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Home My WebLink About14-312 Approval of CDBG Supplemental AgreementCITY OF i�� L L ADE LSInOI U `� DREAM ExTREME�. REPORT TO CITY COUNCIL TO: Honorable Mayor And Members of the City Council FROM: Grant Yates City Manager DATE: October 14, 2014 SUBJECT: Approval of CDBG Supplemental Agreement for 2014 -2015 Program Year Recommendations Authorize the Mayor to execute the Supplemental Agreement between the County of Riverside and the City of Lake Elsinore for the Use of 2014 -2015 Community Development Block Grant Funds Background At its regular scheduled meeting on November 12, 2013, the City Council approved the Community Development Block Grant (CDBG) projects for fiscal year 2014 -2015. On May 29, 2014, the City was notified by the Riverside County Economic Development Agency (EDA) that the County Board of Supervisors approved Lake Elsinore's programs for the 2014 -2015 CDBG program year. Discussion The City's CDBG project activities were included in the County's 2014 -2015 One Year Action Plan, which was submitted by EDA to the U.S. Department of Housing and Urban Development (HUD) for review and approval. As soon as the County received HUD's approvals, EDA sent out a "Supplemental Agreement for the Use of 2014 -2015 Community Development Block Grant Funds" (Agreement). The City received the attached Agreement from EDA on October 1, 2014. Executed copies of the Agreement must be returned to the County of Riverside Economic Development Agency (EDA) no later than November 13, 2014 for the Board of Supervisors to approve; after which, a fully executed agreement will be forwarded to CDBG Supplemental Agreement FY 2014 -2015 October I 2V 14 Page 2 of 2 the City along with the "authorization to incur costs." When staff receives the c, 'U Thor lza ti v I I, 'VVC arG ti U11i Qbie to release iUIIUS tU the dpproved projeCtS V�iith assurance of reimbursement from the County of Riverside to the City of Lake Elsinore, The City of Lake Elsinore requested $385,000 for program year 2014 -2015; however, the EDA notified staff that the total amount this year was increased to $386,815. Out of the $386,815 allocated, approximately twelve percent (11.8 %) is to be used for public service programs and approximately fifteen percent (14.6 %) for administrative costs. The approved allocation is as follows: 11E.36-14 City Sidewalk Improvements $171,050 11E.37 -14 Code Enforcement $101,325 11E.38 -14 CDBG Administrative Costs — Lake Elsinore $10,000 1.LE.30 -14 3 T UDiO 305, Foundation, Inc. $5,000 11E.40 -14 Cops for Kids Emergency Assistance Program $5,250 11E.41 -14 Boys & Girls Clubs of Southwest County $7,500 1.LE.42 -14 CDBG Administrative Costs — EDA $46,418 0. 1 i6 -14 Operation School Bell (Assistance League) $12,500 0.120 -14 Helping People in Need (H.O.P.E.) $27,772 Total $386,815 Fiscal Impact ThPrP is nn ficrnl imnart to the ?ni A_7nl ri (-�.r=n,=ral Pi inrl Prninrtc nrn rnniA +krni ink 4ko .._._ ._ .._ .... ...... ....r,.. 1 — .. �.. , , __ v..��..�...� . Wi I .-J- -w — Nw_ unvuy�� L.J . CDBG reimbursement process once the "authorization to incur costs" has been issued by the County of Riverside. Prepared by: Richard J. MacHott, LEED Green Associate Planning Manager Reviewed by: Grant Taylor Director of Community Development Approved by: Grant Yates City Manager Attachments: Supplemental Agreement for the Use of 2014 -2015 CDBG Funds 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18' 19 20 21 22 23 24 25 26 27 28 File No.: LLE.36 -14, 1.LE.37 -14, 1.LE.38 -14, LLE.39 -14 1.LE.40 -14, 1.LE.41 -14, 1. LE.42 -14, 0.116 -14, and 0.120 -14 SUPPLEMENTAL AGREEMENT FOR THE USE OF 2014 -2015 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS This Supplemental Agreement ( "Agreement ") is entered into this day of , 2014, by and between the COUNTY OF RIVERSIDE, a political subdivision of the State of California, herein called, "COUNTY," and the CITY OF LAKE ELSINIORE, herein called "CITY." COUNTY and CITY are collectively referred to as "Parties" and individually as "Party." The COUNTY and CITY mutually agree as follows: 1. GENERAL. COUNTY and CITY have executed a Cooperation Agreement, dated July 201.1 ( "Cooperation Agreement "), whereby CITY elected to participate with COUNTY, which has qualified as an "Urban County" for purposes of receiving Community Development Block Grant (CDBG) funds ( "CDBG "), and to assist and undertake essential community development and housing assistance activities pursuant to the Housing and Community Development Act of 1974, Title 1, as amended, Public Law 93 -383 hereinafter referred to as "Act." Said Cooperation Agreement, dated July 2011, is incorporated herein by reference and made a part of this Agreement as if each and every provision was set forth herein. 2. PURPOSE. CITY promises and agrees to undertake and assist with the community development activities, within its jurisdiction, by utilizing the sum of $386,815, CDBG Entitlement Funds, as specifically identified in Exhibits A, B, C, D, E, F, G, II and 1, attached hereto, and are incorporated herein by this reference, for the following projects (collectively, the "Proiects "): A. LLE.36 -14 Sidewalk Improvements $171,050. B. 1.LE.37 -1.4 Code Enforcement $1.01,325. C. LLE.38 -14 CDBG Administrative Cost -Lake Elsinore $ 10,000. Page 1 of 19 lI 7I -I 3 4 51 61 7 8 9 10 11 12 13 14 15 16 17 10 1 0 19 20 21 22 23 24 25 26 27 28 D. 1..1[_ E.3914 STUD10 395, Foundation, Inc. $ 5,000. v. 1 J,F_40 -14 Colts foi- d.q T',mt =twer.cv Assistance Program. r 5,250. F. 1.LE.41 -14 Boys & Girls Clubs of Southwest County, $ 7,500. G. 1.LE.42 -14 CDBG Administrative Costs -EDA, 546,418, H. 0.116 -14 Operation School Bell $12,500. 1. 0. 120 -14 Helping People in Need _ $27,772, 3. TERM OF AGR1 -1'; ?NT, The term of this Agreement for the i221pienlenttation of the Projects shall be iiir a period of one (1) year from July 1, 2014 to termination on June 30, 2015. City shall proceed consistent with the completion schedule set forth in Exhibits A, B, C, D, E, F, G, H and 1, attached hereto and incorporated herein. In the event the Projects are not substantially completed by the time set forth in the applicable completion schedules due to a force majeure event (See Section 24 below), the COUNTY may consider extending the schedule for the completion of the project(s). Times of performance for other activities may also be extended in writing by COUNTY. If substantial progress toward completion in conformance with the completion schedule, as determined by COUNTY in its discretion, of the projects are not made during the term of this iLpplememal Agreement, I"1 TT T'T'�7 7 7 Cy. 1_ . IN 1 may suspend or terminate this Supp enzental 1 Agreement pursuant to the termination procedures set 1V1t11 In the seC.tIUTA Lldell 1.C,r11111161A1U1I, -- 11U Me entitle11ent .ILLnUs associaLC.0 with the Projects may be reprogrammed by the COUNTY after appropriate notice is provided to the City. 4. DISPOSITION OF FUNDS. A. COCJNTY's Board of Supervisors shall determine the final disposition and distribution of all funds received by COUNTY under the Act consistent with Sections 2 and 3 of this Supplemental Agreement. COUNTY, though its Economic Development Agency, shall make paynrient of the CDBG funds to CITY as set forth in the attached Exhibits A, B, C, D, E, F, G, H and .1. It is the CITY's responsibility to monitor all project activities set forth in the attached Exhibits A, B, C, D, E, F, G, H and I, and to ensure compliance with applicable federal Page 2 of 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 regulations and the terms of this Supplemental Agreement. B. CITY shall comply with timely drawd.own of CDBG Entitlement funding by expeditiously implementing and completing the COUNTY - approved, CDBG- funded Projects. CITY acknowledges that CITY's drawdown performance directly impacts the COUNTY's overall program drawdown rate. If the CITY's unobligated CDBG fund balance, as of January 31, 2015, exceeds two -times (200°/x) the CITY's 2014 -2015 CDBG allocation, the COUNTY may, in its sole discretion, take the necessary administrative actions to reduce the CITY's CDBG fund balance. Necessary actions include, but are not limited to, reprogramming the excess CDBG fund balance to other eligible activities as selected by COUNTY. COUNTY may, in its sole and absolute discretion, authorize CITY in writing, prior to January 31, 2015, to exceed the CDBG fund balance requirement., C. CITY shall comply with timely drawdown of CDBG funds by submitting monthly requests for reimbursement or other COUNTY approved reimbursement schedules. All disbursements of CDBG funds will be on a reimbursement basis and made within thirty (30) days after the COUNTY has received the CITY's reimbursement request including documentation supporting expenditures. D. All authorized obligations incurred in the performance of the Supplemental Agreement for projects eligible under the following CDBG regulations must be reported in writing to COUNTY no later than by June 15, 2015: 1. Public Services [24 CFR 570.201 (e)] 2. Acquisition [24 CFR 570.201 (a)] 3. Clearance Activities [24 CFR 570.201 (d)] 4. Interim Assistance [24 CFR 570.201 (f)] 5. Code Enforcement [24 CFR 570.202 (c)] All other eligible activities under this Supplemental Agreement must be implemented, completed, and obligations reported in writing to the COUNTY by the CITY no later than the completion schedules set forth in the attached Exhibits to this Supplemental Agreement. "CFR" Page 3 of 19 1 2 3 4 5 7 8 9 1.0 1I 12 13 14 15 16 17 i8 19 20 21 22 23 24 25 26 27 28 as used herein refers to the Code of Federal Regulations. i rill TT®T•i'V .ii a; jai, — 8 A It i�V IJ1V A A Y9�All latr 1.6. tly� AAAalAagl. aaltt AilvAAltvr 111 vjea.to Au"Altill4 Ca AA't 1'v.lialta/tto as and 1, attached hereto. 'These projects have been determined to be of Countywide benefit, projects v receiving CDBG funding from multiple sources; therefore, these, projects will be managed and monitored by the COUNTY. 5. COOPERATION WITH HOUSING ACTIVITIES. CI'T'Y shall cooperate with COUNTY in undertaking essential community development and housing assistance activities, specifically urban renewal and public assistance housing, and shah assist COUNTY in implementing and undertaking the goals and strategies identified in the 20142019 Five Year Consolidated Plan, pursuant to 24 CFR Part 91 and other requirements of the Community Development Block Grant Program. 6, LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA�. Pursuant to Section 15051(d) of Title 14 of the California Administrative Code, the CITY is designated as the lead agency for the projects that are the subject matter of this Supplemental Agreement, 7. HOLD HARMLESS AND INDEMNIFICATION. In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of the Code, the Parties hereto, pursuant: to the authorization contained in Section 895.4 and 895.6 of the Code, agree that each Party shall be liable for any damages including, but not limited to, claims, demands, losses, liabilities, costs and expenses including reasonable attorneys' fees, resulting from the negligent or wrongful acts or omissions of their employees or agents in the performance of this Agreement, and each Party shall indemnify, defend and hold harmless the other Parties from such claims, demands, damages, losses or liabilities for their negligence 8. INSURANCE. Without limiting or diminishing the CITY obligation to indemnify or hold the COUNTY harmless, CITY shall procure and maintain or cause to be Page 4 of 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 maintained, at its sole cost and expense, the following insurance coverage's during the term of this Agreement. a. Workers' Compensation: If the CITY has employees as defined by the State of California, the CITY shall maintain statutory Workers' Compensation Insurance (Coverage A) as prescribed by the laws of the State of California. Policy shall include Employers' Liability (Coverage B) including Occupational Disease with limits not less than $1,000,000 per person per accident. The policy shall be endorsed to waive subrogation in favor of the County of Riverside. b. Commercial General Liabilit : Commercial General Liability insurance coverage, including but not limited to, premises liability, contractual liability, products and completed operations liability, personal and advertising injury, and cross liability coverage, covering claims which may arise from or out of CITY'S performance of its obligations hereunder. Policy shall name the County of Riverside as Additional Insured. Policy's limit of liability shall not be less than $1,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2) times the occurrence limit. C. Vehicle Liability: If vehicles or mobile equipment are used in the performance of the obligations render this Agreement, then CITY shall maintain liability insurance for all owned, non -owned or hired vehicles so used in an amount not less than $1,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2) times the occurrence limit. Policy shall name the County of Riverside as Additional Insured. d. General Insurance Provisions - All lines: (i). Any insurance carrier providing insurance coverage hereunder shall be admitted to the State of California and have an A M BEST rating of not less than A: VIII Page 5 of 19 l 7 3 4 5 7 O 0 9 i0 1] 12 13 14 � 15 i6 1 O 10 19 20 21 22 23 24 25 26 27 28 (( (A:8) unless such requirements are waived, in writing, by the County Risk Manager. If the IICniinty °a Tlioh NA 'Al 11C -1 # -� +; ,i -1 ..i. .1:,d (I Com.,,y ,,, 1� sk -1 -nage1 �v V� —o a requhernent for a pa1L1e L110.1 111JL10,1 OLLU11 Wa1Vli1 1J WHY Vanu for that spccific insurer and only for one policy term. The CITY'S insurance carrier(s) must declare its insurance self- insured retentions. If such self- insured retentions exceed $500,000 per occurrence such retentions shall have the prior written consent of the County Risk Manager before the nnl �mennnt eni of operations under +i ;S A g,.