Community Development Block Grant Administration_ECIA, CARADCO BuildingTHE CITY OF
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Masterpiece on the Mississippi
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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
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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
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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.