HomeMy WebLinkAboutResolution - 4821 - Revolving Loan Funding Agreement-SPAG-CDBG Funds - 04/27/19951
Resolution No. 4821 I
April 27, 1995
Item #31
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 Revolving Loan Funding Agreement between
the City of Lubbock and South Plains Association of Governments to make available financial
assistance for eligible businesses through the continued use of the CDBG funds from the City of
Lubbock in the SPAG Revolving Loan Fund. Said Agreement is attached hereto and
incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of
the Council.
Passed by the City Council this
ATTEST:
&-tt,- U C--,,2-,,,—
Betty
�Betty M?Johnson, tity Secretary
APPR VED AS TO CONTENT:
ylvia A. M ez-Flores, Manager
Community Development/Neighborhood Initiatives
APPROVED AS TO FORM:
Linda L. Chamales, Assistant City Attorney
dp:ccdocslcd-spag.res
April 18, 1995
Resolution No. 4821
April 27, 1995
Item #31
REVOLVING LOAN FUNDING AGREEMENT BETWEEN THE CITY OF LUBBOCK AND
SOUTH PLAINS ASSOCIATION OF GOVERNMENTS
STATE OF TEXAS §
COUNTY OF LUBBOCK §
This Agreement entered into this 27th day of April , 1995, by and between the
CITY OF LUBBOCK (herein called "City") and SOUTH PLAINS ASSOCIATION OF
GOVERNMENTS, (herein called "SPAG").
WHEREAS, City has provided a total of one hundred twenty-five thousand dollars
($125,000.00) in Community Development Block Grant funds to the South Plains Association of
Governments Revolving Loan Fund between 1989 and 1994 pursuant to the Housing and
Development Act of 1974, as amended, 42 U.S.C. 5301 et seq, and 24 CFR 570 et. seq.; and
WHEREAS, FIFTY ONE THOUSAND SEVEN HUNDRED TWENTY TWO AND
60/100 DOLLARS ($51,722.68) in CDBG funds received from the City of Lubbock, which
represents the proceeds of loans from the South Plains Association of Governments Revolving
Loan Fund (herein called "SPAG-RLF"), remains in the Revolving Loan Fund and
approximately ONE HUNDRED FOUR THOUSAND TWENTY EIGHT DOLLARS
($104,028.00) is due in receivables to the Revolving Loan Fund; and
WHEREAS, City and SPAG desire to continue to make available financial assistance for
eligible businesses with the CDBG funds from the City of Lubbock presently in the fund and
with the proceeds to be received in the future from repayment of loans made from the CDBG
funds in the SPAG-RLF; and
WHEREAS, the services provided by SPAG benefit residents of the area and constitute a
valuable public service; and
WHEREAS, the City Council of the City of Lubbock has declared the services provided
by SPAG to be a public purpose; and
WHEREAS, SPAG and the services it provides have been found to meet the criteria for
funding under the Community Development Block Grant Regulations at 24 CFR § 570 Subpart
C; and
WHEREAS, the accomplishment of the above public purpose is the predominant
purpose of this transaction; continuing supervision by the City together with statutory and
contractual requirements provide sufficient assurance that the public purpose will be
accomplished; the City Council has found that SPAG has the special expertise, knowledge and
experience necessary for the operation of the South Plains Association of Governments
Revolving Loan Fund (SPAG-RLF), and that the City will receive adequate consideration in the
form of substantial public benefit; and
WHEREAS, the City desires to contract with SPAG to make available financial
assistance for eligible businesses through the continued use of the CDBG funds from the City of
Lubbock in the SPAG-RLF designed to assist new and existing businesses;
NOW THEREFORE, it is agreed between the parties hereto that:
I. SCOPE OF SERVICE
A. City Responsibilities:
City agrees to assist SPAG by participation of the CDBG
funds from the City of Lubbock which are currently in the SPAG-RLF and
by participation of the CDBG funds originating from the City of Lubbock
as they are repaid to the Revolving Loan Fund in return for SPAG's
performing the activities set forth in this Agreement as consideration for
continuation in the program. The CDBG funds from the City of Lubbock
in the Revolving Loan Fund represent partial repayment of the loans made
from the $125,000 in CDBG funds previously granted to SPAG by the
City as matching funds for the EDA grant.
2. City's continued participation in the SPAG-RLF will be limited to the
following:
The CDBG funds from the City of Lubbock made available through this
Agreement shall be used by SPAG solely for the purpose of providing
economic development funds to businesses and projects eligible under
CDBG guidelines through the SPAG-RLF Program. City agrees to review
loan applications for eligibility under CDBG guidelines.
SPAG agrees to use the funds made available through this Agreement
solely for the purpose of providing economic development funds to
businesses and projects eligible under CDBG guidelines through the
SPAG-RLF; and
2. SPAG agrees and understands that this assistance is made available as part
of City's Community Development Block Grant (CDBG) program, and as
such the activities undertaken must comply with all of the rules and
regulations established by said program; and
3. SPAG agrees that the loans provided from the CDBG funds in the SPAG-
RLF received from the City of Lubbock will be used to assist low and
moderate income individuals in the CDBG Target Area in the City of
Lubbock; and
Revolving Fund Agreement- Page 2
II
IV
V.
