds. 2.1.2. The term of this Contract and the provisions herein shall be extended to cover additional time periods to run concurrently,providing the City of Beaumont complies with this Contract and the Federal regulations governing the CDBG Program. 2.2. Performance Standards 2.2.1. The City of Beaumont will complete the tasks under Statement of Responsibilities—Sub- Contractor in a timely,efficient and professional manner. 2.2.2. The City of Beaumont will make monthly reports to SETRPC electronically on the le of each month that contains the following information. 2.2.2.1. Total funds allocated 2.2.2.2. Total funds committed 2.2.2.3. Number of units completed 2.2.2.4. Administrative funds available 2.2.2.5. Administrative funds utilized. 2.3. Sub-Contractor—Statement of Responsibility 23.1. The City of Beaumont agrees to comply with all applicable sections requirements of Title 24 Code of Federal Regulations,Part 570 of the U.S.Housing and Urban Development regulations concerning the CDBG Program and all federal regulations and policies issued pursuant to these regulations. 2.3.2. The City of Beaumont agrees to utilize funds made available under this Contract to supplement rather than to supplant funds otherwise available. Page 3 of 14 CDBG Sub-Contractor agreement 10 27 2006 2.3.3. The City of Beaumont shall collect and submit on a regular basis documentation regarding leverage funds being used in collaboration with CDBG Disaster Recovery funds. 2.3.4. The City of Beaumont shall maintain records regarding applicants who are determined not eligible to receive assistance,including written and prompt notification of denial. 2.3.5. The City of Beaumont shall comply with all state and federal Lead-Paint requirements, including appropriate notices,evaluations,inspections,certifications,and corrective procedures,and including those requirements described in Subparts J,M,and K of 24 CFR Part 570. 2.3.6. The City of Beaumont agrees to 2.3.6.1. Collect and maintain client data demonstrating client eligibility for services provided,including,but not limited to: 2.3.6.1.1. Owner occupied rehabilitation applications 2.3.6.1.2. Reconstruction/replacement housing applications 2.3.6.1.3. Homebuyer applications 23.6.1.4 Demolition 2.3.6.2. The City of Beaumont agrees to submit a complete,compliant file for each CDBG program beneficiary. 2.3.7. All customer/client information shall be maintained in a secure and confidential manner, and the City of Beaumont agrees to comply with all local,state,and federal guidelines 2.3.8. The City of Beaumont agrees to affirmatively market all properties and/or programs to eligible low or moderate-income residents as described in 24 CFR Part 570. 3. CONTRACT SUSPENSION/TERMINATION 3.1. It through any cause,the City of Beaumont shall fail to fulfill in a timely and proper manner its obligations under this Agreement,or if the City of Beaumont shall violate any of the covenants, agreements,or stipulations of this Contract,SETRPC shall,upon concurrent opinion of the CDBG Disaster Recovery Housing Advisory Committee,have the right to terminate this Contract by giving written notice to the City of Beaumont of such termination and specifying the effective date thereof at least thirty(30)days before the effective date of such termination. 3.1.1. In such event,all finished or unfinished documents,data,maps,studies,surveys, drawings,models,photographs and reports prepared by the City of Beaumont under this Contract shall,at the option of SETRPC(or subsequent Administrative entity)become the property of SETRPC. The City of Beaumont shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder. 4. COMPENSATION 4.1. Minimum Financial Standards Requirement 4.1.1. No compensation maybe paid to the City of Beaumont until a qualified Certified Public Accountant has provided written certification to SETRPC that the City of Beaumont is in full compliance with the standards set forth in OMB A-102. Page 4 of 14 CDBG SulrContractor agreement 10 27 2(N)6 4.2. Maximum Compensation 4.2.1. The TDHCA CDBG Disaster Recovery program specifically limits administrative costs to ten percent(10%)the allocation. The City of Beaumont will receive 5%of its total allocation for administrative purposes. 4.3. Compensation Structure 4.3.1. The City of Beaumont warrants and acknowledges that no other compensation will be paid for administration of the CDBG program under this Contract. 4.4. Definition of Administrative Costs: 4.4.1. The following are some specific administrative/project delivery costs as defined by the CDBG Disaster Recovery Program that may be allowed: 4.4.1.1. The cost of any of the following items,when the item does not result in a beneficiary,as defined by the CDBG program,is an administrative cost. 4.4.1.1.1. Environmental assessments,reviews or tests; 4.4.1.1.2. Inspections 4.4.1.1.3. Work write-ups,specifications,or scopes of services 4.4.1.1.4. Architectural drawings or architectural work of any type 4.4.1.1.5. Loan processing 4.4.1.1.6. Relocation services 4.4.1.1.7. Assistance necessary to minimize hardship 4.4.1.2. If any of these items result in a beneficiary,then the item can be assigned as a project cost. 4.4.1.2.1. The City of Beaumont acknowledges and agrees to accept full responsibility to define,at the time of submission for reimbursement,whether an item is an administrative or project cost. 4.4.1.2.1.1. A project cost shall be defined by a street address and a beneficiary name at the time of submission 4.4.1.2.1.2. The City of Beaumont acknowledges and agrees that a cost submitted as administrative entity cost cannot later be changed to a project cost 4.4.1.2.1.3. The City of Beaumont acknowledges and agrees that a cost submitted as a project cost shall be converted to an administrative entity cost if the project proves infeasible. 4.4.2. Indirect Costs 4.4.2.1. The City of Beaumont may utilize an indirect cost rate allocation iC and only i1;they have submitted a certified Indirect Cost Allocation Plan to its state cognizant agency. 4.5. Payment Structure 4.5.1. The City of Beaumont shall be reimbursed only for those items that are eligible expenses under the CDBG program Page 5 of 14 CDBG Sub-Contractor agreement to 27 2006 5. PROGRAM INCOME 5.1. Program Income means gross income,including interest earned on CDBG Program funds or received by the City of Beaumont,which is directly generated from the use of CDBG Program funds. 5.1.1. When program income is generated by an activity that is only partially assisted with CDBG Program funds,the income shall be prorated to reflect the percentage of said funds 5.1.1.1. The definitions to be utilized are contained in CPD Notice 97-9. 5.1.2. Income generated by a project which is funded with program income,is also program income 5.2. The City of Beaumont shall report monthly all program income as defined at 24 CFR Part 570 generated by activities carried out with CDBG funds made available under this contract. 5.3. The City of Beaumont will track and account for any program income as required by HUD and outlined in HUD CPD Notice 97-9. 5.4. AnN program income;shall be returned to the State of Texas. Comment(H51]:noes dus apply to rental income generated when the owner 6. ADMINISTRATIVE ENTITY AND INSURANCE REQUIREMENTS ofrewal property receives Rental Rdtab 6.1. Financial Management It is understood by the City of Beaumont that CDBG funds are subject to the Federal Government's Office of Management and Budget circulars. 6.1.1. No.A-87,"Cost of Principles for State,local,and Indian Tribal Governments" 6.1.2. No.A-133,"Audits of State and Local Governments,"and 6.1.3. No.A-102,"Grants and cooperative agreements with state and local governments" 6.2. Policies and Procedures 6.2.1. The City of Beaumont must establish and use a set of written accounting policies and procedures which meet the minimum standards established by the relevant OMB circulars for contract accounting. 6.2.1.1. Standards must include adequate internal controls and maintaining necessary source documentation for all costs incurred. 6.3. Audit 6.3.1. If the City of Beaumont expends 5300,000 or more in Federal funds a year,the City shall have an audit conducted in accordance with the Federal Governments Office of Management and Budget Circular No.A-133. 