04-676CouncilFile# 0����
Green Sheet #� C � W SS
RESOLUTION
OF SAINT PAUL, MINNESOTA
Presented By
Referred To
Committee: Date
rq
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WHEREAS, the City and Neighborhood House have entered into a cooperative
partnership to construct a new facility on Yhe site of the current El Rio Vista recreation center, to
be known as the Paul and Sheila Wellstone Center for Community Building; and
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5 WHEREAS, Neighborhood House is responsible for overseeing the actual construction of
6 the new facility and the City Council has previously authorized the appropriate officials to enter
7 into a Development Agreement for that purpose; and
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WHEREAS, the City is using Community Development Block Grants funds for a portion
of the project funding and needs to enter into a sub-grantee aareement with Neighborhood House
for the purpose of setting forth the respective responsibilities in carrying out the Grant
requirements in accordance with all Federal, State and local laws; now, therefore be it
RESOLVED, that the City Council authorizes the appropriate officiats to enter into the
Community Development Block Grant Subgrantee Agreement in substantially the form attached
hereto.
Requested by Department of:
BY�
Form Approved by City Attorne�
By /
Approved by Mayor for Submission to Council
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Approved by
By:
Date / 4:1 �
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Adoption CertifiedJ2y Council Secretary
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City of Saint Paul
Subgrantee Agreement
City of Saint Paul, Minnesota
COMMUNITY DEVELOPMENT BLOCK GRANT
FY2003 SUBGRANTEE AGREEMENT
THIS AGREEMENT, entered into this day of , 19_ by
and between the CITY OF SAINT PAUL, a municipal corporation of the State of
Minnesota, hereinafter designated the "City", and NEIGHBORHOOD HOUSE , a
Minnesota nonprofit corporation, hereinafter designated as the "Subgrantee".
WITNESSETH:
WHEREAS, the City and the Subgrantee desire to enter into this Agreement with
the 8ubqrantee receiving a Community Development Block Grant in the amount of
$2,811,069.00, for the purpose of setting forth their respective responsibilities in
carrying out to a successful conclusion the City's Community Development Block Grant
Program in accordance with all Federal, State and Local laws.
NOW, THEREFORE, THE CITY AND THE SllBGRP<NTEE DO HEREBY
MUTUALLY AGREE AS FOLLOWS:
1. Term of Agreement. This Agreement and activities authorized hereunder
shall take effect and be in force from and after the _day of , 200_, and
shall be in force and in effect through the day of , 200_, and thereafter
during any period of time that the Subgrantee has control over Community
Development Block Grant ("CDBG") funds including program income and loan fund
repayments, or property purchased in whole or in part with CDBG funds, all in
accordance with section 17 and 18 hereof. This Agreement may be otherwise
extended by written agreement consented to and signed by both parties.
2. Statement of Work/Scope of Services. The Subgrantee shall perform all
activities set forth in the attached "Statement of WorWScope of Services", consisting of
a description of the work to be performed, a schedule for completing the work and a
budget, hereby made part of this Agreement as Attachment A, and shall undertake
these activities in accordance with the terms of this Agreement, and with CDBG
Program Entitlement Grant Regulations (24 CFR Part 570) as applicable. Those
activities shali be completed in accordance with the Completion Schedule contained in
Section 7 of Attachment A hereto. If the Subgrantee faiis to comply with the Progress
or Completion Schedule or other term of this Agreement, the City may enforce
remedies for noncompliance in accordance with Section 85.43 of 24 CFR Part 85.
3. Funding: (a) Budget. All funds required to carry out the activities
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City of Saint Paul Subgrantee Agreement
identified in the project Statement of Work/Scope of Services shall be provided to the
Subgrantee as identified in the Statement of WorWScope of Service Section entitled
"Project Budget". (b) Payment. The Subgrantee shall be entitled to reimbursement of
funds on a monthly basis in accordance with City regulations and procedures. The
Subgrantee shall submit itemized statements in such detail as required by the City to
comply with all Federal, State and local requirements. All requests for funds shall
conform to the line items contained in the Project Budget. (c) Program Income.
Program income is gross income received by the subrecipient that was directly
generated from the use of funds received by the Subgrantee from the City under this
Agreement. As required in 24 CFR Sections 570.500(a) and 570.504(c), CDBG
program income shall be retained by the Subgrantee during the term of the Agreement
to be applied for activities as specified in the Statement of Work/Scope of Services.
Funds payable by the C+ty to the Subgrantee as specified in Subparagraph 3b}, shafl be
adjusted by the amounts of program income received by the Subgrantee and on hand
at the time of the reimbursement request. (d) Definition. As used in this Agreement
the term "Program Funds" shall mean all funds received from the City under this
Agreement and all program income as defined in subsection (c) above.
4. Flexibility in Budget. The Subgrantee shall make expenditures according to
the line items set forth in the Statement of Work/Scope of Service Budget. Any and all
amendments to the Scope of Service Budget must be submitted in writing to the City's
Grants Management Section for review and approval.
5. Audit. a) Scope of Audit. Subrecipients that expend $300,000 or more in
federal funds annually to carry out a program through a primary recipient or other
Subrecipients or direct recipient ofi federal awards under other agreements, agree to
have an audit made by an independent auditor in accordance with Government
Auditing Standards developed by the Comptroller General of the United States, OMB
Circular A-133 Audits of Institutions of Higher Education and other nonprofit institutions,
and OMB Circular A-122 Cost Principles for Nonprofit Organizations. b} Frequency
and Completion of Audit. An audit shall be performed annualiy and should be
completed within six months of the fisca{ year end. Three copies of the audit report
shall be submitted within 30 days after the completion of the audit to: Mr. Surjeet
Verma, Accountant, Department of Planning & Economic Development. c) Audit Cost.
Reasonable costs for audits required under Subsection a) of this paragraph will be
reimbursed by the City provided: the auditor was chosen through a competitive bid
process, and; the audit was made in accordance with the provisions of Circular A-133.
Audit costs cannot be charged to federai awards unless the audit has been performed
in compliance with OMB Circulars.
6. Independent Contractor. For the purpose of this Agreement, the Subgrantee
shall be deemed to be an independent contractor and not an employee of the City. Any
and all employees of the Subgrantee or other persons while engaged in the
performance of any work or services required by the Subgrantee under this Agreement,
shall not be considered employees of the City. Any and all ciaims by any third party as
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City of Saint Paul Subgrantee Agreement
a consequence of any act or omission on the part of the Subgrantee, its employees or
other persons shall be the obligation of the Subgrantee. The Subgrantee shall be
responsible for all contractual obligations entered into pursuant to and in the
performance of this Agreement. If required by statute, the Subgrantee shall procure
and maintain in force at its expense worker's compensation insurance and shall provide
the City with proof of such coverage. Withholding and payment of federal and state
income taxes and FICA, for its empioyees shall be the responsibility of the Subgrantee.
The Subgrantee will comply with all unemployment compensation employer
contributions payments and other employer requirements of the unempioyment
compensation laws, Minnesota Statutes 1990, Chapter 268.
7. Non-Discrimination. The Subgrantee shall be deemed a contractor for the
application of all provisions, ordinances and other laws against discrimination, including:
a) Title VI of the Civil Rights Act of 1964 (Public Law 88-352);
b) Executive Order No. 11246 entitled "Equal Employment Opportunity" as
supplemented in the Department of Labor Regulations (4 CFR, Part 60);
c) Chapter 363, Minnesota Statutes; and
d) Chapter 183 of the Saint Paul Legislative Code. The provisions of
Section 183.04 of Chapter 183 are incorporated herein.
8. Reports and Records. The Subgrantee shall submit to the City a full
account of the status of the activities undertaken as part of this Agreement in six month
intervals. An Interim Report will be due within 30 days of the Agreement six month
anniversary, and Annual Report within 30 days of the Agreement one year anniversary.
In addition, specific records the Subgrantee must maintain, and submit to the City are
set forth in Attachment "B", and are hereby incorporated in this Agreement.
9. Uniform Administrative Requirements. The Subgrantee shall comply with
the policies, guidelines, and requirements and standards, as applicable, of 24 CFR,
Parts 44, 85, and 570 and, A-122 "Cost Principles for Non-Profit Organizations", and A-
133 "Audits of Institutions of Higher Education and Other Nonprofit Institutions", and the
Attachments A, "Cash Depositories"; B"Bonding and Insurance'; C"Retention and
Custodial Requirements for Records"; F"Standards for Financial Management
Systems"; H"Monitoring and Reporting Program Performance"; N"Property
Management Standards' ; and O"Procurement Standards" to OMB Circular A 110 as
limited by 24 CFR Section 570.502(b).
10. Other Requirements; Community Development. The Subgrantee, if it
receives CDBG funds, shall carry out each activity set forth in the Statement of
Work/Scope of Services in compiiance with ail Federal laws and regulations described
in 24 CFR 570, Part 570 Subpart K except that the Subgrantee does not assume the
City's responsibility for initiating the review process under 24 CFR Part 52 nor the City's
environmental responsibilities described in 24 CFR Section 570.604. Specific
requirements published in 24 CFR 570 inciude:
a) Sections 570.200 through 570.206 - Eligible Activities
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City of Saint Paul
Subgrantee Agreement
b) Section 570.207 - Ineligible Activities
c) Section 570.504 - Program Income
d) Section 570.506 - Records to be maintained
e) Section 570.602 - Non-Discrimination
� Section 570.603 - Labor Standards
g) Section 570.606 - Displacement, relocation, acquisition, and replacement of
housing
h) Section 570.607 - Employment and Contracting Opportunities
i) Section 570.609 - Use of debarred, suspended contractors
j) Section 570.610 - Uniform administrative requirements and cost principles
k) Section 570.611 - Conflict of Interest
Other Federal Regulations which may appiy are identified in Section 9 hereof, and in
Attachment C, "Community Development Biock Grant Project Compliance
Requirements", which regulations are hereby incorporated in this Agreement and made
part thereof.
11. Assistance to Subgrantee. The City may assist the Subgrantee with
clarifications and interpretations of federal, state and local requirements as specified in
this Agreement. The Subgrantee shall notify the Ciry if and when such assistance is
required, and City staff shall provide to the Subgrantee whatever technical and
professional assistance the City deems appropriate to help Subgrantee comply with aIl
federal, state and local regulations. Notwithstanding anything in this Agreement or
paragraph to the contrary, the City does not warrant or guarantee the accuracy or
correctness of the technical or professional assistance given to Subgrantee and that
Subgrantee relies upon such assistance at its own peril or risk. Subgrantee
understands and agrees that the compliance with rules and regulations referenced in
this Agreement shall always remain the sole responsibility of the Subgrantee.
