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1998-339AN ORDINANCE ACCEPTING COMPETITWE BIDS AND AWARDING A CONTRACT FOR iNFANT AND CHILD CARE PROGRAMS FOR LOW-INCOME FAMILIES, PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING FOR AN EFFECTIVE DATE (BID # 2227 - INFANT AND CHILD CARE PROGRAMS FOR LOW-INCOME FAMILIES AWARDED TO FRED MOORE DAY NURSERY SCHOOL, INC, IN THE AMOUNT OF $37,000 00) WHEREAS, the C~ty has sohclted, received and tabulated competitive bids for the purchase of necessary materials, eqmpment, supphes or serwces ~n accordance w~th the procedures of STATE law and C~ty or&nances, and WHEREAS, the C~ty Manager or a designated employee has rewewed and recommended that the hereto described b~ds are the lowest responsible b~ds for the materials, eqmpment, supphes or serwces as shown in the "Bid Proposals" submitted therefore, and WHEREAS, the C~ty Councd has prowded m the C~ty Budget for the appropriation of funds to be used for the purchase of the matcnals, eqmpment, supphes or services approved and accepted here~n, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the followmg compet~tlve b~ds for materials, eqmpment, supphes, or servmes, descnbed m the "B~d Proposals" on file ~n the office of C~ty's Purchasing Agent filed accor&ng to the b~d number assigned hereto, are hereby accepted and approved as bmng the lowest responsthle b~ds for such ~tems BID ITEM NUMBER NO CONTRACTOR AMOUNT 2227 ALL FRED MOORE DAY NURSERY $37,000 00 SCHOOL, INC SECTION II That the acceptance and approval of the above competmve b~ds, the C~ty accepts the offer of the persons submitting the b~ds for such ~tems and agrees to purchase the materials, eqmpment, supphes or services ~n accordance w~th the terms, specfficat~ons, standards, quantities and for the specified sums contmned in the B~d Inwtat~ons, B~d Proposals, and related documents SECTION III That the City and persons submitting approved and accepted ~tems and of the submitted, bids wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, the City Manager or bas designated representative as hereby authorized to execute the written contracts which shall be attached hereto, provaded that the written contract IS in accordance with the terms, conditions, specifications, standards, quantities and specified sums contamed In the Bid Proposal and related documents hereto approved and accepted SECTION IV That by the acceptance and approval of the above competitive b~ds, the C~ty Council hereby authorizes the expenditure of funds therefor ~n the mount and an accordance with the approved bads or pursuant to a written contract made pursuant thereto as anthonzed herein SECTION V That this ordinance shall become effective immediately upon ats passage and PASSED AND APPROVED this the ~ day of JAC~ o. _ ATTEST, JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATT~IEY F~h~ el Bucek - FMDN~#222~) doc ~ .................... Pa~ le 1 1998 - 1999 SERVICE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND FRED MOORE DAY NURSERY SCHOOL INC (B~d # 2227) Th~s Agreement ~s hereby entered into by and between the City of Denton, Texas, a Home ~Rule Mumclpal Corporation, hereinafter referred to as "C~ty", and Fred Moore Day Nursery School, Inc, a non-profit corporabon, 821 Crosst~mbers, Denton, Texas 76201 hereinafter referred to as "Organization", WHEREAS, City's Human Serwces Committee ("HSC") has rewewed the proposal for services and has determined that Orgamzabon performs an ~mportant service for the remdents of Denton without regard to race, rehg~on, color, age or national ong~n, and HSC recommends the purchase of services, and WHEREAS, C~ty has determined that the proposal for services merits assistance and can provide needed services to citizens of C~ty and has provided funds in ~ts budget for the purpose of paying for contractual services, NOW, THEREFORE, the part~es hereto mutually agree as follows I SCOPE OF SERVICES Orgamzatlon shall ~n a satisfactory and proper manner perform the following tasks, for which the momes prowded by C~ty may be used A To prowde Iow cost day care to Iow ~ncome famd~es where both parents work B To provide two nutritional meals, breakfast and lunch, for the children it serves Orgamzatlon shall perform those services descnbed in the Work Statement here~n attachedl as