Loading...
ECIA - 5th Amendment to Grant Administration (CDBG) Agreement Copyright 2014 City of Dubuque Consent Items # 12. ITEM TITLE: East Central Intergovernmental Association (ECIA) - 5th Amendment to CDBG Grant Administration SUMMARY: City Manager recommending approval of Amendment #5 to East Central Intergovernmental Association's (ECIA) Contract for Administrative Services for the Linseed Oil Building portion of the City's Community Development Block Grant (CDBG) contract #08-DRH-212. RESOLUTION Approving Amendment #5 to the contract with East Central Intergovernmental Association for Grant Administration of CDBG Contract #08-DRH-212 with the Iowa Economic Development Authority SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type ❑ Linseed Oil Building 5th Amendment to ECIA Contract-MVM Memo City Manager Memo ❑ Staff Memo Staff Memo ❑ Amendment#5 Supporting Documentation ❑ Resolution Resolutions THE CITY OF Dubuque UBE I erica .i Masterpiece on the Mississippi 2007-2012-2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amendment #5 of ECIA Contract for Administrative Services for Linseed Oil Building (CDBG Contract #08-DRH-212) DATE: October 13, 2015 Economic Development Director Maurice Jones recommends City Council approval of Amendment #5 to East Central Intergovernmental Association's Contract for Administrative Services for the Linseed Oil Building portion of the City's Community Development Block Grant (CDBG) contract#08-DRH-212. The amendment would add $13,133.62 to the total contact amount, bringing the total of this multi-year contract to an amount not to exceed $90,633.62, all of which will be covered by the administrative line item in the CDBG grant. Since the time of the 4t" amendment, this project had a US Department of Labor routine investigation of the contractors and employees on the project. The Department of Labor selected the two largest CDBG funded projects in the state and the Linseed Oil Building project was one of the two. ECIA staff spent over one hundred hours on this project as a result of the Department of Labor investigation, depleting the administration contract with the City several months ago. I concur with the recommendation and respectfully request Mayor and City Council approval. Micliael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Maurice Jones, Economic Development Director Dubuque Economic Development Department THE CITY OF 50 West 13th Street AII-AwftlitY Dubuque,Iowa 52001-4864 DUB3 &kE1 I Office(563)589-4393 TTY(563)690-6678 ® http://www.cityofdubuque.org Masterpiece on the Mississippi 200.2012.2013 TO: Michael Van Milligen, City Manager FROM: Maurice Jones, Economic Development Director SUBJECT: Amendment#5 of ECIA Contract for Administrative Services for Linseed Oil Building (CDBG contract#08-DRH-212) DATE: October 12, 2015 INTRODUCTION This memorandum presents for Council review and approval the 5th Amendment of ECIA's contract for administrative services related to the Linseed Oil Building portion of the City's CDBG contract#08-DRH-212. BACKGROUND City Council approved a contract for services with the East Central Intergovernmental Association (ECIA) on February 22, 2011, for the company to provide administrative services related to the City's CDBG contract#08-DRH-212. At that time, the CDBG contract only included the rehabilitation of the Caradco Building. Due to the complicated nature of that project, the original contract of$7,500 was increased by $25,000 in the 1 St amendment and by another $10,000 in the 2nd amendment. Those costs were covered by the construction line item of the CDBG grant. In September 2013, the Linseed Oil Building was added to the CDBG contract and subsequently added to ECIA's administrative contract with the City as well, with an addition of$10,000 for administrative services through a 3rd amendment. At the same time, the State recognized that an administrative line item should be included in the grant. An administrative line item of $44,977 was added to the State contract. The $10,000 of contracted services from the 3rd amendment is eligible to be drawn down from the $44,977 line item. In March 2015, due to far greater administration time on the part of ECIA staff than had been anticipated, and still eligible to be drawn down from the $44,977 line item, the City Council approved a 4th amendment with ECIA for an additional $25,000 to administer this grant. DISCUSSION Since the time of the 4th amendment, this project had a US Department of Labor (DOL) routine investigation of the contractors and employees on the project. The DOL selected the two largest CDBG funded projects in the state and the Linseed Oil Building project was one of the two. The investigation involved seven DOL investigators who requested copies of all 26 contractors' payroll reports on the project, supporting documentation for the report signators, fringe benefit documentation and other deduction documentation. The DOL followed up with at least two visits to the city. They interviewed employees at the jobsite and the accounting firm for one of the contractors. To the best of our knowledge after three plus months of the DOL investigation, there are no issues related to any of the Davis-Bacon reporting and compliance. ECIA staff spent over one hundred hours on this project as a result of the DOL investigation, depleting the administration contract with the City several months ago. The construction of the building is now complete, and the administration of the project is very near completion, with the closeout paperwork and one or two draw requests remaining to be completed. The proposed 5th amendment would add $13,133.62 to the total contract amount. This 5th Amendment would bring the total of the multi-year contract to an amount not to exceed $90,633.62, all of which would be covered by the administrative line item in the CDBG grant. RECOMMENDATION/ ACTION STEP I recommend the City Council approves the attached resolution adopting the 5th Amendment to the ECIA administration contract for the City's CDBG contract #08-DRH- 212. RESOLUTION NO. 357-15 APPROVING AMENDMENT # 5 TO THE CONTRACT WITH EAST CENTRAL INTERGOVERNMENTAL ASSOCIATON FOR GRANT ADMINISTRATION OF CDBG CONTRACT #08-DRH-212 WITH THE IOWA ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the City of Dubuque (City) and East Central Intergovernmental Association (ECIA) entered into a Contract for Services (the Contract) for the administration of CDBG Contract #08-DRH-212 (the Grant), as amended; and WHEREAS, the work necessary to complete the proper administration of the Grant has increased due to unexpected and extended routine investigation from the US Department of Labor; and Whereas, City and ECIA desire to amend the Contract as set forth in the attached Amendment #5. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Amendment #5 to the Contract for Services is hereby approved. PASSED, APPROVED, AND ADOPTED this 19th day of October 2015. Roy D. Buol, ,,Mayor ATTEST: Kevin'S. Firnstah Ci y Clerk CONTRACT FOR SERVICES WITH EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION Amendment #5: Dubuque 2010 CDBG Multi -Family Renovation Project Administration Contract The Iowa Economic Development Authority issued Amendment #5 to the City of Dubuque's Community Development Block Grant Contract #08-DRH-212 to add and include the renovation of the Linseed Oil Building into 16 rental units. This amendment to the City's administration contract with ECIA adds and includes the general administration associated with the Linseed Oil Building into the contract as detailed in the original Contract Scope of Services. THE CONTRACT, entered into by and between the East Central Intergovernmental Association (hereinafter called ECIA) and the City of Dubuque, approved by a Dubuque Resolution on February 22, 2011 authorizing ECIA's assistance in carrying out the City's Community Development Block Grant Contract #08-DRH-212 and approved by ECIA on March 30, 2011 is hereby amended as follows. Revise the following Section. SECTION 3. Method of Payment Payment shall be due upon receipt of a monthly bill for services. The payment shall be based on the actual costs incurred by the agency in administering the contract, including labor and overhead, all according to OMB Circular A122. Total payment shall not exceed $90,633.62. PASSED AND APPROVED: Grantee: City Dubuque Roy D. Buol, Iayor Attest: Kevin Firnstahl, C Clerk East Central Intergovernmental Association Date Chairperson or Executive Director Date Attest: