Assignment Agreement for Prodigy Daycare
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RESOLUTION NO. 316-00
A RESOLUTION CONSENTING TO AN ASSIGNMENT AGREEMENT FOR
KINDERLAND LEARNING CENTER ( PRODIGY, INC.) CHILD CARE
INITIATIVE GRANT TO PRODIGY CHILD DEVELOPMENT, INC.
Whereas, the City of Dubuque, Iowa, provided a Child Care Initiative Grant to
Kinderland Learning Center, now known as Prodigy, Inc, on March 13, 1997 for the expansion of
the day care facility at 715 Locust; and
Whereas, owner Pat Mohr, now known as Patricia Scott, is proposing to sell the business
assets to Alan Arzu under the new corporation ofPodigy Child Development, Inc.; and
Whereas, Patricia Scott has asked the City to consent to the assignment of the Child Care
Initiative Grant Agreement to Prodigy Child Development, Inc; and
Whereas, the Assignment Agreement, hereto attached and by this reference made a part
hereof, sets forth the terms and conditions of the assignment.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1.
That the Assignment Agreement is hereby accepted and approved.
Section 2. That the Mayor is hereby authorized to execute, on behalf of the City
Council of the City of Dubuque, Iowa, the consent of the City of Dubuque to the attached
Assignment Agreement.
Passed, approved and adopted this 17th day of July, ~
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
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Brian J. Kane
Gary K. Norby
Les V. Reddick*
D. Flint Drake**
Brad J. Heying
Todd L. Stevenson*
Louis P. pfeiler
MaryBeth pfeiler Salmon
KANE, NORBY & REDDICK, P .C.
ATTORNEYS
2100 ASBURY ROAD, SUITE 2
DUBUQUE, IA 52001-3069
All admitted in Iowa
* Also admitted in Illinois
*" Also admitted in Wisconsin
Phone: (319) 582-7980
Facsimile: (319) 582-5312
E-mail: knrpC@mcleodusa.net
June 23, 2000
Mr. James Burke, Director
Community and Economic Development Department
City Hall
13th and Central Avenue
Dubuque, IA 52001
Dear Jim:
We are attorneys for Prodigy, Inc. and its owner, Patricia
Scott, formerly known as Patricia Mohr. In 1997 Ms. Scott received
a $100,000 grant through the City of Dubuque for renovation of the
child care facility at 715 West Locust Street. A Child Care
Initiative Grant Agreement was signed on March 13, 1997.
As a matter of clarification, the Grant Agreement refers to
Pat Mohr (now known as Patricia Scott) doing business as
"Kinderland Learning Center," but she incorporated the business at
715 West Locust Street under the name "Prodigy, Inc." Prodigy,
Inc. has continuously operated the daycare center at 715 West
Locust Street since the grant was awarded. Prodigy, Inc. is solely
owned by Ms. Scott. Her son, Alan Arzu, has been managing the
daycare for the past several years.
Ms. Scott, through Prodigy, Inc., would now like to sell the
daycare business to Alan Arzu. This would be a sale of assets to
Prodigy Child Development, Inc., a new corporation being formed by
Mr. Arzu. All rights in the name "Prodigy" would be transferred to
the new corporation, and the daycare business would continue at the
same location and would continue to use the "Prodigy" name. For
tax purposes, it is much better for Mr. Arzu to purchase the assets
of the business rather than the stock in Prodigy, Inc. This
transaction is scheduled to close on August 1, 2000. As part of
the sale of assets, Prodigy, Inc., as seller, is proposing to
assign to the buyer all of its rights, duties and obligations under
the Child Care Initiative Grant Agreement of March 13, 1997.
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KANE, NORBY & REDDICK, P.C.
Mr. James Burke
June 23, 2000
Page 2
Exhibit A attached to the Grant Agreement provides, at
paragraph D-1 on page 10, as follows:
1. Assignability
The Subrecipient (Pat Scott) shall not assign or
transfer any interest in this contract without the
prior written consent of the Recipient (City)
thereto; provided, however, that claims for money
due or to become due to the Subrecipient 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.
The above provision, in our opinion, expressly contemplates that
the Grant Agreement may be assigned by our client, subject to the
City of Dubuque's consent.
Enclosed in duplicate is a proposed Assignment Agreement which
has been signed by Ms. Scott and Prodigy, Inc., as assignors, to
Prodigy Child Development, Inc., as assignee and buyer. Attached
to the Assignment is a copy of the March 13, 1997 Grant Agreement.
By this letter we are respectfully requesting that the City of
Dubuque consent to the assignment by signing the Consent form on
page 3. We have discussed this with Tim 0 I Brien, and Tim
recommends that since the City Council had to approve the original
grant, the Council would also have to approve any assignment of the
Grant Agreement.
We would like to address certain collateral issues that may
arise during the City's consideration of our client's request.