-C , C-+ Tip +., nt;_i:..., #: .. •� ,. f' self ] retention :..vllu.1..11..:.iii..11' an..t�1 i.ti1J 1wn11i�11t. v Cin n10 nication ol. self insured 1l.I,C Mien unacceptable to the COUNTY, and at the election of the Country's Risk Manager, CITY'S Icarriers shall either; 1) reduce or eliminate such self - insured retention as respects this Agreement with the COUNTY, or 2) procure a bond which guarantees payment of losses and related investigations, claims administration, and defense costs and expenses. (iii). CITY shall cause CITY'S insurance carrier(s) to furnish the County n Riverside with 1) a r properly e xec- ed o 1 11ul (U1— i1+1.H1r11c1.al lt-(`J J olf . T 1lisuranCe and Certified or copies of Endorsements el acting coverage as require(l herein, and 2) 11 requested to do so orally or in writing by the County Risk Manager, provide original Certified copies of policies including all Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further, said Certificate(s) and policies of insurance shall contain the covenant of the insurance carrier(s) that thirty (30) days written notice shall be given to the County of Riverside prior to any material modification, cancellation, expiration or reduction in coverage of such insurance. In the event of a material modification, cancellation, expiration, or reduction in coverage, this Agreement shall terminate forthwith, unless the County of Riverside receives, prior to such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, including all endorsements and attachments thereto evidencing coverage's set forth herein and the insurance required herein is in full force and effect. CITY shall not commence operations until the COUNTY has been,fur°nished original Certificate (s) of Insurance and cer°tifr`ecl original copies of Page 6 of 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 endorsements and if requested, certified original policies of insurance including all endorsements and any and all other attachments as required in this Section. An individual authorized by the insurance carrier to do so on its behalf shall sign the original endorsements each policy and the Certificate of Insurance. (iv). It is understood and agreed to by the parties hereto that the CITY'S insurance shall be construed as primary insurance, and the COUNTY'S insurance and /or deductibles and /or self - insured retention's or self - insured programs shall not be construed as contributory. (v). If, during the term of this Agreement or any extension thereof, there is a material change in the scope of services; or, there is a material change in the equipment to be used in the performance of the scope of or, the term of this Agreement, including any extensions thereof, exceeds five (5) years, the COUNTY reserves the right to adjust the types of insurance required under this Agreement and the monetary limits of liability for the insurance coverage's currently required herein, if; in the County Risk Manager's reasonable judgment, the amount or type of insurance carried by the CITY has become inadequate. (vi). CITY shall pass down the insurance obligations contained herein to all tiers of subcontractors working under this Agreement. (vii). The insurance requirements contained in this Agreement may be met with a program(s) of self - insurance acceptable to the COUNTY. (viii). CITY agrees to notify COUNTY of any claim by a third party or any incident or event that may give rise to a claim arising from the performance of this Agreement. 9. RECORDS AND INSPECTIONS. A. CITY shall establish and maintain records in accordance with 24 CFR Part 570, Part 85, OMB Circular A -87, A -133 and 24 CFR 91.105, as applicable, and as they relate to the acceptance and use of federal funds under this Agreement. Page 7 of 19 1 3 4 5 7 0 9 i0 11 12 13 14 15 i6 17 10 10 19 20 21 22 23 24 25 26 27 28 B. CITY shall obtain an external audit in accordance with the U.S. ��epal tlllellt of Aiousling alid Urbaii DeVe l opliielit 3111 8i- CMUii regUIa UW13 (24 CI'i\ rare 44.6). �! Audits shall usually be nerformed annually Nit: not less frequently, than every tNvo years. Nonprofit institutions and government agencies that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements, but records must be available for review by appropriate officials of the Federal grantor agency or subgranting entity. The audit report shall be submomitted - tho 1- �T ThT N/ ..:41..., '1 V (1 .,..., ...F' n,,. ,i, ,. �, r7 ,. 1' -i, ,. !'�IIT TT_7T"CnQ !-, ., „1 ye al'. itted i1111�1 Lv Lill vvVly 1 1 vJ1L11111 iuv dCLyJ after V1 L114 IIAU Vl tll VV V1 1 J 11JeQ1 year. C. CITY shall maintain a separate account for the CITYS CDBG Entitlement funds received as set forth in Exhibits A. B, C, D, E, F, G, H and 1, attached hereto. D. CITY shall, during the normal business hours, make available to COUNTY, the U.S. Department of Housing and Urban Development (HUD), or other authorized representative, for the examination and copying, all of its records and other materials with respect to matters covered by this Agreement. E. CITY shall not retain any program income as defined in Section 570.500 of Title 24 of the Code of Federal Regulations. Said program income shall be used only for the activities that are the subject of this Agreement. Further, all provisions of this Agreement shall apply to such activities. F. The CITY shall ensure that at least fifty -one percent (51 %) of the persons benefiting from all CDBG- funded activities or projects designated as serving limited clientele [570.208(a)(2)(i)j are of low and moderate - income and meet the applicable household income guidelines. The CITY shall provide the required income certification and direct benefit documentation, in writing, to the COUNTY pursuant to the reporting requirement of each activity as set forth in Exhibits A, B, C, D, E, F, G, H and. 1, attached hereto. In the event that OT'T'V t f ,, b l l or 1. � , "I'l. c _._ - e 1 i_ _ I_7T-rY \. -11 1 engages u1e services JiCCS 0J cb sliu- CvriiraCL LO ir�ipl el'rii;li� L,LJD Ia- iLuldtCl aeti Vrtles, t11G 1.11 1l must collect, in writing, all required income certification and direct benefit documentation from subcontractors prior to submittal to the COUNTY pursuant to the reporting requirement of each activity as set forth in Exhibits A, B, C, D, E, F, G, H and I, attached hereto. Page 8 of 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 10. COMPLIANCE WITH LAWS. CITY shall comply with all applicable federal, state, and local laws, regulations, and ordinances and any amendments thereto and the federal regulations and guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY is to comply with those regulations found in Part 85 and Part 570 of Title 24 of the Code of Federal Regulations. CITY is to comply with OMB Circular A -87, or any subsequent replacement. CITY is to abide by the provisions of the Community Development Block Grant Manual, prepared by COUNTY and cited in the above - mentioned Cooperation Agreement. CITY shall comply, if applicable, with Section 3 of the Housing & Urban Development Act of 1968, as amended, attached hereto as Exhibit "S" and incorporated herein by this reference. CITY shall also comply with the provisions of 24 CFR Part 570.200 0), attached hereto as Exhibit "R," and incorporated herein by this reference, pertaining to inherently religious activities. 11. INDEPENDENT CONTRACTOR. The CITY is, for purposes relating to this Supplemental Agreement, an independent contractor and shall not be deemed an employee of the COUNTY. It is expressly understood and agreed that the CITY (including its employees, agents and subcontractor's) shall in no event be entitled to any benefits to which the COUNTY employees are entitled, including but not limited to overtime, any retirement benefits, worker's compensation benefits, and injury leave or other leave benefits. There shall be no employer - employee relationship between the parties; and the CITY shall hold the COUNTY harmless from any and all claims that may be made against the COUNTY based upon any contention by a third party that an employer - employee relationship exists by reason of this Supplemental Agreement. It is further understood and agreed by the parties that the CITY in the performance of this Supplemental Agreement is subject to the control or direction of the COUNTY merely as to the results to be accomplished and not as to the means and methods for accomplishing the results. 12. TERMINATION. A. CITY. CITY may not terminate this Supplemental Agreement except upon express written consent of COUNTY. Page 9 of 19 1 3 4 5 7 O 9 i0 11 12 13 IA 15 i6 17 , O ro 19 20 21 22 23 24 25 26 27 28 B. COUNTY. Notwithstanding the provisions of Paragraph 12a, COUNTY (rnav cricno.nd nr iarminafr chic Crnnnh- monfal AarnHmnnt irnnn a fPn (1 A) rlav Uar,•;ttan 11n1;r1P fn CITY of action being taken and the reason for such action including, but not limited to, the following reasons: (1) In the event CITY fails to perform the covenants herein contained it such times and in such manner as provided in this Supplemental Agreement; and (2) In the event there is a conflict with any federal, state or local law, , _i the ordinance, -regulation or rule rendering any or � the provisions or 'this this Agreement invalid or untenable; or I (3) In the event the funding from the Department of Housing and Urban Development referred to in Sections 1 and 2 above is terminated or otherwise becomes unavailable. C. Upon suspension or termination of this Supplemental Agreement, Cl'I'Y shall return any unencumbered funds which it has been provided by COUNTY. in accepting said funds, COUNTY does not waive any claim or cause of action it may have against CITY for breach of this Supplemental Agreement. D. Reversion of Assets r. upon expiration or Leri71111at1011 Ul Luis Supplemental fgreement, the CITY shall transfer to the COUNTY any CDBG funds on hand at the time of expiration of the Supplemental Agreement as well as any accounts receivable held by CfI'Y which are attributable to the use of CDBG funds awarded pursuant to this Supplemental Agreement. 2. Any real property under the CITY'S control that was acquired or improved in whole or in part with CDBG .funds (including CDBG :funds provided to the CITY in the form of a loan) in excess of $25,000 is either: (1) Used to meet one of the National Objectives pursuant to 24 CPR Part 570.208 until five years after expiration of this agreement, or for such longer period of time as determined to be appropriate by the COUNTY; or Page 10 of 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (ii) Not used in accordance with Clause (i) above, in which event the CITY shall pay the COUNTY an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non -CDBG funds for the acquisition of, or improvement to, the property. 13. NONDISCRIMINATION. CITY shall abide by 24 CFR 570.601 and 570.602 of Title 24 of the Code of Federal Regulations which requires that no person in the United States shall on the grounds of race, color, national origin, 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 Community Development funds. CITY shall abide by and include in any subcontracts to perform work under this Supplemental Agreement, the following clause: "During the performance of this Supplemental Agreement, CITY and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, age (over 40) or sex. CITY and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. CITY and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12990, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this Agreement by reference and made a part hereof as if set forth in full. CITY and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement." 