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Purch Services - Wash. Tool LibCITY OF DUBUQUE, IOWA MEMORANDUM June 6, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Purchase of Service Agreement - Washington Tool Library, Inc. During the Fiscal Year 2002 budget process, the Mayor and City Council provided $10,500 for a Purchase of Service Agreement with the Washington Tool Library, Inc. Administrative Services Manager Pauline Joyce is recommending execution of the attached Purchase of Service Agreement with the Washington Tool Library, Inc., to provide funding for the agency to continue to improve the condition of residential neighborhoods by providing a variety of tools for the purpose of improvement or rehabilitation of residential property. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/ksf Attachment Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Pauline Joyce, Administrative Services Manager CITY OF DUBUQUE, IOWA MEMORANDUM June 6, 2001 TO: Michael C. Van Milligen, City Manager FROM: Pauline Joyce, Administrative Services Manager SUBJECT: Purchase of Service Agreement- Washington Tool Library, Inc. The adopted Fiscal Year 2002 operating budget provides for the payment of $10,500 to the Washington Tool Library, Inc. City funding enables the agency to continue to provide a variety of tools, without charge, for the purpose of improvement or rehabilitation of residential property. It is my recommendation that the City Council approve the attached Purchase of Service Agreement with the Washington Tool Library, Inc., and authorize the Mayor to execute the contract on behalf of the City. PJ/ksf Attachment CITY OF DUBUQUE, IOWA, AND WASHINGTON NEIGHBORHOOD TOOL LIBRARY, INC. PURCHASE OF SERVICE AGREEMENT THIS AGREEMENT dated as of the 1st day of July, 2001, is entered into by and between the City of Dubuque, Iowa, a municipal corporation organized and existing under the laws of the State of Iowa (hereinafter referred to as the "Recipient") and Washington Neighborhood Tool Library, Inc., with its principal place of business in Dubuque, Iowa (hereinafter referred to as the "Sub-recipient"). WITNESSETH: WHEREAS, the Recipient is a participating city in the Community Development Block Grant Program of the United States Department of Housing and Urban Development; and WHEREAS, the Recipient, wishes to engage the Sub-recipient to assist the Recipient in utilizing such funds to improve t. he condition of residential neighborhoods. NOW THEREFORE, in consideration of the premises and respective covenants, agreements and representations hereinafter set forth, the parties agree as follows: I. SCOPE OF SERVICES/CONTRACT TERMS The Sub-recipient will continue to operate a facility, which lends, without charge, a vadety of tools for the purpose of improvement or rehabilitation of residential property. The Sub-recipient will continue to increase when deemed necessary its inventory of tools in order to provide a wider range of tools, principally for persons residing in all of census tracts #1 and 2; Block 3 of Census Tract 3 and 4; Blocks 1, 3, 4, and 5 of Census Tract 5; Block 2 of Census Tracts 6, 7.01, 7.02 and 101.01; and Block 3 of Census Tract 101.02, and where other Community Development activities are taking place. The Sub-recipient shall provide the Recipient, on a bimonthly basis, a report of the number of persons borrowing tools, the number of tools loaned dudng the period, and the location, by census tract, of the persons borrowing tools. Performance Monitoring. The Recipient will monitor the performance ofthe Sub-recipient against goals and performance standards required herein. Substandard performance as determined by the Recipient will constitute noncompliance with this agreement. If action to correct such substandard performance is not taken by the Sub-recipient within a reasonable period of time after being notified by the Recipient contract suspension or termination procedures will be initiated. II. TIME OF PERFORMANCE Services of the Sub-recipient shall start on the 1st day of July 2001, and end on the 30th day of June 2002. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Sub-recipient remains in control of CDBG funds or other assets including program income. III. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Recipient under this contract shall not exceed $10,500. Such amount shall constitute complete compensation for all services to be rendered, including expenses for the operation of the physical structure and the cost in purchasing and maintaining tools. The sum shall be paid with an initial payment of $2,625.00 on July 1, 2001, and in nine (9) equal payments of $875.00 commencing October 1, 2001. Payments may be contingent upon certification of the Sub-recipient's financial management system in accordance with the standards specified in OMB Circular A-110, Attachment F. IV. NOTICES Communication and details concerning this contract shall be directed to the following contract representatives: Recipient Aggie Kramer Housing and Community Development Department 1805 Central Ave Dubuque, Iowa 52001 Sub-recipient Elmer Nehls Washington Tool Library, Inc. 1697 Jackson Street Dubuque IA 52001 V, SPECIAL CONDITIONS The Sub-recipient agrees to comply with the requirements of Title 24 Code of Federal Regulations, Part 570 of the Housing and Urban Development regulations concerning Community Development Block Grants (CDBG) and all federal regulations and policies issued pursuant to these regulations. The Sub- recipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. 