4. SPAG agrees that prior to submission to the Loan Fund Committee for
approval of a loan from CDBG funds in the SPAG-RLF Program which
were received from the City of Lubbock, the loan applications will be
submitted to City for review of the loan for compliance with CDBG
guidelines; and
5. SPAG agrees to put forth its best efforts to find eligible businesses and
projects in the CDBG Target Area which would benefit from loans from
the Revolving Loan Fund and to refer these loan applications to the City
for review for compliance with CDBG guidelines, recognizing the urgency
of utilizing HUD funds for their intended purpose of creating jobs; and
TIME OF PERFORMANCE
This Agreement shall commence
1995, and shall terminate
1998. The term of this Agreement and the provisions herein shall be
extended to cover any additional time period during which Grantee remains in control of
CDBG funds received from the City of Lubbock or other assets including program
income
NOTICES
Communication and details concerning this Agreement shall be directed to the following
contract representatives:
Sylvia Martinez -Flores, Manager
Community Dev./Neighborhood Initiatives
City of Lubbock
P.O. Box 2000
Lubbock, Texas 79457
SPECIAL CONDITIQNS
Jerry D. Casstevens
Executive Director
South Plains Assoc. of Governments
P.Q. Box 3730, Freedom Station
Lubbock, Texas 79452-3730
SPAG agrees to comply with the requirements of Title 24 Code of Federal Regulations,
Part 570 of the Housing and Urban Development regulations concerning the CDBG
program and all federal regulations and policies issued pursuant to these regulations.
GENERAL {CONDITIONS
A. General C m liance
SPAG agrees to comply with all applicable federal, state, and local laws and
regulations governing the funds provided under this contract.
Revolving Fund Agreement- Page 3
B. Independent Contractor
Nothing in this Agreement is intended to, or shall be construed in any manner, as
creating or establishing the relationship of employer/employee between the
parties. SPAG shall at all times remain an independent contractor with respect to
the services to be performed under this Agreement. City shall be exempt from
payment of all Unemployment Compensation, FICA, retirement, life and/or
medical insurance and Workers' Compensation insurance as SPAG is an
independent contractor.
C. Hold Harmless
SPAG shall hold harmless, defend and indemnify the City from any and all
claims, actions, suits, charges and judgments whatsoever that arise out of SPAG's
performance or nonperformance of the services or subject matter called for in this
Agreement.
D. Cily Recggnition
SPAG shall insure recognition of the role of the grantor agency in providing
services through this contract. All activities, facilities, and items utilized pursuant
to this contract shall be prominently labeled as to funding source. In addition,
SPAG will include a reference to the support provided herein in all publications
made possible with funds made available under this contract.
E. Amendments
City or SPAG may amend this Agreement at any time provided that such
amendments make specific reference to this Agreement, and are executed in
writing, signed by a duly authorized representative of both organizations, and
approved by the City's governing body. Such amendments shall not invalidate
this Agreement, nor relieve or release City or SPAG from its obligations under
this Agreement.
City may, at its discretion, amend this Agreement to conform with federal, state or
local government guidelines, policies and available funding amounts or for other
reasons. If such amendments result in a change in the funding, the scope of
services, or schedule of, the activities to be undertaken as part of the Agreement,
such modifications will be incorporated only by written amendment signed by
both City and SPAG.
F. Suspension or Termination
Either party may terminate this contract at any time by giving written notice to the
other party of such termination and specifying the effective date thereof at least 30
days before the effective date of such termination. Partial terminations of the
Revolving Fund Agreement- Page 4
Scope of Service in Paragraph I.B. above may only be undertaken with the prior
approval of City. In event of any termination for convenience, all finished or
unfinished documents, data studies, surveys, maps, models, photographs reports
or other materials prepared by SPAG under this agreement shall, at the option of
City become the property of City and SPAG shall be entitled to receive just and
equitable compensation for any satisfactory work completed on such documents
or materials prior to the termination.
City may also suspend or terminate this Agreement, in whole or in part, if SPAG
materially fails to comply with any term of this Agreement, or with any of the
rules, regulations or provisions referred to herein.
VI. ADMINISTRATIVE REQUIREMENTS
A. Financial Management
• ` .�+SIF
SPAG agrees to comply with Attachment F of OMB Circular A-110 or
Circular A-128, as applicable, and agrees to adhere to the accounting
principles and procedures required therein, utilize adequate internal
controls, and maintain necessary source documentation for all costs
incurred.
2. Cost Principles
SPAG shall administer its program in conformance with OMB Circular A-
122, "Cost Principles for Non -Profit Organizations," or Circular A-87, as
applicable; and the applicable sections of 24 CFR Part 85 "Uniform
Administrative Requirements for Grants and Cooperative Agreement to
State and Local Governments," for all costs incurred whether charged on a
direct or indirect basis.
