2014-283S:\Legal\Our pocuments\Ordina��ces\14\CDBG DCCDS 2014 Agreement.doc
� ! � , ► • ► ► • ������i�i
. � � � . � � �; � � � �'
. . � � . � . � ; � �
� � � � �1 � ••;� �' � �' �•
� �, . . � � . . . �; � . , . , � , .
. � � . , �• . �. . � • � �;
!, � � ,� � � , � . . �; � . � .
WHEREAS, the City has received funds from the U.S. Department of Housing and
Urban Development under the Housing and Community Development Act of 1974, as amended;
and
WHEREAS, the City Council has approved the 2014 Action Plan for Housing and
Community Development which includes an authorized budget for expenditure of funds far
improvements to the Denton City County Day School facility; and
WHEREAS, the Denton City County Day School has develaped a program to assist low
and moderate-income families with affordable child care services; and
VJHEREAS, the City Cauncil deems it in the public interest to enter into an agreement
for improvements to the child care facility to pravide much needed services for Denton families;
No VV y 1 L1Ld�1i�o It A'''
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager is hereby authorized to execute the attached Agreement
between the City of Denton and the Denton City County Day School to provide for
improvements to the day care facility noted therein.
SECTION 2. The City Council hereby authorizes the City Manager to expend funds in
the manner and amount specified in the Agreement, not to exceed $102,767 and to take any other
actions necessary to complete the City's obligations under the Agreement.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
T'���1;� �NX� �'�I'1'�(�'VT��� tl�i;� �:11� ��,�+''�' �:l��y c�l.� �,���F:�'�' � � `�:�.... , 2014.
�, �
Cl �1S WATTS, MAYOR � 6
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
;
BY:'�� � �' �'��" �� ���'��.�''����`� �.<<.,{# r �,M
`° ��.,��m�:';� � t .�5��..� �`.
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
B Y: �� �X ,�'�.� .�� � ,.�` �' , �
- ��° �
i • i
� : � i �
� � � � �� ��
This Agreement is made and entered into by and between the City of Denton, a Texas munici-
pal corporation, acting by and through its City Manager, pursuant to ordinance, hereinafter referred to
as CITY, and the Denton City County Day School, 1603 Paisley Street, Denton, Texas, 76209, a Texas
non-profit carporation, hereinafter referred to as SUBRECIPIENT.
WHEREAS, CITY has received certain funds from the U.S. Department of Housing and Urban
Development under Title I of the Housing and Community Development Act of 1974, as amended,
CDBG Program, CFDA Number 14-218; and
WHEREAS, CITY has adopted a budget for such funds and included therein an authorized
budget for expenditure of funds for improvements to their existing day care facility for the
SUBRECIPIENT; and
WHEREAS, CITY has designated the Community Development Division as the division re-
sponsible for the administration of this Agreement and all matters pertaining thereto; and
WHEREAS, CITY wishes to engage SUBRECIPIENT to carry out such project;
NOW, THEREFORE, the parties hereto agree, and by the execution hereof are bound to the
mutual obligations and to the performance and accomplishment of the canditions hereinafter described.
�
This Agreement shall commence on or as of September 1, 2014, and shall terminate on August
31, 2029, unless sooner terminated in accordance with Section 26 "Termination".
r
' „� i�
SUBRECIPIENT hereby accepts the responsibility for the performance of all services and ac-
tivities described in the Scope of Services attached hereto as Attachment A, and incorporated herein by
reference, in a satisfactory and efficient manner as determined by CITY, in accordance with the terms
herein. CITY will consider SUBRECIPIENT's executive officer to be SUBRECIPIENT's representa-
tive responsible for the management of all contractual matters pertaining hereto, unless written notifi-
cation to the contrary is received from SUBRECIPIENT, and approved by CITY.
The CITY's Community Development Administrator will be CITY's representative responsible
for the administration of this Agreement.
SUBRECIPIENT certifies that the activities carried out with Community Development Block
Grant funds shall meet the program's National Objective of benefit to low and moderate-income per-
sons. SUBRECIPIENT shall provide services to persons whose income is equal to or lower than 80%
of the median income of the Dallas standard metropolitan statistical area. To accomplish this, the
Page 1 of 26
SUBRECIPIENT shall use the current applicable income limits published by the Department of Hous-
ing and Urban Development for the CDBG program. Income eligibility shall be determined by the
sum of the gross income of all individuals residing in the household. Services must be provided direct-
ly to or on behalf of specific identified eligible clients. Eligibility documentation must be included in
each client's file and updated annually or services must be provided to a clientele that is within a"pre-
sumed benefit" category.