1. During the past several years Patricia Scott has operated
daycare centers at 5005 Asbury Road and 1125 Rockdale Road in
Dubuque under the name II Kinderland, Inc. ", which is a separate Iowa
corporation. In late 1999 Kinderland, Inc. sold the daycare center
at 1125 Rockdale Road. During the last month there has been
considerable publicity about an investigation of Kinderland, Inc.
in connection with alleged overbilling of government subsidized
child care. We wish to emphasize that this investigation dealt
only with the daycare centers operated by Kinderland, Inc., which
is a separate business. The investigation did not involve in any
way the business operated by Prodigy, Inc. at 715 West Locust
Street in Dubuque.
2. The proposed assignment of the Grant Agreement will not
relieve Ms. Scott and Prodigy, Inc. from their obligations under
the Grant Agreement. Paragraph 3 of the Assignment expressly
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KANE, NORBY & REDDICK, P .C.
Mr. James Burke
June 23, 2000
Page 3
states that the City of Dubuque may continue to enforce the terms
of the Grant Agreement against the assignors even though the buyer,
as assignee, is assuming all duties and obligations of the Grant
Agreement.
3. Article IX of the Grant Agreement provides, at
subparagraph F, that if the child care operation ceases operation
or is substantially reduced in operation, then a portion of the
original grant must be repaid to the City of Dubuque. The child
care operation will continue to be operated by Mr. Arzu's
corporation, Prodigy Child Development, Inc., in the same manner as
it has been operated since the grant was issued in 1997.
Therefore, we do not believe that the assignment of the Grant
Agreement will activate the repayment provisions, particularly
since the assignors will remain liable to the City of Dubuque.
soon
from
have
We would appreciate a decision by the City on our request as
as possible since we have already postponed the closing date
July 1 to August 1. If you need any additional information or
questions, Jim, please contact us.
Thank you for your consideration of this request.
Sincerely yours,
KANE, NORBY & REDDICK, P.C.
GKN:sp
d4 .) j
By .,!J {~ f::::- - /l M~J
Enclosure
cc Mr. James A. O'Brien
Ms. Aggie Kramer
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ASSIGNMENT AGREEMENT
This Assignment Agreement is made effective as of the 1st day
of August, 2000, between PATRICIA R. SCOTT f/k/a Patricia R. Mohr
and PRODIGY, INC., an Iowa corporation (hereinafter individually
and jointly referred to as "Assignors") and PRODIGY CHILD
DEVELOPMENT, INC., an Iowa corporation (hereinafter referred to as
"Assignee") .
RECITALS:
A. On March 13, 1997, Assignor Patricia R. Scott, doing
business as Kinderland Learning Center (now Prodigy, Inc.), entered
into a Child Care Initiative Grant Agreement (hereinafter referred
to as the "Grant Agreement" ) with the City of Dubuque, Iowa
(hereinafter referred to as "City"). Attached to this assignment
as Exhibit A and by this reference made a part hereof is a true and
correct copy of said Grant Agreement. Under the terms of said
Grant Agreement Assignors received a $100,000 grant for the
renovation of the building at 715 West Locust Street in Dubuque,
Iowa, to allow for the enhancement and expansion of child care in
the Dubuque downtown area.
B. Since the awarding of the grant
Prodigy, Inc. has operated a daycare business
Street, Dubuque, Iowa, in accordance with the
Agreement.
in 1997, Assignor
at 715 West Locust
terms of the Grant
C. Assignors, as sellers, have entered into an Asset
Purchase Agreement with Prodigy Child Development, Inc. , as buyer,
under which Assignors will sellon August 1, 2000, all of the
assets of the daycare business at 715 West Locust Street, Dubuque,
Iowa, to buyer, Prodigy Child Development, Inc. (hereinafter
referred to as the "Asset Sale")
D. Under the terms of the Asset Sale, Assignors have agreed
to assign to Assignee all of Assignors' rights, duties and
obligations under the Grant Agreement and Assignee has agreed to
accept said assignment and to assume all duties and obligations
under the terms of the Grant Agreement.
E. Article IV-D (1) of Exhibit A to the Grant Agreement
provides:
1.
Assignability
The Subrecipient (Assignors) shall not assign or
transfer any interest in this contract without the
prior written consent of the Recipient (City)
thereto; provided, however, that claims for money
due or to become due to the Subrecipient from the
Recipient under this contract may be assigned to a
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bank, trust company or other financial institution
without such approval. Notice of any such
assignment or transfer shall be furnished promptly
to the Recipient.
By reason of the foregoing language, any assignment of the Grant
Agreement is expressly subject to the approval of the City.
NOW, THEREFORE, in consideration of the terms of the Asset
Sale between Assignors and Assignee, the parties agree as follows:
1. Assiqnment of Grant Aqreement. Effective August 1, 2000,
Assignors do hereby transfer and assign to Assignee all of
Assignors' right, title and interest in and to that certain Child
Care Initiative Grant Agreement with the City of Dubuque, Iowa,
dated March 13, 1997.
2. Acceotance of Assiqnment. Assignee, Prodigy Child
Development, Inc., hereby accepts the assignment of the Grant
Agreement and also agrees to assume and be responsible for
performance of any and all duties and obligations of Assignors
under the terms of the Grant Agreement. Assignee agrees that it
will continue to operate the child care business in accordance with
the terms and conditions of the Grant Agreement. Assignee agrees
to indemnify and hold harmless Assignors with respect to any and
all duties and obligations accruing under the Grant Agreement from
and after August 1, 2000.
3. Resoonsibilitv to City. The assignment of the Grant
Agreement from Assignors to Assignee shall not release Assignors,
Patricia R. Scott and Prodigy, Inc., from any obligations which
they may have to the City of Dubuque under the terms of the Grant
Agreement. Both Assignors and Assignee mutually acknowledge that
the City may enforce the terms of the Grant Agreement against both
Assignors and Assignee, or any of them.
Dated this 23 day of June, 2000.
By
Patri
and Secretary
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ASSIGNEE:
By
CONSENT OF CITY OF DUBUQUE
Pursuant to the terms of the Child Care Initiative Grant
Agreement dated March 13, 1997, the City of Dubuque, Iowa hereby
consents to the assignment of said Grant Agreement from Patricia R.
Scott f/k/a Patricia R. Mohr and Prodigy, Inc., as Assignors, to
Prodigy Child Development, Inc., as Assignee, in accordance with
the terms of the foregoing Assignment Agreement. By consenting to
said assignment, the City of Dubuque is not releasing Assignors
from any of their duties or obligations under the terms of the
Grant Agreement and the City of Dubuque specifically reserves the
right to enforce the Grant Agreement against both Assignors and
Assignee.
Dated this /7/L day
Of~
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, 2000.
CITY OF DUBUQUE, IOWA
By
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CITY OF DUBUQUE, IOWA
AND
KINDERLANDLE~GCENTER
CmLD CARE INITIATIVE GRANT
FY'97
This CmLD CARE INITIATIVE GRANT AGREEMENT dated as of the t 3> day of
V\Aa.,v-c.J'\ , 1997, is entered into by and between the CITY OF DUBUQUE, IOWA, a municipal
corporation organized and existing under the iaws of the State of Iowa (hereinafter referred to as the
"Recipient") and Kinderland Learning Center, with its principal place of business in Dubuque,
Iowa (hereinafter referred to as the "Subrecipient").
WITNESSETH:
Whereas, the Recipient is a participating city in the Community Development Block Grant
Program of the United States Department of Housing and Urban; and
Whereas, the Recipient wishes to engage the Subrecipient to assist the Recipient in utilizing
such funds.
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
Subrecipient shall provide services to eligible residents of the City of Dubuque, Iowa
in a manner satisfactory to the Recipient and consistent with any standards required
as a condition of providing these funds. The services to be provided by Subrecipient
will include the activities described in this Agreement including Scope of Project set
forth in Attachment A.
In the event of a conflict between Subrecipient's proposals and the provisions of
Attachment A, that provision which in the opinion of the Recipient provides the
greatest benefit to the Recipient shall prevail. Failure of the Subrecipient to provide
any of the services proposed shall be deemed a material breach of this Agreement.
ll.
NATIONAL OBJECTIVE
The Subrecipient certifies that the activities carried out with funds provided under
this Agreement will meet the CDBG program's National Objectives, including,
without limitation, section 570.208(a)(2) Limited Clientele Activities: An activity
which benefits a limited clientele, at least 51 percent of whom are low-or moderate-
Exhibit A
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income persons. Requires information on family size, household income, ethnic
origin and female head of household. (Exhibit B lists the income guidelines)
In.
PERFORMANCE MONITORING
The Recipient may monitor the performance of the Subrecipient 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 Subrecipient within thirty (30) days
after written notice from the Recipient, this Agreement may be terminated by
Recipient.
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IV. DATES OF COMMENCErviENT AND COMPLETION
The services to be provided under this Agreement. shall be commenced as dated
above and shall be completed not later than May 31, 1997. Recipient's right to
enforce the terms of this Agreement shall be extended to cover any additional time
during which the Subrecipient remains in control of CDBG funds or other assets
including program income.
v. AGREEMENT DOCUMENTS AND PROVISIONS
. The Subrecipient will perform or arrange for the provision of services under this
Agreement in the manner and time provided herein and in accordance with all related
documents including Scope of Project (Attachment A), Budget and Activity
Summary (Attachment B) Project Activities and Milestones (Attachment C),
Standard Requirements (Exhibit A) and Income Guidelines (Exhibit B).
VI. COMPENSATION AMOUNT
The total compensation to be paid to the Subrecipient by the Recipient for the
services to be provided under this Agreement, shall in no event exceed the sum of
one hundred thousand dollars ($100,000), and shall be at all times in accordance
with the Budget and Activity Summary of Attachment B.
Any indirect costs charged must be consistent with the conditions of Section II
(C)(3) of Exhibit A, Standard Requirements. In addition, the Recipient may require
a more detailed budget breakdown, and the Subrecipient shall provide such
supplementary budget information in a timely fashion in the form and content
prescribed by the Recipient. Any amendments to this budget must be approved in
writing by the Recipient and the Subrecipient.