SPAG agrees to maintain a separate bank account for funds received as
repayment of loans from CDBG funds in the Revolving Loan Fund, and to
make timely deposits each month in order for interest to accrue.
B. Documentation and Record -Keeping
Records to be Maintained
SPAG agrees to maintain all records required by the federal regulations
specified in 24 CFR Part 570.506, and that are pertinent to the activities to
be funded under this Agreement. Such records shall include but not be
limited to:
Revolving Fund Agreement- Page 5
a. Records providing a full description of each activity
undertaken;
b. Records demonstrating that each activity undertaken meets
one of the National Objectives of the CDBG program;
Records required to determine the eligibility of activities;
d. Records required to document the acquisition,
improvement, use or disposition of real property acquired
or improved with CDBG assistance;
e. Records documenting compliance with the fair housing and
equal opportunity components of the CDBG program;
f. Financial records as required by 24 CFR Part 570.502, and
OMB Circular A-110 or A-128;
g. Other records necessary to document compliance with
Subpart K of 24 CFR 570; and
h. Job certification forms from employers for all loans made
from CDBG funds from the City of Lubbock; and
I. Records, documentation, or advertisement of jobs being
made available to low/moderate income persons.
2. Retention
SPAG shall retain all records pertinent to expenditures incurred under this
contract for a period of three (3) years after the termination of all activities
funded under this agreement, or after the resolution of all Federal audit
findings, which ever occurs later.
3. Client Data
SPAG shall maintain client data demonstrating client eligibility for
services provided. Such data shall include, but not be limited to, client,
name, address, income level or other basis for determining eligibility, and
description of service provided. Such information shall be made available
to City monitors or their designees for review upon request.
4. National Objectives
SPAG agrees to maintain documentation that demonstrates that the
activities carried out with funds provided under this Agreement meet one
or more of the CDBG program's national objectives as defined in 24 CFR
Revolving Fund Agreement- Page 6
Part 570.208: 1) benefit low/moderate income persons, 2) aid in the
prevention or elimination of slums or blight, or 3) meet community
development needs having a particular urgency.
Close -Outs
SPAG's obligation to City shall not end until all close-out requirements
are completed. Activities during this close-out period shall include, but
are not limited to: making final payments, disposing of program assets
(including the return of all unused materials, equipment, unspent cash
advances, program income balances, and receivable accounts to the City
and determining the custodianship of records.
TIONEWEITTINTOT. 1 • •
All SPAG records with respect to any matters covered by this Agreement
shall be made available to the City, HUD, their designees or the Federal
Government, at any time during normal business hours, as often as the
City or HUD deems necessary, to audit, examine, and make excerpts or
transcripts of all relevant data. Any deficiencies noted in audit reports
must be fully cleared by SPAG within 30 days after receipt by SPAG.
Failure of SPAG to comply with the above audit requirements will
constitute a violation of this contract and may result in the withholding of
future payments.
Program Income
SPAG shall report monthly all program income as defined at 24 CFR
570.500(x) generated by activities carried out with CDBG funds made
available under this contract. The use of program income by SPAG shall
comply with the requirements set forth at 24 CFR 570.504. By way of
further limitations, SPAG may use such income during the contract period
for activities permitted under this contract and shall reduce requests for
additional funds by the amount of any such program income balances on
hand. All unused program income shall be returned to the City at the end
of the contract period.
SPAG shall submit regular Progress Reports to the City in the form,
content and frequency as required by the City.
VII. PERSONNEL AND PARTICIPANT CONDITIONS
A. Civil Rights
Revolving Fund Agreement- Page 7
Compliance
SPAG agrees to comply with city and state civil rights ordinances and
with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the
Civil Rights Act of 1968 as amended, Section 109 of Title I of the
Housing and Community Development Act of 1974, Section 504 of the
Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990,
the Age Discrimination Act of 1975, Executive Order 11063, and with
Executive Order 11246 as amended by Executive Orders 11375 and
12086.
2. Nondiscrimination
SPAG will not discriminate against any employee or applicant for
employment because of race, color, creed, religion, ancestry, national
origin, see, disability or other handicap, age, marital status, or status with
regard to public assistance. SPAG will take affirmative action to insure
that all employment practices are free form such discrimination. Such
employment practices include but are not limited to the following: hiring,
upgrading, demotion, transfer, recruitment or recruitment advertising,
layoff, termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship. SPAG agrees to post in
conspicuous places, available to employees and applicants for
employment, notices to be provided by the contracting agency setting for
the provisions of this nondiscrimination clause.
��1
This contract is subject to the requirements of Title VI of the Civil rights
Act of 1964 and 24 CFR 570 Part I. In regard to the sale lease, or other
transfer of land acquired, cleared or improved with assistance provided
under this contract, SPAG will cause or require a covenant running with
the land to be inserted in the deed or lease for such transfer, prohibiting
discrimination as herein defined in the sale, lease or rental, or in the use or
occupancy of such land or in any improvements erected or to be erected
thereon, providing that the City and the United States are beneficiaries of
and entitled to enforce such covenants. SPAG, in undertaking its
obligation to carry out the program assisted hereunder, agrees to take such
measures as are necessary to enforce such covenant, and will not itself so
discriminate.