1: I
A. Limit of Liability. CITY will reimburse SUBRECIPIENT for expenses incurred pursuant and
in accordance with the project budget attached hereto as Attachment B and the Scope of Ser-
vices herein attached as Attachment A and incorporated herein by reference. Notwithstanding
any other provision of the Agreement, the total of all payments and other obligations made or
incurred by CITY hereunder shall not exceed the sum of $102,767.
B. Measure of Liability. In consideration of full and satisfactory services and activities hereun-
der by SUBRECIPIENT and receipt of a requisition for payment with appropriate documenta-
tion of expenditures, CITY shall make payments to SUBRECIPIENT based on the Budget at-
tached hereto and incorporated herein for all purposes as Attachment B, subject to the limita-
tions and provisions set forth in this Section and Section 7 of this Agreement. Payments may be
contingent upon certification of the SUBRECIPIENT's iinancial management system in ac-
cordance with the standards specified in OMB Circular A-110.
(1) The parties expressly �nderstand and agree that the CITY's obligations under this Sec-
tion are contingent upon the actual receipt of adequate Community Development Block
Grant (CDBG) funds to meet CITY's liabilities under this Agreement. If adequate funds
are not available to make payments under this Agreement, CITY shall notify
SUBRECIPIENT in writing within a reasonable time after such fact has been deter-
mined. CITY may, at its option, either reduce the amount of its liability, as specified in
Subsection A of this Section or terminate the Agreement. If CDBG funds eligible for
use for purposes of this Agreement are reduced, CITY shall not be liable for further
�2)
(3)
payments due to SUBRECIPIENT under this Agreement.
It is expressly understood that this Agreement in no way obligates the General Fund or
any other monies or credits of the City of Denton.
CITY shall not be liable for any cost or portion thereof which:
(a) has been paid, reimbursed or is subject to payment or reimbursement, from any
other source;
(b) was incurred prior to the beginning date, or after the ending date specified in
Section 1;
(c) is not in strict accordance with the terms of this Agreement, including all at-
tachments attached hereto;
(d) has not been billed to CITY within 90 calendar days following billing to
SUBRECIPIENT, or termination of the Agreement, whichever date is earlier; or
Page 2 of 26
(e) is not an allowable cost as defined by Section 10 of this Agreement or the pro-
ject budget.
(4) CITY shall not be liable for any cost or portion thereof which is incurred with respect to
any activity of SUBRECIPIENT requiring prior written authorization from CITY, or af-
ter CITY has requested that SUBRECIPIENT furnish data concerning such action prior
to proceeding further, unless and until CITY advises SUBRECIPIENT to proceed.
(5) CITY shall not be obligated or liable under this Agreement to any party other than
SUBRECIPIENT for payment of any monies or provision of any goods or services.
(6) Funding not expended within two years of initial contract approval will revert to
the City of Denton CDBG budget for use on alternative projects.
,
I ' '1 ' . 1 �
A. SUBRECIPIENT understands that funds provided to it pursuant to this 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 with an approved Grant Application and specific assurances.
Accordingly, SUBRECIPIENT assures and certifies that it will comply with the requirements
of the Housing and Community Development Act of 1974 (P.L. 93-383) as amended and with
regulations promulgated thereunder, and codified at 24 CFR 570. The foregoing is in no way
meant to constitute a complete compilation of all duties imposed upon SUBRECIPIENT by law
or administrative ruling, or to narrow the standards which SUBRECIPIENT must follow.
SUBRECIPIENT further accrues and certifies that if the regulations and issuances promulgated
pursuant to the Act are amended or revised, it shall comply with them, or notify CITY, as pro-
vided in Section 23 of this Agreement.
SUBRECIPIENT agrees to abide by the conditions of and comply with the requirements of the
Ofiice of Management and Budget Circulars Nos. A-122, A-87, A-133 and the regulations at
24 CFR Part 84 as applicable.
B. SUBRECIPIENT shall comply with all applicable federal laws, laws of the State of Texas and
ordinances of the City of Denton.
C. SUBRECIPIENT is required to comply with the applicable uniform administrative require-
ments as described in 24 CFR 570.502, 570.505 and 24 CFR 570 subpart K with the exceptions
noted below:
(1) SUBRECIPIENT does not assume CITY' S environmental responsibilities described at
CFR 570.604; and
(2) SUBRECIPIENT does not assume the CITY's responsibility for initiating the review
process under the provisions of 24 CFR Part 52.