14. PROHIBITION AGAINST CONFLICTS OF INTEREST A. CITY and its assigns, employees, agents, consultants, officers, and elected and appointed officials shall become familiar with and shall comply with the CDBG regulations prohibiting conflicts of interest contained in 24 CPR 570.61.1, a copy of which is attached hereto Page 11 of 19 1 �I 3 4 51 7 8 0 9 iU 11 12 13 14 15 i7 i 10 10 19 20 21 22 23 24 25 26 27 28 as Exhibit "CI" and incorporated herein by this reference. B CITY understands and acmes that no waiver of exception can be granterd to the prohibition against conflict of interest except upon written approval of FIUD pursuant to 24 CFR 570.611 (d). Any request by CITY for an exception shall first be reviewed by COUNTY to determine whether such request is appropriate for submission to HUD in the COUNTY'S sole and absolute discretion. In determining whether such request is annrooriate for submission to HUD, COUNTY will consider the factors listed in 24 CFR 570,611 (e). C. Prior to the distribution of any CDBG funding under this Supplemental Agreement, CITY shall provide COUNTY, in writing, a list of all employees, agents, consultants, officers and elected and appointed officials who are in a position to participate in a decision making process, exercise any functions or responsibilities, or gain inside information with respect to the CDBG activities funded under this Agreement. CITY shall also promptly disclose to COUNTY any potential conflict, including even the appearance of conflict that may arise with respect to the C;DBG activities funded under this Supplemental Agreement. E. Any violation of this Section 14 shall be deemed a material breach of this Suppiemenmi Agreement, and the Supplemental Agreement shall be .immediately terminated by the COUNTY. 1 C PROTECT E IGIBTT TTY A _ CITY _ 1 _ COUNTY _ 1 / 1. 1 J. ritVJLI� 1 L'L1U1D1L11 Y . !-1J to 1.1 l Y or its GliLlrllanl5, shall C)(:ar no liability for any later determination by the United States Government, the U.S. Department of Housing and Urban Development, or any other- person or entity that CITY is or is not eligible under 24 CFR Part 570 to receive CDBG entitlement funds from the COUNTY. 16. USE OF PROPERTY. Whenever federal CDBG funds or program income are used, in whole or in part, for the purchase of equipment or personal property, the property shall not be transferred from its originally funded use, by CITY or the CITY'S subcontractor implementing the CDBG -fimded activity, for a period of five (5) years from the close -out date of the grant from which CDBG assistance was provided. The CITY shall maintain a current inventory for COUNTY monitoring and review. Page 12 of 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2.5 26 27 28 17. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY agrees to notify in writing, and to cause any subcontractor implementing CDBG- funded Projects to notify, in writing, the Riverside County Workforce Development Center of any and all job openings that are caused by the CDBG - funded Projects under this Supplemental Agreement. 18, PUBLICITY. Any publicity generated by CITY for the Projects funded pursuant to this Supplemental Agreement will make reference to the contribution of the COUNTY, the Economic Development Agency, and the Community Development Block Grant Program in making the project possible. 19. PROGRAM MONITORING AND EVALUATION. CITY and its subcontractors shall be monitored and evaluated in terms of its effectiveness and timely compliance with the provisions of this Supplemental Agreement and the effective and efficient achievement of the CDBG National Objectives as set forth in Exhibits A, B, C, D, E, F, G, H and 1, attached hereto. Quarterly reports shall be due on the last day of the month immediately following the end of the quarter being reported. The quarterly written reports shall include, but shall not be limited to, the following data elements: A. Title of program, listing of components, description of activities /operations . B. The projected goals, indicated numerically, and also the goals achieved (for each report period). In addition, identify by percentage and description, the progress achieved towards meeting the specified goals and identify any problems encountered in meeting goals. C. If the CDBG- funded activity meets a National Objective under 24 CFR 570.208 (a)(2)(i.), CITY will report the following: 1) Total number of direct beneficiaries (clientele served) with household incomes at: • Above 80% MI-I.I • Between 50% and 80% MHI (Low - Income) Page 13 of 19 1 e Between 30% and 50% MHI (Very Low - Income) 7 �I ® T.PCQ ilian '300/,, MT-TT (T.xirPiriPly Low- Tiir.ninp..) 3 I� 2) Total number and percent ( %) of the clientele served that have 4 ( household incomes at or below 80% MHI 5 I 3) Racial ethnicity of clientele 6 4) Number of Female- Headed I-- louseholds 7 D. CITY shall report, in writing, and cause its subcontractors to report in � 1 statistics 1 l `1 r� r D£velG m%i1t A'er1C' DAB oil fife r„ o writing, beneficiary tatistics nioiZlh y to Ile Econonni. p � y t � p 9 i approved Direct Benefit Form and Self - Certification Form (certifying income, family size, and IU racial ethnicity) as required by HLJD. Updated forms are to be provided to CH Y by ELM should 11 HUD implement changes during the term of this Supplemental. Agreement. CITY and 12 subcontractors will collect and provide all necessary data required by IIUD pertaining to the 13 Specific Outcome Indicators as identified in HUD's Community Planning and Development 14 ` (CID) Outcome Performance Measurement System. 15 II 20. SOURCE OF FUNDING. CITY acknowledges that the source of handing i v pursuant to this Supplemental Agreement is Community Development Block Grant funds 17 (CFDA 14.218' )_ 10 11 T -'T T'VTTI T-? A /-TI T�T`A XT)T. T-P TL... CY A ...... .......... :__. -1_., 1:._,.- ..._-- 10 G 1. D1V A llZD til71�J,.lYlL1V 1. A 111J 0 UPj)IC;111G111Z11 t\�'1 UU111G11L, 111V11IU111�,, ally 19 attachments or exhibits hereto constitutes the entire Supplemental Agreement of the parties with 20 respect to its subject matter and supersedes all prior and contemporaneous representations, 21 proposals, discussions and communications, whether oral or in writing. No oral understanding or 22 agreement not incorporated herein shall be binding on any of the parties hereto. Each of the 23 attachments and exhibits attached hereto is incorporated herein by this reference. 24 22. MINISTERIAL ACTS. The Assistant County Executive Officer /EDA or 25 designee(s) are authorized to take such ministerial actions as may be necessary or appropriate to 26 implement the terms, provisions, and conditions of this Supplemental Agreement as it may be 27 amended from time -to -time by COUNTY. 28 Page 14 of 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 23. PRIOR AUTHORIZATION. CITY shall obtain COUNTY'S written approval from the COUNTY'S Economic Development Agency prior to implementing the following "high risk" activities funded with CDBG assistance: A. Construction of public facilities (project plans and specifications); B. Acquisition of real property; C. Historic Preservation; D. Relocation; and F. Economic Development 24. FORCE MAJEURE. A. Performance by either party hereunder shall not be deemed to be in default where delays or defaults are due to war, insurrection, strikes, lock -outs, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, freight embargoes, lack of transportation, governmental restrictions or priority, litigation, unusually severe weather, inability to secure necessary labor, material or tools, delays of any contractor, sub - contractor or supplier, acts of the other party, acts or failure to act of a public or governmental agency or entity, or any causes beyond the control or without the fault of the party claiming an extension of time to perform. B. An extension of time for any such cause (a "Force Majeure Delay ") shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) calendar days of knowledge of the commencement of the cause. Notwithstanding the foregoing, none of the foregoing events shall constitute a Force Majeure Delay unless and until the party claiming such delay and interference delivers to the other party written notice describing the event, its cause, when and how such party obtained knowledge, the date the event commenced, and the estimated delay resulting therefrom. Any party claiming a Force Majeure Delay shall deliver such written notice within thirty (30) calendar days after it obtains knowledge of the event. Page 15 of 19 1 7 3 4 5 7 8 9 10 i 12 13 14 15 16 17 in 10 19 20 21 22 23 24 25 26 27 28 25. JURISDICTION AND VENUE,: Any action at law or in equity arising under this I qitnn1Pmanta1 A arPPmPni nr hrnncrht IIv miriv haratn fn,• fhP nnrnneP n-f Pnfnro;nn rnnetrr,inn nr determining the validity of any provision of this Supplemental Agreement shall be filed in the consolidated Courts of Riverside County, State of California, and the parties hereto waive all provisions of law providing for the Cling, removal or change of venue to any other court or iurisdiction 26. SEVERABILITY. Each paragraph and provision of this Supplemental Agreement is severable from each other provision, and if any provision or part thereof is declared invalid, the remaining provisions shall remain in full force and effect. 27. WAIVER. Failure by a party to insist upon the strict performance of any of the provisions of this Supplemental Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's rights to insist and demand strict compliance by the other party with the terms of this Supplemental Agreement thereafter. 28. NOTICES. Each notice, request, demand, consent, approval or other communication (hereinafter in this Section referred to collectively as "notices" and referred to singly as a "notice ") which the CITY or COUNTY is rcquired or permitted to give to the other parry pursuarli LO 6111s Agreement snail De in wnLmg anu span be deemed Lo nave been duly and sufficiently given if- (a) personally delivered with proof of delivery thereof (any notice so delivered shall be deemed to have been received at the time so delivered); or (b) sent by Federal Express (or other similar national overnight courier) designating early morning delivery (any notice so delivered shall be deemed to have been received on the next Business Day following receipt by the courier); or (c) sent by United States registered or certified mail, return receipt requested, postage prepaid, at a post office regularly maintained by the United States Postal Service (any notice so sent shall be deemed to have been received two days after mailing in the United States), addressed to the respective parties as follows: Page 16 of 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ,'It-NY TIK T'1'N 7 CITY Assistant County Executive Officer /EDA Richard MacHott Economic Development Agency P.O. Box 1180 City of Lake Elsinore 130 S. Main Street Riverside, CA 92502 Lake Elsinore, CA 92530 28. LOBBYING. CITY certifies to the best of its knowledge and belief, that: a. No federally- appropriated funds have been paid or will be paid, by or on behalf of the CITY, to any person for influencing or attempting to influence an officer or 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. b. If any funds other than federally- 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 of Congress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the CITY shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. C. CITY 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 sub - recipients 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. 29. INTERPRETATION AND GOVERNING LAW. This Supplemental Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the Page 17 of 19 I laws of the State of California. This Supplemental Agreement shall be construed as a whole i w-col -3ina in ific fair lananacra ainrl nmmi�nn mP � aninn to aivPVP the nk;PnfiA7P0 an'] ,,,,,•„naPa nfth< ... I I ..., .,....- .�., ., -.., �..,... .-.. .L,�...b.. ....... ...,,..,.�..�. ,.......... .�, �. ..iv..,vvv .av vv�vv,vv„ uaau Nu,.Nva�.., vi , a� 3 parties hereto, and the rule of construction to the effect that ambiguities are to be resolved 4 ( against the drafting party shall not be employed in interpreting this Supplemental Agreement, all 5 parties having been represented by counsel in the negotiation and preparation hereof. 6 30. AUTHORITY TO EXECUTE. The persons executing this Supplemental 7 ( Agreement or exhibits attached hereto on behalf of the parties to this Supplemental Agreemcnt 8 hereby warrant and represent that they have the authority to execute this Supplemental 9 Agreement and warrant and represent that they have the authority to bind the respective parties 10 ( to this Supplemental Agreement to the performance of its obligations hereunder. 11 31. EFFECTIVE DATE. The effective date of this Supplemental Agreement is the 12 date the parties sign the Supplemental Agreement. If the parties sign the Supplemental 13 Agreement on more than one date, then the last date the Supplemental Agreement is signed by a 14 i I party shall be the effective date. 15 32. COUNTERPARTS. This Supplemental Agreement in ay be signed by the 16 different parties hereto in counterparts, each of which shall be an original but all of which 17 together shall constitute one and the same agreement. 10 nn T1'i" l o r,r., r r Lr - r. v rtw�.r r L. k-i i z snap not initiate nor into• expenses .for the 19 CDBG- funded Projects or activities covered under the terms of this Supplemental Agreement as 20 set forth in Exhibits A, B, C, D, E, F, G, H and 1, attached hereto, prior to receiving written 21 authorization from COUNTY to proceed. 22 34. ASSIGNMENT. The CITY shall not make any assignment or transfer in any form 23 with respect to this Supplemental Agreement, without prior written approval of the COUNTY. 24 35. MODIFICATION OF AGREEMENT. This Supplemental Agreement may be 25 modified or amended only by a writing signed by the duly authorized and empowered 26 representative of COUNTY and CITY respectively. 