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Community Development Block Grant Administration_ECIA, CARADCO BuildingTHE CITY OF Dui Masterpiece on the Mississippi MCVM:jh TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proposal for 2010 CDBG Grant Administration DATE: February 14, 2011 Dubuque Itifrd Alt4mericaCity 11111! 2007 The Iowa Department of Economic Development (IDED) awarded to the City of Dubuque a Supplemental Community Development Block Grant (CDBG) of $8.9 million to help fund the construction of 72 residential units at the Caradco Building, at 900 Jackson Street in Dubuque's Historic Millwork District. The CDBG grant requires that the City comply with a number of state /federal laws and quarterly reporting. East Central Intergovernmental Association (ECIA) staff is more familiar with these laws than City staff. Also, the City is not able to dedicate staff time to the administration of these grants that the complexity of these regulations demand. ECIA submitted a proposal to assist the City with the administration of the grant. The City will be billed for actual staff time up to $7,500. The scope of work to be performed by ECIA would include: • Conduct and review activities related to the compliance of federal regulations. • Meet with General Contractor and subcontractors as needed to assure compliance of federal regulations and in particular Davis Bacon regulations. • Provide a report of project completion to City staff and provide all available information for compliance audit. Economic Development Director Dave Heiar recommends City Council approval of the proposal for up to $7,500 for ECIA to administer the CDBG grant for the Caradco Building, LLLP project. I concur with the recommendation and respectfully request Mayor and City Council approval. C. Van Milligen g en Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Heiar, Economic Development Director Masterpiece on the Mississippi TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director DATE: February 11, 2011 SUBJECT: Proposal for 2010 CDBG Grant Administration Dubuque kettcl wpb 1 2007 INTRODUCTION This memo transmits for City Council review and approval, a proposal from East Central Intergovernmental Association (ECIA) to assist the City with grant administration for the 2010 Iowa Department of Economic Development Community Development Block Grant (CDBG) for the Caradco Building, LLLP project. BACKGROUND The Iowa Department of Economic Development (IDED) awarded to the City of Dubuque a Supplemental Community Development Block Grant (CDBG) of $8.9 million to help fund the construction of 72 residential units at the Caradco Building, at 900 Jackson Street in Dubuque's Historic Millwork District. The City of Dubuque worked with Caradco Building, LLLP in submitting two grant applications totaling $8.9 million. The Iowa Department of Economic Development has prepared one contract to cover both awards. The grant will assist with the development of 72 workforce housing units: 42 two- bedroom units and 30 one - bedroom units. Monthly rents are expected to range from $650 to $850. Income guidelines will apply for a portion of the workforce housing units. Projects constructed with this funding will likely result in mixed - income projects, in that, only a percentage of the total number of units are required to meet the activity income and rent requirements (i.e., the "assisted" units). The total estimated cost for the rehabilitation of the structure is $28.3 million. The Carr, Ryder & Adams Company (Caradco) Main Plant Building, a former millwork factory, occupying an entire city block, was built between 1880 and 1906. The renovation of this building is expected to act as a catalyst for the revitalization of the Historic Millwork District. With its foundation of historic, architecturally unique warehouses, the district will become an urban mixed -use development containing mixed - income housing, commercial space, and public gathering places, incorporating sustainable and energy- efficient technologies. DISCUSSION The CDBG grant requires that the City comply with a number of state /federal laws and quarterly reporting. ECIA staff is more familiar with these laws than City staff. We also are not able to dedicate staff time to the administration of these grants that the complexity of these regulations demands. We are concerned that the City staff may inadvertently jeopardize the City's receipt of the $8,900,000 grant fund by failing to comply with the multitude of steps required by the state CDBG program. Consequently, City staff requested a cost estimate from ECIA for their assistance with the administration of this grant. ECIA has submitted a proposal for to assist the City with the administration of the grant. The City will be billed for actual staff time up to $7,500. The scope of work to be performed by ECIA would include those activities outlined in the attached Scope of Services. • Conduct and review activities related to the compliance of federal regulations. • Meet with General Contractor and subcontractors as needed to assure compliance of federal regulations and in particular Davis Bacon regulations. • Provide a report of project completion to City staff and provide all available information for compliance audit. The enclosed proposal