2 VI. GENERAL CONDITIONS A. General Compliance In addition to the specific requirements set forth in this agreement, the Sub- recipient agrees to comply with all applicable federal, state and local laws and regulations governing the funds provided under this contract. B. Independent Contractor Nothing contained 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. The Sub-recipient shall at all times remain an independent contractor with respect to the services to be performed under this Agreement. The Recipient shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Sub- recipient is an independent Sub-recipient. C. Hold Harmless The Sub-recipient shall hold harmless, defend and indemnify the Recipient from any and all claims, actions, suits, charges and judgments whatsoever that arise out of the Sub-recipient's performance or nonperformance of the services or subject matter called for in this Agreement. D. Insurance and Bonding The Sub-recipient shall maintain insurance to the extent and against such hazards and liabilities as are in keeping with the current insurance program of Recipient, which is set forth in Exhibit A attached hereto and entitled "List of Insurance Coverage". E. Grantor Recognition The Sub-recipient shall insure recognition of the role of the ReciPient in providing services through the contract, Alt activities, facilities and items utilized pursuant to this contract shall be prominently labeled as to funding source. In addition, the Sub-recipient will include a reference to the support provided herein in all publications made possible with funds available under this contract. F. Amendments Recipient or Sub-recipient 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 Recipient's governing body. Such 3 amendments shall not invalidate this Agreement, nor relieve or release Recipient or Sub-recipient from its obligations under this Agreement. Recipient may, in its discretion, amend this Agreement to conform with federal, state or local governmental 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 ofthisAgreement, such modifications will be incorporated only by written amendment signed by both Recipient and Sub- recipient. G. 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 thirty (30) days before the effective date of such termination. Partial termination ofthe Scope of Service in Paragraph I.A above may only be undertaken with the prior written approval of Recipient. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by Sub-recipient under this Agreement shall, at the option of the Recipient, become the property of the Recipient, and Sub- recipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or material prior to the termination but in no event shall Sub-recipient receive more than the amount specified in Paragraph III. Recipient may also suspend or terminate this Agreement, in whole or in part, if Sub-recipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the Recipient may declare the Sub-recipient ineligible for any further participation in Recipient contracts, in addition to other remedies as provided by law. In the event there is probable cause to believe the Sub- recipient is in noncompliance with any applicable rules or regulations, the Recipient may withhold up to fifteen (15) percent of said contract funds until such time as the Sub-recipient is found to be in compliance by the Recipient, or is otherwise adjudicated to be in compliance. VII. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. The Sub-recipient agrees to comply with Attachment F of OMB Circular A-110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate and effective intemal financial controls, and maintain necessary source documentation for all costs incurred. 4- 2. Cost Principles The Sub-recipient shall administer its program in conformance with OMB Circular A-122, "Cost Principles for Nonprofit Organizations" or A-21, "Cost Principles for Educational Institutions" as applicable; [and if the Sub-recipient is a governmental or quasi-governmental agency, the applicable sections of 24 CFR Part 85, "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments"] for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Recordkeeping 1. Records to be Maintained The Sub-recipient shall 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: a. Records providing a full description of each activity undertaken; Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; and Financial records as required by 24 CFR Part 570.502, and OMB Circular A-110. 2. Property Records The Sub-recipient shall maintain records of a personal property inventory of tools which clearly identifies tools purchased, improved or sold. All assets purchased with funding from the CDBG program shall revert to the Recipient if this agreement fails to be extended or the Tool Library closes. 