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HomeMy WebLinkAboutResolution - 4105 - Contract - TDOHCA - LIHEAP Block Grant Pilot Project - 03_11_1993Resolution No. 4105 March 11, 1993 Item #37 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Contract and all related documents during the effective dates of the Contract, by and between the City of Lubbock and the Texas Department of Housing and Community Affairs for the Low Income Home Energy Assistance Program Block Grant Pilot Project, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 1993. ATTEST: etty Jo nson, ity Secretary APPROVED AS TO CONTENT: 0 AJ David Ellison, Assistant City Manager APPROVED AS TO FORM: Do d G. Vandiver, First Assistant City Attorney Resolution No. 4105 March 11, 1993 Item #37 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CONTRACT NO. 823048 FY 1993 LOW INCOME HOME ENERGY ASSISTANCE PROGRAM PILOT PROJECT SECTION 1. PARTIES TO THE CONTRACT This contract is made by and between the Texas Department of Housing and Community Affairs, an agency of the State of Texas (the "Department") and City of Lubbock Community Services Department (the "Contractor"). SECTION 2. CONTRACT PERIOD This contract shall commence on February 1, 1993, and unless earlier terminated, shall end on September 30, 1993 (the "Contract Period"). SECTION 3. CONTRACTOR PERFORMANCE Pursuant to the Low -Income Home Energy Assistance Act of 1981, as amended, 42 U.S.C, sec. 8621, et seq. (the "LII-IFAP Act"), Contractor shall operate, on an equitable basis throughout Contractor's service area, a LIIIEAP Pilot Project (the "LIPP") in accordance with the terms of this contract including the Budget (Exhibit "A"), and all applicable state and federal regulations. Contractor's service area shall consist of the following counties: Lubbock. Contractor will assist at least 204 eligible households through a system of monthly co -payments to energy suppliers and will provide energy counseling to those households designed to reduce dependence upon governmental energy subsidies. SECTION 4. DEPARTMENT OBLIGATIONS A. In consideration of Contractor's satisfactory performance of this contract, Department shall compensate Contractor for the actual allowable costs incurred not to exceed the amount of: FY '93 Available LIPP Funds: Two Hundred Twenty -Nine Thousand Six Hundred Twenty -Six and no/100 Dollars ($229,626.00). PAGE 1 OF 10 B. By written notice to Contractor, Department may obligate additional funds under Section 4(A). . For planning purposes only, Contractor may assume that the total award to Contractor during the Contract Period will be: FY '93 Anticipated LIPP Funds: Two Hundred Twenty -Nine Thougand Six Hundred Twenty -Six and no/100 Dollars ($229,626.00). C. Any decision to obligate additional funds shall be made by Department based upon factors, including but not limited to, the status of funding under grants to Department, the rate of Contractor's utilization of funds under this or previous LIPP contracts, the existence of questioned or disallowed costs under this or other contracts between the parties, and Contractor's overall compliance with the terms of this contract. D. Department's obligations under this Section are contingent upon the actual receipt by Department of funds from the U.S. Department of Health and Human Services. Department acknowledges that it has received obligations from the U.S. Department of Health and Human Services, which if paid, will be sufficient to pay the allowable costs incurred by Contractor under this contract. E. Department is not liable for any cost incurred by Contractor which: (1) is subject to reimbursement by a source other than Department; (2) is for performance of services or activities not authorized by the LIHEAP Act, or which is not in accordance with the terms of this contract; (3) is not reported to Department on an LIPP Monthly Funding/Financial/Progress Report within sixty (60) days following the termination of this contract; or, (4) is not incurred during the Contract Period. SECTION 5. METHOD OF PAYMENT/CASH BALANCES A. For each month of the contract period, Contractor may request an advance payment by submitting to Department at its offices in Austin, Travis County, Texas, no later than the tenth (10th) day of the month prior to the month for which advance payment is sought, a properly completed LIPP Monthly Funding/Financial/Progress Report and a State of Texas Purchase Voucher for an amount not to exceed Contractor's actual cash needs for the month for which such advance is sought. PAGE 2 OF 10 B. Contractor's requests for advances shall be limited to the minimum amount needed for the effective performance of this contract and shall be timed as closely as possible to coincide with Contractor's actual immediate cash requirements. Contractor shall establish procedures to minimize the time elapsing between the transfer of funds from Department and the disbursal of such funds by Contractor. C. Department reserves the right to utilize a cost reimbursement method of payment if: (1) Contractor maintains excessive cash balances, ie. balances in excess of thirty (30) days' need; (2) Department identifies any deficiency in the internal controls or financial management system used by Contractor; (3) Contractor violates any of the terms of this contract; or (4) Department's funding source requires the use of a cost reimbursement method of payment. D. Contractor shall refund, within fifteen (15) days of Department's request, any sum of money paid to Contractor by Department which Department determines (1) has resulted in an overpayment to Contractor or (2) has not been spent strictly in accordance with terms of this contract. Department may offset or withhold any amounts otherwise owed to Contractor under this contract against any amount owed by Contractor to Department arising under this contract. E. All funds paid to Contractor under this contract are paid in trust for the exclusive benefit of the eligible