27 28 Page 18 of 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IN WITNESS WHEREOF, the COUNTY and the CITY have executed this Agreement as of the date first listed above. COUNTY OF RIVERSIDE, a political subdivision of the State of California BY: Suzanne Holland, Assistant Director of EDA APPROVED AS TO FORM: Gregory Priamos, County Counsel By: Jhaila R. Brown, Deputy County Counsel CITY OF LAKE ELSINORE, a general law city BY: Mayor ATTEST: BY: City Clerk APPROVED AS TO FORM: BY: City Attorney Page 19 of 19 EXHIBIT' A File No.: LLE.36 -14 o V P P LLNV1L1 NT 'l tiL Ai`.b"1 \Eli i'Ll i7 I SCOPE OF WORK k1- 40N- PUJ3LIC SEE RS xvT ITCE"' I. GENERAL INFORMATION CITY NAME: City of Lake Elsinore ADDRESS: 130 S. Main Street Lake Elsiniore, CA 92530 PROGRAM CONTACTS: Richard MacI-lott, Planning Manager PHONE: (951) 674 -3124 FAX: (951) 471 -1419 E -MAIL: rmachott @lake- elsinore.org PROJECT NAME: Sidewalk Improveawnts PROJECT LOCATION: Between Sumner and Heald Avenue, Campus Way, Silver and Lindscy Street LEVEL OF ENVIRONMENTAL CLEARANCE: Categorical Exclusion CDBG ELIGIBILITY CODE: 570.201 (c) PROJECT FUNDING SUMMARY: $171,050 Project to be administered by County (FDA) on behalf of City: YES U NO U 1 II. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2014 -2015 Community Development Block Grant for the Sidewalk Improvements in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program: Activity #I The City of Lake Elsinore will use CDBG funds for street improvements along Sumner Avenue and Heald Avenue on Campus Way, Silver Street, and Lindsey Street to construct sidewalks, improve pedestrian safety, and ADA accessibility. CDBG funds will be used for construction costs. Page. 1 of 6 EXHIBIT A File No.: LLE.36 -14 B. National Objective All activities funded with CDBG funds must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(a)(2). City certifies that the activity(ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: 570.208 (a)(1)(i) CFR Reference: Low Mod Area C. Levels of Accomplishment — Goals and Performance Measures The City agrees to implement and complete the following activity(ies): Activity #1 Follow proper procurement to design and construct Activity #2 Conduct construction of street improvement and ADA accessibility CPD OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): ® Creating Suitable Living Environments ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): ® Availability /Accessibility ❑ Affordability ❑ Sustainability (promoting livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City or subrecipient's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County. E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. Page 2 of 6 EXHIBIT A 7„ i 1 T ly 3 6 7 file 1. o.. 1.LL.JU-14 T1' ��rncrr�rn i�2n�aP9 It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $171,050 Drawdowus for the payment of eligible expenses shall be made against the line item budgets specifed in this Section and in accordance with performance. Payments may be contingent upon certification of the Suviecipient's financial management system m accordance with the standards specified in 24 CFR 84.21. The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such suppieinentary budget imurination in a ti)iiely fashion -in the form and content prescribed by Life I. uuntly. Any a.inendments to the budget MUSt be approved in writing by both the County and City. Page 3 of 6 EXHIBIT A File No.: 1.1,E.36 -14 G. Total Amount of Non- CDBG Leveraging 7 17777-7-7777 77-1- TYl'11 SOURCE �AMOUN I' i SOURCE. AMOUNT: C SOURCE ( AMOUNT-; � TOTAL , _ 4 u - f'EllERAL ST�T��iL.00AL - - - - - - 7. — - -- F- -� TOTAL: none III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," A -21_, "Cost Principles for Educational Institutions," or OMB Circular A -87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. C. Documentation and Record Keeping Records to be Maintained The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CPR 570.506, that are pertinent to the activities to be funded under this Agreement, Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CPR 570.502, and 24 CFR 84.2128; and vii. Other records necessary to document compliance with Subpart K of 24 CFR 'Part 570. Page 4 of 6 EXHIBIT A F le No.: LLF.36 -14 7 Rarnrrlc T?Pi "�ni'inn The City shall retain all financial records, supporting documents, .statistical records and all other records pertinent to the Agreement for a period of five (5) years. The retention period begins on the date of the submission of the County's annual performance and evaluation report to HUD in which the activities assisted cinder the Agreement are reported on for the final time. 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 five -year period, - then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five -year period, whichever occurs later. Client Data The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include; but not be. limited to, client name address incorne level or othP1 basis fnr determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or diSCIOSUr'e of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent /guardian. Close -outs The City's obligation to the County shall not end until all close -out requirements are completed. Activities v'iweS uurrrhg wir:i viJSe-vui pirrvu luau rin.iudic, but are not tti'tlilGU to: 111Ytrilllg lllld.l payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income. 6. Audits & Inspections All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have in annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB CircularA -133. Page of 6 EXHIBIT A File No.: LLE.36 -14 IV. PROJECT IMPLEMENTATION AND SCHEDULE Unless pre - approved by County, City will perform and complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Start Date Completion Date Complete Online Mandatory Cooperating City Training Implement Project Activities Execute Supplemental Agreement & Notice to Incur Cost Tasks / Milestone Submit Quarterly Performance Reports to County July 2014 Upon Notification from EDA September 2014 Start Date September 2014 October 2014 Completion Date October 15, 2014 January 15, 2015 April 15, 2015 July 31, 2015 County Monitoring of City To be determined by Program Manager Program /Performance Project Activities 1. City executes Supplemental Agreement; receives authorization to incur cost letter 2. City prepares final construction documents for EDA review and approval 3. EDA authorizes City to advertise for bids 4. EDA reviews and approves bidding process 5. City awards construction contract 6. City and EDA conduct "pre- construction meeting" 7. EDA authorizes City to issue "Notice to Proceed" City Submits Reimbursement Requests Monthly Submittal ❑ Monthly Progress reports Other Schedule ❑ CDBG- funded Project Complete 05 /15 /I5 City Submits Monthly Upon Notification by I:DA Direct Benefit Reports V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS City agrees to comply with applicable CDBG procurement procedures and HUD Labor Standards 4010. No construction will shall commence using CDBG funding without prior Notice to Proceed. Pre- Construction meeting required. City is required to contact the County Program Manager for review prior to submission of RFP, construction activity or cost without prior written approval. County must be contacted 10 days in advance for attendance of Pre - Construction meeting. Original Certified payrolls to be submitted on a weekly basis to County. Page 6 of 6 EXHIBIT 13 File No.: L.L,E.37 -14 0ul 11�EI�E1aTiA1, AviaEEAriE11I i SCOPE OF WORK ON 1. GENERAL INFORMATION CITY NAME: City of Lake Elsinore ADDRESS: 130 South Main Street _ Lake Elsinore, CA 92530 PROGRAM CONTACTS: Richard MacHott, Planning Manager PHONE: (951) 674 -3124 FAX: (951) 471 -1419 E -MAIL: rmachott ,lake- elsinore.org PROJECT NAME.- Code Enforcement PROJECT LOCATION: Lake Elsinore LEVEL OF ENVIRONMENTAL CLEARANCE: Categorical Exclusion CDBG ELIGIBILITY CODE: 570.202 (c PROJECT FUNDING SUMMARY: $101,325 Pro feet to be administered by County (EDA) on behalf of City: YES 'DI NO � 11. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2014 -2015 Community Development Block Grant for the Code Enforcement in a manager satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds, Such program will include the following activities eligible under the Community Development Block Grant program: Activity fl I CDBG funds will be used by the City to conduct enhanced code enforcement activities in targeted unincorporated areas of the County. The purpose of code enforcement is to enhance public safety and. the quality of life, through fair G11f Vl l- GlllenL of 1CI. Y \'J C111U VoUc Li111VYl,l.l lZenl JCLL\.ty issues. L 1g1 ll. I,VJLJ IAll,l l.lUc the salaries, overhead, and related expenses of code enforcement officers. Page I of 6 EXHIBIT B File No.: 1.LE.37 -14 B. National Objective All activities funded with CDBG funds must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(a)(2). City certifies that the activity(ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: 570.208 (a)(1)(i CFR Reference: Low Mod Area C. Levels of Accomplishment — Goals and Performance Measures The City agrees to implement and complete the following activity(ies): Activity #I Enforce codes addressing substandard structures and other code violations CPD OUTCOME PERFORMANCE ME +'ASUREMENT Objectives (select one): ® Creating Suitable Living Environments ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): ❑ Availability /Accessibility ❑ Affordability ® Sustainability (promoting livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and early out the activities funded with CDBG finds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City or subrecipient's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County. E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. Page 2 of 6 EXHIBIT B f'i!e Flo,: l,LE.3 l -14 F. Pro2rain Budaet i� is expressly agreed and understood that the total amount to be paid by the UoUnty tinder this Agreement shall not exceed $101,325 Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in 24 C' R '04.21. The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget - information in a'timely fashion in the form and content prescribed by the County. Any arnetidrneiiis to the budget must be approved in wiuuig by uviAA the County and City. Cr. Total Anionnt of Non- CDBG Leveraging Page 3 of 6 EXHIBIT B File No.: I.LE.37 -14 III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," A -21, "Cost Principles for Educational Institutions," or OMB Circular A -87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. C. Documentation and Record Keeping Records to be Maintained The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21 -28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part .570. Page 4 of 6 Y' SOLIRCF AMOUTI I SOURCE . I AMOUNT 'SOURCE AMOUNT TOTAL — SATE'IOCAL ` _ �RiVersideAUAt- 0,000 r-7-` 7 -_._. Waste j (�� g e—mnt 000 � 1 8, - Mam a e _ . 18,000 7[7771 __ ' T__ oTxEx' _ TOTAL: ` $18000 - {-- - - - -�- III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," A -21, "Cost Principles for Educational Institutions," or OMB Circular A -87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. C. Documentation and Record Keeping Records to be Maintained The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21 -28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part .570. Page 4 of 6 EX1111311' B File No.: LL1.37 -14 2. Records Retention T he City shall retain all financial records, supporting documents, statistical records, and all other records pertinent fo the Agr•eennent for a period of five (5) years. The retention period begins on the date of the submission of the County's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final tune. 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 five -year period, - then such records must be retained until completion of the actions and resolution of all issues or - the expiration of the five -year period, whichever occurs later. Client Data The City 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 detPrminincr efiaihility and da.corintinn of cnrvinr nrn�iidnd .`nch infnrmatinn Shall hn mndf- �_._..........� _..a......