4, Section 504
SPAG agrees to comply with any federal regulations issued pursuant to
compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
706) which prohibits discrimination against the handicapped in any
Revolving Fund Agreement- Page 8
federally assisted program. The City shall provide SPAG with any
guidelines necessary for compliance with that part of the regulations in
force during the term of this contract.
B. Employment Restrictions
..• ..T8.
SPAG agrees to comply with the requirements of the Secretary of Labor in
accordance with the Davis -Bacon Act as amended, the provisions of
Contract Work Hours, the Safety Standards Act, the Copeland "Anti -
Kickback" Act (40 U.S.C. 276, 327-333) and all other applicable federal
state and local laws and regulations pertaining to labor standards insofar as
those acts apply to the performance of this contract. SPAG shall maintain
documentation which demonstrates compliance with hour and wage
requirements of this part Such documentation shall be made available to
the City for review upon request.
SPAG agrees that, except with respect to the rehabilitation or construction
of residential property designed for residential use for less than eight (8)
households, all contractors engaged under contracts in excess of $2,000.00
for construction, renovation or repair of any building or work financed in
whole or in part with assistance provided under this contract, shall comply
with federal requirements adopted by the City pertaining to such contracts
and with the applicable requirements of the regulations of the Department
of Labor, under 29 CFR, Parts 3,1,5 and 7 governing the payment of
wages and ration of apprentices and trainees to journeymen; provided, that
if wage rates higher than those required under the regulations are imposed
by state or local law, nothing hereunder is intended to relieve SPAG of its
obligation, if any to require payment of the higher wage. SPAG shall
cause or require to be inserted in full, in all such contracts subject to such
regulations, provisions meeting the requirements of this paragraph, for
such contracts in excess of $10,000.00.
MIMMENOMMAWK61
Compliance with the provisions of Section 3, the regulations set forth in
24 CFR 135, and all applicable rules and orders issued hereunder prior to
the execution of this contract, shall be a condition of the federal financial
assistance provided under this contract and binding upon the City, SPAG,
and the loan recipients. Failure to fulfill these requirements shall subject
the City, SPAG, and the loan recipients, their successors and assigns, to
those sanctions specified by the agreement through which federal
assistance is provided. SPAG certifies and agrees that no contractual or
other disability exists which would prevent compliance with these
requirements.
Revolving Fund Agreement- Page 9
SPAG further agrees to comply with these "Section 3" requirements and to
include the following language in all contracts executed under this
agreement:
"The work to be performed under this contract is a project assisted
under a program providing direct federal financial assistance from
HUD and is subject to the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, 12
U.S.C. 1701. Section 3 requires that to the greatest extent feasible
opportunities for training and employment be given to lower
income residents of the project area and contracts for work in
connection with the project be awarded to business concerns which
are located in or owned in substantial part by persons residing in
the areas of the project."
C. Conduct
Prohibited Activity
SPAG is prohibited from using funds provided herein or personnel
employed in the administration of the program for political activities,
sectarian, or religious activities; lobbying, political patronage and
nepotism.
2. Conflict of Interest
SPAG and City agree to abide by the provisions of 24 CFR 570.611 with
respect to conflicts of interest, and Grantee covenants that it presently has
no financial interest, direct or indirect, which would conflict in any
manner or degree with the performance of the services required under this
Contract.
VIII. ENVIRONMENTAL CONDITIONS
A. Air and Water
Grantee agrees to comply with the following regulations insofar as they apply to
the performance of this contract: Clean Air Act, 42 U.S.C. 1857, et. seq., Federal
Water Pollution Control Act, as amended 33 U.S.C. 1251, et seq. and all
regulations and guidelines issued thereunder; Environmental Protection Agency
(EPA) regulations pursuant to 40 CFR Part 50, National Environmental Policy
Act of 1969, and HUD Environmental Review Procedures (24 CFR Part 58).
Revolving Fund Agreement- Page 10
Grantee agrees to comply with the requirements of the Flood Disaster Protection
Act of 1973 in regard to the sale, lease, or other transfer of land acquired, cleared
or improved under the terms of this Agreement, as it may apply to the provisions
of this Agreement.
C. Historic Preservation
Grantee agrees to comply with the Historic Preservation requirements set forth in
the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and
the procedures set forth in 36 CFR, Part 800, Advisory Council on Historic
Preservation Procedures for Protection of Historic Properties, insofar as they
apply to the performance of this Agreement. In general, this requires concurrence
from the State Historic Preservation Officer for all rehabilitation and demolition
of historic properties that are fifty years old or older or that are included on a
Federal, State, or local historic property list.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first
tten above.