recipients of the LIHEAP Pilot Project and for allowable administrative and outreach expenditures. SECTION 6. COST PRINCIPLES AND ADMINISTRATIVE REQUIREMENTS Except as specifically modified by law or the terms of this contract, Contractor shall comply with the cost principles and uniform administrative requirements set forth in the Uniform Grant and Contract Management Standards for State Agencies, 1 T.A.C. §§ 5.141 et sec.. (the "Uniform Grant Management Standards") provided that all references therein to "local government" shall be construed to mean Contractor. SECTION 7. ALLOWABLE ADMINISTRATIVE/OUTREACH EXPENDITURES A. Administrative costs incurred by Contractor in carrying out this contract shall be allowable up to a maximum of 5.26315% of the total allowable contract expenditures within the contract period. Contractor shall pay from non-federal sources the remaining costs of planning and administering the program assisted under this contract. B. Outreach costs incurred by Contractor in carrying out this contract shall be allowable up to a maximum of 5% of the total allowable direct services expenditures within the contract period. PAGE 3 OF 10 SECTION 8. TERMINATION AND SUSPENSION A. Department may terminate this contract, in whole or in part, at any time Department determines that there is cause for termination. Cause for termination includes but is not limited to Contractor's failure to comply with any term of this contract; Department shall notify Contractor in writing at least thirty (30) days before the date of termination. B. Nothing in this Section shall be construed to limit Department's authority to withhold payment and immediately suspend Contractor's performance of this contract if Department identifies possible instances of fraud, abuse, waste, fiscal mismanagement, or other deficiencies in Contractor's performance. Suspension shall be a temporary measure pending either corrective action by Contractor or a decision by Department to terminate this contract. C. Notwithstanding any exercise by Department of its right of termination or suspension, Contractor shall not be relieved of any liability to Department for damages due to Department by virtue of any breach of this contract by Contractor. Department may withhold any payment due to Contractor until such time as the exact amount of damages due to Department from Contractor is agreed upon or is otherwise determined. D. Department shall not be liable for any costs incurred by Contractor after termination or during suspension of this contract. SECTION 9. CHANGES AND AMENDMENTS Any change in the terms of this contract required by a change in federal or state law or regulation is automatically incorporated herein effective on the date designated by such law or regulation. Except as otherwise specifically provided herein any other change in the terms of this contract shall be by amendment in writing and signed by both parties. SECTION 10. RETENTION AND ACCESSIBILITY OF RECORDS A. Contractor shall maintain fiscal records and supporting documentation for all expenditures made under this contract in accordance with the retention and custodial requirements for records set forth in the Uniform Grant Management Standards, Common Rule §_.42. B. Contractor shall maintain a client file system to document direct services rendered. Each Pilot Project client file shall contain the following: 1. Contractor's Client Application; 2. DocumentationNerification of Client Income PAGE 4 OF 10 3. Declaration of Income Eligibility (when required); 4. Copy of client's utility bill/copy of average yearly bill or other methods of determination of payments made on behalf of clients; S. Acceptance/Denial Form; and 6. Documentation of co -payment plan. C. Contractor shall maintain all statistical data on Pilot Project including the following: 1. Number of households and number of persons served; 2. Number of households who maintain their co -payment throughout the plan and move on to self sufficiency; 3. Number of households who default on their co -payment and need assistance to return to Pilot Program; 4. Number of households who default on co -payment and would benefit from an arrears forgiveness program in order to return to Pilot Project Program; 5. Number of households who default on co -payment and are ineligible to return to the Pilot Project program; 6. Number of households actively participating in the co -payment plan at the end of the Pilot Project program contract period; 7. Documentation of outreach and client education activities coordinated with local utility companies and other entities; 8. Number of budget counseling classes held and those who participated; 9. Number of energy conservation classes held and those who participated; and 10. Number of referrals made to other energy assistance programs. D. Contractor shall give the U.S. Department of Health and Human Services, the U.S. General Accounting Office, the Department, or any of their duly authorized representatives, access to and the right to examine and copy, on or off the premises of Contractor, all records pertaining to this contract. Such right of access shall continue as long as the records are retained by Contractor. Contractor agrees to maintain such records in an accessible location and to cooperate with any examination conducted pursuant to this Subsection. Contractor shall include the substance of this Subsection in all subcontracts. SECTION 11. REPORTING REQUIREMENTS A. Contractor shall submit, for receipt by Department no later than ten (10) days after the end of each month of the contract period, a LIPP Monthly Funding/Financial/Progress Report of all expenditure of funds under this contract during the previous month. PAGE 5 OF 10 B. Contractor shall submit to Department no later than sixty (60) days after the end of the contract period an inventory of all equipment acquired in whole or in part with funds received under this contract. Upon the termination of this contract, Department