3. National Objectives The Sub-recipient agrees to maintain documentation that demonstrates that the activities carried out with funds provided under this contract meet one or more of the CDBG program's national objectives - (1) benefit Iow/moderate income persons, (2) aid in the prevention or elimination of slum or blights, and (3) meet community development needs having a particular urgency - as defined in 24 CFR Part 570.208. 4. Closeouts Sub-recipient obligation to the Recipient shall not end until all closeout requirements are completed. Activities during this closeout 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 Recipient, and determining the custodianship of records. 5. Maintenance of Records and Right to Inspect Sub-recipient will keep and maintain books, records and other documents relating directly to the receipt and disbursement of loan funds and job creation for a period of three years; and any duly authorized independent accounting representative of Recipient, or the Comptroller General of the United States, shall at all reasonable times have access to and the right to inspect, copy, audit and examine all such books and other documents of Sub-recipient pertaining to the project until the completion of all closeout procedures respecting Recipient's loan and the final settlement and conclusion of all issues arising out of said loan. Co Reporting and Payment Procedures 1. Program Income Except as specified below, Sub-recipient will pay to Recipient all program income earned prior to or received following termination of this AgreemenT. Program income may be retained by Sub-recipient if utilized for qualifying project expenses. The Recipient will pay to the Sub-recipient funds available under this contract based upon information submitted by the Sub-recipient and consistent wfth any approved budget and Recipient policy concerning payments. With the exception of certain advances, payments will be made for eligible expenses actually incurred by the Sub-recipient, and not to exceed actual cash requirements. Payments will be adjusted by the Recipient in accordance with advance fund and program income balances available in Sub-recipient accounts. In addition, the Recipient reserves the right to liquidate funds available under this contract for costs incurred by the Recipient on behalf of the Sub- recipient. 6 3. Progress Reports The Sub-recipient shall submit regular progress reports to the Recipient bi-monthly. D. Procurement 1. Compliance The Sub-recipient shall comply with current Recipient policy concerning the purchase of equipment and shall maintain an inventory record of all nonexpendable personal property as defined by such policy as may be procured with funds provided herein. Ail program assets (unexpended program income, property, equipment, etc.) shall revert to the Recipient upon termination of this contract. 2. Travel The Sub-recipient shall obtain written approval from the Recipient for any travel outside the metropolitan area with funds provided under this contract. VIII. .PERSONNEL AND PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Sub-recipient shall comply with all federal regulations in effect as of the date of this Agreement as they apply to federally assisted programs and activities of the Department of Housing and Urban Development including, but not limited to, Section 109 of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5309) and Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794). Recipient shall furnish, upon written request of the Sub-recipient, copies of said regulations as provided by the Department of Housing and Urban Development. 2. Nondiscrimination In carrying out the project, Sub-recipient shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, national odgin, age or disability. Such action shall include but not be limited to, the following: employment upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and selection for training, including apprenticeship. Sub-recipient shall post in a conspicuous place, available to employees and applicants for employment, notices to be provided by Recipient setting forth the 7 provisions of this nondiscrimination clause. Sub-recipient shall state that all qualified applicants will receive consideration for employment without regard to race, religion, color, sex, national origin, age or disability. 3. Section 504 The Sub-recipient 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 federally assisted program. The Recipient shall provide the Sub-recipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this contract. B. Affirmative Action 1. Approved Plan The Sub-recipient agrees-that it shall be committed to carry out pursuant to the Recipient's specifications an Affirmative Action Program in keeping with the principles as provided in President's Executive Order 11246 of September 24, 1965. The Recipient shall provide Affirmative Action guidelines to the Sub-recipient to assist in the formation of such program. 