6.3.1.1. The audit shall be made by an independent auditor in accordance with generally accepted government auditing standards covering financial and compliance audits on funds provided under this Contract. 6.3.1.2. The City of Beaumont shall provide SETRPC with a copy of this audit within six(6) months of the ending of the City's fiscal year(s)coinciding with this Contract. 6.3.2. If the City of Beaumont expends less than 5300,000 in Federal funds per fiscal year the City shall submit to SETRPC a copy of its annual audit within six(6)months of the close of the City's fiscal year. Page 6 of 14 CDBG SulrContractor agreement 10 27 2W6 6.4. Documentation and Record-Keening: The City of Beaumont shall maintain all records required by the federal regulations specified in 24 CFR Parts 91 and 570 and that are pertinent to the activities to be funded under this Contract. Such documentation shall be in a manner that conforms to HUD accounting practices,OMB Circular A-87,and CDBG Disaster Program Grant Regulations 24 CFR Parts 91 and 570. Such records shall include,but not be limited to: 6.4.1. Records providing a full description of each activity undertaken; 6.4.2. Records demonstrating that each activity undertaken meets one of the eligible activities of the CDBG Disaster Recovery Program; 6.4.3. Records required to document the acquisition,improvement,use or disposition of real Prey 6.4.4. Records documenting compliance with the fair housing and equal opportunity components of the CDBG Program; 6.4.5. Financial records as required by,24 CFR Part 570 and OMB Circulars A-102;and 6.4.6. Other records necessary to document compliance with Subpart F,G,and H of 24 CFR Part 570. 6.5. Retention: Records shall be maintained in accordance with requirements prescribed by the U.S. Department of Housing and Urban Development under CDBG reg. 6.5.1. Specifically,the City of Beaumont shall maintain the required records for the required periods under the CDBG regulations as defined in Chapter V,24 CFR Part 570. 6.5.2. In the event of expiration or termination of this contract the City of Beaumont shall provide all required records to SETRPC. 6.6. Access to Records: At any time during normal business hours and as often as SETRPC,the Texas Department of Housing and Community Affairs and/or the Comptroller General of the United States may deem necessary,there shall be made available to SETRPC,the Texas Department of Housing and Community Affairs,and/or representatives of the Comptroller General for examination,all of the City of Beaumont's records with respect to all matters covered by this Contract and the City of Beaumont shall permit said entities to audit,examine,and make excerpts or transcripts from such records,and to make audits of all contracts,invoices,materials, payrolls,records of personnel,conditions of employment,and other data relating to all matters covered by this Contract. 6.7. Information on File: The City of Beaumont must have on file and provide access to,current copies of 6.7.1. Documentation of governmental status; 6.7.2. Copy of City statutes; 6.7.3. Any license applicable to the City of Beaumont's proposed activities; 6.7.4. Listing of the current mayor and City Council(including name,address,occupation, position on Council,and tenure); 6.7.5. Current organizational chart showing management and staffing structure; 6.7.6. The City of Beaumont's written personnel(including staff and volunteers)policies, 6.7.7. The City of Beaumont's written accounting policies and procedures; Page 7 of 14 C DBG Sub-Contractor agreement 10 27 2W6 6.7.8. The City of Beaumont's written procurement policies and procedures;and 6.7.9. Work plan or administrative entity/program guidelines based on the description of the Program and Activities in Section I of this contract and which specifies: 6.7.9.1. The major tasks or activities to be performed under this contract; 6.7.9.2. Eligibility requirements for participation and procedure for verification of information related to storm damage and any assistance received by the beneficiary from FEMA,insurance,etc.; 6.7.9.3. How activities or tasks will be performed; 6.7.9.4. The measurable objectives for each task;and 6.7.9.5. The time frame within which the tasks will be accomplished. 6.8. Procurement: the City of Beaumont shall comply with all SETRPC,State,and Federal policy concerning the purchase of equipment and shall maintain an inventory record of all non- expendable personal property as defined by such policies as may be procured with funds provided herein. 6.8.1. The City of Beaumont shall procure materials in accordance with the requirements of Attachment O of OMB Circular A-110,Procurement Standards,and shall subsequently follow Attachment N,Property Management Standards,covering utilization and disposal of property. 6.8.2. All program assets(unexpended program income,property,equipment etc.)shall revert to SETRPC to be held on behalf of the State of Texas upon termination of this Contract unless specified otherwise in writing. 6.9. Property Records: The City of Beaumont shall maintain real property inventory records that clearly identify properties purchased,improved,or sold. Properties retained shall continue to meet eligibility criteria and shall conform with the restrictions specified in Subparts E and F 24 CFR Part 570. 6.10.Close-Outs: The City of Beaumont's obligation to SETRPC 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 receivable accounts to SETRPC to be held on behalf of the State of Texas). 6.10.1. All records generated under the Contract shall be maintained at the City of Beaumont 6.11.Insurance: The City of Beaumont shall observe sound business practices with respect to providing such bonding and insurance as would provide adequate coverage for services offered under this Contract and will ensure that any contractor or subcontractor that is utilized during the performance of the work described in this Contract is adequately covered. 6.11.1. The City of Beaumont will comply with applicable workers'compensation statues and will obtain employers'liability coverage where available and other appropriate liability coverage for program participants,if applicable. 6.11.2. The City of Beaumont will maintain adequate and continuous liability insurance on all vehicles owned,leased or operated by the City. All employees of the City of Beaumont who are required to drive a vehicle in the normal scope and course of their employment must possess a valid Texas driver's license and automobile liability insurance. Evidence of the employee's current possession of a valid license and insurance will be maintained on a current basis in City of Beaumont's files. Page 8 of 14 CDBG Sub-Contractor agreement to 27 2006 6.11.3. Actual losses not covered by insurance as required by this Section may not be allowable costs under this Contract,and will remain the sole responsibility of the City of Beaumont or applicable party involved. 7. PERSONNEL AND PARTICIPANT CONDITIONS 7.1. Independent Contractor: Neither the City of Beaumont nor its employees are considered to be employees of SETRPC for any purpose whatsoever. The City of Beaumont is considered to be an independent contractor at all times in the performance of the scope of services described herein. 7.1.1. The City of Beaumont further agrees that neither it nor its employees are entitled to any benefits from SETRPC under the provisions of the Worker's Compensation Act of the State of Texas or to any of the benefits granted to employees of SETRPC under the provisions of the Personnel Policies as now enacted or herea8er amended 7.1.2. The City of Beaumont certifies that it will establish,publish and post a statement of its policies and requirements on maintaining a drug free workplace which complies with the "Drug Free Workplace Act"(P.L.100-690)and shall require all providers of services under this Contract to comply with Drug Free Workplace requirements of the above noted Act. 7.2. Personnel: The City of Beaumont represents that it has,or will secure,all personnel required in performing all of the services required under this Contract. Such personnel shall not be employees of or have any contractual relationships with SETRPC. 7.2.1. All the services required hereunder will be performed by the City of Beaumont or under its supervision and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under state and local law to perform such services. 7.2.2. Any work or services subcontracted hereunder shall be specified by written contract or agreement and shall be subject to each provision of this Contract. 7.2.3. The City of Beaumont shall have in its possession a documented set of personnel policies and procedures,including fringe benefits,if any,available to its employees that have been formally adopted by its City Council. Such a document shall be made available for inspection and determination by the SETRPC as to its acceptability. 7.3. Prohibited Activity: The City of Beaumont is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities,sectarian,or religious activities,lobbying,political patronage,and nepotism activities. 7.3.1. Hatch Act: The City of Beaumont agrees that no funds provided,nor personnel employed under this contract,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. 7.4. Compliance with Civil Rights Laws and Executive Orders: 7.4.1. The City of Beaumont will comply with the provisions of and act in accordance with,all federal laws,rules and regulations,and Executive Orders related to equal employment opportunity,affirmative action,equal access to programs and services,and the enforcement of Civil Rights,including,but not limited to 7.4.1.1. Section 3 of the Housing and Urban Development Act of 1968; 7.4.12. Sections 103 and 109 of the Housing and Community Development Act of 1974,as amended 7.4.1.3. Title VI and Title VII of the Civil Rights Act of 1964,as amended; 7.4.1.4. Title VIII of the Civil Rights Act of 1968; Page 9 of 14 CDBG Sub-Contractor agreement 10 27 2006 7.4.1.5. Sections 502,503,504 and 505 of the Rehabilitation Act of 1973; 7.4.1.6. Equal Pay Act of 1963; 7.4.1.7. Age Discrimination in Employment Act of 1967,as amended; 7.4.1.8. The Vietnam Era Veterans Readjustment Act of 1974; 7.4.1.9. The 1986 U.S.Immigration Reform and Control Act; 7.4.1.10.Americans with Disabilities Act of 1990; 7.4.1.11.Executive Order 11063 of 1962;and 7.4.1.12.Executive Order 11246 of 1965,as amended. 7.4.2. The City of Beaumont will not discriminate against any employee or applicant for employment because of race,color,religion,sex,age,national origin,or ancestry,physical or mental handicap,marital/familial status or Vietnam era or disabled veteran status. 7.43. The City of Beaumont will make reasonable accommodation to the!mown physical or mental handicap of an otherwise qualified employee or applicant for employment 7.4.4. The City of Beaumont will ensure and maintain a working environment free of sexual harassment and other unlawful forms of harassment,intimidation,and coercion in all facilities at which the City of Beaumont's employees are assigned to work. 7.4.5. The City of Beaumont will in all solicitations or advertisements for employees placed by or on behalf of the City,state that all qualified applicants will receive consideration of employment without regard to race,color,religion,sex,age,national origin or ancestry,or physical or mental handicap. 7.4.5.1. The City of Beaumont agrees to post in conspicuous places,available to employees and applicants for employment,notices setting forth the provisions of this nondiscrimination clause. 7.4.5.2. EEO/AA Statement:The City of Beaumont will,in all solicitations or advertisements for employees placed by or on behalf of the City,state that it is an Equal Opportunity or Affirmative Action employer. 8. GENERAL REQUIREMENTS AND CONDTIONS 8.1. Debarment Suspension,Ineligibility and Exclusion Compliance: 8.1.1. The City of Beaumont certifies that it has not been debarred,suspended or otherwise found ineligible to receive funds by an agency of the executive branch of the federal government 8.1.2. The City of Beaumont agrees that should any notice of debarment,suspension, ineligibility or exclusion be received by the City,the City will notify SETRPC immediately. 8.1.3. The City of Beaumont agrees to not procure or subcontract with any agency, organization,or contractor that has been debarred,suspended,or otherwise found ineligible to receive funds by an agency of the executive branch of the federal government. Page 10 of 14 CDBG Sub Contractor agreement 10 27 2W6 8.2. Use of Funds for Sectarian Religious Purposes:The City of Beaumont covenants and agrees that no funds awarded through this program will be used for sectarian religious purposes,and specifically that 8.2.1. There will be no religious test for admission for services; 8.2.2. There will be no requirement for attendance at religious services; 8.2.3. There will be no inquiry as to a client's religious preference or affiliation; 8.2.4. There will be no proselytizing;and 8.2.5. Services provided will be essentially secular. 8.3. Lobbying: The City of Beaumont understands that utilization of any federally appropriated funds provided the City by SETRPC pursuant hereto to influence or attempt to influence any member or employee of the Executive or Legislative branches of the federal government with respect to a covered federal action is prohibited. 8.3.1. The City of Beaumont further agrees that it shall comply with the certification and disclosure requirements of the applicable regulations. 8.4. Publication,Reproduction and Use of Materials: 8.4.1. If this Contract results in any book,publication,video,audio or any other copyrightable material,then the material produced with Federal funds shall be in the public domain. 8.5. Identification of Documents 8.5.1. All reports,maps,and other documents completed as a part of this contract,other than documents exclusively for internal use within The City of Beaumont shall contain the following information on the front cover or title page(or in the case of maps,in an appropriate Mock): TDHCA CDBG Disaster Recovery Program,month and year of the preparation,SETRPC and descriptive title. 8.6. Compliance with Laws: 8.6.1. In performing the services required hereunder,the City of Beaumont shall comply with all applicable laws,ordinances,and codes of the federal,state and local governments, including environmental protection regulations. Failure to comply with the Administrative entity Requirements shall constitute grounds for termination of this Contract. 8.7. Insurance and Bonding: 8.7.1. CI he City-of Beaumont shall carry sufficient insurance to protect contract assets from loss due to then fraud.and'or undue physical damaged ConnoW(ti1S21:The City is self- uia red,langue to be provided by City 8.8. Assignability: Attomev 8.8.1. The City of Beaumont shall not assign any interest in this Contract,and shall not transfer any interest in the same(whether by assignment or notation]without the prior written consent of SETRPC thereto. 8.9. Conflict of Interest: 8.9.1. The City of Beaumont agrees to abide by the provisions of Subpart H 24 CFR Part 570.356 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 contract. 8.9.2. In the procurement of supplies,equipment,construction and services by contractors,the conflict of interest provisions in 24 CFR Part 570 and OMB Circular A-110,respectively, shall apply. Page I 1 of 14 CDBG Sub-Contractor agreement 1027 2M6 8.9.3. No member,officer or employee of the contracting agency,or any other who exercises any functions or responsibilities with respect to the programs of the City of Beaumont during his/her tenure or for one year thereafter,shall have any interest,direct or indirect,in any contract or subcontract,or the proceeds thereol;for work to be performed in connection with the program assisted under this Contract. 8.9.3.1. The City of Beaumont shall incorporate,or cause to be incorporated in all such subsequent agreements or sub-agreements,a provision prohibiting such interest pursuant to the purposes of this section. 8.9.4. The City of Beaumont and SETRPC state to the best of their knowledge,no member of the Beaumont City Council and no other officer,employee,or agent of the City of Beaumont who exercises any fimction or responsibility in connection with the carrying out of the Program or the funds to which this Contract pertains,has any personal interest,direct or indirect,in this Contract. 8.10.Affirmative Action. 8.10.1. Atyoved Plan: The City of Beaumont agrees that it shall be committed to Affirmative Action principles as provided in the President's Executive Order 11246 of September 24, 1965. 8.10.2. M/WBE: The City of Beaumont will use its best effort to afford minority and women- owned business enterprises the maximum practicable opportunity to participate in the performance of this contract. 8.10.2.1.As used in this contract,the term"minority and female business enterprise"means a business at least fifty-one(51)percent owned and controlled by minority group members or women. 8.10.22.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 City of Beaumont may rely on written representations regarding their status as minority and female business enterprises in lieu of an independent investigation. Deleted:-=-C ollect R'e)_ugamixig 9. LEGAL. The Crty of Beaumont will said to eadr 9.1. Representation in Proposal: SETRPC has relied on all representations of the City of Beaumont in labor tuuon or representatn e of workers awarding this contract and the Cit< warrants Beaumont arrants the accuracy o with which it has a i llectice bargamnrg f all representations in apeement or othe,cornract of said prcix sal. Misrepresentation in the proposal shall be cause to terminate this contract and the inidei,tv,dn,g,a notice,to be provided in- City of Beaumont shall ox a all amounts paid to it as liquidated damages should these anxaunts the agaw�conhactmg officer.advumg not be legitimate reimbursements fm CDBG Disaster Recovery eligible activities. the labor rnnon or worker's representative of the Cth-of Beauuuont's i mmrtmews hererurder.and shall lx st copies of the 9.2. TDHCA CDBG Disaster Recovery Funds Reeognition: The City of Beaumont shall insure notice m conspicuti 3 places available to recognition of the role of TDHCA CDBG Disaster Recovery funds in providing services through ernploN ees and applicants for this Contract. All activities,facilities,and items utilized pursuant to this Contract shall be etnplo}mein 1 prominently labeled as to the funding source. In addition,the City will include a reference to the support provided herein in all publications made possible with funds made available under this Contract. 9.3. Notifications: Any notice hand-delivered or sent by mail(with a return receipt which indicates delivery)to the addresses below shall be deemed received for any purposes arising out of the execution of this contract. 10. For SETRPC.notices may be sent to: Chester Jourdan,Executive Director South East Texas Regional Planning Commission Page 12 of 14 CDBG Sub-Contractor agreement 10 27 2(x16 2210 Eastex Freeway Beaumont,TX 77703 409-899-8444 409-347-0138(fix) 10.1.Construction and Severabilitv If any part of this Contract is held to be invalid or unenforceable, such holding will not affect the validity or enforceability of any other part of this Contract so long as the remainder of the Contract is reasonably capable of completion. 10.2.Enforcement: The City of Beaumont agrees to pay to SETRPC all costs and expenses including reasonable attorney's fees incurred by SETRPC in exercising any of its rights or remedies in connection with the enforcement of this Contract. 10.3.Entire Contract: This Contract contains the entire agreement of the parties and supersedes any and all other agreements or understandings,oral or written,whether previous to the execution hereof or contemporaneous herewithin 10.4.Amendments: The City of Beaumont or SETRPC may amend this Contract at any time provided that such amendments make specific reference to this Contract,and are executed in writing and signed by a duly authorized representative of both organizations. Such amendments shall not invalidate this Contract,nor relieve or release the City of Beaumont or SETRPC from its obligations under this Contract. 10.4.1. SETRPC may,in its discretion,amend this Contract to conform with federal,state,or local governmental guidelines,policies,and available funding amounts,or for other reasons. 10.4.2. If such amendments result in a change in the funding,the scope of services,or the schedule of the activities to be undertaken as part of this Contract,such modifications will be incorporated only by written amendment signed by both the City of Beaumont and SETRPC. 10.4.3. Further,any future change in federal regulations or federal requirements governing the use or eligibility of CDBG Disaster Recovery Program funds are deemed to be immediately incorporated into this Contract and subject to the provisions herein. 10.5.Applicable Law: This Contract shall be governed by and construed and enforced in accordance with the laws of the State of Texas,the by-laws,rules and regulations of SETRPC and the applicable regulations of the U.S.Department of Housing and Urban Development and Texas Department of Housing and Community Affairs. 10.6.Approval Required: The parties hereto state that they are appropriately empowered by their respective Board/City Council to sign this Contract. This Contract shall not become effective or binding until approved by Beaumont City Council and the SETRPC Executive Committee. APPROVED: BEAUMONT CITY COUNCIL 2006. Page 13 of 14 CDBG Sub-Contractor agreement 10 27 206 SOUTH EAST TEXAS REGIONAL PLANNING COMMISSION .2000 B-: I %le 11a\es ChesAer R.Jourdan.Jr. Deleted:Gu\0,.xison �'it\ Maid per Executive Director Deleted:l ta}o, Beaumont.Texas South East Texas Regional Planning Commission Deleted:_ Page 14 of 14 CDBG Sub-Contractor agreement 11/16/2006 CONTRACT BETWEEN SOUTH EAST TEXAS REGIONAL PLANNING COMMISSION Contractor of the TDHCA CDBG Disaster Program AND THE CITY OF BEAUMONT,SUB-CONTRACTOR PARTIES TO THE AGREEMENT This Interlocal Agreement is made and entered into by and between South East Texas Regional Planning Commission(hereinafter called the"SETRPC")acting herein by its Executive Director duly authorized by Resolution of Contractor's executive committee,and The City of Beaumont,Jefferson County,Texas. The parties hereto agree,by the execution hereof,that they are bound to the mutual obligations and to the performance and accomplishment of the tasks described herein. WITNESSETH THAT: WHEREAS,Chapter 791 of the Texas Government code,also known as the Interlocal Cooperation Act, authorizes all local governments to contract with each other to perform governmental functions or services, including administrative entity functions normally associated with the operation of government, such as administration and management of programs designed to assist its citizens;and WHEREAS,the SETRPC is the Contractor for the Texas Department of Housing and Community Affairs (TDHCA)for the Community Development Block Grant Hurricane Disaster Program that was legislated to assist low income individuals and families recover from the devastating effects of Hurricane Rita and to provide them with decent, safe and sanitary conditions;and WHEREAS,the City of Beaumont currently administers U. S.Department of Housing and Urban Development CDBG and HOME programs whose missions are to provide safe,affordable homes to low to moderate income residents;and WHEREAS,under the terms of the agreement between TDHCA and SETRPC, SETRPC must ensure that all applicable state and federal requirements are met concerning the disbursement of funds;and, WHEREAS,projects undertaken by the City of Beaumont pursuant to this contract must be of direct benefit to low and moderate income persons as has been determined by the parties and is established under the guidelines of the Housing and Community Development Act of 1974, as amended; WHEREAS the SETRPC and the City of Beaumont desire to enter into this Contract for the purpose of fulfilling and implementing their respective public and governmental purposes as agreed to by both parties; WHEREAS SETRPC is of the opinion that cooperation in the implementation of the programs and services to be provided by CDBG Disaster Recovery funds will be beneficial to the citizens and the governments located in the City of Beaumont through the efficiency and potential savings to be realized;and WHEREAS SETRPC certifies that it is the designated TDHCA Contractor of the CDBG Disaster Recovery as allocated by the Texas Department of Housing and Community Affairs;and, WHEREAS the Southeast Texas Regional Planning Commission certifies that it is