may transfer title to any nonexpendable personal property so acquired to itself or to any other entity receiving funds under the LII-1EAP Act. C. Contractor shall submit to Department no later than sixty (60) days after the termination of this contract a final LIPP Monthly Funding/Financial/Progress Report of all expenditures of funds under this contract. The failure of Contractor to provide a full accounting of funds expended under this contract may result in the termination of this contract and holding contractor ineligible to receive additional LIPP funds. D. Contractor shall submit to Department no later than thirty (30) days after the termination of this contract a final narrative summary of the Pilot Project which should include Contractor's own evaluation and recommendation to the Department. E. If Contractor fails to submit in a timely and satisfactory manner any report or response required by this contract, Department may withhold any or all payments otherwise due or requested by Contractor hereunder. Payments may be withheld until such time as the delinquent report or response is received by Department. If the delinquent report or response is not received within forty-five (45) days of its due date, Department may suspend or terminate this contract. SECTION 12. INDEPENDENT CONTRACTOR It is agreed that Department is contracting with Contractor as an independent contractor. Contractor agrees to indemnify Department against all disallowed costs or other claims which may be asserted by any third party in connection with Contractor's performance of this contract. SECTION 13. SUBCONTRACTS/VENDOR AGREEMENTS A. Contractor may not subcontract the performance of this contract unless it receives Department's prior written approval. Contractor shall submit to Department a signed copy of each such subcontract. Department is in no way liable to Contractor's subcontractor(s). B. Subcontractors shall comply with the terms of this contract to the same extent as if the performance rendered by the subcontractor were being rendered by Contractor. Subcontractors will be subject to monitoring and inspection by Department. , C. Contractor shall enter into written agreement with area energy vendors or suppliers to ensure that such suppliers will perform according to the LIHEAP assurances. Each agreement shall reference a performance period, both parties, and shall be maintained on file for inspection. PAGE 6 OF 10 SECTION 14. CONFLICT OF INTEREST/NEPOTISM A. Contractor covenants that neither it nor any member of its governing body presently has or shall acquire any interest, direct or indirect, which would conflict in any manner with the performance of this contract. No person having such interest shall be employed by Contractor or appointed as a member of Contractor's governing body. B. Contractor agrees that it will comply with TEX. CIV. STAT. ANN. ART. 5996 by ensuring that no officer, employee, or member of the governing body of Contractor shall vote or confirm the employment of any person related within the second degree by affinity or third degree by consanguinity to any member of the government body or to any other officer or employee authorized to employ or supervise such person. C. Contractor shall ensure that no employee, officer, or agent of Contractor shall participate in the selection, or in the award or administration of a subcontract supported by funds provided hereunder if a conflict of interest, real or apparent, would be involved. Such a conflict of interest would arise when: 1) the employee, officer, or agent; 2) any member of his or her immediate family; 3) his or her partner or; 4) any organization which employs or is about to employ, any of the above, has a financial or other interest in the firm or person selected to perform the subcontract. D. Contractor's employees, officers, and/or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from subcontractors, or potential subcontractors. SECTION 15. NON-DISCRIMINATION AND EQUAL OPPORTUNITY No person shall on the grounds of race, color, religion, sex, national origin, age, handicap, political affiliation or belief be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in the administration of or in connection with any program or activity funded in whole or in part with funds made available under this contract. SECTION 16. LEGAL AUTHORITY A. Contractor represents that it possesses the legal authority to enter into this contract and to perform the services Contractor has obligated itself to perform hereunder. B. The person signing this contract on behalf of Contractor hereby warrants that he/she has been duly authorized by Contractor to execute this contract on behalf of Contractor and to bind Contractor to the terms herein set forth. PAGE 7 OF 10 C. Department shall have the right to suspend or terminate this contract if there is a dispute as to the legal authority of either Contractor or the person signing this contract to enter into this contract or to render performances hereunder. Contractor is liable to Department for any money it has received from Department for performance of the provisions of this contract if Department has suspended or terminated this contract for reasons enumerated in this Section 16. SECTION 17. AUDIT A. Contractor shall arrange for the annual performance of a financial and compliance audit of the funds received under this contract. The audit shall be made in accordance with the Single Audit Act of 1984, 31 U.S.C. Sec. 7501 et M. (the "Audit Act"), and OMB Circular No. A-128, "Audits of State and Local Governments", 45 CFR Part 74, Appendix J or OMB Circular No. A-133, "Audits of Instructions of Higher Education and other Nonprofit Institutions", 45 CFR Part 74, Appendix 1. Where a contract is awarded for audit services, the contract shall include a reference to the Audit Act and OMB Circular A-128 or A-133. Contractor shall take such action to facilitate the performance of the audit(s) conducted pursuant to this