Nothing in this section shall be taken or regarded by the Subgrantee as placing
the City, its employees or agents as acting in the role of the Subgrantee's attorneys,
accountants or engineers. The pledge of assistance herein is limited to that of the City
serving as a facilitator and liaison with the federal, state and local governments so that
the Subgrantee can be apprized of those governmental units' business practices and
customs, as the Gity understands them to be, in the area of the Community
Development Block Grant program administration.
At all times, the Subgrantee has the sole and non-delegable responsibility to
obey all laws, rules and regulations and to conform to accepted accounting and auditing
practices and so has a duty, throughout the term of this Agreement to retain at its own
expense, such attorneys, accountants, engineers and business advisers upon whose
advice and counsel the Subgrantee may incur risk, liability and penalty.
12. Historic Preservation. Subgrantee shail comply with all requirements
imposed by Federal, State and Iocal law respecting historic preservation. Prior to
acquisition, rehabilitation or demolition of property fifty years or older, Subgrantee shall
request an opinion of eligibility for placement on the historic register from the Planning
Division of the Department of Planning and Economic Development, and Ciry staff will
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City of Saint Paul
Subgrantee Agreement
notify the Subgrantee of any determination and additional requirements.
13. Constitutional Prohibition. In accordance with First Amendment
Church/State Principles, as a generaf ru{e, CDBG assistance may not be used for
religious activities, or provided to primarily religious entities for any activities, including
secular activities. Restrictions and limitations on the use of CDBG funds are found at
24CFR 570.200 (j)), and are hereby incorporated by reference.
14. Termination or Reduction in Payments. (a) CDBG. The Secretary of the
U.S. Department of Housing and Urban Development is empowered by Section III, Title
I, Public Law 93-383, to terminate or reduce payments to the City and the Subgrantee,
or to limit availability of payments to the City and the Subgrantee should the Secretary
find, after reasonable notice and opportunity for hearing, that the City or Subgrantee
has failed to comply substantiafly with any provision of Title I of the Act. The City
agrees, but without liability to itself or Subgrantee, not to do anything which will cause
the Secretary to take such action, and the Subgrantee will be notified in writing of any
proposed action by the Secretary. The Subgrantee shall be given the opportunity to be
represented at all such hearings. The City's obligation to provide CDBG funds to the
Subgrantee is deemed dependent upon the City's receiving such funds from the
Secretary, and all obligations of the City hereunder shall eiiher terminate or be reduced
or limited in the event the Secretary should take such actions as authorized by said
Section. In accordance with 24 CFR 85.43, the City reserves the right to suspend or
terminate this Agreement in the event the Subgrantee fails to comply with any term of
this Agreement, and the Agreement may be terminated for convenience in accordance
with 24 CFR Section 85.44. (b) Additional Subgrantee Funding. The City additionally
reserves the right to suspend, terminate, or reduce payments to the Subgrantee from
any of the funding sources identified in Attachment A- Project Budget, or take any
other such additional actions as may be necessary in the event the Subgrantee fails to
comply with any of the terms of this Agreement.
15. Indemnification. The Subgrantee shall indemnify, save harmless, protect
and defend the City, its officers, employees or agents, from all suits, actions or claims
of any character whether such suits or actions arise out of the acts or omissions of
Subgrantee, its agents or employees, or the City, or its officers, employees or agents,
on account of Subgrantee and/or the City attempting or carrying out the terms of this
Agreement.
16. Insurance: (a) Liability Insurance. The Subgrantee agrees that in order to
protect itself as well as the City, it will obtain and keep in force during the term of this
Agreement at its expense general liability insurance, and if applicabie, automobile
liability insurance, covering any injury caused by act or omission on the part of the
Subgrantee, its officers, agents and empioyees in performance of or with relation to any
of the work or services performed or furnished by the Subgrantee under the terms of
this Agreement each with minimum coverage in the following amounts: $300,000 per
person and $1,000,000 per occurrence. (b) Excess Liability Coverage. The
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City of Saint Paul Subgrantee Agreement
Subgrantee additionally agrees to obtain and maintain during the term of this
Agreement umbrella or excess liability coverage, providing additional coverage beyond
the limits of general liability and automobile coverages set forth above, in the amount of
not less than $1,000,000.00. The general liability and automobile liability coverages
shall contain an endorsement naming the City as additionally insured as to acts
committed by the Subgrantee for which the Ciry could be held responsible. The
automobile liability policy must apply to any vehicle used in connection with the
performance of this Agreement by the Subgrantee. (c) Verifiable Insurance; Notice
of Canceilation. The Subgrantee shall furnish Certificates of Insurance evidencing
compliance with this Section which certificates shall become part of this Agreement.
Each insurance policy shall contain a provision requiring thirty (30) days notice of
cancellation of the policy. The City shall not be obligated to honor payment requests
under Paragraph 3, above, at any time when the coverages required by this Agreement
are not in force. (d) Duty to Defend and Duty to Indemnify. Each coverage afforded
to the City as an additional insured under this policy expressiy includes the duty to
defend and the duty to indemnify. As evidence of this commitment, afl Certificates of
Insurance referenced in this Agreement shall include in the section labeled
"Description/Special Items", typically in the lower left hand corner of the document, the
following language: "Each coverage afforded to the City as an additional insured under
this policy expressly includes the duty to defend and indemnify:'
(e) Defaults and Remedies. Should tfie Subgrantee fail to obtain and/or keep in force
insurance of the types and in the amounts as specified within this Agreement, or shall
fail to indemnify and hold harmless the City as set forth herein; in such event, the
Subgrantee shall be liable for all costs and fees, including reasonable attorney fees,
that may be incurred by the City in the enforcement of the Subgrantees's Agreement to
indemnify and/or to obtain and keep in force the agreed upon insurance coverage.
17. Reversion of Assets. (a) Funds. Upon termination of this Agreement, the
Subgrantee shali forthwith transfer to the Ciry all Program Funds on hand at termination
and all accounts receivables attributable to use of Program Funds. (b) Real Property.
As specified by 24 CFR Part 570.506(d), upon termination of this Agreement any real
property under the Subgrantee's control which was acquired in whole or in part with
CDBG funds, or upon a change of use of real property acquired or improved in whole
or in part with CDBG funds in excess of $25,000, the property shall, in a manner
acceptable to the City, either:
(i) be used for a period of five years from date of termination to meet one of
the national objectives identified in 24 CFR, Section 570208, or;
(ii) be disposed of in a manner that results in the Ci1y being reimbursed in the
amount of the current fair market value of the property less the portion of
the value attributable to expenditure of funds other than Program Funds.
If such is used for five years in a manner which meets a National
Objective and thereafter disposed of, no reimbursement of Program
Funds will be required under clause (i) above.
18. Loan Fund Account. If any part of the activities funded under this
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City of Saint Paul Subgrantee Agreement
Agreement involve the making of rehabilitation loans, the Subgrantee shall maintain a
separate Loan Fund Account system into which Program Funds for loans and loan
principal and interest payments shall be deposited. Disbursements from the Loan Fund
Account shall be made only for loans:
(i) meeting eligibility criteria incorporated in the Statement of WorWScope of
Service, and;
(ii) evidenced by a promissory note secured by a mortgage creating a lien
upon the rehabilitated property in favor of the Subgrantee or the City as
assignee of the Subgrantee.
Upon termination of this Agreement, the Subgrantee shafl transfer the Loan Fund
Account balance and assign all promissory notes and mortgages to the City.
19. Attorney's Fees and Expenses. In the event the Subgrantee should
default under any of the provisions of this Agreement, including any and all attachments
hereto, and the City should employ attorneys or incur other expenses for the collection
of amounts due hereunder or the enforcement of performance of any obligation or
agreement on the part of the Subgrantee, the Subgrantee will on demand pay to the
City the reasonable fee of such attorneys and such other expenses so incurred.
20. Attachments. The foilowing identified attachments are incorporated into and
made part of this Agreement: .
Attachment A- Statement of Work/Scope of Services, including a Work Plan,
Evaluation Methodology, Community Outreach Strategy, and Direct or Indirect
Cost Budget.
Attachment B- Community Development Block Grant and General
Fund Records and Reporting Requirements
Attachment C- Community Development Block Grant , State and Local
Compliance Requirements
Attachment D- Year End Report/Project Evaluation, if applicable
Attachment E- Subgrantee Administrative Policies
Attachment F - fnsurance Certificate
21. Amendment. This Agreement may be amended by the mutual written
consent of both parties.
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City of Saint Paul
Subgrantee Agreement
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed the day and year first above written.
This Agreement has been reviewed for appropriate language as outlined in 24 CFR
570.503 of the Federai Register, applicable to projects/programs funded with CDBG
monies. This review must be completed and signature obtained before other City
signatures are requested.
Department of Planning and
Economic Development
Grants Management Staff
CITY OF SAINT PAUL SIGNATURES
APPROVED AS TO FORM:
By
Assistant City Attorney
Its Director, Office of Financial Services
Its Mayor
Its Director, Department of Planning
and Economic Development
SUBGRANTEE SIGNATURES:
Its
By.
Its
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City of Saint Paul, Minnesota
� Community Development Block Grant\General Fund
� Records and Reporting Requirements
ATTACHMENT B
The following records shall be maintained by the Subgrantee, copies of which shall be
submitted to the City in such form as prescribed:
All receipts and invoices relating to expenditures of Community Development
Block Grant (CDBG) and/or City provided funds.
2. Accounting records that are supported by source documentation. Subgrantee
will establish a separate, identifiable accounting record for the activity(ies)
contained in this Agreement. Records shall be sufficient to reflect all costs
incurred in performance of this Agreement. The books, records, documents, and
accounting procedures, relevant to the grant shall be subject to examination by
the city, appropriate federal agency(ies), and the legislative auditor at any time
during the pertormance of this Agreement, and for up to three years following the
completion of this Agreement.
3. Payroll records, including hours worked, of all employees reimbursed with funds
provided through this Agreement.
4. Mileage records, detailing the mileage reimbursement system, person(s)
participating in the program, number of miles driven, and amount reimbursed
with City provided funds.
5. Records of Liability Insurance, Automobile Insurance, including proof of
insurance in effect, and proof of payment of insurance premiums.