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VII. PAYMENT
A. The Subrecipient will be paid only upon request supported by proof
satisfactory to the Recipient of the Subrecipient's costs, including cash
expenditures, donations and volunteer hours, directly incident to the services
provided under this Agreement. Such requests shall be charged against the
budget line items specified in Attachment B and must be in accordance with
Subrecipient's performance and completion obligations.
B. Payments to Subrecipient may be contingent upon certification of the
Subrecipient's financial management system in accordance with the standards
specified in OMB Circular A-IlO, the provisions of which are available in
the office of the Recipient.
VIII. ON-SITE MONITORING
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IX.
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The Subrecipient shall be subject to at least one site visit by personnel of the
Recipient, or a designee of the Recipient or duly authorized officials of the federal
government, for the purpose of monitoring the Subrecipient's delivery of services
and compliance with terms of the Agreement and federal standards that pertain to
federally funded grant activities. Review may include accounting books and records
for financial management and documentation of program costs. The reviewers will
have access to and the right to examine, audit, excerpt and/or transcribe any of the
Subrecipient's records pertaining to all matters covered by this Agreement. The
Subrecipient shall be subject to subsequent site visits to review correction of any
deficiencies in compliance.
SPECIAL CONDITIONS
a.
A minimum of 20 new child care slots shall be created and maintained by
Subrecipient during the term of this Agreement, of which at least 12 must be
infant slots;
At least 10% of the licensed capacity shall be reserved for part-time child
care;
At least 51 % of the occupied slots shall be occupied by families who meet
the Federallow/moderate income guidelines;
By September 1997, Subrecipient shall implement a trial period of evening
child care (beyond 6:00 p.m.);
The grant funds will be expended no later than April 30, 1997; and
The monitoring period shall be for five years. If the child care operation
ceases operation or is substantially reduced in operation or this Agreement is
terminated by Recipient, the Subrecipient agrees to repay the Recipient as
follows:
$70,000 if such occurs in the first twelve months;
$50,000 if such occurs in the second twelve months;
b.
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NOTICES
$30,000 if such occurs in the third twelve months;
$10,000 if such occurs in the fourth twelve months; or
$5,000 if such occurs in the fifth twelve months.
Communication and details concerning this contract shall be directed to the following
contract representatives:
Recipient
Subrecipient
Attention:
Pat Mohr
Kinderland Learning Center
715 West Locust
Dubuque, Iowa 52001
Aggie Kramer
Community Development Specialist
50 West 13th Street
Dubuque, Iowa 52001
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IN WIlNESS WHEREOF, the parties have executed this contract as of the date first written above.
Ci~ lJ~;0~f(
~chael C. Van Milligen
City Manager
ccare\mohr\contract
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I.
II.
III.
IV.
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EXHIBIT A
TABLE OF CONTENTS
GENERAL CONDITIONS ............................................................ -3-
A. General Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -3-
B. Independent Contractor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -3-
C. Hold Harmless ................................................................ -3-
D. Workers' Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -3-
E. Insurance and Bonding ......................................................... -3-
F. Grantor Recognition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -3-
G. Amendments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., -4-
H. Suspension or Termination ...................................................... -4-
ADMINISTRATIVE REQUIREMENTS ................................................. -4-
A. Financial Management
....... . ...... . . . .. .. . . . .. . . ... . . . .. .... ... . . . .. . ......... ... ... .. .. ........ -4-
I. Accounting Standards .................................................... -4-
2. Cost Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -4-
B. Documentation and Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -5-
1. Records to be Maintained ................................................. -5-
2. Retention. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -5-
3. Client Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -5-
4. Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -5-
5. Property Records ........................................................ -6-
6. NationalObjectives ...................................................... -6-
7. Closeouts .............................................................. -6-
8. Maintenance of Records and Right to Inspect.
. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -6-
C. Reporting and Payment Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -6-
J. Program Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -6-
2. Payment Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -6-
3. Indirect Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -7-
4. Progress Reports ........................................................ -7-
D. Procurement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -7-
I. Compliance. . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . . .. -7-
2. OMB Standards. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -7-
3. Travel. . . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . ... -7-
RELOCATION, ACQUISITION AND DISPLACEMENT ................................... -7-
PERSONNEL AND PARTICIPANT CONDITIONS ........................................ -7-
A. Civil Rights .................................................................. -7-
I. Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. -7-
2. Nondiscrimination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -8-
3. Section 504 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -8-
B. AffIrmative Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -8-
I. Approved Plan .......................................................... -8-
2. WIMBE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -8-
3. Access to Records ....................................................... -8-
4. Notifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -9-
5. EEO/AA Statement ...................................................... -9-
6. Subcontract Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -9-
C. Employment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -9-
1
D.