L
VID R. LANGSTON,
ATTEST:
Betty Nf Johnson
City Secretary
ROVED AS TO CONTENT:
a A I —�W�
ylvia A. artinez-Flores, Manager
Com. Development/ Neighborhood Initiatives
dp:cityattla-spag.doc
April 10, 1995
PLAINS AS OCIATI
JERNME S
D. CA STEVENS,
ie Director
APPROVED AS TO FORM:
Linda L. Chamales,
Assistant City Attorney
Revolving Fund Agreement- Page I I
Resolution No. 4821
April 27, 1995
Item #31
REVOLVING LOAN FUNDING AGREEMENT BETWEEN THE CITY OF LUBBOCK AND
SOUTH PLAINS ASSOCIATION OF GOVERNMENTS
STATE OF TEXAS
COUNTY OF LUBBOCK §
This Agreement entered into this 27thday of April , 1995, by and between the
CITY OF LUBBOCK (herein called "City") and SOUTH PLAINS ASSOCIATION OF
GOVERNMENTS, (herein called "SPAG").
WHEREAS, City has provided a total of one hundred twenty-five thousand dollars
($125,000.00) in Community Development Block Grant funds to the South Plains Association of
Governments Revolving Loan Fund between 1989 and 1994 pursuant to the Housing and
Development Act of 1974, as amended, 42 U.S.C. 5301 et seq, and 24 CFR 570 et. seq.; and
WHEREAS, FIFTY ONE THOUSAND SEVEN HUNDRED TWENTY TWO AND
60/100 DOLLARS ($51,722.68) in CDBG funds received from the City of Lubbock, which
represents the proceeds of loans from the South Plains Association of Governments Revolving
Loan Fund (herein called "SPAG-RLF"), remains in the Revolving Loan Fund and
approximately ONE HUNDRED FOUR THOUSAND TWENTY EIGHT DOLLARS
($104,028.00) is due in receivables to the Revolving Loan Fund; and
WHEREAS, City and SPAG desire to continue to make available financial assistance for
eligible businesses with the CDBG funds from the City of Lubbock presently in the fund and
with the proceeds to be received in the future from repayment of loans made from the CDBG
funds in the SPAG-RLF; and
WHEREAS, the services provided by SPAG benefit residents of the area and constitute a
valuable public service; and
WHEREAS, the City Council of the City of Lubbock has declared the services provided
by SPAG to be a public purpose; and
WHEREAS, SPAG and the services it provides have been found to meet the criteria for
funding under the Community Development Block Grant Regulations at 24 CFR § 570 Subpart
C; and
WHEREAS, the accomplishment of the above public purpose is the predominant
purpose of this transaction; continuing supervision by the City together with statutory and
contractual requirements provide sufficient assurance that the public purpose will be
accomplished; the City Council has found that SPAG has the special expertise, knowledge and
experience necessary for the operation of the South Plains Association of Governments
Revolving Loan Fund (SPAG-RLF), and that the City will receive adequate consideration in the
form of substantial public benefit; and
WHEREAS, the City desires to contract with SPAG to make available financial
assistance for eligible businesses through the continued use of the CDBG funds from the City of
Lubbock in the SPAG-RLF designed to assist new and existing businesses;
NOW THEREFORE, it is agreed between the parties hereto that:
1. SCOPE OF SERVICE
A. City Responsibilities:
1. City agrees to assist SPAG by participation of the CDBG
funds from the City of Lubbock which are currently in the SPAG-RLF and
by participation of the CDBG funds originating from the City of Lubbock
as they are repaid to the Revolving Loan Fund in return for SPAG's
performing the activities set forth in this Agreement as consideration for
continuation in the program. The CDBG funds from the City of Lubbock
in the Revolving Loan Fund represent partial repayment of the loans made
from the $125,000 in CDBG funds previously granted to SPAG by the
City as matching funds for the EDA grant.
2. City's continued participation in the SPAG-RLF will be limited to the
following:
The CDBG funds from the City of Lubbock made available through this
Agreement shall be used by SPAG solely for the purpose of providing
economic development funds to businesses and projects eligible under
CDBG guidelines through the SPAG-RLF Program. City agrees to review
loan applications for eligibility under CDBG guidelines.