6. Detailed progress reports, submitted at such time and in such form as required
by the City.
7. Records of Board or Committee meetings relating to decisions governing the use
of funds provided under this Agreement.
8. Some activities may require additional CDBG eligibility determinations, including:
1) public service activities - documentation that the service provided is either a
new or extended service; 2) housing and economic development assistance -
verification that the assistance is appropriate, and the costs are reasonable; and
3) special housing, rehabilitation, or economic development activities carried out
by neighborhood non-profit development corporations.
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City of Saint Paul
Attachment B
9. if the Subgrantee is providing grants or loans, it shall keep records documenting
the use of such funds, including; records documenting recipient eligibility,
payments made, and documentation on completion of work for which the grant
or loan was initiated.
10. Records providing evidence that all expenditures authorized under this
Agreement are appropriate, and that the associated costs are reasonable. This
includes records indicating a minimum of two bids itemizing costs for comparable
labor and/or materials were received, and that the lowest responsible bid was
selected. If the lowest bid is not selected, records should indicate how it was
determined that the cost of alternate selection was reasonable.
11. When issuing statements, press releases, requests for proposals, bid
solicitations, and other documents describing projects or programs funded in
whole or in part with funds from this Agreement, the Subgrantee shall clearly
state the source or funds to be used, and the approximate percentage of the
project which will be funded by this Agreement.
12.• Records of the amount of private/other matching tunds received, as identified in
the Project Budget.
13. Record keeping requirements as detailed below:
A. For housing activities, records indicating the number of housing units
rehabilitated, the number of housing units removed, the number of
housing units created, the number of housing units lost, the number of
housing units replaced, the number of housing units relocated, and a
summary of the totaf affected units. In addition, according to 570.506(b),
records shall be kept indicating the income levels of those persons
assisted, and for rental housing, the current level of rent.
B. For economic development activities, records indicating the number of
establishments: removed, created, assisted, rehabilitated. In addition,
according to 570.506(b)(5), records indicating the number of jobs created,
new jobs created by category, delineation of full or part time, salary levels.
C. For activities determined to benefit low and moderate income persons
based on the area senred; records as defined in 570.506(b)(2): service
area boundaries and income information on persons residing in service
area.
14. Fair Housing and Equal Opportunity Records as described in 570.506(f) and
other records as listed in 570.506Q).
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City of Saint Paul Attachment C
� City of Saint Paul, Minnesota _
Federal Requirements for the Community
Development Block Grant (CDBG) Program
ATTACHMENT C
The following list contains the public laws and executive orders which may be
applicable to activities funded in whole or in part with Community Development Block
Grant(CDBG). If you have any questions, please contact Grants Management Staff at
1400 Ciry Hall Annex, 25 West 4th Street, Saint Paul, MN 55102, Phone: 612-266-
6693.
1) DAVIS BACON ACT/CONTRACT WORK HOURS AND SAFETY STANDARDS
ACT
40 USC 276(a) - 276(a)5, USC 327 et. seq.
Provides that all laborers and mechanics employed by contractors or
subcontractors in the performance of construction work financed in whole or in
part with CDBG or UDAG funds shall be paid prevailing wages. This includes all
commercial activity and housing activity of eighi or more units.
2) COPELAND ANTI-KICKBACK ACT
18 USC 874
Prohibits kickbacks to public employees, and any person involved in the
administration of federal funds.
3) EXECUTIVE ORDER 11246, AS AMENDED BY EXECUTIVE ORDERS 11375
& 12086
24 CFR 130.1
Relates to equal employment opportunities under HUD contracts and HUD
assisted construction contracts.
4) 24 CFR Part 85
24 CFR 570.502
Uniform administrative requirements for all Grant-in-Aid Programs. These
regulations apply to state and local governments. 24 CFR 570.609 regulates
the use of debarred, suspended contractors on federally funded projects.
5) OMB CIRCULAR A- 87
Relates to cost and expenditure principles for federally funded grants and
contracts. These are rules apply to state and local governments and in part, to
subgrantees.
6) OMB CIRCULAR A- 110
Contains uniform administrative requirements applicable to federafly funded
grants and contracts with non-profit organizations. Includes requirement for
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City of Saint Paul
Attachment C
the City and/or HUD to monitodreview/report on subgrantee activities.
Note: All sections of A-110 apply except the audit provisions, which are replaced
by OMB Circular A-133.
7) OMB CIRCULAR A -133
Contains audit requirements for non-profit organizations. This Circular
replaces the audit provisions of OMB Circular A- 110.
8) OMB CIRCULAR A -122
Uniform cost principles for non-profit organizations receiving federal funds.
9) LEAD BASED PAINT POISONING PREVENTION ACT
42 USC 4831, 24 CFR 570.608 & 24 CFR 35, Subpart B
Prohibits the use of lead based paint in any federally funded project. Also
requires notification for removal of lead based paint in rehabilitation projects.
10) CLEAN AIR ACT, WATER POLLUTION CONTROL ACT
42 USC 1857 33 USC 1251 24 CFR 1.3 et. seq.
Clean air and water acts that pertain to all projects and programs.
11) TITLE VI, CIVIL RIGhITS ACT OF 1964
42 USC 2000(d) Public Law 88.352 24 CFR 570.601
Act states that no person shall be denied participation in, or benefits from federal
assistance on the basis of race, color or national origin.
12) TITLE VIII OF THE CIVIL RIGHTS ACT OF 1968, FAIR
42 USC 3601 Public Law 90.284
No person shall be denied housing opportunities on the
religion or national origin.
HOUSING ACT
24 CFR 570.601
basis of race, color,
13) EXECUTIVE ORDER 11063, & AMENDED BY E.0.12259
24 CFR 570 Part 107
Prohibits discrimination in housing and related facilities owned or operated by the
Federal Government, and in lending practices.
14) EXECUTIVE ORDER 11625
Relates to the national program for Minority Business Enterprise.
15) SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968
12 USC 1701(u) "SET - ASIDE" 24 CFR 135.20(b)
Provides that to the greatest extent feasible, training and employment
opportunities shall be made available to lower income residents of project areas
and that contracts shall be awarded to small businesses located within the
project area or owned in substantial part by project area residents.
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City of Saint Paul Attachment C
16) SECTION 109 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT
OF 1974
42 USC 5309 24 CFR 570.602
Prohibits discrimination on the basis of race, color, religion or national origin in
any activity or program funded in whole or in part with CDBG or UDAG funds.
17) AGE DISGRIMINATION ACT OF 1975
42 USC 6101 Public Law 94.135
No persons shall, on the basis of age, be excluded from participation or be
denied benefits, or be subject to any discrimination from any program receiving
federal assistance.
18) SECTION 504 OF THE REHABILITATION ACT OF 1973
29 USC 1794 24 CFR Part 8
Provides that physically impaired persons may not be excluded from participation
or be denied benefits from any program receiving federal assistance.
19) ARCHITECTURAL BARRIERS ACT OF 1968
42 USC 4151
Provides that government agencies shall prescribe standards for the design,
construction and alteration of buildings to insure that whenever possible
physically impaired persons wili have ready access to, and use of such buildings.
This rule in and of itself does not apply to the CDBG program, except as it
impacts on Section 504.
20) UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY
ACQUISITION POLICIES ACT OF 1970
42 USC 4601 24 CFR Part 42 24 CFR 570.606
Provides relocation benefits and land acquisition procedures when property is
acquired by federal or state agencies. For the purpose of this act, the City is an
agency of the State.
21) NATIONAL ENVIRONMENTAL POLICY ACT OF 1969
42 USC 432i 24 CFR Part 58
The recipient of federal funds assumes the responsibility for ensuring that
environmental reviews are completed prior to the start of any activity funded in
whole or in part with federal funds.
22) NATIONAL HISTORIC PRESERVATION ACT
16 USC 470 Public Law 89-665
Relates to the process for designating structures on the National Historic
Preservation List, and the kinds of activities which may be done as a result of
this designation.
K:\SHARED\...\CDBGCTR.02 Page C 3 December 28, 2001
py-(
City of Saint Paul Attachment C
23) ARCHAEOLOGICAL AND HISTORIC PRESERVATION ACT OF 1974
P. L.93-291
This is an update of the act listed above.
24) EXECUTIVE ORDER 1593
Provides for the protection and enhancement of the cultural environment.
25) FLOOD DISASTER PROTECTION ACT OF 1973
42 USC 4001 E.O. 11988 E.O. 11288 Public Law 93-234
No activity funded in whole or in part with federal assistance may be undertaken
in a designated flood plain without National Flood Insurance. 11988 relates to
evaluation of flood hazards. 11288 relates to the prevention, control and
abatement of water pollution.
26) HATCH ACT
5 USC 1501
Prohibits the financing of any type of political activities with federal funds.
27) CODE OF CONDUCT AND CONFLICT OF INTEREST
24 CFR Part 85.36 E� 570.611
States that no person(s) administering federally funded programs m�y, as a
resuit of their position, receive personal gain.
28) INTERGOVERNMENTAL REVIEW OF WATER & SEWER PROJECTS
Executive Order 12372
Allows for the State and Metro Council to review and comment when the
grantee/subgrantee proposes to finance the planning or construction of water or
sewer facilities.
29) REQUIREMENTS GOVERNING LOBBYING OF HUD PERSONNEL;
PROPOSED RULE
24 CFR Part 86
Reporting requirements and fee limits for the hiring of persons to influence a
HUD officer or employee.
K:\SHARED\...\CDBGCTR.02 Page C 4 December 28, 2001
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^�
A7TACHMENT C
Project activities shall be carried out in compliance with all State and local applicable
laws, orders, and regulations, including:
1) The Minnesota State Act Against Discrimination (Minnesota Statutes
Chapter 363) and implementing regulations issued at 64 MCR Section
et. seq.:
City of Saint Paul, Minnesota
STATE AND LOCAL Government
Project Requirements
2) The Human Rights Ordinance (Saint Paul Legislative Code Chapter 183)
and Rules Governing Affirmative Action Requirements in Employment
issued by the Saint Paul Human Rights Commission October 4, 1977, as
amended;
3) The Purchasing From the Targeted Vendor Development Program (Saint
Paul Administrative Code Chapter 81), and implementing regulations
when issued, for effect;
4) The Minimum Wages on Public Contracts Ordinance (Saint Paul
Administrative Code Section 82.07) and rules issued at Chapter A-9 City
Contracts-Wage Rates, Appendix to the Saint Paul Administrative Code.