Exhibit A II OBLIGATIONS OF ORGANIZATION In conslderabon of the receipt of funds from C~ty, Organization agrees to the following terms and conditions A Thirty-seven Thousand Dollars ($37,000) may be paid to Orgamzabon by C~ty, and the only expenditures reimbursed from these funds, shall be those in accordance w~th the, project budget, attached hereto as Exhibit B and ~ncorporated here~n by reference, for those expenses listed ~n the scope of services as provided here~n Organ~zabon shall not ubl~ze these funds for any other purpose B It w~ll estabhsh, operate, and maintain an account system for th~s program that w~ll allow for a tracing of funds and a review of the financial status of the program C It w~ll permit authonzed officials of City to rewew ~ts books at any bme D It w~ll reduce to wnbng all of ~ts rules, regulations, and policies and file a copy w~th C~ty~s Commumty Development Office along w~th any amendments, additions, or revisions whenever adopted E It w~ll not enter into any contracts that would encumber C~ty funds for a period that would extend beyond the term of th~s Agreement F It will promptly pay all b~lls when submitted unless there ~s a d~screpancy ~n a b~ll, any errors or d~screpanc~es ~n bills shall be promptly reported to C~ty's Executive D~rector of F~nance, or her authorized representabve, for further d~rect~on G It w~ll appoint a representative who will be available to meet with City's Executive D~rector of F~nance and other C~ty officials when requested H It w~ll ~ndemn~fy and hold harmless C~ty from any and all claims and su~ts arising out of the acbwtles of Organization, ~ts employees, and/or contractors I It w~ll submit to C~ty cop~es of year-end audited financial statements III TIME OF PERFORMANCE The services funded by C~ty shall be undertaken and completed by Orgamzat~on w~th~n the following time frame October 1, 1998 through September 30, 1999, unless the contract ~s sooner terminated under Secbon VII "Suspension or Termination" IV. COMPLIANCE WITH FEDERAL, STATE and LOCAL LAWS A CONTRACTOR understands that funds prowded to it pursuant to th~s Agreement are funds which have been made available to CITY by the Federal Government (U S Department of Housing and Urban Development) under the Housing and Community Development Act of 1974, as amended, In accordance w~th an approved Grant Application and specific assurances Accordingly, CONTRACTOR PAGE 2 assures and cerbfles that it w~ll comply w~th the requirements of the Housing and Commumty Development Act of 1974 (P L 93-383) as amended and w~th regulabons promulgated thereunder, and codified at 24 CFR 570 The foregoing ~s ~n no way meant to consbtute a complete compilation of all dubes ~mposed upon CONTRACTOR by law or administrative ruling, or to narrow the standards which CONTRACTOR must follow CONTRACTOR further accrues and certifies that if the regulabons and ~ssuances promulgated pursuant to the Act are amended or revised, ~t shall comply w~th them, or not~fy CITY, as prowded In Section XXIV of th~s Agreement CONTRACTOR agrees to ab~de by the conditions of and comply w~th the requirements of the Office of Management and Budget C~mulars Nos A-110 and A-122 B CONTRACTOR shall comply w~th all apphcable federal laws, laws of the State of Texas and ordinances of the C~ty of Denton V REPRESENTATIONS A CONTRACTOR assures and guarantees that ~t possesses the legal authonty, pursuant to any proper, appropriate and official mobon, resolubon or acbon passed or taken, to enter ~nto th~s Agreement B The person or persons slgmng and execubng th~s Agreement on behalf of CONTRACTOR, do hereby warrant and guarantee that he, she, or they have been fully authorized by CONTRACTOR to execute th~s Agreement on behalf of CONTRACTOR and to vahdly and legally bind CONTRACTOR to all terms, performances and prews~ons here~n set forth C, CITY shall have the nght, at ~ts opbon, to e~ther temporanly suspend or permanently terminate this Agreement if there ~s a d~spute as to the legal authonty of e~ther CONTRACTOR or the person s~gn~ng the Agreement to enter ~nto th~s Agreement CONTRACTOR is liable to CITY for any money ~t has received from CITY for performance of the prows~ons of this Agreement ~f CITY has suspended or terminated th~s Agreement for the reasons enumerated ~n th~s Section