Section as Department may require. Audits are to be conducted in accordance with GAGAS (generally accepted government auditing standards). B. Contractor shall submit three (3) copies of the report of such audit to Department no later than one hundred twenty (120) days after the end of the audit periods. Audits performed under this Section are subject to review and resolution by Department or its authorized representative after the end of the audit period. C. Contractor shall take immediate appropriate corrective action after issuance of the audit report in instances of material noncompliance with laws, regulations or this contract. Contractor shall be liable to Department for any costs disallowed pursuant to financial and compliance audit(s) of funds received under this contract. Reimbursement to Department of disallowed costs shall be paid by Contractor from funds which were not made available to Contractor under any contract with Department. SECTION 18. POLITICAL AND SECTARIAN ACTIVITY PROHIBITED A. No funds received by Contractor hereunder may be used for any political activity including, but not limited to, any attempt to influence the outcome of any election or the passage or defeat of any legislation or appropriation. B. No funds received by Contractor under this contract may be used, either directly or indirectly, to support any religious or anti -religious activity. PAGE 8 OF 10 C. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, Contractor shall complete and submit a Certification Regarding Lobbying form in accordance with its instructions and 45 CFR Part 93. SECTION 19. PREVENTION OF WASTE, FRAUD, AND ABUSE A. Contractor shall establish, maintain, and utilize systems and procedures to prevent, detect and correct waste, fraud and abuse in activities funded under this contract. The system and procedures are to address possible waste, fraud and abuse by Contractor, its employees, recipients, vendors and administering agencies. Contractor's internal control systems and all transactions and other significant events are to be clearly documented, and the documentation is to be readily available for monitoring by Department. B. Contractor shall give Department complete access to all of its records, employees, and agents for the purposes of any investigation of the LIPP Contractor shall immediately notify Department of any discovery of waste, fraud or abuse. Contractor shall fully cooperate with Department's efforts to detect, investigate, and prevent waste, fraud and abuse in the LIPP. C. Contractor may not discriminate against any employee or other person who reports a violation of the terms of this contract or of any law or regulation to Department or to any appropriate law enforcement authority, if the report is made in good faith. SECTION 20. MAINTENANCE OF EFFORT Funds provided to Contractor under this contract may not be substituted for funds or resources from any other source nor in any way serve to reduce the funds or resources which would have been available to or provided through Contractor had this contract never been executed. SECTION 21. NO WAIVER Any right or remedy given to Department by this contract shall not preclude the existence of any other right or remedy, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other right or remedy. The failure of Department to exercise any right or remedy on any occasion shall not constitute a waiver of Department's right to exercise that or any other right or remedy at a later time. PAGE 9 OF 10 SECTION 22. SEVERABILITY If any portion of this contract is held to be invalid by a court or administrative tribunal of competent jurisdiction, the remainder shall remain valid and binding. SECTION 23. ORAL AND WRITTEN AGREEMENTS All oral and written agreements between the parties relating to the subject matter of this contract have been reduced to writing and are contained in this document and the exhibits attached hereto. SECTION 24. DEBARRED AND SUSPENDED PARTIES Contractor must not make any award (subgrant or contract) to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, 45 CFF., Part 76, "Debarment and Suspension." SECTION 25. EXHIBITS The exhibits identified below are hereby made a part of this contract: Exhibit A, Budget Executed this 11th day of March , 1993 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS BY: Henry Flores, Executive Director CITY O LUBB MUNITY SERVICES DEPAR ENT i� !� Ltl 1. vid Langston, This contract is not effective until signed by the Executive Director of Department or designee. PAGE 10 OF 10 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS EXHIBIT A BUDGET LOW INCOME HOME ENERGY ASSISTANCE PROGRAM PILOT PROJECT CONTRACT NO. 823048 WITH CITY OF LUBBOCK COMMUNITY SERVICES DEPARTMENT BUDGET CATEGORY LIHEAP Administration 5.26315% $12,086.00 Outreach Activities 5% $10,877.00 Direct Services $206,663.00 Total at 100% $229,626.00 Notes: Administrative costs: Salaries, fringe benefits, travel, equipment, supplies, audit and office space, are limited to 5.26315% of the allowable contract expenditures. No administrative expenses of an organization shall be charged to Direct Services. Outreach Activities: Additional outreach activities outlined in Exhibit B, Contractor Assurance Compliance, are limited to 5% of the total allowable direct services expenditures within the contract period. Department's prior written approval for purchase or lease of equipment with acquisition cost of $5,000 and over is required. Approval of this budget does not constitute prior approval. Availability of budget funds is controlled by SECTION 4.