5) The Minnesota residential Mortgage Originator and Servicing Licensing
Act (Chapter 343, Minnesota Statutes).
Prior to undertaking the performance of any activity authorized under this Agreement,
the Subgrantee agrees to participate in a City Contract Compliance informational
meeting. If deemed necessary by the City, specific contract compliance requirements
will be incorporated into a written document, to be submitted and followed during the
completion of the activities authorized as part of this Agreement.
K:\SHARED\...\CDBGCTR.02 Page C 5
December 28, 2001
��'�
City of Saint Paul, Minnesota
CITY\SUBGRANTEE AGREEMENT
Administrative Policies
ATTACHMENT E
Eligibie funding activities and procedures:
The City will provide funds to Subgrantees on a reimbursement basis, and in
accosdance with the budgets contained the City/Subgrantee Agreements.
2. Any changes or modifications to the budgets must be transmitted in writing to the
City's Grants Management Staff for review and approval.
3. Subgrantee budgets must be structured to provide a separate and identifiable
audiVbudget trail which details all expenditures related to the City/Subgrantee
Agreement.
4. Each Subgrantee is solely responsible for budgeting adequate funds to cover its
employment agreement obligations. This may include: FICA, workmen's
compensation, unemployment taxes, travel allowance, parking fe�s, health
insurance, etc.
5. Subgrantee employees are not employees of the City of Saint Paul, and do not
qualify for benefits granted to City Civil Service employees. Subgrantees
determine any and afl benefits they wish io grant their employees, and these
benefits may be included in the Subgrantee budgets.
6. Subgrantees may appropriate funds for short-term consultant activities upon
written approval from the City's Grants Management Staff.
7. Subgrantees may allocate money for legai consultation, providing: the amount of
money does not exceed the approved budget total; funding is approved by the
Subgrantees' Executive Board andlor Board of Directors; is clearly identified in
the Subgrantee budget; and has prior written approval of the City's Grants
Management Staff. Such funding will be determined on a case-by-case basis.
Subgrantees are not clients of the Office of the Ciry Attorney.
8. Subgrantees are required to institute generally accepted accounting principles
which inciude procedures which preclude overdrafts. Subgrantees are expected
to pay employees and other debts in a timely manner. Payment of penalties or
interest charges are not aliowed with City funds.
K:\SHARED\...\CDBGCTR.02 Page E 1
December 28, 2001
(��( �(ollD
City of Saint Paul Attachment E
9. Subgrantees' budgets are funded on a contract-by-contract basis. Unused funds
remain with the City.
10. Subgrantees are required to keep an inventory of all furnishings and properry,
and should update it on a yeariy basis. All furniture and equipment either
purchased with City funds, or borrowed from City agencies, remains the property
of the City. tn the event of termination ofi this Agreement, or if the Subgrantee
chooses to go out of business, all of the above mentioned property shall be
returned to the city in a timely manner.
11. In the event of termination of this Agreement, or if the Subgrantee chooses to go
out of business, the contents of the Subgrantees records and business files
relating to this Agreement shall be either turned over to the City of Saini Paul, or
remain accessible to the City of Saint Paul for a period of three years following
the termination of this Agreement.
Ineligible funding items:
1. Undefined line items such as "miscellaneous" and "special projects" are not
eligibfe for funding without written approval from the Grants Management staff.
2. Subgrantee funds provided through this Agreement may not be used to
purchase food and/or beverages. Exception to this policy may be requested if
the food andfor beverages are included in an individuai's registration fee for an
educational meeting relating to activities included in Attachment A, Work
Plan/Scope of Service.
3. Costs of legal action against the Ciry, including fees to appeal.
4. Penalties and interest charges.
K:\SHARED\...\CDBGCTR.02 Page E 2
December 28, 2001
�-�o�
CITY OF SAINT PAUL, MN
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
ATTACHMENT A
SUBGRANTEE STATEMENT OF WORK/SCOPE OF SERVICES
1. Project Title: Paui and Sheila Wellstone Center For Community Development
2. Entity Responsible for Carrying Out This Project
Organization Name: Neighborhood House
Address: 179 Robie Street, Saint Paul, Minnesota 55107
Contract Manager: Kari Niedfeldt-Thomas Phone #: 651-789-2542
3. Project Description:
Construction of a new 93,600 s.f. community center building for the City of Saint Paul,
Division of Parks and Recreation and Neighborhood House. The new center will
include: 2 full size gymnasiums, 260 seat performance auditorium, food shelf, kitchen
and congregate dining, teaching kitchen, dance/exercise room, weight room, adult and
youth computer labs, arts and crafts room, youth center, classrooms, meeting rooms
and offices.
4. Statement of Need: (Reasons for undertaking this project)
The existing facility is insufficient in size to maintain existing programming or to provide
new programming opportunities. The age and configuration of the existing facility does
not allow for efficient operation and maintenance.
5. Project Goals and Objectives: (What will be achieved as a result of this project)
To construct a new state-of-the-art faciltiy which will provide integrated programming by
the Division of Parks and Recreation and Neighborhood F{ouse meeting the needs of
the community.
Page A - 1
�'��
6. Service Area/Target Poputation: (Attach a map of the service area, or describe the
population to be served.)
The Ciry offers recreational programming serving all residents Saint Paul's West Side.
Neighborhood House serves this same population with many civic and social program
opportunities, as well as being a regionai destination to those in need of these services.
7. Activities to be UndertakeNProgress Schedule - Anticipated Timeline:
TIME PERIOD PERSON
ACTIVITY RESPONSIBLE
(6 month intervals)
From: May 2001
To: July 2004
From: July 2004
To:
From:
To:
From:
To:
Design/Engineering/Bidding
Construction
Ken Wehrle
Saint Paul
Division of
Parks and Rec
Kari fViedfeldt-Thomas
Neighbohood House
December 2004
January 2005
Construction
Kari Niedfeldt-Thomas
Neighbohood House
June 2005
July 2005
December 2005
Construction
ConstructionlFu rnishing
Kari-Niedfeldt-Thomas
Neighborhood House
Page A - 2
t�t •��
8. BUDGET: Fiil in line items as appropriate.
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
BUDGET FORM
Federal EDI and Neighborhood Initiative Grants -$9,438,550
State Bond Grant - $5,000,000
Private Funds - $5,000,000
Page A - 3
� Other tunds - identify sources
�-�1�I
9. a. Eligibility for use of CDBG funds for this project is based on the foliowing:
Eligible Activities: (Please check all activities being carried out)
_Acquisition X Demoiition
Economic Devel. Housing Const.
X Public Facilities Rehabilitation
_Relocation
b. Subgrantee will document compliance with eligibility requirements of 24
CFR Part 570 in the following manner:
Maintaining records which provide a full description of each activity assisted with
CDBG funds, including the activity location, and the amount of CDBG funds
budgeted, obligated and expended for each activity. Documenting that the funds
were expended on an activity that is CDBG eligible.
Maintaining salary records, receipts and appropriate financial records including
an indirect cost plan, if applicable.
10. This project will meet the CDBG low and modera�e income national objective
in the following manner: (Please check one activity)
X Area Benefit Activities
The project will provide benefits which are available to all residents in a particular
area, where at least 51% of the residents are fow and moderate income persons.
The subgrantee will document meeting the area benefit objective by completing
a service area map, and submitting it to PED Grants Management staff, who will
determine the percentage of low and moderate income persons in the service
area.
._ Housing Activities
The project will provide or improve permanent residential structures which, upon
completion, will be occupied by low and moderate income households. The
subgrantee will document meeting the housing objective by collecting information
on household size and income so that it is evident that the household income
does not exceed the low and moderate income limit.
Job Creation Activities
The project will create permanent jobs where at least 51 % of the jobs, computed
on a full time equivalent basis, involve the employment of low and moderate
Page A - 4
p�{_�`�e
income persons. The subgrantee will document meeting the job creation
objective by collecting information on the family size and income of job
applicants so that it is evident that at least 51 °!o of the jobs are filied by persons
whose family income does not exceed the low and moderate income limit.
11. Program Income Requirements:
CDBG program income received by the subgranfee may only be expended on
CDBG eligible activities which meet the CDBG low and moderate income
national objective. The program income must be expended before other CDBG
funds are requested, and the subgrantee must maintain records and report on
the use of program income.
12. Subgrantee acknowiedges that it is familiar with the eligibility, national
objective and program income requirements in Paragraphs 9, 10 and 11
above, and that a material failure to comply with these and other applicable
Federal Regulations will entitle the City to enforce remedies for
noncompliance.
13. Disbursement of Funds:
Requests for payment, with required documentation attached, shou(d be sent to
your project manager for review and approval. Reimbursement requests may be
submitted as needed, but not more often than once a month.
PageA-5
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green S eet ��
DepartmenHoffice/council: Date Initiated:
co �� �-.���-� Green Sheet NO: 3019655
CoMact Person 8 Phone• Deoartrnent Se� To Person Initial/Date
Virginia Palmer � 0
266-8770 pssign 1 ouncil
Must Be on Council Agenda by (Date): Number 2 - C1erk
07JUL-04 For
Routing 3 �
Order 4
5
Tofal # of Signature Pages _(Clip AII Locations for Signature)
Action Requested:
Authorizing the appropriate officials to enter into the CommuniTy Development Block Grant Subgantee Agreement wiffi
Neighborkood House for the conshuction of the Paul and Sheila Wellstone Center for Community building.
Recommendations: Approve (A) or Rejed (R): Personal Service Contrects Must Answer the Following Questions:
Planning Commission 1. Has this personffirm ever worked under a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this person/firtn ever been a city employee?
Yes No
�- 3. Does this person/firm possess a skill not normally possessed by any
current city employee?
Yes- No
E�cplain all yes answers on separete sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
AdvantaqeslfApproved:
DisadvantapeslfApproved:
Disadvantages If Not Approved:
Totat Amount of Cost/Revenue Budgeted:
Transaction:
Fundinp Source: Activity Number:
Financial Information:
(Explain)
CouncilFile# 0����
Green Sheet #� C � W SS
RESOLUTION
OF SAINT PAUL, MINNESOTA
Presented By
Referred To
Committee: Date
rq
2
WHEREAS, the City and Neighborhood House have entered into a cooperative
partnership to construct a new facility on Yhe site of the current El Rio Vista recreation center, to
be known as the Paul and Sheila Wellstone Center for Community Building; and
4
5 WHEREAS, Neighborhood House is responsible for overseeing the actual construction of
6 the new facility and the City Council has previously authorized the appropriate officials to enter
7 into a Development Agreement for that purpose; and
9
10
11
12
13
14
15
16
WHEREAS, the City is using Community Development Block Grants funds for a portion
of the project funding and needs to enter into a sub-grantee aareement with Neighborhood House
for the purpose of setting forth the respective responsibilities in carrying out the Grant
requirements in accordance with all Federal, State and local laws; now, therefore be it
RESOLVED, that the City Council authorizes the appropriate officiats to enter into the
Community Development Block Grant Subgrantee Agreement in substantially the form attached
hereto.