B. SPAG Responsibilities
SPAG agrees to use the funds made available through this Agreement
solely for the purpose of providing economic development funds to
businesses and projects eligible under CDBG guidelines through the
SPAG-RLF; and
2. SPAG agrees and understands that this assistance is made available as part
of City's Community Development Block Grant (CDBG) program, and as
such the activities undertaken must comply with all of the rules and
regulations established by said program; and
3. SPAG agrees that the loans provided from the CDBG funds in the SPAG-
RLF received from the City of Lubbock will be used to assist low and
moderate income individuals in the CDBG Target Area in the City of
Lubbock; and
Revolving Fund Agreement- Page 2
II
IV
V
4. SPAG agrees that prior to submission to the Loan Fund Committee for
approval of a loan from CDBG funds in the SPAG-RLF Program which
were received from the City of Lubbock, the loan applications will be
submitted to City for review of the loan for compliance with CDBG
guidelines; and
5. SPAG agrees to put forth its best efforts to find eligible businesses and
projects in the CDBG Target Area which would benefit from loans from
the Revolving Loan Fund and to refer these loan applications to the City
for review for compliance with CDBG guidelines, recognizing the urgency
of utilizing HUD funds for their intended purpose of creating jobs; and
TIME OF PERFORMANCE
This Agreement shall commence
1995, and shall terminate
, 1998. The term of this Agreement and the provisions herein shall be
extended to cover any additional time period during which Grantee remains in control of
CDBG funds received from the City of Lubbock or other assets including program
income
Communication and details concerning this Agreement shall be directed to the following
contract representatives:
Sylvia Martinez -Flores, Manager
Community Dev./Neighborhood Initiatives
City of Lubbock
P.O. Box 2000
Lubbock, Texas 79457
SPECIAL CONDITIONS
Jerry D. Casstevens
Executive Director
South Plains Assoc. of Governments
P.O. Box 3730, Freedom Station
Lubbock, Texas 79452-3730
SPAG agrees to comply with the requirements of Title 24 Code of Federal Regulations,
Part 570 of the Housing and Urban Development regulations concerning the CDBG
program and all federal regulations and policies issued pursuant to these regulations.
GENERAL CONDITIONS
A. General Compliance
SPAG agrees to comply with all applicable federal, state, and local laws and
regulations governing the funds provided under this contract.
Revolving Fund Agreement- Page 3
B. Independent Contractor
Nothing in this Agreement is intended to, or shall be construed in any manner, as
creating or establishing the relationship of employer/employee between the
parties. SPAG shall at all times remain an independent contractor with respect to
the services to be performed under this Agreement. City shall be exempt from
payment of all Unemployment Compensation, FICA, retirement, life and/or
medical insurance and Workers' Compensation insurance as SPAG is an
independent contractor.
AMMOMM191-Ft MM
SPAG shall hold harmless, defend and indemnify the City from any and all
claims, actions, suits, charges and judgments whatsoever that arise out of SPAG's
performance or nonperformance of the services or subject matter called for in this
Agreement.
D. Ci1y Recognition
SPAG shall insure recognition of the role of the grantor agency in providing
services through this contract. All activities, facilities, and items utilized pursuant
to this contract shall be prominently labeled as to funding source. In addition,
SPAG will include a reference to the support provided herein in all publications
made possible with funds made available under this contract.
City or SPAG may amend this Agreement at any time provided that such
amendments make specific reference to this Agreement, and are executed in
writing, signed by a duly authorized representative of both organizations, and
approved by the City's governing body. Such amendments shall not invalidate
this Agreement, nor relieve or release City or SPAG from its obligations under
this Agreement.
City may, at its discretion, amend this Agreement to conform with federal, state or
local government guidelines, policies and available funding amounts or for other
reasons. If such amendments result in a change in the funding, the scope of
services, or schedule of, the activities to be undertaken as part of the Agreement,
such modifications will be incorporated only by written amendment signed by
both City and SPAG.
F. Suspension or Termination
Either party may terminate this contract at any time by giving written notice to the
other party of such termination and specifying the effective date thereof at least 30
days before the effective date of such termination. Partial terminations of the
Revolving Fund Agreement- Page 4
Scope of Service in Paragraph I.B. above may only be undertaken with the prior
approval of City. in event of any termination for convenience, all finished or
unfinished documents, data studies, surveys, maps, models, photographs reports
or other materials prepared by SPAG under this agreement shall, at the option of
City become the property of City and SPAG shall be entitled to receive just and
equitable compensation for any satisfactory work completed on such documents
or materials prior to the termination.
City may also suspend or terminate this Agreement, in whole or in part, if SPAG
materially fails to comply with any term of this Agreement, or with any of the
rules, regulations or provisions referred to herein.
VI. ADMINISTRATIVE REQUIREMENTS
A. Financial Management
Accounting Standards
SPAG agrees to comply with Attachment F of OMB Circular A-110 or
Circular A-128, as applicable, and agrees to adhere to the accounting
principles and procedures required therein, utilize adequate internal
controls, and maintain necessary source documentation for all costs
incurred.
2. Cost Principles
SPAG shall administer its program in conformance with OMB Circular A-
122, "Cost Principles for Non -Profit Organizations," or Circular A-87, as
applicable; and the applicable sections of 24 CFR Part 85 "Uniform
Administrative Requirements for Grants and Cooperative Agreement to
State and Local Governments," for all costs incurred whether charged on a
direct or indirect basis.
Bank Accounts
SPAG agrees to maintain a separate bank account for funds received as
repayment of loans from CDBG funds in the Revolving Loan Fund, and to
make timely deposits each month in order for interest to accrue.
B. Documentation and Record -Keeping
.- i iMMIMOV.