D, CONTRACTOR agrees that the funds and resources prowded CONTRACTOR under the terms of th~s Agreement w~ll ~n no way be substituted for funds and resources from other sources, nor ~n any way serve to reduce the resources, services, or other benefits which would have been avadable to, or prowded through, CONTRACTOR had thru Agreement not been executed VI COVENANTS PAGE 3 Page 4 ] A Dunng the period of bme that payment may be made hereunder and so long as any payments remain unhquldated, CONTRACTOR shall not, without the pnor wntten consent of the Commumty Development Administrator or her authorized representative (1) Mortgage, pledge, or otherwise encumber or suffer to be encumbered, any of the assets of CONTRACTOR now owned or hereafter acquired by ~t, or permit any pre-exmtlng mortgages, hens, or other encumbrances to remain on, or attached to, any assets of CONTRACTOR which are allocated to the performance of thru Agreement and w~th respect to which CITY has ownership hereunder (2) Sell, assign, pledge, transfer or otherwme d~spose of accounts receivables, notes or claims for money due or to become due (3) Sell, convey, or lease all or substanbal part of ~ts assets (4) Make any advance or loan to, or ~ncur any habdlty for any other firm, person, entity or corporation as guarantor, surety, or accommodation endorser (5) Sell, donate, loan or transfer any equipment or ~tem of personal property purchased w~th funds pa~d to CONTRACTOR by CITY, unless CITY authorizes such transfer B Should CONTRACTOR use funds received under this Agreement to acquire or improve real property under CONTRACTOR's control, CONTRACTOR agrees and covenants (1) That the property shall be used to meet one of the national objectives stated ~n 24 CFR 570 untd August 31, 2006 (2) That should CONTRACTOR transfer or otherwise dispose of sa~d property on or before August 31,2006, CONTRACTOR shall reimburse CITY in the amount of the fair market value of th~s property less any portion of the value attributable to expenditures of non-CDBG funds for acqum~t~on of, or ~mprovement to, the property C CONTRACTOR agrees, upon wntten request by CITY, to require ~ts employees to attend training sessions sponsored by the Community Development Office VII PAYMENTS PAGE 4 ~!~ba~! u~k; F_MD~ A Payments to Orgamzabon City shall pay to Orgamzabon a maximum amount of money not to exceed Thirty-seven Thousand Dollars ($37,000) for services rendered under th~s Agreement C~ty wdl pay these funds on a reimbursement basis to Orgamzat~on w~th~n twenty days after C~ty has recewed supporbng documentabon Orgamzatlon's fadure to request reimbursement on a bmely bas~s, may jeopardize present or future funding B Excess Payment Orgamzabon shall refund to C~ty w~th~n ten (10) working days of C~ty's request, any sum of money which has been paid by City and which C~ty at any bme thereafter determines 1) has resulted in overpayment to Orgamzabon, or 2) has not been spent strictly ~n accordance w~th the terms of th~s Agreement, or 3) ~s not supported by adequate documentation to fully justify the expenditure C Organlzabon's reimbursement request for any one month period wdl not exceed one-fifth (1/5) of any budgeted I~ne ~tems for costs as specified ~n Exhibit B D Deobl~gatlon of Funds In the event that actual expenditures dewate from Orgamzabon's provision of a corresponding level of performance, as specified ~n Exhibit A, C~ty hereby reserves the nght to reappropnate or recapture any such under expended funds E Contract Close Out Orgamzat~on shall submit the contract close out package to C~ty, together w~th a final expenditure report, for the bme period covered by the last ~nvolce requesting reimbursement of funds under th~s Agreement, w~th~n fifteen (15) working days following the close of the contract penod Orgamzabon shall utlhze the form agreed upon by City and Orgamzat~on VIII MAINTENANCE OF RECORDS A CONTRACTOR agrees to maintain records that wdl provide accurate, current, separate, and complete d~sclosura of the status of the funds recewed under th~s Agreement, ~n comphance w~th the prows~ons of Exhibit B, attached hereto, and w~th any other applicable Federal and State regulations establishing standards for financial management CONTRACTOR's record system shall contain sufficient documentation to prowde In detad full support and just~flcabon for each expenditure Nothing ~n th~s Secbon shall be construed to relieve CONTRACTOR of fiscal accountab~hty and I~abd~ty under any other prowslon of th~s Agreement or any apphcable law CONTRACTOR shall ~nclude the substance of th~s provision ~n all subcontracts PAGE 5 IMichael Bucek - FMDN$.