Requested by Department of:
BY�
Form Approved by City Attorne�
By /
Approved by Mayor for Submission to Council
�' � .�1
Approved by
By:
Date / 4:1 �
s
Adoption CertifiedJ2y Council Secretary
Ctt-t��4
City of Saint Paul
Subgrantee Agreement
City of Saint Paul, Minnesota
COMMUNITY DEVELOPMENT BLOCK GRANT
FY2003 SUBGRANTEE AGREEMENT
THIS AGREEMENT, entered into this day of , 19_ by
and between the CITY OF SAINT PAUL, a municipal corporation of the State of
Minnesota, hereinafter designated the "City", and NEIGHBORHOOD HOUSE , a
Minnesota nonprofit corporation, hereinafter designated as the "Subgrantee".
WITNESSETH:
WHEREAS, the City and the Subgrantee desire to enter into this Agreement with
the 8ubqrantee receiving a Community Development Block Grant in the amount of
$2,811,069.00, for the purpose of setting forth their respective responsibilities in
carrying out to a successful conclusion the City's Community Development Block Grant
Program in accordance with all Federal, State and Local laws.
NOW, THEREFORE, THE CITY AND THE SllBGRP<NTEE DO HEREBY
MUTUALLY AGREE AS FOLLOWS:
1. Term of Agreement. This Agreement and activities authorized hereunder
shall take effect and be in force from and after the _day of , 200_, and
shall be in force and in effect through the day of , 200_, and thereafter
during any period of time that the Subgrantee has control over Community
Development Block Grant ("CDBG") funds including program income and loan fund
repayments, or property purchased in whole or in part with CDBG funds, all in
accordance with section 17 and 18 hereof. This Agreement may be otherwise
extended by written agreement consented to and signed by both parties.
2. Statement of Work/Scope of Services. The Subgrantee shall perform all
activities set forth in the attached "Statement of WorWScope of Services", consisting of
a description of the work to be performed, a schedule for completing the work and a
budget, hereby made part of this Agreement as Attachment A, and shall undertake
these activities in accordance with the terms of this Agreement, and with CDBG
Program Entitlement Grant Regulations (24 CFR Part 570) as applicable. Those
activities shali be completed in accordance with the Completion Schedule contained in
Section 7 of Attachment A hereto. If the Subgrantee faiis to comply with the Progress
or Completion Schedule or other term of this Agreement, the City may enforce
remedies for noncompliance in accordance with Section 85.43 of 24 CFR Part 85.
3. Funding: (a) Budget. All funds required to carry out the activities
K:\SHARED\...\CDBGCTR.02 Page 1 December 28, 2001
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City of Saint Paul Subgrantee Agreement
identified in the project Statement of Work/Scope of Services shall be provided to the
Subgrantee as identified in the Statement of WorWScope of Service Section entitled
"Project Budget". (b) Payment. The Subgrantee shall be entitled to reimbursement of
funds on a monthly basis in accordance with City regulations and procedures. The
Subgrantee shall submit itemized statements in such detail as required by the City to
comply with all Federal, State and local requirements. All requests for funds shall
conform to the line items contained in the Project Budget. (c) Program Income.
Program income is gross income received by the subrecipient that was directly
generated from the use of funds received by the Subgrantee from the City under this
Agreement. As required in 24 CFR Sections 570.500(a) and 570.504(c), CDBG
program income shall be retained by the Subgrantee during the term of the Agreement
to be applied for activities as specified in the Statement of Work/Scope of Services.
Funds payable by the C+ty to the Subgrantee as specified in Subparagraph 3b}, shafl be
adjusted by the amounts of program income received by the Subgrantee and on hand
at the time of the reimbursement request. (d) Definition. As used in this Agreement
the term "Program Funds" shall mean all funds received from the City under this
Agreement and all program income as defined in subsection (c) above.
4. Flexibility in Budget. The Subgrantee shall make expenditures according to
the line items set forth in the Statement of Work/Scope of Service Budget. Any and all
amendments to the Scope of Service Budget must be submitted in writing to the City's
Grants Management Section for review and approval.
5. Audit. a) Scope of Audit. Subrecipients that expend $300,000 or more in
federal funds annually to carry out a program through a primary recipient or other
Subrecipients or direct recipient ofi federal awards under other agreements, agree to
have an audit made by an independent auditor in accordance with Government
Auditing Standards developed by the Comptroller General of the United States, OMB
Circular A-133 Audits of Institutions of Higher Education and other nonprofit institutions,
and OMB Circular A-122 Cost Principles for Nonprofit Organizations. b} Frequency
and Completion of Audit. An audit shall be performed annualiy and should be
completed within six months of the fisca{ year end. Three copies of the audit report
shall be submitted within 30 days after the completion of the audit to: Mr. Surjeet
Verma, Accountant, Department of Planning & Economic Development. c) Audit Cost.
Reasonable costs for audits required under Subsection a) of this paragraph will be
reimbursed by the City provided: the auditor was chosen through a competitive bid
process, and; the audit was made in accordance with the provisions of Circular A-133.
Audit costs cannot be charged to federai awards unless the audit has been performed
in compliance with OMB Circulars.
6. Independent Contractor. For the purpose of this Agreement, the Subgrantee
shall be deemed to be an independent contractor and not an employee of the City. Any
and all employees of the Subgrantee or other persons while engaged in the
performance of any work or services required by the Subgrantee under this Agreement,
shall not be considered employees of the City. Any and all ciaims by any third party as
K:\SHARED\...\CDBGCTR.02 Page 2 December 28, 2001
(�
City of Saint Paul Subgrantee Agreement
a consequence of any act or omission on the part of the Subgrantee, its employees or
other persons shall be the obligation of the Subgrantee. The Subgrantee shall be
responsible for all contractual obligations entered into pursuant to and in the
performance of this Agreement. If required by statute, the Subgrantee shall procure
and maintain in force at its expense worker's compensation insurance and shall provide
the City with proof of such coverage. Withholding and payment of federal and state
income taxes and FICA, for its empioyees shall be the responsibility of the Subgrantee.
The Subgrantee will comply with all unemployment compensation employer
contributions payments and other employer requirements of the unempioyment
compensation laws, Minnesota Statutes 1990, Chapter 268.
7. Non-Discrimination. The Subgrantee shall be deemed a contractor for the
application of all provisions, ordinances and other laws against discrimination, including:
a) Title VI of the Civil Rights Act of 1964 (Public Law 88-352);
b) Executive Order No. 11246 entitled "Equal Employment Opportunity" as
supplemented in the Department of Labor Regulations (4 CFR, Part 60);
c) Chapter 363, Minnesota Statutes; and
d) Chapter 183 of the Saint Paul Legislative Code. The provisions of
Section 183.04 of Chapter 183 are incorporated herein.
8. Reports and Records. The Subgrantee shall submit to the City a full
account of the status of the activities undertaken as part of this Agreement in six month
intervals. An Interim Report will be due within 30 days of the Agreement six month
anniversary, and Annual Report within 30 days of the Agreement one year anniversary.
In addition, specific records the Subgrantee must maintain, and submit to the City are
set forth in Attachment "B", and are hereby incorporated in this Agreement.
9. Uniform Administrative Requirements. The Subgrantee shall comply with
the policies, guidelines, and requirements and standards, as applicable, of 24 CFR,
Parts 44, 85, and 570 and, A-122 "Cost Principles for Non-Profit Organizations", and A-
133 "Audits of Institutions of Higher Education and Other Nonprofit Institutions", and the
Attachments A, "Cash Depositories"; B"Bonding and Insurance'; C"Retention and
Custodial Requirements for Records"; F"Standards for Financial Management
Systems"; H"Monitoring and Reporting Program Performance"; N"Property
Management Standards' ; and O"Procurement Standards" to OMB Circular A 110 as
limited by 24 CFR Section 570.502(b).
10. Other Requirements; Community Development. The Subgrantee, if it
receives CDBG funds, shall carry out each activity set forth in the Statement of
Work/Scope of Services in compiiance with ail Federal laws and regulations described
in 24 CFR 570, Part 570 Subpart K except that the Subgrantee does not assume the
City's responsibility for initiating the review process under 24 CFR Part 52 nor the City's
environmental responsibilities described in 24 CFR Section 570.604. Specific
requirements published in 24 CFR 570 inciude:
a) Sections 570.200 through 570.206 - Eligible Activities
K:�SHARED\...\CDBGCTR.02 Page 3 December 28, 2001
uy. �'�
City of Saint Paul
Subgrantee Agreement
b) Section 570.207 - Ineligible Activities
c) Section 570.504 - Program Income
d) Section 570.506 - Records to be maintained
e) Section 570.602 - Non-Discrimination
� Section 570.603 - Labor Standards
g) Section 570.606 - Displacement, relocation, acquisition, and replacement of
housing
h) Section 570.607 - Employment and Contracting Opportunities
i) Section 570.609 - Use of debarred, suspended contractors
j) Section 570.610 - Uniform administrative requirements and cost principles
k) Section 570.611 - Conflict of Interest
Other Federal Regulations which may appiy are identified in Section 9 hereof, and in
Attachment C, "Community Development Biock Grant Project Compliance
Requirements", which regulations are hereby incorporated in this Agreement and made
part thereof.
11. Assistance to Subgrantee. The City may assist the Subgrantee with
clarifications and interpretations of federal, state and local requirements as specified in
this Agreement. The Subgrantee shall notify the Ciry if and when such assistance is
required, and City staff shall provide to the Subgrantee whatever technical and
professional assistance the City deems appropriate to help Subgrantee comply with aIl
federal, state and local regulations. Notwithstanding anything in this Agreement or
paragraph to the contrary, the City does not warrant or guarantee the accuracy or
correctness of the technical or professional assistance given to Subgrantee and that
Subgrantee relies upon such assistance at its own peril or risk. Subgrantee
understands and agrees that the compliance with rules and regulations referenced in
this Agreement shall always remain the sole responsibility of the Subgrantee.