SPAG agrees to maintain all records required by the federal regulations
specified in 24 CFR Part 570.506, and that are pertinent to the activities to
be funded under this Agreement. Such records shall include but not be
limited to:
Revolving Fund Agreement- Page 5
a. Records providing a full description of each activity
undertaken;
b. Records demonstrating that each activity undertaken meets
one of the National Objectives of the CDBG program;
Records required to determine the eligibility of activities;
d. Records required to document the acquisition,
improvement, use or disposition of real property acquired
or improved with CDBG assistance;
e. Records documenting compliance with the fair housing and
equal opportunity components of the CDBG program;
f. Financial records as required by 24 CFR Part 570.502, and
OMB Circular A-110 or A-128;
g. Other records necessary to document compliance with
Subpart K of 24 CFR 570; and
h. Job certification forms from employers for all loans made
from CDBG funds from the City of Lubbock; and
Records, documentation, or advertisement of jobs being
made available to low/moderate income persons.
2. Retention
SPAG shall retain all records pertinent to expenditures incurred under this
contract for a period of three (3) years after the termination of all activities
funded under this agreement, or after the resolution of all Federal audit
findings, which ever occurs later.
3. Client Data
SPAG shall maintain client data demonstrating client eligibility for
services provided. Such data shall include, but not be limited to, client,
name, address, income level or other basis for determining eligibility, and
description of service provided. Such information shall be made available
to City monitors or their designees for review upon request.
4. National Objectives
SPAG agrees to maintain documentation that demonstrates that the
activities carried out with funds provided under this Agreement meet one
or more of the CDBG program's national objectives as defined in 24 CFR
Revolving Fund Agreement- Page 6
Part 570.208: 1) benefit low/moderate income persons, 2) aid in the
prevention or elimination of slums or blight, or 3) meet community
development needs having a particular urgency..
5. Close -Outs
SPAG's obligation to City shall not end until all close-out requirements
are completed. Activities during this close-out period shall include, but
are not limited to: making final payments, disposing of program assets
(including the return of all unused materials, equipment, unspent cash
advances, program income balances, and receivable accounts to the City
and determining the custodianship of records.
6. Audits and Inspections
All SPAG records with respect to any matters covered by this Agreement
shall be made available to the City, HUD, their designees or the Federal
Government, at any time during normal business hours, as often as the
City or HUD deems necessary, to audit, examine, and make excerpts or
transcripts of all relevant data. Any deficiencies noted in audit reports
must be fully cleared by SPAG within 30 days after receipt by SPAG.
Failure of SPAG to comply with the above audit requirements will
constitute a violation of this contract and may result in the withholding of
future payments.
5. Program Income
SPAG shall report monthly all program income as defined at 24 CFR
570.500(x) generated by activities carried out with CDBG funds made
available under this contract. The use of program income by SPAG shall
comply with the requirements set forth at 24 CFR 570.504. By way of
further limitations, SPAG may use such income during the contract period
for activities permitted under this contract and shall reduce requests for
additional funds by the amount of any such program income balances on
hand. All unused program income shall be returned to the City at the end
of the contract period.
6. Progress Reports
SPAG shall submit regular Progress Reports to the City in the form,
content and frequency as required by the City.
VII. PERSONNEL AND PARTICIPANT CONDITIONS
A. Civil Rights
Revolving Fund Agreement- Page 7
1. Compliance
SPAG agrees to comply with city and state civil rights ordinances and
with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the
Civil Rights Act of 1968 as amended, Section 109 of Title I of the
Housing and Community Development Act of 1974, Section 504 of the
Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990,
the Age Discrimination Act of 1975, Executive Order 11063, and with
Executive Order 11246 as amended by Executive Orders 11375 and
12086.
2. Nondiscrimination
SPAG will not discriminate against any employee or applicant for
employment because of race, color, creed, religion, ancestry, national
origin, sec, disability or other handicap, age, marital status, or status with
regard to public assistance. SPAG will take affirmative action to insure
that all employment practices are free form such discrimination. Such
employment practices include but are not limited to the following: hiring,
upgrading, demotion, transfer, recruitment or recruitment advertising,
layoff, termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship. SPAG agrees to post in
conspicuous places, available to employees and applicants for
employment, notices to be provided by the contracting agency setting for
the provisions of this nondiscrimination clause.
Land Covenants
This contract is subject to the requirements of Title VI of the Civil rights
Act of 1964 and 24 CFR 570 Part 1. In regard to the sale lease, or other
transfer of land acquired, cleared or improved with assistance provided
under this contract, SPAG will cause or require a covenant running with
the land to be inserted in the deed or lease for such transfer, prohibiting
discrimination as herein defined in the sale, lease or rental, or in the use or
occupancy of such land or in any improvements erected or to be erected
thereon, providing that the City and the United States are beneficiaries of
and entitled to enforce such covenants. SPAG, in undertaking its
obligation to carry out the program assisted hereunder, agrees to take such
measures as are necessary to enforce such covenant, and will not itself so
discriminate.
4. Section 504
SPAG agrees to comply with any federal regulations issued pursuant to
compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
706) which prohibits discrimination against the handicapped in any
Revolving Fund Agreement- Page 8
federally assisted program. The City shall provide SPAG with any
guidelines necessary for compliance with that part of the regulations in
force during the term of this contract.