I. Prohibited Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., -9-
2. OSHA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -9-
3. Labor Standards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -9-
4. "Section 3" Clause. . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. -10-
a. Compliance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -10-
b. Notifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -10-
c. Subcontracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -10-
Conduct .................................................................... -Il-
l. Assignability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -11-
2. Hatch Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -11-
3. Conflict of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -11-
4. Subcontracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -11-
a. Approvals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -II-
b. Monitoring. . . . . . . . .. . . . . . . . . . . ... . . . . '.' . . . . . . . . . . . . . . ... . . . . . . .. -11-
Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. -11-
d. Selection Process ................................................. -lI-
S. Religious Organization .................................................. -12-
.
V.
ENVIRONMENTAL CONDITIONS................................................... -12-
A. . Air and Water. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. -12-
B. Lead Based Paint. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. -12-
C. Historic Preservation .......................................................... -12-
.
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2
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I.
.
.
EXHIBIT A
STANDARD REQUIREMENTS
CHILD CARE INTIA TIVE GRANT
GENERAL CONDITIONS
A. General Compliance
The Subrecipient agrees to comply with the requirements of Title 24 Code of Federal Regulations,
Part 570 ofthe Housing and Urban Development regulations concerning Community Development
Block Grants (CDBG) and all federal regulations and policies issued pursuant to these regulations.
The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather
than supplant funds otherwise available. The Subrecipient 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 Subrecipient shall at
all times remain an independent contractor with respect .~ ~he 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
Subrecipient is an independent contractor.
C.
Hold Harmless
The Subrecipient shall hold harmless, defend and indemnify the Recipient from any and all claims,
actions, suits, charges and judgements whatsoever that arise out of the Subrecipient's performance or
nonperformance of the services or subject matter called for in this Agreement.
D. Workers' Compensation
The Subrecipient shall provide Workers' Compensation Insurance coverage for all employees
involved in the performance of this contract.
E. Insurance and Bonding
The Subrecipient shall maintain insurance to the extent and against such hazards and liabilities as
are in keeping with the current insurance program of Recipient.
The Subrecipient shall comply with the bonding and insurance requirements ofOMB Circular A-
110, Bonding and Insurance.
F. Grantor Recognition
The Subrecipient shall insure recognition of the role of the Recipient in providing services through
the contract. All activities, facilities and items utilized pursuant to this contract shall be prominently
labeled as to funding source. In addition, the Subrecipient will include a reference to the support
provided herein in all publications made possible with funds available under this contract.
G.
Amendments
3
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.
.
Recipient or subrecipient 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
amendments shall not invalidate this Agreement, nor relieve or release Recipient or Subrecipient
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 of this Agreement, such modifications will be incorporated only by written
amendment signed by both Recipient and Subrecipient.
H. 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 of the 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 Subrecipient under this Agreement
shall, at the option of the Recipient, become the property of the Recipient, and Subrecipient 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 Subrecipient receive more than
the amount specified in Paragraph II.
Recipient may also suspend or terminate this Agreement, in whole or in part, if Subrecipient
materially fails to comply with any term ofthis Agreement, or with any of the rules, regulations or
provisions referred to herein; and the Recipient may declare the Subrecipient 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 Subrecipient 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 Subrecipient is found to be in COI"f ~!3nce by the Recipient, or is otherwise
adjudicated to be in compliance.
II.
ADMINISTRATIVE REQUIREMENTS
A. Financial Management
I. Accounting Standards
The Subrecipient agrees to comply with OMB Circular A-IIO and agrees to adhere to the
accounting principles and procedures required therein, utilize adequate and effective internal
financial controls, and maintain necessary source documentation for all costs incurred.
2. Cost Principles
The Subrecipient 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 Subrecipient is a governmental or quasi-governmental
agency, the applicable sections of24 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
4
.
.
.
I.
Records to be Maintained
The Subrecipient 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;
b. Records demonstrating that each activity undertaken meets one of the National
Objectives of the CDBO program'
c. Records required to detennine the eligibility of activities;
d. Records required to document the acquisition, improvement, use or disposition of
real property acquired or improved with CDBO assistance;
e. Records documenting compliance with the fair housing and equal opportunity
components of the CDBO program, and
f. Financial records as required by 24 CFR Part 570.502, and OMB Circular A-IIO.
g. Other records necessary to document compliance with Subpart K of24 CFR 570.
2.
Retention
The Subrecipient shall retain all records pertinent to expenditures incurred under this
contract for a period of three (3) years after the tennination of all activities funded under this
Agreement. Records for non-expendable property acquired with funds under this contract
shall be retained for three (3) years after final disposition of such property. Notwithstanding
the above, if there is litigation, claims, audits, negotiations or other actions that involve any
of the records cited and that have started before the expiration of the three-year period, then
such records must be retained until completion of the actions and resolution of all issues, or
the expiration of the three-year period, whichever occurs later.
3.
Client Data
The Subrecipient shall maintain client data demonstrating client eligibility for services
provided. Such data shall include, but not be limited to , client name, address, income level
or other basis for detennining eligibility, and description of services provided. Such
infonnation shall be made available to Recipient monitors or their designees for review upon
request.