Nothing in this section shall be taken or regarded by the Subgrantee as placing
the City, its employees or agents as acting in the role of the Subgrantee's attorneys,
accountants or engineers. The pledge of assistance herein is limited to that of the City
serving as a facilitator and liaison with the federal, state and local governments so that
the Subgrantee can be apprized of those governmental units' business practices and
customs, as the Gity understands them to be, in the area of the Community
Development Block Grant program administration.
At all times, the Subgrantee has the sole and non-delegable responsibility to
obey all laws, rules and regulations and to conform to accepted accounting and auditing
practices and so has a duty, throughout the term of this Agreement to retain at its own
expense, such attorneys, accountants, engineers and business advisers upon whose
advice and counsel the Subgrantee may incur risk, liability and penalty.
12. Historic Preservation. Subgrantee shail comply with all requirements
imposed by Federal, State and Iocal law respecting historic preservation. Prior to
acquisition, rehabilitation or demolition of property fifty years or older, Subgrantee shall
request an opinion of eligibility for placement on the historic register from the Planning
Division of the Department of Planning and Economic Development, and Ciry staff will
K:\SHARED\...\CDBGCTR.02 Page 4 December 28, 2001
t�y-l�'�
City of Saint Paul
Subgrantee Agreement
notify the Subgrantee of any determination and additional requirements.
13. Constitutional Prohibition. In accordance with First Amendment
Church/State Principles, as a generaf ru{e, CDBG assistance may not be used for
religious activities, or provided to primarily religious entities for any activities, including
secular activities. Restrictions and limitations on the use of CDBG funds are found at
24CFR 570.200 (j)), and are hereby incorporated by reference.
14. Termination or Reduction in Payments. (a) CDBG. The Secretary of the
U.S. Department of Housing and Urban Development is empowered by Section III, Title
I, Public Law 93-383, to terminate or reduce payments to the City and the Subgrantee,
or to limit availability of payments to the City and the Subgrantee should the Secretary
find, after reasonable notice and opportunity for hearing, that the City or Subgrantee
has failed to comply substantiafly with any provision of Title I of the Act. The City
agrees, but without liability to itself or Subgrantee, not to do anything which will cause
the Secretary to take such action, and the Subgrantee will be notified in writing of any
proposed action by the Secretary. The Subgrantee shall be given the opportunity to be
represented at all such hearings. The City's obligation to provide CDBG funds to the
Subgrantee is deemed dependent upon the City's receiving such funds from the
Secretary, and all obligations of the City hereunder shall eiiher terminate or be reduced
or limited in the event the Secretary should take such actions as authorized by said
Section. In accordance with 24 CFR 85.43, the City reserves the right to suspend or
terminate this Agreement in the event the Subgrantee fails to comply with any term of
this Agreement, and the Agreement may be terminated for convenience in accordance
with 24 CFR Section 85.44. (b) Additional Subgrantee Funding. The City additionally
reserves the right to suspend, terminate, or reduce payments to the Subgrantee from
any of the funding sources identified in Attachment A- Project Budget, or take any
other such additional actions as may be necessary in the event the Subgrantee fails to
comply with any of the terms of this Agreement.
15. Indemnification. The Subgrantee shall indemnify, save harmless, protect
and defend the City, its officers, employees or agents, from all suits, actions or claims
of any character whether such suits or actions arise out of the acts or omissions of
Subgrantee, its agents or employees, or the City, or its officers, employees or agents,
on account of Subgrantee and/or the City attempting or carrying out the terms of this
Agreement.
16. Insurance: (a) Liability Insurance. The Subgrantee agrees that in order to
protect itself as well as the City, it will obtain and keep in force during the term of this
Agreement at its expense general liability insurance, and if applicabie, automobile
liability insurance, covering any injury caused by act or omission on the part of the
Subgrantee, its officers, agents and empioyees in performance of or with relation to any
of the work or services performed or furnished by the Subgrantee under the terms of
this Agreement each with minimum coverage in the following amounts: $300,000 per
person and $1,000,000 per occurrence. (b) Excess Liability Coverage. The
K:\SHARED\...\CDBGCiR.02 Page 5 December 28, 2001
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City of Saint Paul Subgrantee Agreement
Subgrantee additionally agrees to obtain and maintain during the term of this
Agreement umbrella or excess liability coverage, providing additional coverage beyond
the limits of general liability and automobile coverages set forth above, in the amount of
not less than $1,000,000.00. The general liability and automobile liability coverages
shall contain an endorsement naming the City as additionally insured as to acts
committed by the Subgrantee for which the Ciry could be held responsible. The
automobile liability policy must apply to any vehicle used in connection with the
performance of this Agreement by the Subgrantee. (c) Verifiable Insurance; Notice
of Canceilation. The Subgrantee shall furnish Certificates of Insurance evidencing
compliance with this Section which certificates shall become part of this Agreement.
Each insurance policy shall contain a provision requiring thirty (30) days notice of
cancellation of the policy. The City shall not be obligated to honor payment requests
under Paragraph 3, above, at any time when the coverages required by this Agreement
are not in force. (d) Duty to Defend and Duty to Indemnify. Each coverage afforded
to the City as an additional insured under this policy expressiy includes the duty to
defend and the duty to indemnify. As evidence of this commitment, afl Certificates of
Insurance referenced in this Agreement shall include in the section labeled
"Description/Special Items", typically in the lower left hand corner of the document, the
following language: "Each coverage afforded to the City as an additional insured under
this policy expressly includes the duty to defend and indemnify:'
(e) Defaults and Remedies. Should tfie Subgrantee fail to obtain and/or keep in force
insurance of the types and in the amounts as specified within this Agreement, or shall
fail to indemnify and hold harmless the City as set forth herein; in such event, the
Subgrantee shall be liable for all costs and fees, including reasonable attorney fees,
that may be incurred by the City in the enforcement of the Subgrantees's Agreement to
indemnify and/or to obtain and keep in force the agreed upon insurance coverage.
17. Reversion of Assets. (a) Funds. Upon termination of this Agreement, the
Subgrantee shali forthwith transfer to the Ciry all Program Funds on hand at termination
and all accounts receivables attributable to use of Program Funds. (b) Real Property.
As specified by 24 CFR Part 570.506(d), upon termination of this Agreement any real
property under the Subgrantee's control which was acquired in whole or in part with
CDBG funds, or upon a change of use of real property acquired or improved in whole
or in part with CDBG funds in excess of $25,000, the property shall, in a manner
acceptable to the City, either:
(i) be used for a period of five years from date of termination to meet one of
the national objectives identified in 24 CFR, Section 570208, or;
(ii) be disposed of in a manner that results in the Ci1y being reimbursed in the
amount of the current fair market value of the property less the portion of
the value attributable to expenditure of funds other than Program Funds.
If such is used for five years in a manner which meets a National
Objective and thereafter disposed of, no reimbursement of Program
Funds will be required under clause (i) above.
18. Loan Fund Account. If any part of the activities funded under this
K:\SHARED\...\CDBGCTR.02 Page 6 December 28, 2001
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City of Saint Paul Subgrantee Agreement
Agreement involve the making of rehabilitation loans, the Subgrantee shall maintain a
separate Loan Fund Account system into which Program Funds for loans and loan
principal and interest payments shall be deposited. Disbursements from the Loan Fund
Account shall be made only for loans:
(i) meeting eligibility criteria incorporated in the Statement of WorWScope of
Service, and;
(ii) evidenced by a promissory note secured by a mortgage creating a lien
upon the rehabilitated property in favor of the Subgrantee or the City as
assignee of the Subgrantee.
Upon termination of this Agreement, the Subgrantee shafl transfer the Loan Fund
Account balance and assign all promissory notes and mortgages to the City.
19. Attorney's Fees and Expenses. In the event the Subgrantee should
default under any of the provisions of this Agreement, including any and all attachments
hereto, and the City should employ attorneys or incur other expenses for the collection
of amounts due hereunder or the enforcement of performance of any obligation or
agreement on the part of the Subgrantee, the Subgrantee will on demand pay to the
City the reasonable fee of such attorneys and such other expenses so incurred.
20. Attachments. The foilowing identified attachments are incorporated into and
made part of this Agreement: .
Attachment A- Statement of Work/Scope of Services, including a Work Plan,
Evaluation Methodology, Community Outreach Strategy, and Direct or Indirect
Cost Budget.
Attachment B- Community Development Block Grant and General
Fund Records and Reporting Requirements
Attachment C- Community Development Block Grant , State and Local
Compliance Requirements
Attachment D- Year End Report/Project Evaluation, if applicable
Attachment E- Subgrantee Administrative Policies
Attachment F - fnsurance Certificate
21. Amendment. This Agreement may be amended by the mutual written
consent of both parties.
K:\SHARED\...\CDBGCTR.02 Page 7 December 28, 2001
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City of Saint Paul
Subgrantee Agreement
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed the day and year first above written.
This Agreement has been reviewed for appropriate language as outlined in 24 CFR
570.503 of the Federai Register, applicable to projects/programs funded with CDBG
monies. This review must be completed and signature obtained before other City
signatures are requested.
Department of Planning and
Economic Development
Grants Management Staff
CITY OF SAINT PAUL SIGNATURES
APPROVED AS TO FORM:
By
Assistant City Attorney
Its Director, Office of Financial Services
Its Mayor
Its Director, Department of Planning
and Economic Development
SUBGRANTEE SIGNATURES:
Its
By.
Its
K:\SHARED\...\CDBGCTR.02 Page 8 December 28, 2001
p�
City of Saint Paul, Minnesota
� Community Development Block Grant\General Fund
� Records and Reporting Requirements
ATTACHMENT B
The following records shall be maintained by the Subgrantee, copies of which shall be
submitted to the City in such form as prescribed:
All receipts and invoices relating to expenditures of Community Development
Block Grant (CDBG) and/or City provided funds.
2. Accounting records that are supported by source documentation. Subgrantee
will establish a separate, identifiable accounting record for the activity(ies)
contained in this Agreement. Records shall be sufficient to reflect all costs
incurred in performance of this Agreement. The books, records, documents, and
accounting procedures, relevant to the grant shall be subject to examination by
the city, appropriate federal agency(ies), and the legislative auditor at any time
during the pertormance of this Agreement, and for up to three years following the
completion of this Agreement.