independently authorized to inter into this Contract as a unit of local government as defined under State of Texas Local Government Code, Subtitle C.,Chapter 391; Page 1 of 13 �'V CDBG Sub-Contractor agreement 11/16/2006 NOW THEREFORE,the parties hereto,in consideration of the mutual covenants and conditions contained herein,promise and contract as follows: 1. STATEMENT OF RESPONSIBILITIES—Administrative Entity 1.1. As administrative entity,the South East Texas Regional Planning Commission(SETRPC)shall have certain legal and administrative entity responsibilities to the Texas Department of Housing and Community Affairs as defined by: 1.1.1. The National Affordable Housing Act of 1990, as amended 1.1.2. Notices of the Office of Community Planning and Development(CPD Notices) 1.2. As administrative entity, SETRPC shall receive CDBG funds designated for Disaster Assistance for Hurricane Rita. 1.3. As administrative entity,the following specific responsibilities are required and reserved to SETRPC: 1.3.1. Execution and approval of all TDHCA documents necessary to request and receive funds; 1.3.2. Receive and respond to citizen input regarding CDBG Program 1.3.3. Receive recommendations from CDBG Disaster Recovery Advisory Committee; 1.3.4. Review budgets; 1.3.5. Authorize vouchers and draw-downs for TDHCA reimbursement 1.3.6. Disbursement of funds to sub-contractors; 1.3.7. Execute and approve all TDHCA documents necessary to submit annual compliance and performance reports 1.3.8. Completion of all reports to TDHCA; 1.3.9. Provide fiscal accountability duties in compliance with federal regulations; 1.3.10. Respond to all TDHCA inquiries regarding CDBG Program; 1.3.11. Monitoring and evaluation of services and projects provided by any entity receiving CDBG Program funds; 1.3.12. Final approval of all contracts 1.4. SETRPC will provide financial administrative and management functions for the CDBG Disaster Recovery Program. These services will include,but are not limited to: 1.4.1. Preparation of vouchers and draw-downs for reimbursement of CDBG Program funds; 1.4.2. Completion of all strategic planning documents; 1.4.3. Preparation of annual project budgets; 1.4.4. Accounting requirements in accordance with applicable OMB Circulars; 1.4.5. Documenting Environmental Review and other compliance regulations; Page 2 of 13 CDBG Sub-Contractor agreement 11/16/2006 1.4.6. Development of program guidelines; 1.4.7. Development of projects and activities; 1.4.8. Selection and implementation of activities; 1.4.9. Review of audits for other entities receiving CDBG Program funds; 1.4.10. Maintenance and provision of project and program file documentation in accordance with federal requirements; 1.4.11. Monitoring/Program Evaluation of contractors receiving CDBG Program funds; 1.4.12. Conducting of Public Hearings to obtain citizen input;and 1.4.13. Other administrative entity compliance requirements as needed to meet the CDBG Disaster Recovery Program regulations. 2. PERFORMANCE 2.1. Time of Performance: 2.1.1. Services of the City of Beaumont designated herein are to commence on the 28`h day of July,2006, and end on the latter date of the 27h Day of July,2008,or the expiration of any extended period for the receipt of CDBG Disaster Recovery funds. 2.1.2. The term of this Contract and the provisions herein shall be extended to cover additional time periods to run concurrently,providing the City of Beaumont complies with this Contract and the Federal regulations governing the CDBG Program. 2.2. Performance Standards 2.2.1. The City of Beaumont will complete the tasks under Statement of Responsibilities—Sub- Contractor in a timely, efficient and professional manner. 2.2.2. The City of Beaumont will make monthly reports to SETRPC electronically on the 10`x'of each month that contains the following information. 2.2.2.1. Total funds allocated 2.2.2.2. Total funds committed 2.2.2.3. Number of units completed 2.2.2.4. Administrative funds available 2.2.2.5. Administrative funds utilized. 2.3. Sub-Contractor—Statement of Responsibility 2.3.1. The City of Beaumont agrees to comply with all applicable sections requirements of Title 24 Code of Federal Regulations,Part 570 of the U.S.Housing and Urban Development regulations concerning the CDBG Program and all federal regulations and policies issued pursuant to these regulations. 2.3.2. The City of Beaumont agrees to utilize funds made available under this Contract to supplement rather than to supplant funds otherwise available. 2.3.3. The City of Beaumont shall collect and submit on a regular basis documentation regarding leverage funds being used in collaboration with CDBG Disaster Recovery funds. Page 3 of 13 CDBG Sub-Contractor agreement 11/16/2006 2.3.4. The City of Beaumont shall maintain records regarding applicants who are determined not eligible to receive assistance, including written and prompt notification of denial. 2.3.5. The City of Beaumont shall comply with all state and federal Lead-Paint requirements, including appropriate notices,evaluations,inspections,certifications,and corrective procedures,and including those requirements described in Subparts J,M,and K of 24 CFR Part 570. 2.3.6. The City of Beaumont agrees to 2.3.6.1. Collect and maintain client data demonstrating client eligibility for services provided, including,but not limited to: 2.3.6.1.1. Owner occupied rehabilitation applications 2.3.6.1.2. Reconstruction/replacement housing applications 2.3.6.1.3. Homebuyer applications 2.3.6.1.4 Demolition 2.3.6.2. The City of Beaumont agrees to submit a complete,compliant file for each CDBG program beneficiary. 2.3.7. All customer/client information shall be maintained in a secure and confidential manner, and the City of Beaumont agrees to comply with all local,state,and federal guidelines 2.3.8. The City of Beaumont agrees to affirmatively market all properties and/or programs to eligible low or moderate-income residents as described in 24 CFR Part 570. 3. CONTRACT SUSPENSION/TERMINATION 3.1. If,through any cause,the City of Beaumont shall fail to fulfill in a timely and proper manner its obligations under this Agreement,or if the City of Beaumont shall violate any of the covenants, agreements,or stipulations of this Contract, SETRPC shall,upon concurrent opinion of the CDBG Disaster Recovery Housing Advisory Committee,have the right to terminate this Contract by giving written notice to the City of Beaumont of such termination and specifying the effective date thereof at least thirty(30)days before the effective date of such termination. 3.1.1. In such event,all finished or unfinished documents,data,maps,studies,surveys, drawings,models,photographs and reports prepared by the City of Beaumont under this Contract shall,at the option of SETRPC(or subsequent Administrative entity)become the property of SETRPC. The City of Beaumont shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder. 4. COMPENSATION 4.1. Minimum Financial Standards Requirement 4.1.1. No compensation may be paid to the City of Beaumont until a qualified Certified Public Accountant has provided written certification to SETRPC that the City of Beaumont is in full compliance with the standards set forth in OMB A-102. 4.2. Maximum Compensation 4.2.1. The TDHCA CDBG Disaster Recovery program specifically limits administrative costs to ten percent(10%)the allocation. The City of Beaumont will receive 5%of its total allocation for administrative purposes. 4.3. Compensation Structure Page 4 of 13 CDBG Sub-Contractor agreement I I/I6/2oo6 4.3.1. The City of Beaumont warrants and acknowledges that no other compensation will be paid for administration of the CDBG program under this Contract. 