4. Disclosure
The Subrecipient understands that client infonnation collected under this contract is private
and the use or disclosure of such infonnation , when not directly connected with the
administration of the Recipient's or Subrecipient's responsibilities with respect to services
provided under this contract, is prohibited by law unless written consent is obtained from
such person receiving service and, in the case of a minor, that of a responsible
parent/guardian.
5.
Property Records
The Subrecipient shall maintain real property inventory records which clearly identify
properties purchased, improved or sold. Properties retained shall continue to meet eligibility
criteria and shall confonn with the "changes in use" restrictions specified in 24 CFR Part
570.503(b )(8).
.
5
6.
National Objectives
.
The Subrecipient 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 low/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.
7.
Closeouts
Subrecipient 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 fmal 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).
8. Maintenance of Records and Right to Inspect.
Subrecipient 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 Subrecipient
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.
C. Reporting and Payment Procedures
.
1.
Program Income
Except as specified below, Subrecipient will pay to Recipient all program income earned
prior to or received following termination of this Agreement. Program income may be
retained by Subrecipient if utilized for qualifying project expenses.
2. Payment Procedures
The Recipient will pay to the Subrecipient funds available under this contract based upon
information submitted by the Subrecipient and consistent with 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 Subrecipient. Payments will be
adjusted by the Recipient in accordance with advance fund and program income balances
available in Subrecipient 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
Subrecipient.
3. Indirect Costs
If intlirect costs are charged, the Subrecipient will develop an indirect cost allocation plan
for determining the appropriate Subrecipient's share of administrative costs and shall submit
such plan to the Recipient for approval, in a form specified by the Recipient.
4.
Progress Reports
-
The Subrecipient shall submit quarterly Activity Progress Reports ( Attachment E) to the
Recipient.
6
.
.
.
III.
IV.
D. Procurement
1.
Compliance
The Subrecipient shall comply with current Recipient policy concerning the purchase of
equipment and shall maintain an inventory records of all nonexpendable personal property as
defined by such policy as may be procured with funds provided herein. All program assets
(unexpended program income, property, equipment, etc.) shall revert to the Recipient upon
termination of this contract.
2. OMB Standards
The Subrecipient shall procure materials in accordance with the requirements of Attachment
o ofOMB Circular A-IIO, Procurement Standards and shall subsequently follow
Attachment N, Property Management Standards, as modified by 24 CFR.502 (b)(6) covering
utilization and disposal of property.
3. Travel
The Subrecipient shall obtain written approval from the Recipient for any travel outside the
metropolitan area to be paid for with funds provided under this contract.
RELOCATION, ACQUISITION AND DISPLACEMENT
The Subrecipient agrees to comply with 24 CFR 570.606 relating to the acquisition and
disposition of all real property utilizing grant funds, and to the displacement of persons,
families, individuals, businesses, nonprofit organizations and farms occurring as a direct
result ofany acquisition ofreal property utilizing grant funds. The Subrecipient agrees to
comply with applicable Recipient ordinances, resolutions and policies concerning
displacement of individuals from their residences.
PERSONNEL AND PARTICIPANT CONDITIONS
A. Civil Rights
I. Compliance
The Subrecipient 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 Title VI of the Civil Right Act
of 1964 as amended, Title VIII of the Civil Rights Acto of 1968 as amended, Section 104
(b) and Section 109 of Title I of the Housing and Community Development Act of 1974, as
amended (42 U.S.C. 5309) Section 504 of the Rehabilitation Act of 1973, as amended (29
U .S.C. 794), the Americans with Disabilities Act of 1990, the Age Discrimination Act of
1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive
Orders 11375 and 12086. Recipient shall furnish, upon written request of the Subrecipient,
copies of said regulations as provided by the Department of Housing and Urban
Development.
2.
Nondiscrimination.
In carrying out the project, Subrecipient shall not discriminate against any employee or
applicant for employment because of race, color, creed, religion, ancestry, national origin,
sex, age or disability or other handicap, marital/familial status, or status with regard to public
assistance. The Subrecipient will take affirmative action to insure that all employment
7
.
practices are free from such discrimination. Such employment practices include, but not be
limited to, the following: hiring, upgrading, demotion, transfer; recruitment or recruitment
advertising; layoff or termination; rate of payor other forms of compensation; and selection
for training, including apprenticeship. Subrecipient shall post in a conspicuous place,
available to employees and applicants for employment, notices to be provided by Recipient
setting forth the provisions of this nondiscrimination clause.
3.
Section 504
The Subrecipient 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 Subrecipient with any guidelines necessary for compliance with
that portion of the regulations in force during the term of this contract.
B. AffInnative Action
1. Approved Plan
The Subrecipient 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 Subrecipient to assist in the formation of such program.
The Subrecipient shall submit a plan for an AffIrmative Action Program for approval prior to
the award of funds.
2.
WIMBE
.
The Subrecipient 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 "mihv. ;:y 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 ofthis definition, "minority group members" are African
Americans, Spanish speaking, Spanish surnamed or Spanish heritage Americans, Asian
Americans and American Indians. The Subrecipient may rely on written representations by
Subrecipients regarding their status as minority and female business enterprises in lieu of an
independent investigation.