3. Payroll records, including hours worked, of all employees reimbursed with funds
provided through this Agreement.
4. Mileage records, detailing the mileage reimbursement system, person(s)
participating in the program, number of miles driven, and amount reimbursed
with City provided funds.
5. Records of Liability Insurance, Automobile Insurance, including proof of
insurance in effect, and proof of payment of insurance premiums.
6. Detailed progress reports, submitted at such time and in such form as required
by the City.
7. Records of Board or Committee meetings relating to decisions governing the use
of funds provided under this Agreement.
8. Some activities may require additional CDBG eligibility determinations, including:
1) public service activities - documentation that the service provided is either a
new or extended service; 2) housing and economic development assistance -
verification that the assistance is appropriate, and the costs are reasonable; and
3) special housing, rehabilitation, or economic development activities carried out
by neighborhood non-profit development corporations.
K:\SHqRED\..,\CDBGCTR.02 Page B 1 December 28, 2001
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City of Saint Paul
Attachment B
9. if the Subgrantee is providing grants or loans, it shall keep records documenting
the use of such funds, including; records documenting recipient eligibility,
payments made, and documentation on completion of work for which the grant
or loan was initiated.
10. Records providing evidence that all expenditures authorized under this
Agreement are appropriate, and that the associated costs are reasonable. This
includes records indicating a minimum of two bids itemizing costs for comparable
labor and/or materials were received, and that the lowest responsible bid was
selected. If the lowest bid is not selected, records should indicate how it was
determined that the cost of alternate selection was reasonable.
11. When issuing statements, press releases, requests for proposals, bid
solicitations, and other documents describing projects or programs funded in
whole or in part with funds from this Agreement, the Subgrantee shall clearly
state the source or funds to be used, and the approximate percentage of the
project which will be funded by this Agreement.
12.• Records of the amount of private/other matching tunds received, as identified in
the Project Budget.
13. Record keeping requirements as detailed below:
A. For housing activities, records indicating the number of housing units
rehabilitated, the number of housing units removed, the number of
housing units created, the number of housing units lost, the number of
housing units replaced, the number of housing units relocated, and a
summary of the totaf affected units. In addition, according to 570.506(b),
records shall be kept indicating the income levels of those persons
assisted, and for rental housing, the current level of rent.
B. For economic development activities, records indicating the number of
establishments: removed, created, assisted, rehabilitated. In addition,
according to 570.506(b)(5), records indicating the number of jobs created,
new jobs created by category, delineation of full or part time, salary levels.
C. For activities determined to benefit low and moderate income persons
based on the area senred; records as defined in 570.506(b)(2): service
area boundaries and income information on persons residing in service
area.
14. Fair Housing and Equal Opportunity Records as described in 570.506(f) and
other records as listed in 570.506Q).
K:\SHARED\...\CDBGCTR.02 Page B 2 December 28 zooi
City of Saint Paul Attachment C
� City of Saint Paul, Minnesota _
Federal Requirements for the Community
Development Block Grant (CDBG) Program
ATTACHMENT C
The following list contains the public laws and executive orders which may be
applicable to activities funded in whole or in part with Community Development Block
Grant(CDBG). If you have any questions, please contact Grants Management Staff at
1400 Ciry Hall Annex, 25 West 4th Street, Saint Paul, MN 55102, Phone: 612-266-
6693.
1) DAVIS BACON ACT/CONTRACT WORK HOURS AND SAFETY STANDARDS
ACT
40 USC 276(a) - 276(a)5, USC 327 et. seq.
Provides that all laborers and mechanics employed by contractors or
subcontractors in the performance of construction work financed in whole or in
part with CDBG or UDAG funds shall be paid prevailing wages. This includes all
commercial activity and housing activity of eighi or more units.
2) COPELAND ANTI-KICKBACK ACT
18 USC 874
Prohibits kickbacks to public employees, and any person involved in the
administration of federal funds.
3) EXECUTIVE ORDER 11246, AS AMENDED BY EXECUTIVE ORDERS 11375
& 12086
24 CFR 130.1
Relates to equal employment opportunities under HUD contracts and HUD
assisted construction contracts.
4) 24 CFR Part 85
24 CFR 570.502
Uniform administrative requirements for all Grant-in-Aid Programs. These
regulations apply to state and local governments. 24 CFR 570.609 regulates
the use of debarred, suspended contractors on federally funded projects.
5) OMB CIRCULAR A- 87
Relates to cost and expenditure principles for federally funded grants and
contracts. These are rules apply to state and local governments and in part, to
subgrantees.
6) OMB CIRCULAR A- 110
Contains uniform administrative requirements applicable to federafly funded
grants and contracts with non-profit organizations. Includes requirement for
K:\SHARED\...�CDBGCTR.02 Page C 1 December 28, 2001
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City of Saint Paul
Attachment C
the City and/or HUD to monitodreview/report on subgrantee activities.
Note: All sections of A-110 apply except the audit provisions, which are replaced
by OMB Circular A-133.
7) OMB CIRCULAR A -133
Contains audit requirements for non-profit organizations. This Circular
replaces the audit provisions of OMB Circular A- 110.
8) OMB CIRCULAR A -122
Uniform cost principles for non-profit organizations receiving federal funds.
9) LEAD BASED PAINT POISONING PREVENTION ACT
42 USC 4831, 24 CFR 570.608 & 24 CFR 35, Subpart B
Prohibits the use of lead based paint in any federally funded project. Also
requires notification for removal of lead based paint in rehabilitation projects.
10) CLEAN AIR ACT, WATER POLLUTION CONTROL ACT
42 USC 1857 33 USC 1251 24 CFR 1.3 et. seq.
Clean air and water acts that pertain to all projects and programs.
11) TITLE VI, CIVIL RIGhITS ACT OF 1964
42 USC 2000(d) Public Law 88.352 24 CFR 570.601
Act states that no person shall be denied participation in, or benefits from federal
assistance on the basis of race, color or national origin.
12) TITLE VIII OF THE CIVIL RIGHTS ACT OF 1968, FAIR
42 USC 3601 Public Law 90.284
No person shall be denied housing opportunities on the
religion or national origin.
HOUSING ACT
24 CFR 570.601
basis of race, color,
13) EXECUTIVE ORDER 11063, & AMENDED BY E.0.12259
24 CFR 570 Part 107
Prohibits discrimination in housing and related facilities owned or operated by the
Federal Government, and in lending practices.
14) EXECUTIVE ORDER 11625
Relates to the national program for Minority Business Enterprise.
15) SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968
12 USC 1701(u) "SET - ASIDE" 24 CFR 135.20(b)
Provides that to the greatest extent feasible, training and employment
opportunities shall be made available to lower income residents of project areas
and that contracts shall be awarded to small businesses located within the
project area or owned in substantial part by project area residents.
K:\SHARED\...\CDBGCTR.02 Page C 2 oecember zs, zooi
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City of Saint Paul Attachment C
16) SECTION 109 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT
OF 1974
42 USC 5309 24 CFR 570.602
Prohibits discrimination on the basis of race, color, religion or national origin in
any activity or program funded in whole or in part with CDBG or UDAG funds.
17) AGE DISGRIMINATION ACT OF 1975
42 USC 6101 Public Law 94.135
No persons shall, on the basis of age, be excluded from participation or be
denied benefits, or be subject to any discrimination from any program receiving
federal assistance.
18) SECTION 504 OF THE REHABILITATION ACT OF 1973
29 USC 1794 24 CFR Part 8
Provides that physically impaired persons may not be excluded from participation
or be denied benefits from any program receiving federal assistance.
19) ARCHITECTURAL BARRIERS ACT OF 1968
42 USC 4151
Provides that government agencies shall prescribe standards for the design,
construction and alteration of buildings to insure that whenever possible
physically impaired persons wili have ready access to, and use of such buildings.
This rule in and of itself does not apply to the CDBG program, except as it
impacts on Section 504.
20) UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY
ACQUISITION POLICIES ACT OF 1970
42 USC 4601 24 CFR Part 42 24 CFR 570.606
Provides relocation benefits and land acquisition procedures when property is
acquired by federal or state agencies. For the purpose of this act, the City is an
agency of the State.
21) NATIONAL ENVIRONMENTAL POLICY ACT OF 1969
42 USC 432i 24 CFR Part 58
The recipient of federal funds assumes the responsibility for ensuring that
environmental reviews are completed prior to the start of any activity funded in
whole or in part with federal funds.
22) NATIONAL HISTORIC PRESERVATION ACT
16 USC 470 Public Law 89-665
Relates to the process for designating structures on the National Historic
Preservation List, and the kinds of activities which may be done as a result of
this designation.
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City of Saint Paul Attachment C
23) ARCHAEOLOGICAL AND HISTORIC PRESERVATION ACT OF 1974
P. L.93-291
This is an update of the act listed above.
24) EXECUTIVE ORDER 1593
Provides for the protection and enhancement of the cultural environment.
25) FLOOD DISASTER PROTECTION ACT OF 1973
42 USC 4001 E.O. 11988 E.O. 11288 Public Law 93-234
No activity funded in whole or in part with federal assistance may be undertaken
in a designated flood plain without National Flood Insurance. 11988 relates to
evaluation of flood hazards. 11288 relates to the prevention, control and
abatement of water pollution.
26) HATCH ACT
5 USC 1501
Prohibits the financing of any type of political activities with federal funds.
27) CODE OF CONDUCT AND CONFLICT OF INTEREST
24 CFR Part 85.36 E� 570.611
States that no person(s) administering federally funded programs m�y, as a
resuit of their position, receive personal gain.
28) INTERGOVERNMENTAL REVIEW OF WATER & SEWER PROJECTS
Executive Order 12372
Allows for the State and Metro Council to review and comment when the
grantee/subgrantee proposes to finance the planning or construction of water or
sewer facilities.
29) REQUIREMENTS GOVERNING LOBBYING OF HUD PERSONNEL;
PROPOSED RULE
24 CFR Part 86
Reporting requirements and fee limits for the hiring of persons to influence a
HUD officer or employee.