indicates that ECIA staff is familiar with the state /federal grant program, and that to date ECIA has administered many state /federal funded programs for their five - county region without an audit finding. City staff believes that the $7,500 cost is very reasonable. Funding for these administrative costs will be covered from the CDBG grant. RECOMMENDATION Entering into this contract with ECIA for their assistance with the administration of the CDBG grant benefits the City for the following reasons: • ensuring compliance with state /federal requirements, • protecting the City's receipt of the $8,900,000 grant I recommend that the City Council approve the proposal for up to $7,500 for ECIA to administer the CDBG grant for the Caradco Building, LLLP project, and authorize the City Manager to sign the enclosed proposal on behalf of the City. Enclosures F: \USERS\Econ Dev \CARADCO\RIO -CDBG Round 3 \ECIA Contract for Services CDBG Grant Admin\20110211 Memo to Council CDBG Grant Administration by ECIA.doc RESOLUTION NO. 54 -11 A RESOLUTION OF THE CITY OF DUBUQUE APPROVING THE CONTRACT FOR 2010 CDBG GRANT ADMINISTRATION TO EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION WHEREAS, THE CITY OF DUBUQUE, Iowa is party to the Agreement creating the East Central Intergovernmental Association (hereinafter called the ECIA) and is a member in good standing; and WHEREAS, THE CITY OF DUBUQUE, Iowa wishes to engage the ECIA to provide certain technical and professional services for grant administration of the City of Dubuque's 2010 Iowa Department of Economic Development Community Development Block Grant (Contract #08 -DRH -212) Program; and WHEREAS, Articles II, III (12), and VIII (2) and (3) of the Articles of Agreement of the East Central Intergovernmental Association gives the ECIA the authority to perform services under consideration. NOW, THEREFORE, BE IT RESOLVED, that the East Central Intergovernmental Association is hereby authorized to provide staff assistance as prescribed in the attached Contract for Services and Scope of Services. ATTEST: PASSED, APPROVED, AND ADOPTED this 22 nd day of February 2011. OW/ ZAati eanne Schneider, City Clerk 9 Z., Roy D. ol, Mayor CONTRACT FOR SERVICES WITH EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION THIS CONTRACT, entered into by and between the East Central Intergovernmental Association (hereinafter called ECIA) and under a passed and approved RESOLUTION OF DUBUQUE, IOWA, (hereinafter called Grantee), authorizing ECIA's assistance in carrying out this Contract and attached Scope of Services, and approved by ECIA on March 30, 2011. TERMS. This Contract carries the following terms. SECTION 1. Scope of Services ECIA shall provide and perform the necessary services, required to carry out grant administration for 2010 Iowa Department of Economic Development Community Development Block Grant #08 - DRH - 212 as set out in the Scope of Services attached. SECTION 2. Time of Performance The services of ECIA shall commence on date of State of Iowa grant approval, and shall be completed upon receipt of final Certificate of Completion from the State of Iowa. 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 Al22. Total payment shall not exceed $7,500. SECTION 4. Personnel The ECIA represents that it has, or will acquire, all personnel necessary to perform the services under this Contract. SECTION 5. Property ECIA shall be free to acquire or use existing property, real or personal, as it deems necessary in the performance of work under this agreement. SECTION 6. Access to Records ECIA, the Grantee, the State of Iowa, the U.S. Department of Housing and Urban Development, the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books, documents, papers, and records which are directly pertinent to this specific contract, for the purpose of making audit, examinations, excerpts, and transcriptions. ECIA and the Grantee shall maintain all required records for five years after complete grant closeout and all other pending matters are closed. SECTION 7. Civil Rights Provisions 7.1 Discrimination in Employment - ECIA shall not discriminate against any qualified employee or applicant for employment because of race, color, religion, sex, national origin, age, or disability. Such action shall include but may not be limited to the following: employment, upgrading, demotion or transfers, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including an apprenticeship. ECIA agrees to post notices setting forth the provisions of the nondiscrimination clause in conspicuous places so as to be available to employees. 7.2 Consideration for Employment - ECIA shall, in all solicitations or advertisements for employees placed by or on behalf of the Grantee, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, age, or disability. Solicitation and Advertisement - ECIA shall list all suitable employment openings in the State Employment Service local offices. 