2. W/MBE The Sub-recipient will use its best efforts to afford minority and women owned business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this contract, the term "minority and female business enterprise" means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, "minority group members" are African Americans, Spanish speaking, Spanish surnamed or Spanish heritage Americans, Asian Americans and American Indians. The Sub-recipient may rely on written representations by Sub-recipients regarding their status as minority and female business enterprises in lieu of an independent investigation. 3. Access to Reccrds Sub-recipient agrees that any duly authorized representative of the Recipient or of the United States shall at all reasonable times have access to any portion of the project until the completion of all closeout procedures respecting the Community Development Block Grant loan. 4. Subcontract Provisions The Sub-recipient will include the provisions of Paragraphs IX A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each Sub-recipient or vendor. C. Employment Restrictions 1. Prohibited Activity The Sub-recipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities; sectarian, or religious activities; lobbying, political patronage, and nepotism activities. 2. OSHA Where employees or volunteers are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to be participants' health or safety. Conduct 1. Assignability The Sub-recipient shall not assign or transfer any interest in this contract without the prior written consent of the Recipient thereto; provided, however, that claims for money due or to become due to the Sub-recipient from the Recipient under this contract may be assigned to a bank, trust company or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the Recipient. 2. Hatch Act The Sub-recipient agrees that no funds provided, nor personnel utilized under this contract, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V United States Code. 3. Conflict of Interest The Sub-recipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this contract. The Sub-recipient further covenants that in the performance of this contract no person having such a financial interest shall be used or retained by the Sub-recipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent. consultant, officer or elected official or appointed official of the Recipient, or of any designated public agencies or Sub-recipients which are receiving funds under the CDBG Entitlement program. 4. Subcontracts a. Approvals The Sub-recipient shall not enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of the Recipient prior to the execution of such agreement. b. Monitoring The Sub-recipient will monitor all subcontracted services on a regular basis to assure contract compliance, Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow up actions taken to correct areas of noncompliance. c. Content The Sub-recipient shall cause all of the provisions of this contract in its entirety to be included in and made a part of any subcontract executed in the performance of this agreement. Selection Process The Sub-recipient shall undertake to insure that all subcontracts let in the performance of this agreement shall be awarded on a fair and open competition basis. Executed copies of all subcontracts shall be forwarded to the Recipient along with documentation concerning the selection process, Religious Organization The Sub-recipient agrees that funds provided under this contract will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the federal regulations specified in 24 CFR 570.200(j). lO IX. ENVIRONMENTAL CONDITIONS A. Air and Water The Sub-recipient 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., as amended 1318 relating to inspection, monitoring, entry; reports and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder. Environmental Protection Agency (EPA) regulations pursuant to 40 CFR, Part 50, as amended. National Environmental Policy Act of 1969 HUD Environmental Review Procedures (24 CFR, Part 58). .B. Lead Based Paint The Sub-recipient agrees that any censtruction or rehabilitation of the leased structure with assistance provided under this contract shall be subject to HUD Lead Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, and in particular Sub-part B thereof. Such regulations pertain to all HUD assisted programming and require that all owners, prospective owners, and tenants or properties constructed prior to 1978 be properly notified that such properties may include lead based paint. Such notification shall point out the hazards of lead based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead based paint poisoning. C. Historic Preservation The Sub-recipient 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 Procedu res for Protection of Historic Properties, insofar as they apply to the performance of this contract. 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. 11 IN WITNESS WHEREOF the parties have executed this contract as of the date first written above. Terrance M. Duggan, Mayor WITNESSED Jeanne F. Schneider, City Clerk CITY OF DUBUQUE. IOWA WASHINGTON NEIGHBORHOOD TOOL LIBRARY, INC. Elmer Nehls, Secretary 12