B. Employment Restrictions
�M
SPAG agrees to comply with the requirements of the Secretary of Labor in
accordance with the Davis -Bacon Act as amended, the provisions of
Contract Work Hours, the Safety Standards Act, the Copeland "Anti -
Kickback" Act (40 U.S.C. 276, 327-333) and all other applicable federal
state and local laws and regulations pertaining to labor standards insofar as
those acts apply to the performance of this contract. SPAG shall maintain
documentation which demonstrates compliance with hour and wage
requirements of this part Such documentation shall be made available to
the City for review upon request.
SPAG agrees that, except with respect to the rehabilitation or construction
of residential property designed for residential use for less than eight (8)
households, all contractors engaged under contracts in excess of $2,000.00
for construction, renovation or repair of any building or work financed in
whole or in part with assistance provided under this contract, shall comply
with federal requirements adopted by the City pertaining to such contracts
and with the applicable requirements of the regulations of the Department
of Labor, under 29 CFR, Parts 3,1,5 and 7 governing the payment of
wages and ration of apprentices and trainees to journeymen, provided, that
if wage rates higher than those required under the regulations are imposed
by state or local law, nothing hereunder is intended to relieve SPAG of its
obligation, if any to require payment of the higher wage. SPAG shall
cause or require to be inserted in full, in all such contracts subject to such
regulations, provisions meeting the requirements of this paragraph, for
such contracts in excess of $10,000.00.
2. "Section 3" Clause
Compliance with the provisions of Section 3, the regulations set forth in
24 CFR 135, and all applicable rules and orders issued hereunder prior to
the execution of this contract, shall be a condition of the federal financial
assistance provided under this contract and binding upon the City, SPAG,
and the loan recipients. Failure to fulfill these requirements shall subject
the City, SPAG, and the loan recipients, their successors and assigns, to
those sanctions specified by the agreement through which federal
assistance is provided. SPAG certifies and agrees that no contractual or
other disability exists which would prevent compliance with these
requirements.
Revolving Fund Agreement- Page 9
SPAG further agrees to comply with these "Section 3" requirements and to
include the following language in all contracts executed under this
agreement:
"The work to be performed under this contract is a project assisted
under a program providing direct federal financial assistance from
HUD and is subject to the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, 12
U.S.C. 1701. Section 3 requires that to the greatest extent feasible
opportunities for training and employment be given to lower
income residents of the project area and contracts for work in
connection with the project be awarded to business concerns which
are located in or owned in substantial part by persons residing in
the areas of the project."
1. Prohibited Activitv
SPAG is prohibited from using funds provided herein or personnel
employed in the administration of the program for political activities,
sectarian, or religious activities; lobbying, political patronage and
nepotism.
2. Conflict of Interest
SPAG and City agree to abide by the provisions of 24 CFR 570.611 with
respect to conflicts of interest, and Grantee covenants that it presently has
no financial interest, direct or indirect, which would conflict in any
manner or degree with the performance of the services required under this
Contract.
VIII. ENVIRONMENTAL CONDITIONS
A. Air and Water
Grantee agrees to comply with the following regulations insofar as they apply to
the performance of this contract: Clean Air Act, 42 U.S.C. 1857, et. seq., Federal
Water Pollution Control Act, as amended 33 U.S.C. 1251, et seq. and all
regulations and guidelines issued thereunder; Environmental Protection Agency
(EPA) regulations pursuant to 40 CFR Part 50, National Environmental Policy
Act of 1969, and HUD Environmental Review Procedures (24 CFR Part 58).
B. Flood Disaster Protection
Revolving Fund Agreement- Page 10
Grantee agrees to comply with the requirements of the Flood Disaster Protection
Act of 1973 in regard to the sale, lease, or other transfer of land acquired, cleared
or improved under the terms of this Agreement, as it may apply to the provisions
of this Agreement.
C. Historic Preservalion
Grantee agrees to comply with the Historic Preservation requirements set forth in
the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and
the procedures set forth in 36 CFR, Part 800, Advisory Council on Historic
Preservation Procedures for Protection of Historic Properties, insofar as they
apply to the performance of this Agreement. In general, this requires concurrence
from the State Historic Preservation Officer for all rehabilitation and demolition
of historic properties that are fifty years old or older or that are included on a
Federal, State, or local historic property list.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first
above.
CITYA1UBB6CK
Inw.11►ta; 0j#03T.I 1
ATTEST:
a-4,
Betty
r—
Betty M. Johnson
City Secretary
ROVED As TO CONTENT:
Sylvia X Martinez -Flores, Manager
Com. Development/ Neighborhood Initiatives
dp:cityattla-spag.doc
April 10, 1995
PLAINS OCIA
VERNME T
Y D. C SS EVENS,
hive Director
APPROVED AS TO FORM:
Linda L. Chamales,
Assistant City Attorney
Revolving Fund Agreement- Page 11