(#2227) doc ~- P~ B CONTRACTOR agrees to retain all books, records, documents, reports, and written accounting procedures perta~mng to the operation of programs and expenditures of funds under this Agreement for the period of time and under the conditions specified by CITY C Nothing in the above subsections shall be construed to reheve CONTRACTOR of respons~bd~ty for reta~mng accurate and current records which clearly reflect the level and benefit of services prowded under this Agreement D At any reasonable time and as often as CITY may deem necessary, the CONTRACTOR shall make avadable to CITY, HUD, or any of their authorized representatives, all of its records and shall permit CITY, HUD, or any of their authorized representatives to audit, examine, make excerpts and cop~es of such records, and to conduct audits of all contracts, ~nvo~ces, materials, payrolls, records of personnel, conditions or employment and all other data requested by said representatives IX REPORTS AND INFORMATION At such times and ~n such form as CITY may require, CONTRACTOR shall furmsh such statements, records, data and ~nformat~on as CITY may request and deem pertinent to matters covered by this Agreement CONTRACTOR shall submit quarterly beneficiary and financial reports to CITY no less than once each three months The beneficiary report shall detail client ~nformat~on, ~ncludlng race, income, female head of household and other statistics required by CITY The financial report shall include Information and data relative to all programmatic and financial reporting as of the beglnmng date specified in Section I of th~s Agreement Unless a written exemption has been granted by the CITY, CONTRACTOR shall submit an audit conducted by ~ndependent examiners w~th ten (10) days after receipt of such X EVALUATION Orgamzat~on agrees to participate ~n an ~mplementat~on and maintenance system whereby the services can be continuously momtored Orgamzat~on agrees to make avadable ~ts financial records for review by C~ty at City's discretion In addition, Orgamzat~on agrees to provide City the following data and reports, or cop~es thereof A All external or ~nternal audits Orgamzat~on shall submit a copy of the annual independent audit to City w~thln ten (10) days of receipt PAGE 6 B All external or internal evaluabon reports C C Quarterly performance/beneficiary reports to be submitted ~n January, April, July and,September, to ~nclude such information as requested by the City's Commumty Development D~ws~on including but not hm~ted to number of persons or households assisted, race, gender, d~sab~hty status and household ~ncome D Orgamzabon agrees to submit quarterly financial statements ~n January, Apnl, July, and September Each statement shall ~nclude current and year-to-date penod accounting of all revenues, expenditures, outstanding obhgatlons and beginning and ending balances E An explanabon of any major changes ~n program services F To comply w~th th~s secbon, Orgamzat~on agrees to maintain records that w~ll provide accurate, current, separate, and complete d~sclosure of the status of funds received and the services performed under th~s Agreement Orgamzabon's record system shall contain sufficient documentabon to provide ~n detail full support and jusbficabon for each expenditure Orgamzabon agrees to retain all books, records, documents, reports, and wntten accounbng procedures pertalmng to the services prowded and expenditure of funds under th~s Agreement for the penod of t~me and under the cond~bons specified by the C~ty G Nothing ~n the above subsections shall be construed to reheve Orgamzabon of responsibility for reta~mng accurate and current records which clearly reflect the level and benefit of services prowded under th~s Agreement Xl DIRECTORS' MEETINGS Dunng the term of this Agreement, Orgamzabon shall dehver to C~ty copies of all nobces of meetings of its Board of D~rectors, setbng forth the bme and place thereof Such not~ce shall be dehvered to C~ty in a