7.3 Civil Rights Compliance in Employment - ECIA shall comply with all relevant provisions of the Iowa Civil Rights Act of 1965 (Iowa Executive Orders 15 and 34), Federal Executive Order 11246, as amended by Federal Executive Order 11375, Title VII of the U.S. Civil Rights Act of 1964, as amended, the Equal Pay Act of 1963, Section 504 of the Vocational Rehabilitation Act of 1973 (29 U.S.C. 794; the Age Discrimination Act of 1975 as amended (U.S.C. 6101 et seq.); the Vietnam Veterans Readjustment Act of 1974; the Americans with Disabilities Act, as applicable (P.L. 101 -336, 42 U.S.C. 12101- 12213); and related Civil Rights and Equal Opportunity statutes; and regulations which implement these laws. ECIA will furnish all information and reports requested by the State of Iowa or required by or pursuant to the rules and regulations thereof and will permit access to payroll and employment records by the State of Iowa to investigate compliance with these rules and regulations. 7.3.A Federal Executive Orders 11246 and 11375 require that all contracts in excess of $10,000 include the following language: "During the performance of this contract, the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause. (2) The contractor will, in all solicitations or advertisements for employees places by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. (3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the labor union of workers' representative of the contractor's commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The contractor will comply with all provisions of Executive Order No. 11246 of September 24, 1965, and of the rules, regulations, and relevant orders for the Secretary of Labor. (5) The contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (6) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any such rules, regulations, or orders, this contract may be cancelled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided bylaw. (7) The contractor will include the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless expected by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the contracting agency may direct as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the contracting agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States." 7.4 Program Nondiscrimination - ECIA shall conform with requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. 200d et.seq.), HUD regulations issued pursuant thereto contained in 24 CFR Part 1, and Section 109 of Title 1 of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5309). No person in the United States shall on the ground of race, color, physical or mental disabilities, national origin, religion or religious activities, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available through this contract. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped individual as provided in Section 504 of the Rehabilitation Act of 1973 shall also apply to any such program or activity. 7.5 Fair Housing - ECIA (if applicable) shall comply with Title VIII of the Civil Rights Act of 1968 (4f2 U.S.C. 3601 et. seq.), generally known as the Fair Housing Act, and with HUD regulations found at 24 CFR Part 107, issued in compliance with Federal Executive Order 11063, as amended by Federal Executive Order 12259. 7.6 ECIA shall comply with provisions for training, employment, and contracting in accordance with Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u). 7.6A. Section 3Section 3 applies to projects involving housing construction, housing rehabilitation or other public construction with a CDBG award of greater than $200,000, and the contracts and subcontracts are greater than $100,000. All Section 3 covered contracts shall include the following clause (referred to as the Section 3 clause): A. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD- assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low - income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with section 3 covered Indian housing assistance, section 7(b) of the Indian Self - Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian -owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 and section 7(b) agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b)." 7.7 Noncompliance with the Civil Rights Laws In the event of ECIA's noncompliance with the nondiscrimination clauses of this contract or with any of the aforesaid rules, regulations, or requests, this contract may be cancelled, terminated, or suspended either wholly or in part. In addition, the State of Iowa may take further action, imposing other sanctions and invoking additional remedies as provided by the Iowa Civil Rights Act of 1964, as amended, Chapter 216, Code of Iowa, 2005 as heretofore and hereafter amended, or otherwise provided by law. SECTION 8. Termination by Grantee 8.1 The Grantee may, by thirty (30) days written notice to ECIA, terminate this contract in whole or in part at any time, either for the grantee's convenience or because of the failure of ECIA to fulfill its obligations under the contract. Upon receipt of such notice, ECIA shall: (1) immediately discontinue all services affected (unless the notice directs otherwise), and (2) deliver to the grantee all data, drawings, specifications, as may have been accumulated by the ECIA in performing this contract, whether completed or in process. 8.2 Notwithstanding the above, ECIA shall not be relieved of liability to the grantee for damages sustained by the grantee by virtue of any breach of the contract by ECIA. The grantee may withhold any and all payments to ECIA for the purpose of setoff until such time as the exact amount of damages due the grantee from ECIA is determined. 