ECIA Contract Amendment No. 3_Lindseed Oil Paintworks Company BuildingMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
band
AI- America City
1
2007 • 2012 • 2013
SUBJECT: Amendment Number 3 to Contract for Services with East Central
Intergovernmental Association for Community Development Block Grant,
Disaster Recovery Fund Contract Administration
DATE: August 27, 2013
Acting Economic Development Director Phil Wagner recommends City Council approval
of an amendment to the contract with East Central Intergovernmental Association
(ECIA) to assist the City with grant administration for the amended Community
Development Block Grant (CDBG) Disaster Recovery Fund Contract, from the Iowa
Economic Development Authority, associated with the recent commitment of
$2,248,820 for redevelopment of the Linseed Oil Paintworks Company Building.
ECIA will bill the City for actual costs, with a cap of $10,000, for grant administration
related to the redevelopment of the Linseed Oil Paintworks Company Building.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Phil Wagner, Acting Economic Development Director
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: Phil Wagner, Acting Economic Development Director
DATE: August 26, 2013
Dubuque
Itutri
All-America City
1111 r
2007 • 2012 • 2013
SUBJECT: Amendment Number 3 to Contract for Services with East Central
Intergovernmental Association for Community Development Block Grant, Disaster
Recovery Fund Contract Administration
INTRODUCTION
This memo transmits for City Council review and approval, a proposed amendment to
the contract with East Central Intergovernmental Association (ECIA) to assist the City
with grant administration for the amended Community Development Block Grant
(CDBG) Disaster Recovery Fund Contract, from the Iowa Economic Development
Authority (IEDA), associated with the recent commitment of $2,248,820 for
redevelopment of the Linseed Oil Paintworks Company Building.
BACKGROUND
In 2010, the IEDA awarded to the City of Dubuque a Community Development Block
Grant contract in the amount of $8.9 million as part of a new unit production program
aimed at restoring housing in the state after the 2008 floods. Funding was used to
construct 72 residential units at the Caradco Building, at 900 Jackson Street in
Dubuque's Historic Millwork District, with 46 units available for income qualified tenants.
In February of 2011, the City Council approved a contract with ECIA to assist the City
with the administration of the grant. The City would be billed for actual staff time up to
$7,500. The scope of work to be performed by ECIA included the following activities as
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 ECIA contract with the City was amended in February 2013 and May 2013,
concurrent with various amendments to the IEDA contract with the City, 08 -DRH -212.
The IEDA added $1,337,200 to the CARADCO project in response to determination by
the Department of Labor and Housing and Urban Development that added
unanticipated costs to the redevelopment. The findings also required a substantial
unanticipated time commitment from ECIA in the administration of the grant,
necessitating the amendments.
In November 2012, the State announced another round of CDBG disaster funds to be
used for the production of multi - family housing. In February 2013, the City Council
approved a resolution supporting an application for the funds on behalf of Tim
McNamara and the Wilmac Property Group for the redevelopment of the Linseed Oil
Paintworks Company Building and the creation of 16 multi - family housing units, 9 of
which would be occupied by an individual or family earning less than 80% of the
average median income in Dubuque County.
In June 2013, Mayor Buol received a letter from the IEDA stating the project, located at
901 Jackson Street in the Historic Millwork District, received an award of $2,203,913 in
total project costs, with an additional $44,977 available for general administration. The
next month, the mayor signed the fifth amendment to the IEDA contract with the City,
08 -DRH -212, which accounted for these expenses. Environmental assessment work is
currently being conducted on the project and construct is scheduled to begin this fall. A
Development Agreement, providing a ten -year tax increment financing rebate and
$195,000 in housing incentive and grant funds was approved by the City Council in
March 2013.
DISCUSSION
The CDBG award, as was the case with the CARADCO project, will require the City to
comply with a number of state /federal laws and quarterly reporting. ECIA is more
familiar with these laws than City staff. Additionally, the Economic Development
Department is not currently able to dedicate staff time to the administration of the funds.
Considering the City Council's previous decision on contracting with ECIA on the
CARADCO project, City staff requested a cost estimate for the administration of funds
dedicated to the Linseed Oil Paintworks Company project.