(A), DEPARTMENT. OBLIGATIONS, of this contract. PAGE 1 OF 1 i TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS - Ann W. Richards GOVERNOR Henry Flores EXECUTIVE DIRECTOR MEMORANDUM TO: Ms. Sylvia A. Martinez -Flores, Community Services Supervisor CITY OF LUBBOCK, COMMUNITY SERVICES DEPARTMENT FROM: J. Al Almaguer, Director Energy Assistance if( DATE: March 29, 1993 RE: Utility Assistance Program - Pilot Project Contract No. 823048 It ( A� Enclosed is your executed copy of the above referenced document. If you have any questions, please contact your program officer. JAA: smg Enclosure TRANS BOARD MEMBERS Paul R. Rodriguez Chairman Harvey Clemons Jr. Elizabeth Flores Richard C. Hile Joseph Kemp Walter Martinez Judith McDonald Mary Sanger Susan Sharlot 811 BARTON SPRINGS ROAD - SUITE 100 • P. O. BOX 13941 • AUSTIN, TEXAS 78711-3941 • (512) 475-3800 Resolution No. 4105 March 11, 1993 Item #37 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Contract and all related documents during the effective dates of the Contract, by and between the City of Lubbock and the Texas Department of Housing and Community Affairs for the Low Income Home Energy Assistance Program Block Grant Pilot Project, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 1993. ATTEST: etty Jo nson, ity Secretary APPROVED AS TO CONTENT: 0 44 a6m David Ellison, Assistant City Manager APPROVED AS TO FORM: Do d G. Vandiver, First Assistant City Attorney Resolution No. 4105 March 11, 1993 Item #37 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS CONTRACT NO. 823048 FY 1993 LOW INCOME HOME ENERGY ASSISTANCE PROGRAM PILOT PROJECT SECTION 1. PARTIES TO THE CONTRACT This contract is made by and between the Texas Department of Housing and Community Affairs, an agency of the State of Texas (the "Department") and City of Lubbock Community Services Department (the "Contractor"). SECTION 2. CONTRACT PERIOD This contract shall commence on February 1, 1993, and unless earlier terminated, shall end on September 30, 1993 (the "Contract Period"). SECTION 3. CONTRACTOR PERFORMANCE Pursuant to the Low -Income Home Energy Assistance Act of 1981, as amended, 42 U.S.C, sec. 8621, et seq. (the "LIHEAP Act"), Contractor shall operate, on an equitable basis throughout -Contractor's service area, a LMEAP Pilot Project (the "LIPP") in accordance with the terms of this contract including the Budget (Exhibit "A"), and all applicable state and federal regulations. Contractor's service area shall consist of the following counties: Lubbock. Contractor will assist at least 204 eligible households through a system of monthly co -payments to energy suppliers and will provide energy counseling to those households designed to reduce dependence upon governmental energy subsidies. SECTION 4. DEPARTMENT OBLIGATIONS A. In consideration of Contractor's satisfactory performance of this contract, Department shall compensate Contractor for the actual allowable costs incurred not to exceed the amount of FY '93 Available LIPP Funds: Two Hundred Twenty -Nine Thousand Six Hundred Twenty -Six and no/100 Dollars ($229,626.00). PAGE 1 OF 10 B. By written notice to Contractor, Department may obligate additional funds under Section 4(A). For planning purposes only, Contractor may assume that the total award to Contractor during the Contract Period will be: FY '93 Anticipated LIPP Funds: Two Hundred Twenty -Nine Thousand Six Hundred Twenty -Six and no/100 Dollars ($229,626.00). C. Any decision to obligate additional funds shall be made by Department based upon factors, including but not limited to, the status of funding under grants to Department, the rate of Contractor's utilization of funds under this or previous LIPP contracts, the existence of questioned or disallowed costs under this or other contracts between the parties, and Contractor's overall compliance with the terms of this contract. D. Department's obligations under this Section are contingent upon the actual receipt by Department of funds from the U.S. Department of Health and Human Services. Department acknowledges that it has received obligations from the U.S. Department of Health and Human Services, which if paid, will be sufficient to pay the allowable costs incurred by Contractor under this contract. E. Department is not liable for any cost incurred by Contractor which: (1) is subject to reimbursement by a source other than Department; (2) is for performance of services or activities not authorized by the L1H.EAP Act, or which is not in accordance with the terms of this contract; (3) is not reported to Department on an LIPP Monthly Funding/Financial/Progress Report within sixty (60) days following the termination of this contract; or, (4) is not incurred during the Contract Period. SECTION 5. METHOD OF PAYMENT/CASH BALANCES A. For each month of the contract period, Contractor may request an advance payment by submitting to Department at its offices in Austin, Travis County, Texas, no later than the tenth (loth) day of the month prior to the month for which advance payment is sought, a properly completed LIPP Monthly Funding/Financial/Progress Report and a State of Texas Purchase Voucher for an amount not to exceed Contractor's actual cash needs for the month for which such advance is sought. PAGE 2 OF 10 B. Contractor's requests for advances shall be limited to the minimum amount needed for the effective performance of this contract and shall be timed as closely as possible to coincide with Contractor's actual immediate cash requirements. Contractor shall establish procedures to minimize the time elapsing between the transfer of funds from Department and the disbursal of such funds by Contractor. C. Department reserves the right to utilize a cost reimbursement method of payment if: (1) Contractor maintains excessive cash balances, ie. balances in excess of thirty (30) days' need; (2) Department identifies any deficiency in the internal controls or financial management system used by Contractor; (3) Contractor violates any of the terms of this contract; or (4) Department's funding source requires the use of a cost reimbursement method of payment. D. Contractor shall refund, within fifteen (15) days of Department's request, any sum of money paid to Contractor by Department which Department determines (1) has resulted in an overpayment to Contractor or (2) has not been spent strictly in accordance with