3.
Access to Records
The Subrecipient shall furnish and cause each of its own subrecipients or subcontractors to
furnish all information and reports required hereunder and will permit access to its books,
records and accounts by the Recipient, HUn or its agent, or other authorized Federal
offIcials for purposes of investigation to ascertain compliance with the rules, regulations and
provisions stated herein.
4. Notifications
.
The Subrecipient will send to each labor union or representative of workers with which it has
a collective bargaining agreement or other contract or understanding, a notice, to be
provided by the agency contracting officer, advising the labor union or worker's
representative of the Subrecipient's commitments hereunder, and shall post copies in
conspicuous places available to employees and applicants for employment.
5.
EEOI AA Statement
8
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The Subrecipient will, in all solicitations or advertisements for employees placed by or on
behalf of the Subrecipient, state that it is an Equa I Opportunity or Affirmative Action
employer.
6.
Subcontract Provisions
The Subrecipient will include the provisions of Paragraphs X 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 Subrecipient or vendor.
C. Employment Restrictions
1. Prohibited Activity
The Subrecipient 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 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.
3.
Labor Standards
.
The Subrecipient agrees to comply with the requirements of the Secretary of the Labor in
accordance with the Davis-Bacon Act as amended, the provisions of Contract Work Hours,
the Safety Standards Act, the Copeland "Anti-Kickback" Act (40 V.S.C. 276,327-333) and
all other applicable federal, state and local laws and regulations pertaining to labor standards
insofar as those acts apply to the performance of this contract. The Subrecipient shall
maintain documentation which demonstrates compliance with hour and wage requirements of
this part. Such documentation shall be made available to the Recipient for review upon
request.
The Subrecipient agrees that, except with respect to the rehabilitation or construction of
residential property designed for residential use for less than eight (8) households, all
contractors engaged under contracts in excess of $2,000 for construction, renovation or
repair of any building or work financed in whole or in part with assistance provided under
this contract, shall comply with federal requirements adopted by the Recipient pertaining to
such contracts and with the applicable requirements of the regulations of the Department of
Labor, under 29 CFR, Parts 3, 1,5 and 7 governing the payment of wages and ratio of
apprentices and trainees to journeymen; provided, that if wage rates higher than those
required under the regulations are imposed by state or local law, nothing hereunder is
intended to relieve the Subrecipient of its obligation, ifany, to require payment of the higher
wag"e. The Subrecipient shall cause or require to be inserted in full, in all such contracts
subject to such regulations, provisions meeting the requirements of this paragraph.
4. "Section 3" Clause
a.
Compliance
.
Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135,
and all applicable rules and orders issued hereunder prior to the execution of this
9
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contract, shall be a condition oCthe federal financial assistance provided under this
contract and binding upon the Recipient, the Subrecipient and any subSubrecipients.
Failure to fulfill these requirements shall subject the Recipient, the Subrecipient and
any subSubrecipients, their successors and assigns, to those sanctions specified by the
Agreement through which federal assistance is provided. The Subrecipient certifies
and agrees that no contractual or other disability exists which would prevent
compliance with these requirements.
The Subrecipient further agrees to comply with these "Section 3" requirements and to
include the following language in all subcontracts executed under this Agreement.
"The work to be performed under this contract is a project assisted under a program
providing direct federal financial assistance from HUD and is subject to the
requirements of Section 3 of the Housing and Urban Development Act of 1968, as
amended, 12 U.S.C. 1701. Section 3 requires that to the greatest extent feasible
opportunities for training and employment be given to lower income residents of the
project area and contracts for work in connection with the project be awarded to
business concerns which are located in, or owned in substantial part, by persons
residing in the area of the project."
The Subrecipient certifies and agrees that no contractual or other disability exists which
would prevent compliance with the requirements.
b.
Notifications
.
The Subrecipient agrees to send to each labor organization or representative of workers with
which it has a collective bargaining agreement or other contract or understanding, ifany, a
notice advising said labor organization or worker's representative of its commitments under
this Section 3 clause and shall post copies of the notice in conspicuous places available to
employees and applicants for employment or training.
c.
Subcontracts
The Subrecipient will include this Section 3 clause in every subcontract and will take
appropriate action pursuant to the subcontract upon a finding that the subSubrecipient is in
violation of regulations issued by the Grantor Agency. The Subrecipient will not subcontract
with any subSubrecipient where is has notice or knowledge that the latter has been found in
violation of regulations under 24 CFR 135 and will not let any subcontract unless the
subSubrecipient has first provided it with a preliminary statement of ability to comply with
the requirements of these regulations.
D. Conduct
I. Assignability
The Subrecipient 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 Subrecipient 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 Subrecipient agrees that no funds provided, nor personnel employed 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.
10
3.
Conflict of Interest
.
The Subrecipient agrees to abide by the provisions of24 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 Subrecipient
further covenants that in the performance of this contract no person having such a financial
interest shall be employed or retained by the Subrecipient 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 ofany designated public agencies or
subrecipients which are receiving funds under the CDBG Entitlement program.