Page 3 of 26
D. SUBRECIPIENT agrees to comply with the requirements of the Secretary of Labor in accord-
ance with the Davis-Bacon Act as amended, the provisions of the Contract Work Hours Safety
Standards Act, the Copeland "Anti-Kickback Act (40 U.S.C. 276a-276a-5; 40 USC 327 and 40
USC 276c) and all other applicable Federal, state and local laws and regulations pertaining to
labor standards and insofar as those acts apply to the performance of this contract.
SUBRECIPIENT will work with CITY to obtain and maintain documentation of compliance.
Upon written request by the CITY, SUBRECIPIENT will obtain the services of consultant to
monitor the contractor's compliance with these requirements.
E. SUBRECIPIENT agrees to comply with the provisions of Section 3, the regulations set forth in
24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this
agreement, and shall also be binding on any of the SUBRECIPIENT'S subcontractors. The
SUBRECIPIENT certifies that no contractual or other disability exists which would prevent
compliance with these requirements. SUBRECIPIENT further agrees to include a statement in
all subcontracts requiring compliance with Section 3 and requiring subcontractors, to the great-
est extent feasible, to provide opportunities for training and employment to low and moderate-
income individuals that are residents of the project area. Upon written request of the CITY,
SUBRECIPIENT will obtain the services of a consultant to monitor the general contractor's
compliance with the Section 3 requirements.
F. SUBRECIPIENT certifies that it is not currently listed on the General Services Administration's
List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance
with Executive Orders 12549 and 12689 and will not enter into agreements to expend Federal
funds with contractors that are currently listed.
. �. I
A. SUBRECIPIENT assures and guarantees that it possesses the legal authority, pursuant to any
proper, appropriate and official motion, resolution or action passed or taken, to enter into this
Agreernent.
B. The person or persons signing and executing this Agreement on behalf of SUBRECIPIENT do
hereby warrant and guarantee that he, she, or they have been fully authorized by
SUBRECIPIENT to execute this Agreement on behalf of SUBRECIPIENT and to validly and
legally bind SUBRECIPIENT to all terms, performances and provisions herein set forth.
C. CITY shall have the right, at its option, to either temporarily suspend or permanently terminate
this Agreement if there is a dispute as to the legal authority of either SUBRECIPIENT or the
person signing the Agreernent to enter into this Agreement. SUBRECIPIENT is liable to CITY
for any money it has received from CITY for performance of the provisions of this Agreement
if CITY has suspended or terminated this Agreement for the reasons enumerated in this Sec-
tion.
D. SUBRECIPIENT agrees that the funds and resources provided to SUBRECIPIENT under the
terms of this Agreement will in no way be substituted for funds and resources from other
sources, nor in any way serve to reduce the resources, services, or other benefits which would
Page 4 of 26
have been available to, or provided through, SUBRECIPIENT had this Agreement not been ex-
ecuted.
,
�� . �. � �. �
SUBRECIPIENT will provide, oversee, administer, and carry out all of the activities and ser-
vices set out in the Work Statement, attached hereto and incorporated herein for all purposes as At-
tachment A, utilizing the funds described in Attachment B, attached hereto and incorporated herein for
all purposes and deemed by both parties to be necessary and sufficient payment for full and satisfacto-
ry performance of the program, as determined solely by CITY and in accordance with all other terms,
provisions and requirements of this Agreement.
No modifications or alterations may be made in the Scope of Services without the prior written
approval of the City's Community I7evelopment Administrator.
,• 1 �' '
A. The CITY shall pay to the SUBRECIPIENT a maximum amount of money totaling $102,767
for activities carried out under this Agreement. CITY will pay these funds on a reimbursement
basis to the SUBRECIPIENT within twenty days after CITY has received supporting documen-
tation of eligible expenditures. SUBRECIPIENT's failure to request reimbursement on a timely
basis may jeopardize present or future funding.
Funds are to be used for the sole purpose of completing facility improvements based on the
budget herein attached as Attachment B. These improvements will support the
SUBRECIPIENT' S efforts to carry out the activities described in the Scope of Services herein
attached as Attachment A.
B. Excess Payment. SUBRECIPIENT shall refund to CITY within ten working days of CITY's
request, any sum of money which has been paid by CITY and which CITY at any time thereaf-
ter determines:
(1) has resulted in overpayment to SUBRECIPIENT; or
(2) has not been spent strictly in accordance with the terms of this Agreement; or
(3) is not supported by adequate documentation to fully justify the expenditure.