terms of this contract. Department may offset or withhold any amounts otherwise owed to Contractor under this contract against any amount owed by Contractor to Department arising under this contract. E. All funds paid to Contractor under this contract are paid in trust for the exclusive benefit of the eligible recipients of the LII3EAP Pilot Project and for allowable administrative and outreach expenditures. SECTION 6. COST PRINCIPLES AND ADMINISTRATIVE REQUIREMENTS Except as specifically modified by law or the terms of this contract, Contractor shall comply with the cost principles and uniform administrative requirements set forth in the Uniform Grant and Contract Management Standards for State Agencies, 1 T.A.C. §§ 5.141 gt seq. (the "Uniform Grant Management Standards") provided that all references therein to "local government" shall be construed to mean Contractor. SECTION 7. ALLOWABLE ADMINISTRATIVE/OUTREACH EXPENDITURES A. Administrative costs incurred by Contractor in carrying out this contract shall be allowable up to a maximum of 5.26315% of the total allowable contract expenditures within the contract period. Contractor shall pay from non-federal sources the remaining costs of planning and administering the program assisted under this contract. B. Outreach costs incurred by Contractor in carrying out this contract shall be allowable up to a maximum of 5% of the total allowable direct services expenditures within the contract period. PAGE 3 OF 10 SECTION 8. TERMINATION AND SUSPENSION A. Department may terminate this contract, in whole or in part, at any time Department determines that there is cause for termination. Cause for termination includes but is not limited to Contractor's failure to comply with any term of this contract. Department shall notify Contractor in writing at least thirty (30) days before the date of termination. B. Nothing in this Section shall be construed to limit Department's authority to withhold payment and immediately suspend Contractor's performance of this contract if Department identifies possible instances of fraud, abuse, waste, fiscal mismanagement, or other deficiencies in Contractor's performance. Suspension shall be a temporary measure pending either corrective action by Contractor or a decision by Department to terminate this contract. C. Notwithstanding any exercise by Department of its right of termination or suspension, Contractor shall not be relieved of any liability to Department for damages due to Department by virtue of any breach of this contract by Contractor. Department may withhold any payment due to Contractor until such time as the exact amount of damages due to Department from Contractor is agreed upon or is otherwise determined. D. Department shall not be liable for any costs incurred by Contractor after termination or during suspension of this contract. SECTION 9. CHANGES AND AMENDMENTS Any change in the terms of this contract required by a change in federal or state law or regulation is automatically incorporated herein effective on the date designated by such law or regulation. Except as otherwise specifically provided herein any other change in the terms of this contract shall be by amendment in writing and signed by both parties. SECTION 10. RETENTION AND ACCESSIBILITY OF RECORDS A. Contractor shall maintain fiscal records and supporting documentation for all expenditures made under this contract in accordance with the retention and custodial requirements for records set forth in the Uniform Grant Management Standards, Common Rule §_.42. B. Contractor shall maintain a client file system to document direct services rendered. Each Pilot Project client file shall contain the following: 1. Contractor's Client Application; 2. Documentation/Verification of Client Income PAGE 4 OF 10 3. Declaration of Income Eligibility (when required); 4. Copy of client's utility bilUcopy of average yearly bill or other methods of determination of payments made on behalf of clients; 5. Acceptance/Denial Form; and 6. Documentation of co -payment plan. C. Contractor shall maintain all statistical data on Pilot Project including the following: 1. Number of households and number of persons served; 2. Number of households who maintain their co -payment throughout the plan and move on to self sufficiency; 3. Number of households who default on their co -payment and need assistance to return to Pilot Program; 4. Number of households who default on co -payment and would benefit from an arrears forgiveness program in order to return to Pilot Project Program; 5. Number of households who default on co -payment and are ineligible to return to the Pilot Project program; 6. Number of households actively participating in the co -payment plan at the end of the Pilot Project program contract period; 7. Documentation of outreach and client education activities coordinated with local utility companies and other entities; 8. Number of budget counseling classes held and those who participated; 9. Number of energy conservation classes held and those who participated; and 10. Number of referrals made to other energy assistance programs. D. Contractor shall give the U.S. Department of Health and Human Services, the U.S. General Accounting Office, the Department, or any of their duly authorized representatives, access to and the right to examine and copy, on or off the premises of Contractor, all records pertaining to this contract. Such right of access shall continue as long as the records are retained by Contractor. Contractor agrees to maintain such records in an accessible location and to cooperate with any examination conducted pursuant to this Subsection. Contractor shall include the substance of this Subsection in all subcontracts. SECTION 11. REPORTING REQUIREMENTS A. Contractor shall submit, for receipt by Department no later than ten (10) days after the end of each month of the contract period, a LIPP Monthly Funding/Financial/Progress Report of all expenditure of funds