timely manner to give adequate nobce, and shall ~nclude an agenda and a brief descnpbon of the matters to be d~scussed Orgamzabon understands and agrees that C~ty's representatives shall be afforded access to all meebngs of its Board of D~rectors Minutes of all meetings of Organ~zabon's governing body shall be available to C~ty within ten (10) working days of approval Xll SUSPENSION OR TERMINATION PAGE 7 A The C~ty may terminate th~s Agreement w~th cause ~f the Orgamzat~on v~olates any covenants, agreements, or guarantees of th~s Agreement, the Organization's ~nsolvency or filing of bankruptcy, dissolution, or receivership, or the Orgamzat~on's wolat~on of any law or regulabon to which ~t ~s bound under the terms of this Agreement B The C~ty may terminate this Agreement for convemence at any t~me If th~s Agreement is terminated for convemence by the C~ty, Orgamzat~on w~ll be pa~d an amount not to exceed the total amount of accrued expenditures as of the effecbve date of termmabon In no event w~ll th~s compensabon exceed an amount which bears the same ratio to the total compensabon as the services actually performed bears to the total services of Organization covered by the Agreement, less payments previously made In case of suspension, C~ty shall advise Organization, ~n wnbng, as to conditions precedent to the resumption of funding and specify a reasonable date for compliance In case of termination, Orgamzatlon w~ll remit to C~ty any unexpended City funds Acceptance of these funds shall not constitute a waiver of any claim C~ty may otherwise have ans~ng out of th~s Agreement XlII PERSONNEL POLICIES Personnel policies shall be established by CONTRACTOR and shall be available for examination Such personnel policies shall A Be no more liberal than CITY's personnel pohc~es, procedures, and pracbces, including policies w~th respect to employment, salary and wage rates, working hours and holidays, fnnge benefits, vacation and s~ck leave pnwleges, and travel, and B Be ~n wnbng and shall be approved by the govermng body of CONTRACTOR and by CITY XlV EQUAL OPPORTUNITY AND COMPLIANCE WITH LAWS A Organization will submit for C~ty approval, a written plan for compliance w~th the Equal Employment and Affirmative Action Federal prowslons, within one hundred twenty (120) days of the effecbve date of th~s Agreement B Orgamzatlon shall comply with all applicable equal employment opportumty and affirmabve action laws or regulations C Organlzahon w~ll furmsh all ~nformat~on and reports requested by C~ty, and w~ll PAGE 8 permit access to its books, records, and accounts for purposes of investigation to ascertain compliance w~th local, State and Federal rules and regulations D In the event of Orgamzabon's non-comphance w~th the non-d~scnm~nat~on requirements, the Agreement may be canceled, terminated, or suspended ~n whole or ~n part, and Organ~zabon may be barred from further contracts w~th C~ty XV WARRANTIES ORGANIZATION represents and warrants that A All ~nformatlon, reports and data heretofore or hereafter requested by City and furmshed to City, are complete and accurate as of the date shown on the ~nformatlon, data, or report, and, since that date, have not undergone any s~gmficant change without written not~ce to C~ty B Any supporbng financial statements heretofore requested by C~ty and furmshed to C~ty, are complete, accurate and fairly reflect the financial cond~hons of Organization on the date shown on sa~d report, and the results of the operation for the per~od covered by the report, and that s~nce sa~d data, there has been no material change, adverse or otherwise, ~n the financial cond~bon of Orgamzabon C No I~tlgabon or legal proceedings are presently pending or threatened against Organlzabon D None of the provisions here~n contravenes or ~s ~n conflict w~th the authority under which Orgamzat~on is doing business or with the provisions of any ex~st~ng ~ndenture or agreement of Orgamzatlon E Organization has the power to enter ~nto th~s Agreement and accept payments hereunder, and has taken all necessary action to authorize such acceptance under the terms and condlbons of th~s Agreement F None of the assets of Orgamzat~on are subject to any hen or encumbrance of any character, except for current taxes not delinquent, except as shown ~n the financial statements