_ ✓, »_ _..t _. .. service pro v ide_.. - _1 _11 . _ available to County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent /guardian. close-outs The City's obligation to the County shall not end until all close -out re quirennents are completed. Activities during this close -out period shall include, but are not limited to: making final hnyurcrrta, duatwatrrb of prvgiitrar assets (urwriduug the ictuiir of all unused urnrcimra, cqurprrrcnr, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG fluids, inchlding program income. Audits & inspections All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of fixture payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A -133. Page 5 of 6 EXHIBIT B File No.: I .LE.37 -14 IV. PROJECT IMPLEMENTATION AND SCHE DULE Unless pre - approved by County, City will perform and complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Start Date Completion Date Complete Online Mandatory Cooperating City Training Implement Project Activities Execute Supplemental Agreement & Notice to Incur Cost Tasks / Milestone Submit Quarterly Performance Reports to County County Monitoring of City Program /Performance Specific Project Activities City Submits Reimbursement Requests Monthly Submittal ❑ Other Schedule CDBG - funded Project Complete July 2014 Upon Notification from EDA September 2014 Start Date September 2014 October 2014 Completion Date October 15, 2014 January 15, 2015 April 15, 2015 July 31, 2015 To be determined by Program Manager To be determined by Program Manager May 15, 201.5 City Submits Monthly Submit Monthly Reporting, reaps of areas served and Photos Direct Benefit Reports V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS City is to administer program activity concurrently with the Code Enforcement activity to assist low - income community to resolve violation. City is to provide monthly reporting to be submitted reflecting violation activity, map, pictures of location in low- income area, and outcome. Refer to HUD Handbook 1378 Chapter Seven, paragraph 7 -4 A.3): The use of CDBG assistance to fund the costs of code enforcement (including the payment of salaries of code enforcement inspectors and associated legal proceedings) does not, usually by itself, trigger the requirements of Section 104(d). If, however, the circumstances suggest that CDBG- assisted code enforcement is part of a single undertaking with planned or intended demolition or- conversion, whether federally- or privately- funded, IIUD may determine that the code enforcement is being conducted "in connection with" the anticipated development project and that any persons who move from property are displaced as a direct result of the development project. For further assistance, please contact your local HUD Field Office. Page 6 of 6 EXHIBIT C File No.: l .LF.,.38 -14 SUPPLEMENTAL AGREEMENT SCOPE OF WORK rnrmr yr crnva� r, li v Okla` d Av j 1. GENERAL INFORMATION CITY NAME: City of Lake Elsinore ADDRESS: 130 S. Main Street Lake Elsinore, CA 92530 CITY PROGRAM CONTACTS: Richard MacIlott, Planning Manager SUBRECIPIENT NAME: CDBG Administrative Cost -Lake Elsinore ADDRESS: 130 S. Main Street, Lake Elsinore, CA 92530 PI IONS: (951) 674 -3124 FAX: (951) 471 -1419 E -MAIL: PROJECT NAME: CDBG Administrative Cost -Lake Elsinore PROJECT LOCATION: 130 S. Main Street. Lake Elsinore, CA 92530 _ LEVEL OF ENVIRONMNTAL CLEARANCE: EXEMPT [24 CFR 58.34 (a)(4)] CDBG ELIGIBILITY CODE: 24 CFR 570.201 (c) Public Services PROJECT FUNDING SUMMARY: $10,000 Project to be administered by County (EDA) on behalf of CITY: YES ❑ NO Il. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2014 -201.5 Community Development Block Grant for the CDBG Administrative Cost -Lalw Elsinore in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Giant program: Activity 9-1 The City of Lake Elsinore (a. Metro City) will use CDBG funds for general program administration activities. Activities include preparing budgets, schedules, reports, and monitoring program activities. CDBG funds will be used for staff salaries(direct cost). Page 1 of 6 EXHIBIT C File No.: 1.LE.38 -14 B. National Objective All activities funded with CDBG finds must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(a)(2). CITY certifies that the activity (ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: CFR Reference: N/A N/A C. Levels of Accomplishment — Goals and Performance Measures The City agrees to provide the following levels of program services: Activity Units Total Total per Month Units /Year Unduplicated Persons N/A N/A Activity #1 Provide general program Administration activities. Unit of Service is defined as: Administration Completed CPD OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): ® Creating Suitable Living Environments ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): ❑ Availability /Accessibility ❑ Affordability ❑ Sustainability (promoting livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it and its subrecipients have the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact City's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County. E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. Page 2 of 6 EXHIBIT File No.: LLE.38-14 F. Program Budget It is expressly agreed and understood that (he bo&d aonuooitobe paid ' the County under this Agreement shall not exceed . Druwdo`pua fbr the payment of eligible expenses ybul} be made against the line item budgets specified in this Section and in accordance with per-formatice, Puyzooub may be contingent upon oortiDoy\iou of the Suhrcoipinct`o Imoocini coauegncoeut system io accordance with the standards specified iu24CFIlO4.2l. The County may require a more detailed budget breakdown than the one contained herein, and � the City shall provide such supplementary budget information in a timely fashion in the form and � coo1ou1 prescribed by the County. Any amendments to the budget most be approved in writing by both the County andCity. a All indirect mmb must be pre-approved by the County. City must submit um Indirect Cost AUooudou Plan to County, in u form specified by County, demonstrating the appropriate share of general and administrative costs. Page 3 of 6 EXHIBIT C Tile No.: l.LE.38 -14 G. Total Amount of Non- CDBG Leveraging TYPE\ SOURCI; AMOUNT I SOURCE AMOUN 1 �SQURCE AMOUNI _ TOTAL F�DERAT ----- - none STATILGA �?THER, 77 .. ............. . TOTAL: none III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," A -21, "Cost Principles for Educational Institutions," or OMB Circular A -87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. C. Documentation and Record Keeping Records to be Maintained The City and its subrecipients will maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CPR 570.502, and 24 CPR 84.21 -28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. Page 4 of 6 EXHIBIT C File No.: I.I. 3i1 -14 2. Records Retention liju L_,uy Jiiau iuLaill all I.iliall-ldi iUUOlUb, Jl.ippuiull Uli l.Uiill%i1LJ, 6LUL15Liudi lcuuluJ, dilu . all other records pertinent to the Agreement for a period of five (5) years. The retention period begins on the date of the submission of the County's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. 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 five -year period, then such records must be retained - -until completion of the actions and resolution of all issues, or the expiration of the five - year period, whichever occurs later. Client Data The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be imlited to, client name, address, incoiiie level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's respoi�slbllltles wril: respect to services proYV'iiied under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a respoLi.sible parent /guardian. Close -outs The City's obligation to the County shall not end until all close -out requirements are completed. Activities during this close -out period shall include, but are not limited to: malting final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income. 6. Audits & Inspections All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result: in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A -133. Page 5 of 6 EXHIBIT C File No.: 1.LE.38 -14 IV. PROJECT IMPLEMENTATION AND SCHEDULE Unless pre- approved by County, CITY will perform and complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Start Date Completion Date Complete Online Mandatory Cooperating July 2014 September 2014 City Training Execute Subrecipient Agreements July 1, 2014 - -- (EDA must approve) Implement Program Activities July 1, 2014 TBD Execute Supplemental Agreement September 2014 October 2014 & Notice to Incur Cost City Submit Quarterly October 15, 2014 Performance Reports to County January 15, 2015 April 15, 2015 July 31, 2015 County Monitoring of City TBD TBD Performance City submit Monthly September 2014 July 2015 Direct Benefit Reports City Submits Reimbursement Requests Monthly Submittal ❑ September 2014 June 13, 201.5 Other Schedule ❑ CDBG Program Services Complete May 15, 2015 V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS City must submit reimbursement requests. Page 6 of 6 EXHIBIT D File No.: 1.LE.39 -14 SUPPLEMENTAL AGREEMENT SCOPE OF WORD tDTTM TO Q DA7Y( Ti I. GENERAL INFORMATION CITY NAME: City of Lake Elsinore ADDRESS: 130 S. Main Street Lake Elsinore, CA 92530 CITY PROGRAM CONTACTS: Richard MacHott, Planning Manager SUBRECIPIENT NAME: STUDIO 395 Foundation, Inc. ADDRESS: 130 S. Main Street, Lake Elsinore, CA 92530 PHONE: (951) 674 -31.24 FAX: (951) 471 -1419 E -MAIL: rmachott @lake- elsinore.org PROJECT NAME: STUDIO 395, Foundation, Inc. PROJECT LOCATION: 29364 Gunder Ave Lake Elsinore CA 92530 LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT [24 CFR 58.34 (a)(4)1 CDBG ELIGIBILITY CODE: 24 CFR 570.201 (e) Public Services PROJECT FUNDING SUMMARY: $5,000 Project to be administered by County (EDA) on behalf of CITY: YES ❑ NO 11. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2014 -2015 Community Development Block Grant for the STUDIO 395, Foundation, Inc. in a manner satisfactory to the County of "Riverside and consistent with any standards required as a condition Of prov',ding these 4"11111ds. Such program will include the following activities eligible Linder the Community Development Block Grant prograin: Activity #1 STUDIO 395 Foundation, Inc,, provides exposure to the arts and creative expression to the comnnunity by conducting lectures on how individuals can market their art, education through art.CDBG funds will be used for staff salaries (direct cost) and consumable supplies. Page 1 of 6 10.1421101801 File No.: I .LE.39 -14 B. National Objective All activities funded with CDBG fields must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(x)(2). CITY certifies that the activity (ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: 570.208 (a)(2)(i)(B) CFR Reference: Low Mod Limited Clientele Income Certification C. Levels of Accomplishment — Goals and Performance Measures The City agrees to provide the following levels of program services: Activity Units Total Total per Month Units /Year Unduplicated Persons 100 Activity ##1 Provide lectures to low - income clients regarding marketing their art work Unit of Service is defined as: clients served CPD OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): ❑ Creating Suitable Living Environments ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): ❑ Availability /Accessi.bility ❑ Affordability ❑ Sustainability (promoting livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it and its subrecipients have the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact City's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County. E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. Page 2 of 6 EXHIBIT D File No.: 1.I..E.39-14 P. Program Budget It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $5,000. Drawdowns for the payment of eligible expenses shall be MA. on��linot t1-.A 1-. r1-- i�))rilra�to a r—A in ti�ic Condon —d in — cord—ce —ith — rnr—a- 111LLlLV U66 1110L L11V 1111V 1L-- IJ UUbVLJ Jpe V1A1VU All L111J IJVVLl VAA UlAU 1tA UVVVA ULLIIVV I-- iJ V1AVAlA1Lt11VV. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in 2=s I'll l� Olt . Z.1. The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and _content prescribed by the County._ Any amendments to the budget must be approved in writing by both the County and City. L,iue Item CDBG QrOked 'Total Non- 'Total Notes funds C1DBG Ftmds �� A.ctivity /1'roject I I 1I 11 Bu02ei II I Total Direct program �f,5,ti00 (� p�uu.uu g: ivnieage Equipment (Program Only) Audit Tr7 Y1CYin Yt 7f'Fn Y1 Other: I Total Indirect Program$ Expenses Indirect Costs (Specify)* All indirect costs must be pre - approved by the County. City must submit an Indirect Cost Allocation Plan to County, in a form specified by County, demonstrating the appropriate share of general and administrative costs. G. Total Amount of Non- CDBG Leveraging TYPF I SOURCI AMOLIN7 j SOURCE AMOUNI� � SOURC AMOUNT TOTAL Page 3 of 6 EXHIBIT D TOTAL: $500.00 III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," A -21, "Cost Principles for Educational Institutions," or OMB Circular A -87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. C. Documentation and Record Keeping Records to be Maintained The City and its subrecipients will maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21 -28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. Records Retention Page 4 of 6 EXHIBIT D File No.: I.LE.39 -14 The City shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of live (5) years. The retention period begins on the date of the submission of the County's annual performance and PT7A171A1;nn ranr�rt to T-TTTTI its wl -i;o1h tha rnn(lar thr, A"n r -)0V)1 nro reported on for the linal time. 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 five -year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five- year period, w:hic'hever occurs later. 3. Client Data The City 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 determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent /guardian: Close -outs 'I he Citv's obligation to the County .shall not end until all close -ou( requirements are completed. Activities during this close -out period shall include, but are not limited to: _77 ....__..