under this contract during the previous month. PAGE 5 OF 10 B. Contractor shall submit to Department no later than sixty (60) days after the end of the contract period an inventory of all equipment acquired in whole or in part with funds received under this contract. Upon the termination of this contract, Department may transfer title to any nonexpendable personal property so acquired to itself or to any other entity receiving funds under the LIHEAP Act. C. Contractor shall submit to Department no later than sixty (60) days after the termination of this contract a final LIPP Monthly Funding/Financial/Progress Report of all expenditures of funds under this contract. The failure of Contractor to provide a full accounting of funds expended under this contract may result in the termination of this contract and holding contractor ineligible to receive additional LIPP funds. D. Contractor shall submit to Department no later than thirty (30) days after the termination of this contract a final narrative summary of the Pilot Project which should include Contractor's own evaluation and recommendation to the Department. E. If Contractor fails to submit in a timely and satisfactory manner any report or response required by this contract, Department may withhold any or all payments otherwise due or requested by Contractor hereunder. Payments may be withheld until such time as the delinquent report or response is received by Department. If the delinquent report or response is not received within forty-five (45) days of its due date, Department may suspend or terminate this contract. SECTION 12. INDEPENDENT CONTRACTOR It is agreed that Department is contracting with Contractor as an independent contractor. Contractor agrees to indemnify Department against all disallowed costs or other claims which may be asserted by any third party in connection with Contractor's performance of this contract. SECTION 13. SUBCONTRACTS/VENDOR AGREEMENTS A. Contractor may not subcontract the performance of this contract unless it receives Department's prior written approval. Contractor shall submit to Department a signed copy of each such subcontract. Department is in no way liable to Contractor's subcontractor(s). B. Subcontractors shall comply with the terms of this contract to the same extent as if the performance rendered by the subcontractor were being rendered by Contractor. Subcontractors will be subject to monitoring and inspection by Department. C. Contractor shall enter into written agreement with area energy vendors or suppliers to ensure that such suppliers will perform according to the LIHEAP assurances. Each agreement shall reference a performance period, both parties, and shall be maintained on file for inspection. PAGE 6 OF 10 SECTION 14. CONFLICT OF INTEREST/NEPOTISM A. Contractor covenants that neither it nor any member of its governing body presently has or shall acquire any interest, direct or indirect, which would conflict in any manner with the performance of this contract. No person having such interest shall be employed by Contractor or appointed as a member of Contractor's governing body. B. Contractor agrees that it will comply with TEX. CIV. STAT. ANN. ART. 5996 by ensuring that no officer, employee, or member of the governing body of Contractor shall vote or confirm the employment of any person related within the second degree by affinity or third degree by consanguinity to any member of the government body or to any other officer or employee authorized to employ or supervise such person. C. Contractor shall ensure that no employee, officer, or agent of Contractor shall participate in the selection, or in the award or administration of a subcontract supported by funds provided hereunder if a conflict of interest, real or apparent, would be involved. Such a conflict of interest would arise when: 1) the employee, officer, or agent; 2) any member of his or her immediate family; 3) his or her partner or; 4) any organization which employs or is about to employ, any of the above, has a financial or other interest in the firm or person selected to perform the subcontract. D. Contractor's employees, officers, and/or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from subcontractors, or potential subcontractors. SECTION 15. NON-DISCRIMINATION AND EQUAL OPPORTUNITY No person shall on the grounds of race, color, religion, sex, national origin, age, handicap, political affiliation or belief be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in the administration of or in connection with any program or activity funded in whole or in part with funds made available under this contract. SECTION 16. LEGAL AUTHORITY A. Contractor represents that it possesses the legal authority to enter into this contract and to perform the services Contractor has obligated itself to perform hereunder. B. The person signing this contract on behalf of Contractor hereby warrants that he/she has been duly authorized by Contractor to execute this contract on behalf of Contractor and to bind Contractor to the terms herein set forth. PAGE 7 OF 10 C. Department shall have the right to suspend or terminate this contract if there is a dispute as to the legal authority of either Contractor or the person signing this contract to enter into this contract or to render performances hereunder. Contractor is liable to Department for any money it has received from Department for performance of the provisions of this contract if Department has suspended or terminated this contract for reasons enumerated in this Section 16. SECTION 17. AUDIT A. Contractor shall arrange for the annual performance of a financial and compliance audit of the funds received under this contract. The audit shall be made in accordance with the Single Audit Act of 1984, 31 U.S.C. Sec. 7501 et seq. (the "Audit Act"), and OMB Circular No. A-128, "Audits of State and Local Governments", 45 CFR Part 74, Appendix J or OMB Circular No. A-133, "Audits of Instructions of Higher Education