4.
Subcontracts
a. Approvals
The Subrecipient 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 Subrecipient 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 Subrecipient 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 ofthis
agreement.
d. Selection Process
The Subrecipient 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.
5. Religious Organization
The Subrecipient 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).
V. ENVIRONMENTAL CONDITIONS
A. Air and Water
The Subrecipient agrees to comply with the following regulations insofar as they apply to the
performance of this contract:
.
Clean Air Act, 42 V.S.C., 7401, et seq.
11
.
Federal Water Pollution Control Act, as amended, 33 V.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 Subrecipient agrees that any construction or rehabililc";'.m of residential structures with
assistance provided under this contract shall be subject to HVD Lead Based Paint Regulations at 24
CFR 570.608, and 24 CFR Part 35. Such regulations pertain to all HVD assisted housing 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 and the advisability and availability of blood
lead level screening for children under seven. The notice should also point out that if lead-based
paint is found on the property, abatement measures may be undertaken.
C.
Historic Preservation
.
The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the
National Historic Preservation Act of 1966, as amended (16 V.S.C. 470) and the procedures set
forth in 36 CFR, Part 800, Advisory Council on Historic Preservation Procedures for Protection of
Historic Properties, insofar as they apply to the performance of this 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.
Received by Subrecipient:
ccare\mohr\hudagree
.
12
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.
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Exhibit B
CITY OF DUBUQUE, IOWA
INCOME GUIDELINES ~OR
FINANCIAL ASSISTANCE
Income limits are defined and occasionally revised by the U.S. Department of Housing and Urban
Development's estimated median family income. The income guidelines listed below were revised
as of December 27,1996
A moderate income person,family or household has a total income which falls between the fifty
(50) percent and eighty (80) percent median for the area, adjusted for size.
A low income person, family, or household has a total income which does not exceed the fifty
(50) percent of the median income, adjusted for size, of the metropolitan area.
Maximum Annual Income
Family Size
Moderate Income
Low Income
1
2
3
4
5
6
7
8 or More
$ 23,700
$ 27,050
$ 30,450
$ 33,850
$ 36,550
$ 39,250
$ 41,950
$ 44,650
$14,800
$16,900
$19,050
$21,150
$22,850
$24,550
$26,250
$27,900
cdbg\income. hud
.
E
~
CITY OF DUBUQUE, IOWA
MEMORANDUM
July 13, 2000
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Assignment of Prodigy, Inc. Child Care Initiative Grant
Agreement
.
Community and Economic Development Director Jim Burke is recommending that
the City Council consent to the assignment of the Child Care Initiative Grant
Agreement from Kinderland Learning Center to Prodigy, Inc.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mithael C. Van Milligen
MCVM/dd
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Jim Burke, Community/Economic Development Director
.
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.
.
CITY OF DUBUQUE, IOWA
MEMORANDUM
July 10, 2000
From: J s urlC, ommunity and Economic Development Director
Subject: Assignment of Prodigy, Inc. Child Care Initiative Grant Agreement
Introduction
This memorandum reviews a request by Prodigy Inc and its owner, Patricia Scott, for the City of
Dubuque to consent to the assignment of the Child Care Initiative Grant Agreement to Prodigy
Child Development, Inc.
Back2round
The City of Dubuque entered into a Child Care Initiative Grant Agreement on March 13, 1997
with Kinderland Learning Center, now known as Prodigy, Inc. The $100,000 grant was awarded
to allow for the expansion of the day care facility at 715 West Locust and the creation of
additional child care slots for low and moderate income families.
The conditions of the grant agreement included the following requirements: the child care
operation provide a minimum of20 new child care slots, of which 12 must be infant slots; at least
10 % of the licensed capacity be reserved for part-time child care; at least 51 % of the occupied
slots be occupied by families who meet the federal low/moderate income guidelines; a trial period
of evening child care be implemented by September, 1997; the grant funds be expended by April
30, 1997 and the child care operation continue for a minimum of five years or partial repayment
would be required.
Annual monitoring of the grant verifies that Prodigy is currently in compliance with the grant
conditions. The facility is currently licensed for 120 child care slots, up from the initial 91 slots
which existed at the time ofthe grant, of which 17 slots are allocated for infants. Currently 84 %
of the occupied slots have been filled by children who meet the federal low/moderate income
guidelines.
Discussion
Pat Mohr, now known as Patricia Scott and the current owner of Prodigy, Inc., requests the City
of Dubuque approve the assignment of the grant agreement to Prodigy Child Development, Inc
under the new ownership of her son Alan Arzu, the current manager of the day care center. The
approval of the attached resolution and assignment agreement would allow the sale of the daycare
assets to proceed. The attached letter further clarifies their request.
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Recommendation
I recommend that the City Council approve the attached resolution and assignment agreement for
Prodigy, Inc. The grant agreement would continue under the current terms and conditions.
Action Step
The action step is for the City Council to adopt the attached resolution and assignment agreement.
Prepared by Aggie Kramer, Community Development Specialist