___ 7 iilaxiiib i�liai paynlenis, uiStJusui� ul t)ru,rnlil aS�CUs �iiiciuuuig L11c reLuni ur an uuuSeu materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records, Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income. Audits & Inspections All City records with respect to any matters covered by this Agreement shall be made available to the County, I-IUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of alI relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A -133. IV. PROJECT IMPLEMENTATION AND SCHEDULE Page 5 of 6 101,411181801 File No.: 1.LE.39 -14 Unless pre - approved by County, CITY will perform. and. complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Start Date Completion Date Complete Online Mandatory Cooperating July 2014 September 2014 City 'Training Execute Subrecipient Agreements July 1, 2014 - -- (EDA must approve) Implement Program Activities TBD TBD Execute Supplemental Agreement September 2014 October 2014 & Notice to Incur Cost City Submit Quarterly October 15, 2014 Performance Reports to County January 15, 2015 April 15, 2015 July 31, 2015 County Monitoring of City TBD TBD Performance City submit Monthly September 2014 July 2015 Direct Benefit Reports City Submits Reimbursement Requests Monthly Submittal ® September 2014 June 13, 2015 Other Schedule ❑ CDBG Program Services Complete May 15, 2015 V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS Sponsor must collect income self- certifications from every individual or family participating in CDBG - funded activities or the parent or legal guardian of every child participating in CDBG- funded activities. This includes family income, family size, and ethnicity. Sponsor is required to collect income verification documentation from at least 10% of the participants or 100% for scholarship programs. All of this documentation must be submitted to EDA on a monthly basis. Contact EDA Program Manager prior to procuring cost for Freezer to follow proper procurement. Sponsor must submit reimbursement request monthly or in accordance with other EDA approved schedule. Final reimbursement requests must be received by EDA no later than May 1.5, 2015. ]"age 6 of 6 EXHIBIT E File No.: LLE.40 -14 SUPPLEMENTAL AGREEMENT SCOPE OF WORK CI ." 7TlY .\ I: MINION CITY NAME: City of Lake Elsinore ADDRESS: 130 S. Main Street Lake Elsinore, CA 92530 CITY PROGRAM CONTACTS: Richard MacHott, Planning Manager SUBRECIPIENT NAME: Cops for Kids, Inc ADDRESS: 130 S. Main Street. Lake Elsinore. CA 92530 PHONE: (951) 671 -3124 FAX: (951) 471 -1419 E -MAIL: rmaehottglake- elsinore.org PROJECT NAME: Cops for Kids Emer ei,cy Assistance Program PROJECT LOCATION: 333 Limited Street, bake Elsinore, CA 92.530 LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT 124 CF 55.34 (a)(`t), CDBG ELIGIBILITY CODE: 24 CFR 570.201 (e) Public Services PROJECT F UNDING SUMMARY: $5,250 Project to be administered by County (EDA) on behalf of CITY: YES ❑ NO II. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2014 -2015 Community Development Block Grant for the Cops for Kids Emergency Assistance Program in a manner satisfactory to the County OI R— , /ersi ide uiid CGiLSisteilt "with ati'y' stitildarU rcCiiired as a CGiiditioil Gf prOViuiilg these �iiius. Such program will include the following activities eligible under the Community Development Block Grant program: Activity #1 Cops for Kids, Inc., in partnership with the Lake Elsinore Sheriffs station, provides emergency services such as motel vouchers, bus passes, and food to eligible individuals and families for a 3 -day period. CDBG funds will be used for motel vouchers,bus passes, food, and consumable supplies for 50 homeless individuals. Page I of 6 EXHIBIT E File No.: 1.LE.40 -14 B. National Objective All activities funded with CDBG funds must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(a)(2). CITY certifies that the activity (ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: 570.208 (a)(2)(i)(A) CFR Reference: Low Mod Limited Clientele Presumed C. Levels of Accomplishment - Goals and Performance Measures The City agrees to provide the following levels of program services: Activity Units Total Total -per Month Units /Year Unduplicated Persons 50 Activity #1 Provide emergency hotel vouchers, bus passes, food, and consumable supplies to homeless individuals and families for a 3 -day period. Unit of Service is defined as: clients served CPD OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): M Creating Suitable Living Environments ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): ® Availability /Accessibility ❑ Affordability ❑ Sustainability (promoting livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it and its subrecipients have the appropriate number of trained and lalowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact City's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County. E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. Page 2 of 6 EXHIBIT E Tile No.: IJ,E.40 -14 F. I rogram Budget It is expressly agreed and understood that the total amount to be paid by the County tinder this t tl t mr nrn T 1 for r 1' •i 1 1 it 1 Agreement shall not exceecll 35,255 i. Drawc1owns for iiie payment ol. eligiuie expense's mall u% made against the line item budgets specified in this Section and in accordance with performance, Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in 24 CPR 84,21, lice Ct: tliaty may reC�illi'e a more detailed budget: brealCdOWii. than the one containcil ilerell_t; and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City. deli Atilil CDBG Grallte d,:, Total N oi ➢- i Mal i vTotet, -- _ F_ tndc CY)HG Funds Activity /Project Budget Total Direct Program 5��.5p $0 $5,250 Expenses Salaries Fringe Office Space (Program Only) Utilities Communications Reproduction /Printing Supplies and Materials, Food X 1 Mileage II it II Equipment (Program Only) Audit Transportation X . Other: Motel X `. Total Indirect Program Expenses Indirect Costs (Specify)* All indirect costs must be pre - approved by the County. City must submit an Indirect Cost Allocation Plan to Country, in a form specified by County, demonstrating the appropriate share of general and administrative costs. Page 3 of 6 III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," A -21, "Cost Principles for Educational Institutions,'' or OMB Circular A -87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. C. Documentation and Record Keeping 1. Records to be Maintained The City and its subrecipients will maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21 -28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. Page 4 of 6 EXHIBIT E File No.: l.LE.40 -14 G. Total Amount of Non- CDBG Leveraging SOURCE i AMOUNI SOURCE AMOUN"I j SOURCE (AMOIJN7 TOTAL j I _ EDERAh I � F-77 ± 7F - - _ - S�ATI��LO�A. __ . PRIV�T1~✓ r-- F-7--F77-F711 ............. . TOTAL: none III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," A -21, "Cost Principles for Educational Institutions,'' or OMB Circular A -87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. C. Documentation and Record Keeping 1. Records to be Maintained The City and its subrecipients will maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21 -28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. Page 4 of 6 IXI-I1BIT > File No.: l .LE.40 -14 2. Records Retention The City shall retain all financial records, supporting documents, statistical records, and aln +t ., .. a ._ .. +:._ ._.. fl nu n .. __ . + r,... - _...' -A ,..c x:_.., is + ._,.: l ollicii ilec MAS t.JI�.rthicat o lnu ri�iculliciu LVi a puilou OJ- livli kJl yudi J. Lne ictel14HOI1 period begins on the date of the submission of the County's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started bet-ore the expiration of th.e five -year period, then such records mast be retained until completion of the actions and resolution of all issues, or the expiration of the five- year period, whichever occurs later. 3. Client Data The City 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 determining eligibility, acid description of service provided. Such information shall be made available to County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State lave unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent /guardian. S. Closc -outs The City's obligation to the County shall not end until all close -out requirements are completed. Activities during this close -out period shall include, but are not limited to: snaking final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG fiends, including program income. 6. Audits & Inspections All Citv records will, respect to any ir,rilers covered by this Agre.erriar,t Shall be marls- available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 clays after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A -133. Page 5 o['6 EXHIBIT E File No.: 1.LE.40 -14 IV. PROJECT IMPLEMENTATION AND SCHEDULE Unless pre - approved by County, CITY will perform and complete the activities described in Section Il in conformance with the schedule of tasks and milestones listed below: "Tasks / Milestone Start Date Completion Date Complete Online Mandatory Cooperating July 2014 September 2014 City Training Execute Subrecipient Agreements July 1, 2014 - -- (EDA must approve) Implement Program Activities TBD TBD Execute Supplemental Agreement September 2014 October 2014 & Notice to Incur Cost City Submit Quarterly October 15, 2014 Performance Reports to County January 15, 2015 April 15, 2015 July 31, 2015 County Monitoring of City TBD TBD Performance City submit Monthly September 2014 July 2015 Direct Benefit Reports City Submits Reimbursement Requests Monthly Submittal ® September 2014 June 13, 2015 Other Schedule ❑ CDBG Program Services Complete May 1.5, 201.5 V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS Sponsor must collect income self- certifications from every individual or family participating in CDBG- funded activities or the parent or legal guardian of every child participating in CDBG- funded activities. This includes family income, family size, and ethnicity. Sponsor is required to collect income verification documentation from at least 10% of the participants or 100% for scholarship programs. All of this documentation must be submitted to EDA on a monthly basis. Contact EDA Program Manager prior to procuring cost for Freezer to follow proper procurement. Sponsor must submit reimbursement request monthly or in accordance with other EDA approved schedule. Final reimbursement requests must be received by EDA no later than May 15, 201.5. Page 6 of 6 EXHIBIT F File No.: 1.LEAI -14 SUPPLEMENTAL A(gREEMEN,r SCOPE OF WORK mrrur rr ay�rs�rTr r. is UJ_jj a - 0a,i -, v aim % I. GENERAL INFORMATION CITY NAME: City of Lake Elsinore ADDRESS: 130 S. Main Street Lake Elsinore, CA 92530 CITY PROGRAM CONTACTS: Richard MacHott, Planning Manager SUBRECiPIENT NAME: Boys & Gins Club of Southwest C ADDRESS: 130 S. Main Street, Lake Elsinore, CA 92530 PTIONE: L51) 674 -3124 FAX: (951) 471 -1418 E -MAIL: rmachott arlake- elsinore.or PROJECT NAME: Bovs & Girls Clubs of Southwest Countv PROJECT LOCATION: 3711 Nichols Road, T,Lie Elsinore _CA 92530 _ LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT [24 CFR 58.34 (a)(4)1 CDBG ELIGIBILI"T"Y CODE: 24 CFR 570.201 (c) Public Services PROJECT FUNDING SUMMARY: $7,500 Project to be administered by County (EDA) on behalf of CITY: YES ❑ NO ❑ II. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2014 -2015 Community Development Block Grant for the Boys & Girls Clubs of Southwest County in a manner satisfactory to the �rnmtr of r�ivnvoi r)n � �r� ,nnc•<. i-nY Yvvrtli a� ,° i'�r�.a •roc ren. nit•cr a� nnnr�•iinn � {�rv}•nviriir�ry iliese �.v uaiy vi i�ivui.�iu� iiiu �.vii.>r.>:.'ii li� tG.iauul u. �uaav avvuur.v.. N.v viuiu�, funds. Such program will include the following activities eligible under the Community Development Block Grant program: Activity # 1 The Boys & Girls Club of Southwest County provides a before /after school academic Enrichment and Transportation program. Activities include tutoring service, cooking, geography, sports, computer skills, and art. CDBG funds will be used for supplies, and scholarships to low- income clients. Page I of 6 EXHIBIT F File No.: 1.LE.41 -14 B. National Objective All activities funded with CDBG funds must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(x)(2). CITY certifies that the activity (ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: 570.208 (a)(2)(i)(B) CFR Reference: Low Mod Limited Clientele Income Certification C. Levels of Accomplishment — Goals and Performance Measures The City agrees to provide the following levels of program services: Activity Units Total Total per Month Units /Year Unduplicated Persons 70 Activity #1 Provide Scholarships to eligible low- moderate income clients Unit of Service is defined as: children served CPD OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): ® Creating Suitable Living Environments ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): ❑ Availability /Accessibility ❑ Affordability ❑ Sustainability (promoting livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it and its subrecipients have the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact City's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County. E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. Page 2 of 6 EXHIBIT F File No.: 1.LE.41 -14 F. Program Budget It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $7,500. Drawdowns for the payment of eligible exr)enses shall be is ade against the Mile item budgets Specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in 24 CFR 84.21. The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the forth and content prescribed by the County. Any amendments to the - budget - must be approved in writing by both the County and City. Line Item Total [direct Program Expenses Salaries Fringe Office Space (Program Only) Utilities Communirntinnc Reproduction /Printing SUppliPS anrd Materials Mileage Equipment (Program Only) Audit Transportation Other: Scholarships Total Indirect program Expenses Indirect Costs (Specify)* <u i otal Non- T otal Notes i� -.v�ix TiI.IA 0..93 L'R i.; tBY4ty %�i Ci�i;�:t � Budget $5,000 X All indirect costs must be pre - approved by the County. City must submit an Indirect Cost Allocation Plan to County, in a form specified by County, demonstrating the appropriate share of general and administrative costs. G. 'Total Amount of Non - CDBG Leveraging Page 3 of 6 EXHIBIT F III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," A -21, "Cost Principles for Educational Institutions," or OMB Circular A -87, "Cost Principles for State, Local and hldian Tribal Goveriunents as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. C. Documentation and Record Keeping Records to be Maintained The City and its subrecipients will maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CPR 570.502, and 24 CFR 84.21 -28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. Page 4 of 6 1= 'XHIBI I' F File No.: 11,13.41 -14 2. Records Retention The City shall retain all financial records, supporting documents, statistical records, and X11 n111 Ar r n Aq 1, 1.1— A n,•nn + inr n A ,..r r_ (r.\ %a < -Pt. �� ,•n+n,-. +; .... u:: :; :. : :.. :.:.vim: u:, N:.. :.: u'v::t w tug :- :b:'v:.. : ::..::. ...� .... perr::u .�� v:. � ✓j y'.r s. period begins on the date of the submission of the County's annual performance and evaluation report to BUD in which the activities assisted under the Agreement are reported on for the final time. 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 five -year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five - year period, whichever occurs later. Client Data The City 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 determining eligibility, and description of service provideu. Such in. orrnation shall be made available to County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided Under this contract, is prohibited by applieahl('. :fi-deral and .Mate law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent /guardian. close -o» is I ne City s obligation to me County snarl not end until all close -out requirements are completed. Activities during this close -out period shall include, but are not limited to: making final payments, disposing of program assets ( including the return of all un1Sed materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income. Audits & Inspections All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A -133. Page 5 of 6 EXHIBIT F File No.: 1.LE.41 -14 IV. PROJECT IMPLEMENTATION AND SCHEDULE Unless pre - approved by County, CITY will perform and complete the activities described in Section 11 in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Start Date Completion Date Complete Online Mandatory Cooperating July 2014 September 2014 City Training Execute Subrecipient Agreements July 1, 2014 - -- (EDA must approve) Implement Program Activities July 1, 2014 TBD Execute Supplemental Agreement September 2014 October 2014 & Notice to Incur Cost City Submit Quarterly October 15, 2014 Performance Reports to County January 15, 2015 April 15, 2015 July 31, 2015 County Monitoring of City TBD TBD Performance City submit Monthly September 2014 July 2015 Direct Benefit Reports City Submits Reimbursement Requests Monthly Submittal ® September 2014 June 13, 2015 Other Schedule ❑ CDBG Program Services Complete May 15, 20.1.5 V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS Sponsor must collect income self - certifications from every individual or family participating in CDBG - funded activities or the parent or legal guardian of every child participating in CDBG- funded activities. This includes family income, family size, and ethnicity. Sponsor is required to collect income verification documentation from at least 10% of the participants or 100% for scholarship programs. All of this documentation must be submitted to EDA on a monthly basis. Contact EDA Program Manager prior to procuring cost for Freezer to follow proper procurement. Sponsor must submit reimbursement request monthly or in accordance with other EDA approved schedule. Final reimbursement requests must be received by EDA no later than May 15, 2015. Page 6 o['6 EXHIBIT G File No.: I.LE.42 -14 SUPPLEMENTAL AGREEMENT SCOPE OF WORD /DTTDT Id" QVDri7l.(11'\ kn v3iiiRv vii A6 1 A'—iilJ 1. GrENERAL INFORMA'T'ION CITY NAME: City of Lake Elsinore ADDRESS: 130 S. Main Street Lake Elsinore, CA 92530 CITY PROGRAM CONTACTS: Richard MacHott, Planning Manager SUBRECIPIENT NAME: City of Lake Elsinore ADDRESS: 130 S. Main Street, Lake Elsinore, CA 92530 PHONE: (951) 674 -3124 FAX : (951) 471 -1419 E -MAIL: rmachott@lake-elsinore.org PROJECT NAME: CDBG Administrative Costs -EDA PROJECT LOCATION: Lake Elsinore CA 92530 and Riverside. CA 92501 LEVEL OF ENVIRONMENTAL CLI-ARANCE: EXEMPT 124 CFR 58.34 (a)(4)1 CDBG ELIGIBILITY CODE: 24 CFR 570.201 (e) Public Services PROJECT FUNDING SUMMARY: $46,418 Project to be administered by County (EDA) on behalf of CITE': YES ❑ NO ❑ II. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2014 -201.5 Community Development Block Grant for the CDBG Administrative Costs -EDA in a manner satisfactory to the County of Riverside and consistent with any standard required as a conditl^n of prov:dn.g dies- funds. Such program will include the following activities eligible under the Community Development Block Grant program: Activity #1 The City of Lake Elsinore will allocate funds to the County to provide program management, coordination, monitoring, and evaluation of the City's CDBG Program. Page 1 of 6 EXHIBTf G File No.: LLE.42 -14 B. National Objective All activities funded with CDBG fields must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(a)(2). CITY certifies that the activity (ies) carried out under this Agreement will meet the following National Objective: National Objective Criteria: CFR Reference: N/A N/A C. Levels of Accomplishment — Goals and Performance Measures The City agrees to provide the following levels of program services: Activity Units Total Total per Month Units /Year Unduplicated Persons N/A Activity #I CDBG Administration Activity #2 CPD OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): ❑ Creating Suitable Living Enviromnents ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): ❑ Availability /Accessibility ❑ Affordability ❑ Sustainability (promoting livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it and its subrecipients have the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact City's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County. E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified_ by the County, contract suspension or termination procedures will be initiated. Page 2 of 6 1 XHIBIT G File No.: LLB.42 -14 P. Program Budget It is expressly agreed and understood that the total amount to be paid by the County under this Agreement mall not exceed Q'il(. A1R Tlya�z��nix»ic -fib?• fbp - Q�Yt" nt -f _1;0i1'1p 01.x11 1 P made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in 24 CFR 84.21. i he County may require a. more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any - amendments -to the budget must be approved in writing by both the County and City. Line Item Expenses Salaries Fringe Office Space (Program Only) vtiiltJU3 Communications Reproduction /Printing Supplies and Miateriais Mileage Equipment (Program Only) Asi�lit Transportation Other: Total Indirect program Expenses Indirect Costs (Specify)* 11 '. X Total Non II Total (I Dotes CD13C Funds. 11 Activity /Project $0 11 $46,418 All indirect costs must be pre - approved by the County. City must submit an Indirect Cost Allocation Plan to County, in a form specified by County, demonstrating the appropriate share of general and administrative costs. Page 3 of 6 III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. B. Cost Principles The City shall administer its program in conformance with. OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," A -21, "Cost Principles for Educational Institutions," or OMB Circular A -87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. C. Documentation and Record Keeping Records to be Maintained The City and its subrecipients will maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21 -28; and vii. Other records necessary to document compliance with Subpart K of 24 CPR Part 570. Page 4 of 6 EXHIBIT G Pile No.: 1.LE.42 -14 2. Records Retention The City shall retain all financial records, supporting documents, statistical records, and ,al 0 +11,,.. , 7 ..,,,.4. ,,,.+ +,. +1,,, A + f ,. ...1 ..-F 4 -4— fr\ , l'1, +_. +: _ all i;ul�,i N,,,.. � lam% �`. ai period begins on the date of the submission of the County's anmlal performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. 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 five -year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five- year period, whichever occurs later. 3: Client Data The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client naive, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State lain, unless written p. .... r rr . consent is obtained from such person receiving seI'vice and, In the case of a minor, that of a responsible parent /guardian. 5. Close -outs The City's obligation to the County shall not end until all close -out requirements are completed. Activities during this close -out period shall include, but are not limited to: making final payments, disposing of program assets (inr.il,rling the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income. 6. Audits & Inspections Afl City records with respect to any matters covered by this Agreement shall he made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A -133. Page 5 of 6 EXHIBIT G File No.: LLE.42 -14 IV. PROJECT IMPLEMENTATION AND SCHEDULE Unless pre - approved by County, CITY will perform and complete the activities described in Section Il in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Start Date Completion Date Complete Mandatory Online July 2014 July 2014 Cooperating City 'Training Execute Subrecipient Agreements July 1, 2014 - -- (EDA must approve) Implement Program Activities July 1, 2014 TBD Execute Supplemental Agreement September 2014 October 2014 & Notice to Incur Cost City Submit Quarterly October 15, 2014 Performance Reports to County January 15, 2015 April 15, 2015 July 31, 2015 County Monitoring of City TBD TBD Performance City submit Monthly September 2014 July 2015 Direct Benefit Reports City Submits Reimbursement Requests Monthly Submittal ❑ September 2014 June 13, 2015 Other Schedule ❑ CDBG Program Services Complete May 1. 5, 2015 V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS Page 6 of 6 I X1-11B T 11 _r Tr i Fite 1V o.. 0.11y .0 -14 SUPPLEMENTAL AGREEMENT (PUBLIC SERVICE) I. GENERAL INFORMATION CITY NAME: Assistance League of Temecula Valley ADDRESS: 28720 Via Montezuma 11'emecuIa, CA 92590 CITY PROGRAM CONTACTS: Dorcas Shaktman, Executive Director SUBREC IPIENT NAME: ADDRESS: 28720 Via Montezuma, Temecula, CA 92590 PHONE: (951) 694 -8018 E -MAIL: FAX: (951) 694 -8298 PROTECT NAME: Operation Scl,00i Bell PROJECT LOCATION: 28720 Via Montezuma, Temecula, CA 92590 LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT [24 CFR 58.34 (a)(4)] CDBG ELIGIBILITY CODE: 24 CFR 570.201 (e) Public Set-vices PROJECT FUNDING SUMMARY: i- District $5,000 Lake Elsinore $12,500 3 "' District $7,500 Murrieta $5,1.11 5"' District $1,000 Wildomar $4,535 Project to be administered by County (]EDA) on behalf of CITY: YES ® NO ❑ II. SCOPE OF SERVICE A Activities City will be responsible for administering a 2014 -2015 Community Development Block Grant for the Operation School .Bell in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program: Activity #1 Operation ,School Bellhrovides clothes and school supplies to children fr-oma low- income families. CDB(; funds tivill be used to proNde "scholarships" to ells ihle children. EXHIBIT I File No.: 0.120 -14 SUPPLEMENTAL AGREEMENT SCOPE OF WORK (PUBLIC SERVICE) I. GENERAL INFORMATION CITY NAME: Helping Our People in Elsinore, Inc ADDRESS: 29885 2nd Street, Suite R Lake Elsinore, CA 92532 CITY PROGRAM CONTACTS: Ron Hewison, Executive Director SUBRECIPIENT NAME: ADDRESS: 29885 2nd Street, Suite R, Lake Elsinore, CA 92532 PHONE: (951) 245 -7410 FAX : (951) 245 -7405 E -MAIL: hopeinelsinorenaol.coni PROJECT NAME: Heluin2 People in Need PROJECT LOCATION: 29885 2nd Street Suite R Lake Elsinore CA 92532 LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT [24 CFR 58.34 (a)(4)] CDBG ELIGIBILITY CODE: 24 CFR 570.201 (e) Public Services PROJECT FUNDING SUMMARY: 1ST District $29,597Wildomar $8,820 Lake Elsinore $27,772Canyon Lake $3,193 Project to be administered by County (EDA) on behalf of CITY: YES ® NO ❑ II. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2014 -2015 Community Development Block Grant: for the Helping People in Need in a manner satisfactory to the County oI' Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Conununity Development Block Grant program: Activity #1 H.O..I'.L'. provides naecrls and clothing fo needy fcnnilies an(I seniors in Lake Elsinore, Secreo hills, C'an))on Lake, Soufh Corona, Meadolvbrook' and WCW Perris areas. CDBG funds 11411 be used for consumable supplies, space cost; rrfilities, transportation, food.and connno(blles. File No.: 1.L,E.36 -14, L.L,F.37 --14, LLE.38 -14, 1.1-F.39-14 I T n_ n n 1 A 1 T T? n 1 1 A 1 T 1 :` n'1 1 A (1 1 1 G 1 A —A (1 1 I.l. "n.�+V-I-F, 1.1_r-- t1-I -t, 1.LIL.`tL. -1`F, V.11V-I-P, anu V.1GV "1`P Prohibition Against Conflicts of Interest § 570.611. Conflict of interest. (a) Applicability / 11 in the -roc rement of slinril, l,P � egll . pment, construction, and. i K. r services by recipients, and by subrecipients (including those specified at § 570.204(cj), the conflict of interest provisions in 24 CFR 85.36 arid OMB Circular A 110, respectively, shall apply. (2) In all cases not governed by 24 CFR 85.36 and OMB Circular A -110, the provisions of this section shall apply. Such cases include the acquisition and disposition of real property and the provision of assistance by the recipient, by its subrecipients, or to individuals, businesses and other private entities under eligible activities which autho.r_ize such assistance (e.g., rehabilitation, pres'rVa 11Oi, and other L: _ pt OVElr_ tS Of , private properties or facilities pursuant to § 570.202, or grants, loans alid other assistance to businesses, individuals and other private entities pursuant to § 570 -202. 4 570.204 or 4 570.455). (b) Conflicts prohibited. Except for the use of CDBG funds to pay salaries and other related administrative or personnel costs, the general rule is that no persons described in paragraph (c) of this section who exercise or have exercised any functions or responsibilities with respect to CDBG activities assisted under this part or who are in a position to participate in a decision making process or gain inside information wit-111 regard to such activi *li.es, may obtain a personal or financial interest or benefit from a CDBG assisted activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. For the UDAG program, the above restrictions shall apply to all activities that are a part of the UDAG project, and shall cover any such interest or benefit during, or at any time after, such person's tenure. (c) Persons covered. The Cnn Fl..i.r-1- of 1_nteresf provisions of paragraph (b) of this section apply to any person who is an employee, agent, consultant, officer, or elected official- or appointed official of the recipient, or of any designated public agencies, or subrecipients which are receiving funds under this part. (d) Exceptions: threshold_ requirements. Upon the written request of the recipient, I -IUD may grant an exception to the provisions of paragraph (b) of this secLi-on on a case -by -case basis when it determines that such an exception will serve to further the purposes of the Act and the effective and efficient administration of the recipient's program or project. An exception may be considered only after the recipient has provided the following: EXHIBIT CI Prohibition Against Conflicts of Interest Page 2 of 4 (1) A disclosure of the nature of the conflict, accompanied by an assurance that there has been public disclosure of the conflict and a description of how the public disclosure was made; and (2) An opinion of the recipient's attorney that the interest for which the exception is sought would not Violate State or local law. (e) Factors to be considered for exceptions. In determining whether to grant a requested exception after the recipient has satisfactorily met the requirements of paragraph (d) of this section, HUD shall consider the cumulative effect of the following factors, where applicable: (1) Whether the exception would provide a significant cost benefit or an essential degree of expertise to the program or project which would otherwise not be available; (2) Whether an opportunity was provided for open competitive bidding or negotiation; (3) Whether the person affected is a member_ of a group or class of low or moderate income persons intended to be the beneficiaries of the assisted activity, and the exception will permit such person to receive generally the same interests or benefits as are being made available or provided to the group or class; (4) Whether the affected person has withdrawn from his or her functions or responsibilities, or the decision making process with respect to the specific assisted activity in question; (5) Whether the interest or benefit was present before the affected person was in a position as described in paragraph (b) of this section; (6) Whether undue hardship will .result either to the recipient or the person affected when weighed against the public interest served by avoiding the prohibited conflict; and (7) Any other_ relevant considerations. Exhibit CT Prohibit.-lion Against Conflicts of interest Page Page 3 of 4 Community Development Block Grant Policy Manual I.D. # A -11 (pg. 1 of 2) TOPIC: CONFLICT OF INTEREST CODED RIVERSTDF COUNTY ECONOMIC DEVELOPMENT AGENCY DATE: October 1989 This Conflict of interest Code is written to comply with Federal Regila Lion e (24 CFR Part 85) . These Regulations. "Administrative Requirements for Grants and Cooperative Agreements to State, Local. and Federally Recognized Indian Tribal Governments" require that grantees and sub - grantees will mai_n.tain a written code of standards of conduct governing the performance of their employees engaged in the award and administration of contracts. 1) No employee, officer or agent of the grantee shall participate in the selection, in the award or in the administration of a contract supported by Federal Funds if a conflict of interest, real or apparent, would be involved. 2) Such a conflict will arise when: i) The employee, officer or agent; ii) Any member of the immediate family; ill) His /Her partners, or; iv) An organization which employs, or is about to employ any of the above has a financial or other interest in the firm's selection for award. 3) The grantee's or sub - grantee's officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors or parties to sub- agreements except as noted i.n. Section 4. 4) A grantee's or sub- grantee's officers, employees or agents will be presumed to have a financial interest in a business if their financial interest exceeds the following: i) Any business entity in which the official has a direct or indirect investment worth one thousand dollars ($1,000) or more. ii) Any real property in which the official has a direct or indirect interest worth one thousand dollars ($1,000) or more. EXHIBIT CI Prohibition Against Conflicts of Interest Page 4 of 4 Community Development Block Grant Policy Manual I.D. * A -11 (pg. 2 of 2) TOPIC: CONFLICT OF INTEREST CODE RIVERSIDE COUNTY ECONOMIC DEVELOPMENT AGENCY DATE: October 1989 iii) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating two hundred fifty dollars ($250) or more in value provided to, received by or promised to the official within 12 months prior to the time when the decision is made. iv) Any business entity in which the official is a director, officer, partner, trustee, employee, or holds any position of management. v) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating two hundred fifty dollars ($250) or more in value provided to, received by, or promised to the official within 12 months prior to the time when the decision is made. 5) For purposes of Section 4, indirect investment or interest means any investment or interest owned by the spouse or dependent child of an official, by an agent on behalf of an official, or by a business entity or trust in which the official, the official's agents, spouse, and dependent children own directly, indirectly, or beneficially a 10- percent interest or more. R CONSTITUTIONAL PROHIBITION Page 1 of 2 In accordance with First Amendment Church /State Principles, as a general rule, CDBG /ESG assistance may not be used for religious activities or provided to primarily religious entities for any activities, including secular activities. The following restrictions and limitations therefore apply __to__ the __use _ of__CDBG /ESG funds (1) CDBG /ESG funds may not be used for the acqu.iSiti.oil of property or the co'nstru t:iU[i U1: tChab1iitaLion (including historic preservation and removal of architectural barriers) of structures to be used for religious purposes or which will otherwise promote religious interests. This limitation includes the acquisition of property for ownership by primarily religious enLitie„ and Lhe constructlon or rehabilitation (including historic preservation and removal of architectural barriers) of structures owned by such entities (except as permitted under paragraph (j) (2) of this section with respect to rehabilitation and under paragraph (j) (4) of this section with respect to repairs undertaken in connection with public services) regardless of the use to be made of the property or structure. Property owned by primarily religious entities may be acquired with CDBG /ESG funds at no more than fair market value for a non - religious use. (2) r nRr, /F'Cr: funds may be used to rehabilitaLc buildings owned by primarily religious entities to be used for a wholly secular purpose under the following condi-tions: (:i) The building (or portion thereof) that is to be improved with the CDBG /ESG assistance has been leased to an existing or newly - established wholly secular entity (which may be an entity established by the religious entity); III i; CDBG %E.�iG assistance is provided to the lessee (and no -t the lessor) to make the improvements; (iii) The leased premises will be used exclusively for secular purposes available to persons regardless of religion, (iv) The lease payments do not exceed the fair market rent of the premises as they were before the improvements are made; ( v ) rnfi_ i c portion of the cost of any improvements that also serve a non - leased part of the building will be allocated to and paid for by the lessor; (vi) The lessor enters into a binding agreement that unless the lessee, or a qual.if.:i_ed successor lessee, retains the use of the leased premises for a wholly secular purpose for at least the useful life of t:he improvements, the lessor will pay to the lessee an amount equal to the .residual value of the improvements; EXHIBIT "R" CONSTITUTIONAL PROHIBITION Page 2 of 2 (vii) The lessee must remit the amount received from the lessor under subparagraph (2)(vi) of this section to the recipient or subrecipient from which the CDBG /ESG funds were derived. The lessee can also enter into a management contract authorizing the lessor religious entity to use the building for its intended secular purpose, e.g., homeless shelter, provision of public services. In such case, the religious entity must agree in the management contract 'to carry out the secular purpose in a manner free form religious influences in accordance with the principles set forth in paragraph (j) (3) of this section. (3) As a general rule, CDBG /ESG funds may be used for eligible public services to be provided through a primarily religious entity, where the religious entity enters into an agreement with the recipient or subrecipient from which the CDBG /ESG funds are derived that, in connection with the provision of such services: (i) It will not discriminate against any employee or applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion. (ii) It will not discriminate against any person applying for such public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion; (iii) It will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such public services; (iv) The portion of a facility used to provide the public services shall contain no religious symbols or decorations, other than those permanently affixed to or part of the structure. (d) Where the public services provided under paragraph (j) (3) of this section are carried out on property owned by the primarily religious entity, CDBG /ESG funds may also be used for minor repairs to such property which are directly related to carrying out the public services where the cost constitutes in dollar terms only an incidental portion of the CDBG /ESG expenditure for the public services. EXHIBIT "S" Page 1 of 2 Economic Opportunities for Section. 3 Residents and Section 3 Business Concerns Sec, 135.38 Section 3 clause. All section 3 covered contracts shall include the following clause (referred to as the section 3 clause): A. The work to be per t -ormed ,under thls contract 1S 5u1� ject tO the requirements of section 3 of the Housing and Urban Development Act of 1958; as amended, 12 U.S.C. 170lu (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, particuiariy persons who aze r.ecipi.ents 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 emn'lovees 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 began. EXHIBIT "S" Page 2 of 2 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).