4.4. Definition of Administrative Costs: 4.4.1. The following are some specific administrative/project delivery costs as defined by the CDBG Disaster Recovery Program that may be allowed: 4.4.1.1. The cost of any of the following items,when the item does not result in a beneficiary,as defined by the CDBG program, is an administrative cost. 4.4.1.1.1. Environmental assessments,reviews or tests; 4.4.1.1.2. Inspections 4.4.1.1.3. Work write-ups, specifications,or scopes of services 4.4.1.1.4. Architectural drawings or architectural work of any type 4.4.1.1.5. Loan processing 4.4.1.1.6. Relocation services 4.4.1.1.7. Assistance necessary to minimize hardship 4.4.1.2. If any of these items result in a beneficiary,then the item can be assigned as a project cost. 4.4.1.2.1. The City of Beaumont acknowledges and agrees to accept full responsibility to define, at the time of submission for reimbursement,whether an item is an administrative or project cost. 4.4.1.2.1.1. A project cost shall be defined by a street address and a beneficiary name at the time of submission 4.4.1.2.1.2. The City of Beaumont acknowledges and agrees that a cost submitted as administrative entity cost cannot later be changed to a project cost 4.4.1.2.1.3. The City of Beaumont acknowledges and agrees that a cost submitted as a project cost shall be converted to an administrative entity cost if the project proves infeasible. 4.4.2. Indirect Costs 4.4.2.1. The City of Beaumont may utilize an indirect cost rate allocation if,and only if,they have submitted a certified Indirect Cost Allocation Plan to its state cognizant agency. 4.5. Payment Structure 4.5.1. The City of Beaumont shall be reimbursed only for those items that are eligible expenses under the CDBG program 5. PROGRAM INCOME 5.1. Program Income means gross income, including interest earned on CDBG Program funds or received by the City of Beaumont, which is directly generated from the use of CDBG Program funds. 5.1.1. When program income is generated by an activity that is only partially assisted with CDBG Program funds,the income shall be prorated to reflect the percentage of said funds Page 5 of 13 CDBG Sub-Contractor agreement 11/16/2006 5.1.1.1. The definitions to be utilized are contained in CPD Notice 97-9. 5.1.2. Income generated by a project which is funded with program income, is also program income 5.2. The City of Beaumont shall report monthly all program income as defined at 24 CFR Part 570 generated by activities carried out with CDBG funds made available under this contract. 5.3. The City of Beaumont will track and account for any program income as required by HUD and outlined in HUD CPD Notice 97-9. 5.4. Any program income shall be returned to the State of Texas. 6. ADMINISTRATIVE ENTITY AND INSURANCE REQUIREMENTS 6.1. Financial Mann ement: It is understood by the City of Beaumont that CDBG funds are subject to the Federal Government's Office of Management and Budget circulars: 6.1.1. No.A-87, "Cost of Principles for State,Local,and Indian Tribal Governments" 6.1.2. No.A-133, "Audits of State and Local Governments,"and 6.1.3. No.A-102, "Grants and cooperative agreements with state and local governments" 6.2. Policies and Procedures 6.2.1. The City of Beaumont must establish and use a set of written accounting policies and procedures which meet the minimum standards established by the relevant OMB circulars for contract accounting. 6.2.1.1. Standards must include adequate internal controls and maintaining necessary source documentation for all costs incurred. 6.3. Audit 6.3.1. If the City of Beaumont expends$300,000 or more in Federal funds a year,the City shall have an audit conducted in accordance with the Federal Governments'Office of Management and Budget Circular No.A-133. 6.3.1.1. The audit shall be made by an independent auditor in accordance with generally accepted government auditing standards covering financial and compliance audits on funds provided under this Contract. 6.3.1.2. The City of Beaumont shall provide SETRPC with a copy of this audit within six(6) months of the ending of the City's fiscal year(s)coinciding with this Contract. 6.3.2. If the City of Beaumont expends less than$300,000 in Federal funds per fiscal year the City shall submit to SETRPC a copy of its annual audit within six(6)months of the close of the City's fiscal year. 6.4. Documentation and Record-Keepin g: The City of Beaumont shall maintain all records required by the federal regulations specified in 24 CFR Parts 91 and 570 and that are pertinent to the activities to be funded under this Contract. Such documentation shall be in a manner that conforms to HUD accounting practices,OMB Circular A-87,and CDBG Disaster Program Grant Regulations 24 CFR Parts 91 and 570. Such records shall include,but not be limited to: 6.4.1. Records providing a full description of each activity undertaken; 6.4.2. Records demonstrating that each activity undertaken meets one of the eligible activities of the CDBG Disaster Recovery Program; Page 6 of 13 CDBG Sub-Contractor agreement 11/16/2006 6.4.3. Records required to document the acquisition, improvement,use or disposition of real property 6.4.4. Records documenting compliance with the fair housing and equal opportunity components of the CDBG Program; 6.4.5. Financial records as required by,24 CFR Part 570 and OMB Circulars A-102;and 6.4.6. Other records necessary to document compliance with Subpart F,G,and H of 24 CFR Part 570. 6.5. Retention: Records shall be maintained in accordance with requirements prescribed by the U.S. Department of Housing and Urban Development under CDBG reg. 6.5.1. Specifically,the City of Beaumont shall maintain the required records for the required periods under the CDBG regulations as defined in Chapter V,24 CFR Part 570. 6.5.2. In the event of expiration or termination of this contract the City of Beaumont shall provide all required records to SETRPC. 6.6. Access to Records: At any time during normal business hours and as often as SETRPC,the Texas Department of Housing and Community Affairs and/or the Comptroller General of the United States may deem necessary,there shall be made available to SETRPC,the Texas Department of Housing and Community Affairs,and/or representatives of the Comptroller General for examination,all of the City of Beaumont's records with respect to all matters covered by this Contract and the City of Beaumont shall permit said entities to audit,examine,and make excerpts or transcripts from such records,and to make audits of all contracts,invoices,materials, payrolls,records of personnel,conditions of employment,and other data relating to all matters covered by this Contract. 6.7. Information on File: The City of Beaumont must have on file and provide access to, current copies of- 6.7.1. Documentation of governmental status; 6.7.2. Copy of City statutes; 6.7.3. Any license applicable to the City of Beaumont's proposed activities; 6.7.4. Listing of the current mayor and City Council(including name,address,occupation, position on Council,and tenure); 6.7.5. Current organizational chart showing management and staffing structure; 6.7.6. The City of Beaumont's written personnel(including staff and volunteers)policies; 6.7.7. The City of Beaumont's written accounting policies and procedures; 6.7.8. The City of Beaumont's written procurement policies and procedures;and 6.7.9. Work plan or administrative entity/program guidelines based on the description of the Program and Activities in Section I of this contract and which specifies: 6.7.9.1. The major tasks or activities to be performed under this contract; 6.7.9.2. Eligibility requirements for participation and procedure for verification of information related to storm damage and any assistance received by the beneficiary from FEMA,insurance,etc.; Page 7 of 13 CDBG Sub-Contractor agreement 11/16/2006 6.7.9.3. How activities or tasks will be performed; 6.7.9.4. The measurable objectives for each task;and 6.7.9.5. The time frame within which the tasks will be accomplished. 6.8. Procurement: the City of Beaumont shall comply with all SETRPC, State,and Federal policy concerning the purchase of equipment and shall maintain an inventory record of all non- expendable personal property as defined by such policies as may be procured with funds provided herein. 6.8.1. The City of Beaumont shall procure materials in accordance with the requirements of Attachment O of OMB Circular A-110,Procurement Standards,and shall subsequently follow Attachment N, Property Management Standards,covering utilization and disposal of property. 6.8.2. All program assets(unexpended program income,property,equipment,etc.)shall revert to SETRPC to be held on behalf of the State of Texas upon termination of this Contract, unless specified otherwise in writing. 6.9. Property Records: The City of Beaumont shall maintain real property inventory records that clearly identify properties purchased, improved,or sold. Properties retained shall continue to meet eligibility criteria and shall conform to the restrictions specified in Subparts E and F 24 CFR Part 570. 6.10.Close-Outs: The City of Beaumont's obligation to SETRPC 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 receivable accounts to SETRPC to be held on behalf of the State of Texas). 6.10.1. All records generated under the Contract shall be maintained at the City of Beaumont. 6.10.2. Insurance: The City of Beaumont is self-insured as to all liabilities and, as such, will provide proper documentation to SETPRC(attached). 7. PERSONNEL AND PARTICIPANT CONDITIONS 7.1. Independent Contractor: Neither the City of Beaumont nor its employees are considered to be employees of SETRPC for any purpose whatsoever. The City of Beaumont is considered to be an independent contractor at all times in the performance of the scope of services described herein. 7.1.1. The City of Beaumont further agrees that neither it nor its employees are entitled to any benefits from SETRPC under the provisions of the Worker's Compensation Act of the State of Texas or to any of the benefits granted to employees of SETRPC under the provisions of the Personnel Policies as now enacted or hereafter amended. 7.1.2. The City of Beaumont certifies that it will establish,publish and post a statement of its policies and requirements on maintaining a drug free workplace which complies with the "Drug Free Workplace Act" (P.L. 100-690)and shall require all providers of services under this Contract to comply with Drug Free Workplace requirements of the above noted Act. 7.2. Personnel: The City of Beaumont represents that it has, or will secure,all personnel required in performing all of the services required under this Contract. Such personnel shall not be employees of or have any contractual relationships with SETRPC. 7.2.1. All the services required hereunder will be performed by the City of Beaumont or under its supervision and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under state and local law to perform such services. Page 8of13 CDBG Sub-Contractor agreement 11/10006 7.2.2. Any work or services subcontracted hereunder shall be specified by written contract or agreement and shall be subject to each provision of this Contract. 7.2.3. The City of Beaumont shall have in its possession a documented set of personnel policies and procedures, including fringe benefits, if any,available to its employees that have been formally adopted by its City Council. Such a document shall be made available for inspection and determination by the SETRPC as to its acceptability. 7.3. Prohibited Activity: The City of Beaumont is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities,sectarian,or religious activities, lobbying,political patronage,and nepotism activities. 7.3.1. Hatch Act: The City of Beaumont agrees that no funds provided,nor personnel employed under this contract,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. 7.4. Compliance with Civil Rights Laws and Executive Orders: 7.4.1. The City of Beaumont will comply with the provisions of,and act in accordance with,all federal laws,rules and regulations,and Executive Orders related to equal employment opportunity, affirmative action,equal access to programs and services,and the enforcement of Civil Rights, including,but not limited to 7.4.1.1. Section 3 of the Housing and Urban Development Act of 1968; 7.4.1.2. Sections 103 and 109 of the Housing and Community Development Act of 1974,as amended 7.4.1.3. Title VI and Title VII of the Civil Rights Act of 1964,as amended; 7.4.1.4. Title VIII of the Civil Rights Act of 1968; 7.4.1.5. Sections 502, 503,504 and 505 of the Rehabilitation Act of 1973; 7.4.1.6. Equal Pay Act of 1963; 7.4.1.7. Age Discrimination in Employment Act of 1967,as amended; 7.4.1.8. The Vietnam Era Veterans Readjustment Act of 1974; 7.4.1.9. The 1986 U. S. Immigration Reform and Control Act; 7.4.1.10. Americans with Disabilities Act of 1990; 7.4.1.11.Executive Order 11063 of 1962; and 7.4.1.12.Executive Order 11246 of 1965, as amended. 7.4.2. The City of Beaumont will not discriminate against any employee or applicant for employment because of race, color,religion,sex,age,national origin,or ancestry,physical or mental handicap,marital/familial status or Vietnam era or disabled veteran status. 7.4.3. The City of Beaumont will make reasonable accommodation to the known physical or mental handicap of an otherwise qualified employee or applicant for employment. 7.4.4. The City of Beaumont will ensure and maintain a working environment free of sexual harassment and other unlawful forms of harassment,intimidation,and coercion in all facilities at which the City of Beaumont's employees are assigned to work. Page 9 of 13 CDBG Sub-Contractor agreement 11/16/2006 7.4.5. The City of Beaumont will in all solicitations or advertisements for employees placed by or on behalf of the City, state that all qualified applicants will receive consideration of employment without regard to race,color,religion, sex,age,national origin or ancestry,or physical or mental handicap. 7.4.5.1. The City of Beaumont agrees to post in conspicuous places, available to employees and applicants for employment,notices setting forth the provisions of this nondiscrimination clause. 7.4.5.2. EEO/AA Statement: The City of Beaumont will, in all solicitations or advertisements for employees placed by or on behalf of the City, state that it is an Equal Opportunity or Affirmative Action employer. 8. GENERAL REQUIREMENTS AND CONDTIONS 8.1. Debarment, Suspension,Ineligibility and Exclusion Compliance: 8.1.1. The City of Beaumont certifies that it has not been debarred,suspended or otherwise found ineligible to receive funds by an agency of the executive branch of the federal government. 8.1.2. The City of Beaumont agrees that should any notice of debarment, suspension, ineligibility or exclusion be received by the City,the City will notify SETRPC immediately. 8.1.3. The City of Beaumont agrees to not procure or subcontract with any agency, organization,or contractor that has been debarred,suspended,or otherwise found ineligible to receive funds by an agency of the executive branch of the federal government. 8.2. Use of Funds for Sectarian Religious Purposes: The City of Beaumont covenants and agrees that no funds awarded through this program will be used for sectarian religious purposes,and specifically that 8.2.1. There will be no religious test for admission for services; 8.2.2. There will be no requirement for attendance at religious services; 8.2.3. There will be no inquiry as to a client's religious preference or affiliation; 8.2.4. There will be no proselytizing;and 8.2.5. Services provided will be essentially secular. 8.3. Lobbying: The City of Beaumont understands that utilization of any federally appropriated funds provided the City by SETRPC pursuant hereto to influence or attempt to influence any member or employee of the Executive or Legislative branches of the federal government with respect to a covered federal action is prohibited. 8.3.1. The City of Beaumont further agrees that it shall comply with the certification and disclosure requirements of the applicable regulations. 8.4. Publication,Reproduction and Use of Materials: 8.4.1. If this Contract results in any book,publication,video,audio or any other copyrightable material,then the material produced with Federal funds shall be in the public domain. 8.5. Identification of Documents 8.5.1. All reports,maps,and other documents completed as a part of this contract,other than documents exclusively for internal use within The City of Beaumont shall contain the following information on the front cover or title page(or in the case of maps,in an Page 10 of 13 CDBG Sub-Contractor agreement 11/16/2006 appropriate block): TDHCA CDBG Disaster Recovery Program, month and year of the preparation, SETRPC and descriptive title. 8.6. Compliance with Laws: 8.6.1. In performing the services required hereunder,the City of Beaumont shall comply with all applicable laws,ordinances,and codes of the federal,state and local governments, including environmental protection regulations. Failure to comply with the Administrative entity Requirements shall constitute grounds for termination of this Contract. 