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A7TACHMENT C
Project activities shall be carried out in compliance with all State and local applicable
laws, orders, and regulations, including:
1) The Minnesota State Act Against Discrimination (Minnesota Statutes
Chapter 363) and implementing regulations issued at 64 MCR Section
et. seq.:
City of Saint Paul, Minnesota
STATE AND LOCAL Government
Project Requirements
2) The Human Rights Ordinance (Saint Paul Legislative Code Chapter 183)
and Rules Governing Affirmative Action Requirements in Employment
issued by the Saint Paul Human Rights Commission October 4, 1977, as
amended;
3) The Purchasing From the Targeted Vendor Development Program (Saint
Paul Administrative Code Chapter 81), and implementing regulations
when issued, for effect;
4) The Minimum Wages on Public Contracts Ordinance (Saint Paul
Administrative Code Section 82.07) and rules issued at Chapter A-9 City
Contracts-Wage Rates, Appendix to the Saint Paul Administrative Code.
5) The Minnesota residential Mortgage Originator and Servicing Licensing
Act (Chapter 343, Minnesota Statutes).
Prior to undertaking the performance of any activity authorized under this Agreement,
the Subgrantee agrees to participate in a City Contract Compliance informational
meeting. If deemed necessary by the City, specific contract compliance requirements
will be incorporated into a written document, to be submitted and followed during the
completion of the activities authorized as part of this Agreement.
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December 28, 2001
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City of Saint Paul, Minnesota
CITY\SUBGRANTEE AGREEMENT
Administrative Policies
ATTACHMENT E
Eligibie funding activities and procedures:
The City will provide funds to Subgrantees on a reimbursement basis, and in
accosdance with the budgets contained the City/Subgrantee Agreements.
2. Any changes or modifications to the budgets must be transmitted in writing to the
City's Grants Management Staff for review and approval.
3. Subgrantee budgets must be structured to provide a separate and identifiable
audiVbudget trail which details all expenditures related to the City/Subgrantee
Agreement.
4. Each Subgrantee is solely responsible for budgeting adequate funds to cover its
employment agreement obligations. This may include: FICA, workmen's
compensation, unemployment taxes, travel allowance, parking fe�s, health
insurance, etc.
5. Subgrantee employees are not employees of the City of Saint Paul, and do not
qualify for benefits granted to City Civil Service employees. Subgrantees
determine any and afl benefits they wish io grant their employees, and these
benefits may be included in the Subgrantee budgets.
6. Subgrantees may appropriate funds for short-term consultant activities upon
written approval from the City's Grants Management Staff.
7. Subgrantees may allocate money for legai consultation, providing: the amount of
money does not exceed the approved budget total; funding is approved by the
Subgrantees' Executive Board andlor Board of Directors; is clearly identified in
the Subgrantee budget; and has prior written approval of the City's Grants
Management Staff. Such funding will be determined on a case-by-case basis.
Subgrantees are not clients of the Office of the Ciry Attorney.
8. Subgrantees are required to institute generally accepted accounting principles
which inciude procedures which preclude overdrafts. Subgrantees are expected
to pay employees and other debts in a timely manner. Payment of penalties or
interest charges are not aliowed with City funds.
K:\SHARED\...\CDBGCTR.02 Page E 1
December 28, 2001
(��( �(ollD
City of Saint Paul Attachment E
9. Subgrantees' budgets are funded on a contract-by-contract basis. Unused funds
remain with the City.
10. Subgrantees are required to keep an inventory of all furnishings and properry,
and should update it on a yeariy basis. All furniture and equipment either
purchased with City funds, or borrowed from City agencies, remains the property
of the City. tn the event of termination ofi this Agreement, or if the Subgrantee
chooses to go out of business, all of the above mentioned property shall be
returned to the city in a timely manner.
11. In the event of termination of this Agreement, or if the Subgrantee chooses to go
out of business, the contents of the Subgrantees records and business files
relating to this Agreement shall be either turned over to the City of Saini Paul, or
remain accessible to the City of Saint Paul for a period of three years following
the termination of this Agreement.
Ineligible funding items:
1. Undefined line items such as "miscellaneous" and "special projects" are not
eligibfe for funding without written approval from the Grants Management staff.
2. Subgrantee funds provided through this Agreement may not be used to
purchase food and/or beverages. Exception to this policy may be requested if
the food andfor beverages are included in an individuai's registration fee for an
educational meeting relating to activities included in Attachment A, Work
Plan/Scope of Service.
3. Costs of legal action against the Ciry, including fees to appeal.
4. Penalties and interest charges.
K:\SHARED\...\CDBGCTR.02 Page E 2
December 28, 2001
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CITY OF SAINT PAUL, MN
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
ATTACHMENT A
SUBGRANTEE STATEMENT OF WORK/SCOPE OF SERVICES
1. Project Title: Paui and Sheila Wellstone Center For Community Development
2. Entity Responsible for Carrying Out This Project
Organization Name: Neighborhood House
Address: 179 Robie Street, Saint Paul, Minnesota 55107
Contract Manager: Kari Niedfeldt-Thomas Phone #: 651-789-2542
3. Project Description:
Construction of a new 93,600 s.f. community center building for the City of Saint Paul,
Division of Parks and Recreation and Neighborhood House. The new center will
include: 2 full size gymnasiums, 260 seat performance auditorium, food shelf, kitchen
and congregate dining, teaching kitchen, dance/exercise room, weight room, adult and
youth computer labs, arts and crafts room, youth center, classrooms, meeting rooms
and offices.
4. Statement of Need: (Reasons for undertaking this project)
The existing facility is insufficient in size to maintain existing programming or to provide
new programming opportunities. The age and configuration of the existing facility does
not allow for efficient operation and maintenance.
5. Project Goals and Objectives: (What will be achieved as a result of this project)
To construct a new state-of-the-art faciltiy which will provide integrated programming by
the Division of Parks and Recreation and Neighborhood F{ouse meeting the needs of
the community.
Page A - 1
�'��
6. Service Area/Target Poputation: (Attach a map of the service area, or describe the
population to be served.)
The Ciry offers recreational programming serving all residents Saint Paul's West Side.
Neighborhood House serves this same population with many civic and social program
opportunities, as well as being a regionai destination to those in need of these services.
7. Activities to be UndertakeNProgress Schedule - Anticipated Timeline:
TIME PERIOD PERSON
ACTIVITY RESPONSIBLE
(6 month intervals)
From: May 2001
To: July 2004
From: July 2004
To:
From:
To:
From:
To:
Design/Engineering/Bidding
Construction
Ken Wehrle
Saint Paul
Division of
Parks and Rec
Kari fViedfeldt-Thomas
Neighbohood House
December 2004
January 2005
Construction
Kari Niedfeldt-Thomas
Neighbohood House
June 2005
July 2005
December 2005
Construction
ConstructionlFu rnishing
Kari-Niedfeldt-Thomas
Neighborhood House
Page A - 2
t�t •��
8. BUDGET: Fiil in line items as appropriate.
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
BUDGET FORM
Federal EDI and Neighborhood Initiative Grants -$9,438,550
State Bond Grant - $5,000,000
Private Funds - $5,000,000
Page A - 3
� Other tunds - identify sources
�-�1�I
9. a. Eligibility for use of CDBG funds for this project is based on the foliowing:
Eligible Activities: (Please check all activities being carried out)
_Acquisition X Demoiition
Economic Devel. Housing Const.
X Public Facilities Rehabilitation
_Relocation
b. Subgrantee will document compliance with eligibility requirements of 24
CFR Part 570 in the following manner:
Maintaining records which provide a full description of each activity assisted with
CDBG funds, including the activity location, and the amount of CDBG funds
budgeted, obligated and expended for each activity. Documenting that the funds
were expended on an activity that is CDBG eligible.
Maintaining salary records, receipts and appropriate financial records including
an indirect cost plan, if applicable.
10. This project will meet the CDBG low and modera�e income national objective
in the following manner: (Please check one activity)
X Area Benefit Activities
The project will provide benefits which are available to all residents in a particular
area, where at least 51% of the residents are fow and moderate income persons.
The subgrantee will document meeting the area benefit objective by completing
a service area map, and submitting it to PED Grants Management staff, who will
determine the percentage of low and moderate income persons in the service
area.
._ Housing Activities
The project will provide or improve permanent residential structures which, upon
completion, will be occupied by low and moderate income households. The
subgrantee will document meeting the housing objective by collecting information
on household size and income so that it is evident that the household income
does not exceed the low and moderate income limit.
Job Creation Activities
The project will create permanent jobs where at least 51 % of the jobs, computed
on a full time equivalent basis, involve the employment of low and moderate
Page A - 4
p�{_�`�e
income persons. The subgrantee will document meeting the job creation
objective by collecting information on the family size and income of job
applicants so that it is evident that at least 51 °!o of the jobs are filied by persons
whose family income does not exceed the low and moderate income limit.
11. Program Income Requirements:
CDBG program income received by the subgranfee may only be expended on
CDBG eligible activities which meet the CDBG low and moderate income
national objective. The program income must be expended before other CDBG
funds are requested, and the subgrantee must maintain records and report on
the use of program income.
12. Subgrantee acknowiedges that it is familiar with the eligibility, national
objective and program income requirements in Paragraphs 9, 10 and 11
above, and that a material failure to comply with these and other applicable
Federal Regulations will entitle the City to enforce remedies for
noncompliance.
13. Disbursement of Funds:
Requests for payment, with required documentation attached, shou(d be sent to
your project manager for review and approval. Reimbursement requests may be
submitted as needed, but not more often than once a month.
PageA-5
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green S eet ��
DepartmenHoffice/council: Date Initiated:
co �� �-.���-� Green Sheet NO: 3019655
CoMact Person 8 Phone• Deoartrnent Se� To Person Initial/Date
Virginia Palmer � 0
266-8770 pssign 1 ouncil
Must Be on Council Agenda by (Date): Number 2 - C1erk
07JUL-04 For
Routing 3 �
Order 4
5
Tofal # of Signature Pages _(Clip AII Locations for Signature)
Action Requested:
Authorizing the appropriate officials to enter into the CommuniTy Development Block Grant Subgantee Agreement wiffi
Neighborkood House for the conshuction of the Paul and Sheila Wellstone Center for Community building.
Recommendations: Approve (A) or Rejed (R): Personal Service Contrects Must Answer the Following Questions:
Planning Commission 1. Has this personffirm ever worked under a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this person/firtn ever been a city employee?
Yes No
�- 3. Does this person/firm possess a skill not normally possessed by any
current city employee?
Yes- No
E�cplain all yes answers on separete sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
AdvantaqeslfApproved:
DisadvantapeslfApproved:
Disadvantages If Not Approved:
Totat Amount of Cost/Revenue Budgeted:
Transaction:
Fundinp Source: Activity Number:
Financial Information:
(Explain)