and other Nonprofit Institutions", 45 CFR Part 74, Appendix I. Where a contract is awarded for audit services, the contract shall include a reference to the Audit Act and OMB Circular A-128 or A-133. Contractor shall take such action to facilitate the performance of the audit(s) conducted pursuant to this Section as Department may require. Audits are to be conducted in accordance with GAGAS (generally accepted government auditing standards). B. Contractor shall submit three (3) copies of the report of such audit to Department no later than one hundred twenty (120) days after the end of the audit periods. Audits performed under this Section are subject to review and resolution by Department or its authorized representative after the end of the audit period. C. Contractor shall take immediate appropriate corrective action after issuance of the audit report in instances of material noncompliance with laws, regulations or this contract. Contractor shall be liable to Department for any costs disallowed pursuant to financial and compliance audit(s) of funds received under this contract. Reimbursement to Department of disallowed costs shall be paid by Contractor from funds which were not made available to Contractor under any contract with Department. SECTION 18. POLITICAL AND SECTARIAN ACTIVITY PROHIBITED A. No funds received by Contractor hereunder may be used for any political activity including, but not limited to, any attempt to influence the outcome of any election or the passage or defeat of any legislation or appropriation. B. No funds received by Contractor under this contract may be used, either directly or indirectly, to support any religious or anti -religious activity. PAGE 8 OF 10 C. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, Contractor shall complete and submit a Certification Regarding Lobbying form in accordance with its instructions and 45 CFR Part 93. SECTION 19. PREVENTION OF WASTE, FRAUD, AND ABUSE A. Contractor shall establish, maintain, and utilize systems and procedures to prevent, detect and correct waste, fraud and abuse in activities funded under this contract. The system and procedures are to address possible waste, fraud and abuse by Contractor, its employees, recipients, vendors and administering agencies. Contractor's internal control systems and all transactions and other significant events are to be clearly documented, and the documentation is to be readily available for monitoring by Department. B. Contractor shall give Department complete access to all of its records, employees, and agents for the purposes of any investigation of the LIPP Contractor shall immediately notify Department of any discovery of waste, fraud or abuse. Contractor shall fully cooperate with Department's efforts to detect, investigate, and prevent waste, fraud and abuse in the LIPP. C. Contractor may not discriminate against any employee or other person who reports a violation of the terms of this contract or of any law or regulation to Department or to any appropriate law enforcement authority, if the report is made in good faith. SECTION 20. MAINTENANCE OF EFFORT Funds provided to Contractor under this contract may not be substituted for funds or resources from any other source nor in any way serve to reduce the funds or resources which would have been available to or provided through Contractor had this contract never been executed. SECTION 21. NO WAIVER Any right or remedy given to Department by this contract shall not preclude the existence of any other right or remedy, nor shall any action taken in the exercise of any right or remedy be deemed a waiver of any other right or remedy. The failure of Department to exercise any right or remedy on any occasion shall not constitute a waiver of Department's fight to exercise that or any other right or remedy at a later time. PAGE 9 OF 10 SECTION 22. SEVERABILITY If any portion of this contract is held to be invalid by a court or administrative tribunal of competent jurisdiction, the remainder shall remain valid and binding. SECTION 23. ORAL AND WRITTEN AGREEMENTS All oral and written agreements between the parties relating to the subject matter of this contract have been reduced to writing and are contained in this document and the exhibits attached hereto. SECTION 24. DEBARRED AND SUSPENDED PARTIES Contractor must not make any award (subgrant or contract) to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, 45 CFR, Part 76, "Debarment and Suspension." SECTION 25. EXHIBITS The exhibits identified below are hereby made a part of this contract: Exhibit A, Budget Executed this 11 th day of March TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS BY: I �,, k Henry Flores Executive Director CITY O LUBBW DEPAR ENT C. B 4 David Langston, SERVICES 1993 This contract is not effective until signed by the Executive Director of Department or designee. PAGE 10 OF 10 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS EXHIBIT A BUDGET LOW INCOME HOME ENERGY ASSISTANCE PROGRAM PILOT PROJECT CONTRACT NO. 823048 CITY OF LUBBOCK COMMUNITY SERVICES DEPARTMENT BUDGET CATEGORY LIREAP Administration 5.26315% $12,086.00 Outreach Activities 5% $10,877.00 Direct Services $206,663.00 Total at 100% $229,626.00 Notes: Administrative costs: Salaries, fringe benefits, travel, equipment, supplies, audit and office space, are limited to 5.26315% of the allowable contract expenditures. No administrative expenses of an organization shall be charged to Direct Services. Outreach Activities: Additional outreach activities outlined in Exhibit B, Contractor Assurance Compliance, are limited to 5% of the total allowable direct services expenditures within the contract period. Department's prior written approval for purchase or lease of equipment with acquisition cost of $5,000 and over is required. Approval of this budget does not constitute prior approval. Availability of budget funds is controlled by SECTION 4.(A), DEPARTMENT OBLIGATIONS, of this contract. PAGE 1 OF 1