C. Disallowed Costs. Upon termination of this Agreement, should any expense or change for
which payment has been made be subsequently disallowed or disapproved as a result of any
auditing or monitoring by CITY, the Department of Housing and Urban Development, or any
other Federal agency, SUBRECIPIENT will refund such amount to CITY within ten working
days of a written notice to SUBRECIPIENT, which specifies the amount disallowed. Refurids
of disallowed costs may not be made from these or any funds received from or through CITY
Page 5 of 26
D. Reversion of Assets. SUBRECIPIENT, upon expiration of this Agreement shall transfer to the
CITY any CDBG funds on hand at the time of expiration and any accounts receivable attribut-
able to the use of CDBG funds. If CITY finds that SUBRECIPIENT is unwilling and/or unable
to comply with any of the terms of this Contract, CITY may require a refund of any and all
money expended pursuant to this Contract by SUBRECIPIENT, as well as any remaining un-
expended funds which shall be refunded to CITY within ten working days of a written notice to
SUBRECIPIENT to revert these financial assets. The revision of these financial assets shall be
in addition to any other remedy available to CITY either at law or in equity for breach of this
Contract.
E. Obligation of Funds. In the event that actual expenditure rates deviate from SUBRECIPIENT's
provision of a corresponding level of performance, as specified in Attachment A, CITY hereby
reserves the right to reappropriate or recapture any such underexpended funds.
F. Contract Close Out. If requested, SUBRECIPIENT shall submit the Agreement close out pack-
age to CITY, together with a final expenditure report, for the time period covered by the last
invoice requesting reimbursement of funds under this Agreement, within 15 working days fol-
lowing the close of the Agreernent period. SUBRECIPIENT shall utilize the form agreed upon
by CITY and SUBRECIPIENT.
.
.
..,
SUBRECIPIENT represents and warrants that:
A. All information, reports and data heretofore or hereafter requested by CITY and furnished to
CITY, are complete and accurate as of the date shown on the information, data, or report, and,
since that date, have not undergone any significant change without written notice to CITY.
B. Any supporting financial statements heretofore requested by CITY and furnished to CITY, are
complete, accurate and fairly reflect the financial condition of SUBRECIPIENT on the date
shown on said report, and the results of the operation for the period covered by the report, and
that since said date, there has been no material change, adverse or otherwise, in the financial
condition of SUBRECIPIENT.
C. No litigation or legal proceedings are presently pending or threatened against
SUBRECIPIENT.
D, None of the provisions herein contravene or are in conflict with the authority under which
SUBRECIPIENT is doing business or with the provisions of any existing indenture or agree-
ment of SUBRECIPIENT.
E. SUBRECIPIENT has the power to enter into this Agreement and accept payments hereunder,
and has taken all necessary action to authorize such acceptance under the terms and conditions
of this Agreement.
�,.- .. •
F. None of the assets of SUBRECIPIENT are subject to any lien or encumbrance of any character,
except for current taxes not delinquent, except as shown in the financial statements and/or other
documents furnished by SUBRECIPIENT to CITY.
G. Each of these representations and warranties shall be continuing and shall be deemed to have
been repeated by the submission of each request for payment.
,
� .
A. During the period of time that payment may be made hereunder and so long as any payments
remain unliquidated, SUBRECIPIENT shall not, without the prior written consent of the Com-
munity Development Administrator or her authorized representative:
(1) Mortgage, pledge, or otherwise encumber or suffer to be encumbered, any of the assets
of SUBRECIPIENT now owned or hereafter acquired by it, or permit any pre-existing
mortgages, liens, or other encumbrances to remain on, or attached to, any assets of
SUBRECIPIENT which are allocated to the performance of this Agreement and with
respect to which CITY has ownership hereunder.
(2) Sell, assign, pledge, transfer or otherwise dispose of accounts receivables, notes or
claims for money due or to become due.
(3) Sell, convey, or lease all or substantial part of its assets.
(4) Make any advance or loan to, or incur any liability for any other firm, person, entity or
corporation as guarantor, surety, or accommodation endorser.
(5) Sell, donate, loan or transfer any equipment or item of personal property purchased with
funds paid to SUBRECIPIENT by CITY, unless CITY authorizes such transfer.
(6) Enter into any subcontracts with any agency or individual in the performance of this
contract without the written consent of the Grantee prior to the execution of such an
agreement.