furmshed by Orgamzat~on to C~ty Each of these representations and warrant~es shall be conbnuing and shall be deemed to have been repeated by the submission of each request for payment XVl CHANGES AND AMENDMENTS PAGE 9 ~ael Bucek - FMDNS(~2227) doc Pag_e !0~1 A Any alterations, additions, or delebons to the terms of th~s Agreement shall be by wntten amendment executed by both part~es, except when the terms of th~s Agreement expressly prowde that another method shall be used B Orgamzabon may not make transfers between or among approved I~ne- ~tems w~thln budget categones set forth ~n Exhibit B w~thout prior wntten approval of the Commumty Development Admlmstrator for the C~ty Organization shall request, ~n wntlng, the budget revision in a form prescnbed by C~ty, and such request for rews~on shall not ~ncrease the total monetary obligation of C~ty under th~s Agreement In addition, budget revisions cannot slgmficantly change the nature, ~ntent, or scope of the program funded under th~s Agreement C Orgamzat~on wdl submit rewsed budget and program ~nformabon, whenever the level of funding for Organization or the program(s) descnbed here~n ~s altered according to the total levels contained ~n any port~on of Exhibit B D It ~s understood and agreed by the parbes hereto that changes ~n the State, Federal or local laws or regulabons pursuant hereto may occur dunng the term of this Agreement Any such modifications are to be automabcally ~ncorporated ~nto th~s Agreement w~thout wntten amendment hereto, and shall become a part of the Agreement on the effective date specified by the law or regulabon E C~ty may, from bme to bme dunng the term of the Agreement, request changes m Exhibit A which may ~nclude an ~ncrease or decrease ~n the amount of Organization's compensabon Such changes shall be ~ncorporated ~n a wntten amendment hereto, as provided ~n Subsecbon A of th~s Section F Any alterabons, deletions, or additions to the Contract Budget Detad ~ncorporated ~n Exhibit B shall require the pnor wntten approval of City G Orgamzatlon agrees to notify C~ty of any proposed change ~n physical location for work performed under this Agreement at least thirty (30) calendar days ~n advance of the change H Orgamzat~on shall nobfy C~ty of any changes ~n personnel or govermng board compos~bon I It Is expressly understood that neither the performance of Exhibit A for any program contracted hereunder nor the transfer of funds between or among sa~d programs wdl be permitted XVll NOTIFICATION OF ACTION BROUGHT In the event that any claim, demand, su~t or other action ~s made or brought by PAGE 10 any person(s), firm corporabon or other enbty against CONTRACTOR, CONTRACTOR shall g~ve wntten notice thereof to CITY w~thln mo (2) working days after being notified of such clamm, demand, suit or other action Such nobce shall state the date and hour of notification of any such claim, demand, su~t or other action, the names and addresses of the person(s), firm, corporation or other enbty making such claim, or that instituted or threatened to institute any type of acbon or proceeding, the basis of such claim, action or proceeding, and the name of any person(s) against whom such claim ~s being made or threatened Such written notice shall be dehvered either personally or by mall XVIII INDEMNIFICATION A. It is expressly understood and agreed by both partmes hereto that Cmty Is contracting with Organization as an mndependent contractor and that as such, Organmzatmon shall save and hold City, rots officers, agents and employees harmless from all Ilabdmty of any nature or k;nd, includmng costs and expenses for, or on account of, any clamms, audmt exceptmons, demands, sumts or damages of any character whatsoever resulting in whole or mn part from the performance or om;ssmon of any employee, agent or representative of Organmzatmon B Organizabon agrees to provmde the defense for, and to mndemnmfy and hold harmless City ;ts agents, employees, or contractors from any and all claims, sumts, causes of action, demands, damages, losses, attorney fees, expenses, and liabdmty arising out of the use of these contracted funds and program adminmstraflon and implementatmon except to the extent caused by the wmllful act or omission of City, its agents or employees XIX INSURANCE A Orgamzatlon shall observe