8.3 If the termination is for convenience of the grantee, ECIA shall be entitled to compensation determined in accordance with Section 3 of this contract. SECTION 9. Termination by ECIA ECIA may terminate this contract by thirty (30) days written notice to the grantee for grantee failure to comply with the laws, rules, or regulations of the U.S. Department of Housing and Urban Development in carrying out the Community Development Block Grant Program. The notice shall stipulate the laws, rules, or regulations that have been violated, and date ECIA advised the grantee of said violation. SECTION 10. Government -Wide Restriction on Lobbying CERTIFICATION REGARDING GOVERNMENT - WIDE RESTRICTION ON LOBBYING. ECIA certifies, to the best of its knowledge and belief, that: 10.1 No Federal appropriated funds have been paid or will be paid by or on behalf of ECIA, to any person for influencing or attempting to influence an officer of 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 the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. 10.2 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, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the Contractor shall complete and submit Standard Form LLL- "Disclosure Form to report Federal Lobbying" in accordance with its instruction. 10.3 ECIA shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. SECTION 11. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion. ECIA certifies, to the best of its knowledge and belief, that: 11.1 The participant certifies by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in this transaction by any Federal department or agency. SECTION 12. Political Activi No portion of program funds shall be used for any partisan political activity or to further the election or defeat of any candidate for public office. Neither the program nor the funds provided therefore, nor the personnel employed in the administration of this Contract or its Funding Agreements, shall be in any way or to any extent, engaged in the conduct of political activities in contravention of The Hatch Act (5 U.S.C. 15). L SECTION 13. Other Requirements In connection with the carrying out of this agreement, ECIA agrees to comply with any and all rules and regulations of the Iowa Department of Economic Development and the Department of Housing and Urban Development concerning third party contracts. PASSED AND APPROVED: Grantee: City of Dubuque Date: February , 2011 Roy D. Bu f +l, Mayor Attest: Jeanne Schneider, City Clerk East Central Intergovernmental Association Date: March 30, 2011 Chairperson or Executive Director Attest The East Central Intergovernmental Association (ECIA) shall assist in compliance with requirements set forth by the Iowa Department of Economic Development; maintenance of required records and documents; and other required actions not specifically listed, but requested by the local government, including, but not limited to the following activities: I. General Activities A. Be responsible for conducting and review of activities related to the compliance of federal regulations pertaining to the Davis -Bacon Act, as amended (40 U.S.C. 276a to a7), Copeland "Anti- Kickback" Act (18 U.S.C. 874 and 40 U.S.C. 276c), Contract Work Hours and Safety Standards Act (40 U.S.C. 327 -333) and Section 3. B. Meet with Gronen Restoration and/or their project architect and contractor /subcontractors to review and assure understanding of terms and conditions of the above regulations, if requested. C. Assist in meeting(s) pertaining to the above regulations and ensure documentation with state /federal officials during site visits. D. Immediately advise the owner and the City if the contractors fail to comply with Davis Bacon regulations. II. PROGRAM ADMINISTRATION Attachment A SCOPE OF SERVICES A. Files 1. ECIA shall review files regularly and insure that required information is contained in each. 2. The files shall be located in the office of ECIA during construction and will remain the property of and provided to City of Dubuque upon contract completion. B. Project Specific Activities 1. Review project specifications and bid documents for compliance with above regulations. 2. Review construction contract(s) for compliance. 3. Obtain contractor clearances, if not completed. 4. Obtain wage determinations, if needed. 5. Meet with General Contractor and subcontractors as needed to assure compliance. 6. Provide labor standards information to contractor and sub - contractors. 7. Make construction site visit to assure posting of wage determination, labor standards provisions and required jobsite posters. 8. Receive and review contractor payroll forms (weekly) and follow up with necessary parties to ensure compliance. 9. Conduct jobsite employee interviews and verify pay compliance with payrolls. 10. Verify Anti- kickback statements from contractor(s). 11. Provide verification of contractor /subcontractor payroll compliance to City Staff prior to City issuance of contractor payments. 12. Obtain Section 3 reports from contractors and subcontractors and verify compliance. C. Program Close -Out 1. Provide a report of project completion to City staff in a format prepared by the City. 2. Assist auditor as needed by providing all available information for compliance audit.