B. SUBRECIPIENT agrees, upon written request by CITY, to require its employees to attend
training sessions sponsored by the Community Development Division.
�,�_ - � ,
;i
r �� �
A. Costs shall be considered allowable only if incurred directly and specifically in the perfor-
mance of and in compliance with this Agreement and in conformance with the standards and
provisions of Attachments A and B.
B. Approval of SUBRECIPIENT's budget, Attachment B, does not constitute prior written ap-
proval, even though certain items may appear herein. CITY's prior written authorization is re-
quired in order for the following to be considered allowable costs:
(1) CITY shall not be obligated to any third parties, including any contractors of
SUBRECIPIENT, and CITY funds shall not be used to pay for any contract service ex-
tending beyond the expiration of this Agreement.
Written requests for prior approval are SUBRECIPIENT's responsibility and shall be made
within sufficient time to permit a thorough review by CITY. SUBRECIPIENT must obtain
written approval by CITY prior to the commencement of procedures to solicit or purchase ser-
vices, equipment, or real or personal property. Any procurement or purchase which may be ap-
proved under the terms of this Agreement must be conducted in its entirety in accordance with
the provisions of this Agreement.
,•1 '� 1
A. For purposes of this Agreement, program income means earnings of SUBRECIPIENT realized
from activities resulting from this Agreement or from SUBRECIPIENT's management of fund-
ing provided or received hereunder. Such earnings include, but are not limited to, income from
interest, usage or rental or lease fees, income produced from contract-supported services of in-
dividuals or employees or from the use or sale of equipment or facilities of SUBRECIPIENT
provided as a result of this Agreement, and payments from clients or third parties for services
rendered by SUBRECIPIENT under this Agreement.
B. SUBRECIPIENT shall maintain records of the receipt and disposition of program income in
the same manner as required for other contract funds, and reported to CITY in the format pre-
scribed by CITY. CITY and SUBRECIPIENT agree that any fees collected for services per-
formed by SUBRECIPIENT shall be used for payment of costs associated with service provi-
sion. Revenue remaining after payment of all program expenses for service provision shall be
considered Program Income and shall be subject to all the requirements of this Agreement and
the regulations found at CFR, Section 570.504.
C. SUBRECIPIENT shall include this Section in its entirety in all of its contracts which involve
other income-producing services or activities.
D. It is SUBRECIPIENT's responsibility to obtain from CITY a prior determination as to whether
or not income arising directly or indirectly from this Agreement, or the performance thereof,
constitutes program income. SUBRECIPIENT is responsible to CITY for the repayment of any
Page 8 of 26
and all amounts determined by CITY to be program income, unless otherwise approved in writ-
ing by CITY.
1/:_� , I ' �;' �
A. SUBRECIPIENT agrees to maintain records that will provide accurate, current, separate, and
complete disclosure of the status of the funds received under this Agreement, in compliance
with the provisions of Attachment B, attached hereto, and with any other applicable Federal
and State regulations establishing standards for financial management including OMB Circu-
lars A-87, A-122, A-133 and the regulations at 24 CFR Part 84 as applicable; Title 24 CFR
Section 570.502 (b); Title 24 CFR Sections 570.504 and 570.506 as they pertain to costs in-
curred, audits, program income, administration and other activities and functions.
SUBRECIPIENT's record system shall contain sufficient documentation to provide in detail
full support and justification for each expenditure. Nothing in this Section shall be construed to
relieve SUBRECIPIENT of fiscal accountability and liability under any other provision of this
Agreement or any applicable law. SUBRECIPIENT shall include the substance of this provi-
sion in all subcontracts.
B. SUBRECIPIENT agrees to retain all books, records, documents, reports, and written account-
ing procedures pertaining to the operation of programs and expenditures of funds under this
Agreement for five years.
C. Nothing in the above subsections shall be construed to relieve SUBRECIPIENT of responsibil-
ity for retaining accurate and current records, which clearly reflect the level and benefit of ser-
vices provided under this Agreement.
D, At any reasonable time and as often as CITY may deem necessary, the SUBRECIPIENT shall
make available 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 ex-
cerpts and copies of such records, and to conduct audits of all contracts, invoices, materials,
payrolls, records of personnel, conditions or employment and all other data requested by said
representatives.
. .�. � �. �
At such times and in such form as CITY may require, SUBRECIPIENT shall furnish such
statements, records, data and information as CITY may request and deem pertinent to matters covered
by this Agreement.