sound business practices w~th respect to providing such bonding and insurance as would provide adequate coverage for services offered under this Agreement B The premmses on and in whmch the acbvitles described In Exhibit A are conducted, the employees conducbng these acbvitles, shall be covered by premise hablhty insurance, commonly referred to as "Owner/Tenant" coverage wroth City named as an additional ~nsured Upon request of Organization, Cmty may, at its sole d~scretlon, approve alternate ;nsurance coverage arrangements C Orgamzabon will comply with apphcable workers' compensation statutes and wmll obtain employers' hablhty coverage where available and other appropriate hablhty coverage for program participants, mf apphcable D Orgamzatlon will maintain adequate and continuous habdlty insurance on all PAGE 11 ~! Bucek- FMD~(~27~),~0C Pa 12 vehmles owned, leased, or operated by Organization All employees of Orgamzat~on who are required to dnve a vehmle m the normal scope and course of their employment must possess a valid Texas Dnver's hcense and automobde habd~ty insurance Ewdence of the employee's current possession of a vahd hcense and ~nsurance must be maintained on a current bas~s m Orgamzat~on's files E Actual losses are not covered by ~nsurance as required by th~s Section are not allowable costs under th~s Agreement, and remain the sole respons~bd~ty of Orgamzat~on F The pohcy or pohcles of insurance shall contain a clause which requires that City and Organization be notified in writing of any cancellation or change ~n the policy at least thirty (30) days prior to such change or cancellation XX CONFLICT OF INTEREST A Orgamzat~on covenants that neither ~t nor any member of ~ts govermng body presently has any ~nterest, d~rect or ~nd~rect, which would conflict ~n any manner or degree with the performance of services required to be performed under this Agreement Orgamzabon further covenants that ~n the performance of th~s Agreement, no person hawng such ~nterest shall be employed or appointed as a member of ~ts govermng body B Organization further covenants that no member of ~ts governing body or ~ts staff, subcontractors or employees shall possess any ~nterest ~n or use h~s/her pos~t~on for a purpose that ~s or gwes the appearance of being motwated by desire for pnvate gain for h~mself/herself, or others, particularly those w~th which he/she has famdy, bus~ness, or other t~es C No officer, member, or employee of C~ty and no member of ~ts governing body who exercises any function or respons~blht~es ~n the rewew or approval of the undertaking or carrying out of th~s Agreement shall (1) participate ~n any decision relating to the Agreement which affects h~s personal ~nterest or the interest ~n any corporation, partnership, or association ~n which he has d~rect or ~nd~rect ~nterest, or (2) have any ~nterest, d~rect or ~nd~rect, ~n th~s Agreement or the proceeds thereof XXl, NEPOTISM Orgamzat~on shall not employ ~n any pa~d capacity any person who ~s a member of the ~mmed~ate famdy of any person who ~s currently employed by Orgamzatlon, or Is a member of Orgamzat~on's govermng board The term "member of ~mmed~ate famdy" Includes, w~fe, husband, son, daughter, mother, father, brother, s~ster, ~n-laws, aunt, uncle, nephew, mece, step-parent, step-chdd, half-brother and half-s~ster PAGE 12 ............................................. Michael Bucek - FMDN~.(~2227,) doc ~a~e~l~~ XXII NOTICE Any nobce or other wntten ~nstrument required or permitted to be dehvered under the terms of this Agreement shall be deemed to have been dehvered, whether actually received or not, when deposited m the Umted States mall, postage prepaid, registered or certified, return receipt requested, addressed to Orgamzat~on or C~ty, as the case may be, at the following addresses CITY ORGANIZATION City of Denton, Texas Director Attn City Manager Fred Moore Day Nursery School Inc 215 E McK~nney 821 Crossbmbers Denton, TX 76201 Denton, Texas 76201 E~ther party may change ~ts ma~hng address by sending nobce of change of address to the other at the above address by certified mad, return receipt requested XXlII MISCELLANEOUS A Orgamzabon shall not transfer, pledge or otherwise assign th~s Agreement or any ~nterest there~n, or any claim ans~ng thereunder to any party or parbes, bank, trust