8.7. Insurance and Bondine: 8.7.1. The City of Beaumont is self-insured as to all liabilities and,as such,will provide proper documentation to SETPRC(attached). 8.8. Assignability: 8.8.1. The City of Beaumont shall not assign any interest in this Contract,and shall not transfer any interest in the same(whether by assignment or notation),without the prior written consent of SETRPC thereto. 8.9. Conflict of Interest: 8.9.1. The City of Beaumont agrees to abide by the provisions of Subpart H 24 CFR Part 570.356 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 contract. 8.9.2. In the procurement of supplies,equipment,construction and services by contractors,the conflict of interest provisions in 24 CFR Part 570 and OMB Circular A-110,respectively, shall apply. 8.9.3. No member,officer or employee of the contracting agency, or any other who exercises any functions or responsibilities with respect to the programs of the City of Beaumont during his/her tenure or for one year thereafter,shall have any interest,direct or indirect, in any contract or subcontract,or the proceeds thereof,for work to be performed in connection with the program assisted under this Contract. 8.9.3.1. The City of Beaumont shall incorporate,or cause to be incorporated in all such subsequent agreements or sub-agreements,a provision prohibiting such interest pursuant to the purposes of this section. 8.9.4. The City of Beaumont and SETRPC state to the best of their knowledge,no member of the Beaumont City Council and no other officer,employee, or agent of the City of Beaumont who exercises any function or responsibility in connection with the carrying out of the Program or the funds to which this Contract pertains,has any personal interest,direct or indirect, in this Contract. 8.10.Affirmative Action: 8.10.1. Approved Plan: The City of Beaumont agrees that it shall be committed to Affirmative Action principles as provided in the President's Executive Order 11246 of September 24, 1965. 8.10.2. M/WBE: The City of Beaumont will use its best effort to afford minority and women- owned business enterprises the maximum practicable opportunity to participate in the performance of this contract. 8.10.2.1.As used in this contract,the term"minority and female business enterprise"means a business at least fifty-one(5 1)percent owned and controlled by minority group members or women. Page 11 of 13 CDBG Sub-Contractor agreement 11/16/2006 8.10.2.2.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 City of Beaumont may rely on written representations regarding their status as minority and female business enterprises in lieu of an independent investigation. 9. LEGAL 9.1. Representation in Proposal:. SETRPC has relied on all representations of the City of Beaumont in awarding this contract and the City of Beaumont warrants the accuracy of all representations in said proposal. Misrepresentation in the proposal shall be cause to terminate this contract and the City of Beaumont shall owe all amounts paid to it as liquidated damages should these amounts not be legitimate reimbursements for CDBG Disaster Recovery eligible activities. 9.2. TDHCA CDBG Disaster Recovery Funds Reco mg 'tion: The City of Beaumont shall insure recognition of the role of TDHCA CDBG Disaster Recovery funds in providing services through this Contract. All activities,facilities,and items utilized pursuant to this Contract shall be prominently labeled as to the funding source. In addition,the City will include a reference to the support provided herein in all publications made possible with funds made available under this Contract. 9.3. Notifications: Any notice hand-delivered or sent by mail(with a return receipt which indicates delivery)to the addresses below shall be deemed received for any purposes arising out of the execution of this contract. 10. For SETRPC,notices may be sent to: Chester Jourdan,Executive Director South East Texas Regional Planning Commission 2210 Eastex Freeway Beaumont, TX 77703 409-899-8444 409-347-0138(fax) 10.1.Construction and Severabilitv: If any part of this Contract is held to be invalid or unenforceable, such holding will not affect the validity or enforceability of any other part of this Contract so long as the remainder of the Contract is reasonably capable of completion. 10.2.Enforcement: The City of Beaumont agrees to pay to SETRPC all costs and expenses including reasonable attorney's fees incurred by SETRPC in exercising any of its rights or remedies in connection with the enforcement of this Contract. 10.3.Entire Contract: This Contract contains the entire agreement of the parties and supersedes any and all other agreements or understandings, oral or written,whether previous to the execution hereof or contemporaneous herewithin 10.4.Amendments: The City of Beaumont or SETRPC may amend this Contract at any time provided that such amendments make specific reference to this Contract,and are executed in writing and signed by a duly authorized representative of both organizations. Such amendments shall not invalidate this Contract,nor relieve or release the City of Beaumont or SETRPC from its obligations under this Contract. 10.4.1. SETRPC may, in its discretion,amend this Contract to conform with federal,state,or local governmental guidelines,policies,and available funding amounts,or for other reasons. 10.4.2. If such amendments result in a change in the funding,the scope of services,or the schedule of the activities to be undertaken as part of this Contract,such modifications will Page 12 of 13 CDBG Sub-Contractor agreement 11/16/2006 be incorporated only by written amendment signed by both the City of Beaumont and SETRPC. 10.4.3. Further,any future change in federal regulations or federal requirements governing the use or eligibility of CDBG Disaster Recovery Program funds are deemed to be immediately incorporated into this Contract and subject to the provisions herein. 10.5.Applicable Law: This Contract shall be governed by and construed and enforced in accordance with the laws of the State of Texas,the by-laws,rules and regulations of SETRPC and the applicable regulations of the U.S.Department of Housing and Urban Development and Texas Department of Housing and Community Affairs. 10.6.Approval Required: The parties hereto state that they are appropriately empowered by their respective Board/City Council to sign this Contract. This Contract shall not become effective or binding until approved by Beaumont City Council and the SETRPC Executive Committee. APPROVED: BEAUMONT CITY COUNCIL October 31 12006 SOUTH EAST TEXAS REGIONAL PLANNING COMMISSION ,2006 By: I Kyle Hayes ester R. Jo an, r. City Manager Executive Dir ctor Beaumont,Texas South East Te s gional Planning Commission Page 13 of 13 MO%W� C > Legal Department � P.O. Box 3827 Beaumont,Texas 77704-3827 A W' Tel. (409) 880-3715 City of Beaumont Fax (409) 880-3121 November 16, 2006 Southeast Texas Regional Planning Commission ATTN: Candye Anderson 2210 Eastex Freeway Beaumont, Texas 77703 Dear Ms. Anderson: The City of Beaumont is currently self-insured for all lines of coverage normally made available under the Texas Business Auto Policy. Comprehensive and collision accidents are paid as normal operating expenses. The City has a self-insured trust fund from which it pays all liability claims. The City currently purchases insurance for real and personal property. All real and personal property are protected by all risk type coverage including flood. If we can be of further assistance to you or provide you with additional information, please do not hesitate to contact us. Very truly yours, / Matthew Martin, AIC, ARM Liability Administrator MM:rw GARMMINSURANCIET RESOLUTION NO. 06-338 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Council hereby authorizes the City Manager to execute a contract with the Southeast Texas Regional Planning Commission to provide for the administration of disaster recovery funds by the Housing & Community Development Department. The contract is substantially in the form attached hereto as Exhibit "A." PASSED BY THE CITY COUNCIL of the City of Beaumont this the 31st day of October, 2006. iV i CA rf - Mayor Guy N. Goodson - fit, � '