ECIA has submitted Amendment No. 3 for the administration of the CDBG Disaster
Fund contract. The amendment states that ECIA shall bill the City monthly for actual
costs, up to $52,500. This amounts to a $10,000 cap on work associated with the
Linseed Oil Paintworks Company Building, as the previous Amendment had a cap of
$42,500 associated with the CARADCO project. Additionally, the amendment states
that files pertaining to CARADCO and Linseed Oil Paintworks Company will be held
separately by ECIA and provided to the City upon completion of work.
City staff believes that with ECIA's knowledge of the grant program, $10,000 in
administration is a reasonable safeguard to protect the $2,248,820 award. Additionally,
the administration costs are to be funded out of the grant.
RECOMMENDATION
I recommend that the City Council approve the attached resolution, authorizing
Amendment Number 3 with East Central Intergovernmental Association for Community
Development Block Grant Disaster Housing Fund contract administration for the
development of the Linseed Oil Paintworks Company Building.
Enclosures
F: \USERS \Econ Dev \Linseed Oil Paintworks (Betty Building) \20130826 Memo ECIA Amendment 3.doc
Prepared by: Phil Wagner, Acting ED Director, 50 West 13th Street, Dubuque IA 52001 563 589 -4393
Return to: Phil Wagner, Acting ED Director, 50 West 13th Street, Dubuque IA 52001 563 589 -4121
RESOLUTION NO. 278 -13
A RESOLUTION OF THE CITY OF DUBUQUE APPROVING AMENDMENT NUMBER 3
FOR PROJECT ADMINISTRATION TO EAST CENTRAL INTERGOVERNMENTAL
ASSOCIATON FOR COMMUNITY DEVELOPMENT BLOCK GRANT, HOUSING
DISASTER RECOVERY FUND CONTRACT, #08 -DRH -212, BETWEEN THE CITY OF
DUBUQUE AND THE IOWA ECONOMIC DEVELOPMENT AUTHORITY.
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
continued technical and professional services for grant administration of the City of
Dubuque's Community Development Block Grant, Housing Disaster Recovery Fund
Contract ( #08 -DRH -212) with the Iowa Economic Development Authority; 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.
Passed, approved, and adopted this 3rd day of September, 2013.
ATTEST:
Kevifi irnstahl, ity C erk
DL/
Roy Buol, Mayor
F: \USERS \Eton Dev \Linseed Oil Paintworks (Betty Building)\20130903 Resolution ECIA Amendment 3.doc
CONTRACT FOR SERVICES WITH
EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION
Amendment #3: Project Administration for Community Development Block Grant, Housing
Disaster Recovery Fund Contract, #08 -DRH -212, between the City of Dubuque and the Iowa
Economic Development Authority
The Iowa Economic Development Authority issued Amendment #5 to the City of Dubuque's
Community Development Block Grant Contract #08 -DRH -212 to add and include the renovation of
the Linseed Oil Building into 16 rental units. This amendment to the City's administration contract
with ECIA adds and includes the general administration associated with the Linseed Oil Building
into the contract as detailed in the original Contract Scope of Services.
THE CONTRACT, entered into by and between the East Central Intergovernmental Association
(hereinafter called ECIA) and the City of Dubuque, approved by a Dubuque Resolution on February
22, 2011 authorizing ECIA's assistance in carrying out the City's Community Development Block
Grant Contract #08 -DRH -212 and approved by ECIA on March 30, 2011 is hereby amended as
follows.
Revise the following Section.
SECTION 3. Method of Payment
Payment shall be due upon receipt of a monthly bill for services. The payment shall be based on the
actual costs incurred by the agency in administering the contract, including labor and overhead, all
according to OMB Circular A122. Total payment shall not exceed $52,500.
Revise the Attachment A — Scope of Services
II. Program Administration
Section A 2: The files pertaining to the Caradco Building project shall be located in the office of
ECIA during construction and will remain the property of and provided to the City of Dubuque
upon completion of the Caradco Building project.
Add Section A 3: The files pertaining to the Linseed Oil Building project shall be located in the
office of ECIA during construction and will remain the property of and provided to the City of
Dubuque upon completion of the Linseed Oil Building project.
PASSED AND APPROVED:
Grantee: City of Dubuque
Dat
Roy D. Buol,
Atte
evin Fimst. , City Clerk
East Central Intergovernmental Association
Date
Chairperson or Executive Director
Attest