company or other financial ~nsbtubon w~thout the prior written approval of C~ty B If any provision of th~s Agreement is held to be ~nvahd, illegal, or unenforceable, the rema~mng prows~ons shall remain ~n full force and effect and continue to conform to the ong~nal ~ntent of both part~es hereto C In no event shall any payment to Organ~zabon hereunder, or any other act or failure of C~ty to ms,st ~n any one or more ~nstances upon the terms and condlbons of this Agreement constitute or be construed ~n any way to be a waiver by City of any breach of covenant or default which may then or subsequently be committed by Orgamzabon Neither shall such payment, act, or omission in any manner ~mpa~r or prejudice any right, power, pnwlege, or remedy avadable to C~ty to enforce ~ts rights hereunder, which rights, powers, pnwleges, or remedies are always specifically preserved No representatwe or agent of City may waive the effect of th~s prows~on D Th~s Agreement, together w~th referenced exhibits and attachments, constitutes the entire agreement between the part~es hereto, and any prior agreement, assertion, statement, understanding, or other commitment occurnng dunng the term of PAGE 13 Michael Bucek - FMDN$.(#22~7.) doc Pag-~e_~4~4~ th~s Agreement, or subsequent thereto, have any legal force or effect whatsoever, unless properly executed ~n wntlng, and ~f appropriate, recorded as an amendment of th~s Agreement E In the event any d~sagreement or d~spute should anse between the parbes hereto perta~mng to the ~nterpretat~on or meamng of any part of th~s Agreement or ~ts govermng rules, codes, laws, ordinances, or regulabons, C~ty as the party ultimately responsible to HUD for matters of comphance, w~ll have the final authority to render or to secure an ~nterpretat~on F Th~s Agreement shall be ~nterpreted ~n accordance w~th the laws of the State of Texas and venue of any hbgabon concermng th~s Agreement shall be m a court of competent jurisdiction s~ttmg ~n Denton County, Texas IN WITNESS WHEREOF, the part~es d.~ h. er. eby affix their s~gnatures and enter Into th~s Agreement as of the ~2'/---~ day of ~ 1998 CITY OF DENTON, TEXAS JAC~.~LLER, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT PROUTY, CITY ATTORNEY gM~c~h~a.el~Bucek.I FMDNS(,#2227) doc ~ ..... ~ag_e~l_51 FRED MOORE DAY NURSERY SCHOOL, INC ATTEST BOARD $~TA~Y IiM,chael Bucek - FMDNS(#2227) doc i~_~ ~l.~j City of Denton - Community Development Division Qualifying Income Limits for Federally Assisted Programs FY 1998-99 Maximum Income Levels Family Moderate Income Low Income Very Low Income Extremely Low Income Size 80% - 66% AMI 65% - 51% AMI 50% - 31% AMI 30% & Below AMI 1 $30,450 - $24,751 $24,750 - $19,051$19,050 - $11,401 $11,400 or Below 2 $34,800 - $28,301 $28,300 - $21,751$21,750 - $13,051 $13,050 or Below 3 $39,150 - $31,851 $31,850 - $24,501$24,500 - $14,701 $14,700 or Below 4 $43,500 - $35,351 $35,350 - $27,201$27,200 - $16,301 $16,300 or Below 5 $47,000 - $38,201 $38,200 - $29,401$29,400 - $17,651 $17,650 or Below 6 $50,500 - $41,001 $41,000 - $31,551$31,550 - $18,951 $18,950 or Below 7 $53,950 - $43,901 $43,900 - $33,751$33,750 - $20,251 $20,250 or Below 8 $57,450 - $46,651 $46,650 - $35,901$35,900 - $21,551 $21,550 or Below Source U S Department of Housing and Urban Development Effective October 1, 1998 ~M,chael Bucek - FMDNS(#2227) doc P~ 17~] EXHIBIT "A" WORK STATEMENT FRED MOORE DAY NURSERY SCHOOL The Fred Moore Day Nursery School ~s a non-profit chdd care center which prowdes child care on a shdmg scale Chddren s~x weeks through five years of age are ehg~ble for the program Ninety percent of the chddren are from Iow income famdles The parents must be working to be ehg~ble to enroll their chdd The purpose of the center is to provide a safe, healthy environment that wdl meet the development needs of the chdd Actwltles are designed for each age group to meet the ~ndw~dual and group needs The curnculum ~ncludes creatwe arts, motor skdls, speech development, music as well as personal hygiene and manners The center provides breakfast, lunch, and an afternoon snack for each chdd All meals meet the USDA food requirements for children in chdd care EXHIBIT "B" BUDGET FRED MOORE DAY NURSERY SCHOOL, INC C~ty of Denton Funding $37,000 00 Monthly Request (Teacher salaries) $ 3,083 33