SUBRECIPIENT shall submit beneficiary and financial reports to CITY no less than once per
month. The beneficiary report shall detail client information, including 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 beginning date specified in Section 1
of this Agreement. Beneficiary and financial reports shall be due to City within 15 working days after
the end of each month.
Page 9 of 26
Unless the CITY has granted a written exemption, SUBRECIPIENT shall submit an audit con-
ducted by independent examiners in accordance with Generally Accepted Accounting Principles. If
the SUBRECIPIENT receives and/or expends more than $500,000 in federal funding, the audit must
be conducted in accordance with OMB Circular A-133 as applicable within thirty days after receipt of
such audit.
,
i1 ; /' 1 1
A. CITY shall perform on-site monitoring of SUBRECIPIENT's performances under this Agree-
ment.
B. SUBRECIPIENT agrees that CITY may carry out monitoring and evaluation activities to en-
sure adherence by SUBRECIPIENT to the Scope of Services, and Program Goals and Objec-
tives, which are attached hereto as Attachment A, as well as other provisions of this Agree-
ment.
C. SUBRECIPIENT agrees to cooperate fully with CITY in the development, implementation and
maintenance of record-keeping systems and to provide data determined by CITY to be neces-
sary for CITY to effectively fulfill its monitoring and evaluation responsibilities.
D. SUBRECIPIENT agrees to cooperate in such a way so as not to obstruct or delay CITY in such
monitoring and to designate one of its staff inembers to coordinate the monitoring process as
requested by CITY staff.
E. After each official monitoring visit, CITY shall provide SUBRECIPIENT with a written report
of monitoring findings documenting findings and concerns that will require a written response
to the City. An acceptable response must be received by the City within 60 days from the
SUBRECIPIENT's receipt of the monitoring report or audit review letter. Future contract
payments can be withheld for SUBRECIPIENT's failure to submit a response within 60 days.
F. SUBRECIPIENT shall submit copies of any fiscal, management, or audit reports by any of
SUBRECIPIENT's funding or regulatory bodies to CITY within five working days of receipt
by SUBRECIPIENT.
G. SUBRECIPIENT will monitor all subcontracted services on a regular basis to assure contract
compliance. Results of monitoring efforts shall be summarized in written reports and support-
ed with documented evidence of follow-up actions taken to correct areas of noncompliance.
II ' �'
During the terms of this Agreement, SUBRECIPIENT shall cause to be delivered to CITY cop-
ies of all notices of ineetings of its Board of Directors, setting forth the time and place thereof. Such
notice shall be delivered to CITY in a timely manner to give adequate notice, and shall include an
agenda and a brief description of the matters to be discussed. SUBRECIPIENT understands and agrees
that CITY representatives shall be afforded access to all of the Board of Directors' meetings.
Page 10 of 26
Minutes of all meetings of SUBRECIPIENT's governing body shall be available to CITY with-
in ten days after Board approval.
16.
INSURANCE
A. SUBRECIPIENT shall observe sound business practices with respect to providing such bond-
ing and insurance as would provide adequate coverage for services offered under this Agree-
ment.
B. The premises on and in which the activities described in Attachrnent A are conducted, and the
employees conducting these activities, shall be covered by premise liability insurance, com-
monly referred to as "Owner/Tenant" coverage with CITY named as an additional rnsured.
Upon request of SUBRECIPIENT, CITY may, at its sole discretion, approve alternate insur-
ance coverage arrangements.
C. SUBRECIPIENT will comply with applicable workers' compensation statues and will obtain
employers' liability coverage where available and other appropriate liability coverage for pro-
gram participants, if applicable.
D, SUBRECIPIENT will maintain adequate and continuous liability insurance on all vehicles
owned, leased or operated by SUBRECIPIENT. All employees of SUBRECIPIENT who are
required to drive a vehicle in the normal scope and course of their ernployment must possess a
valid Texas driver's license and automobile liability insurance. Evidence of the employee's
current possession of a valid license and insurance must be maintained on a current basis in
SUBRECIPIENT's files.
E. Actual losses not covered by insurance as required by this Section are not allowable costs under
this Agreement, and remain the sole responsibility of SUBRECIPIENT.
F, The policy or policies of insurance shall contain a clause which requires that CITY and
SUBRECIPIENT be notified in writing of any cancellation of change in the policy at least 30
days prior to such change or cancellation.
. � �;���.
A. SUBRECIPIENT shall comply with all applicable equal employment opportunity and affirma-
tive action laws or regulations. The SUBRECIPIENT shall not discriminate against any em-
ployee or applicant for employment because of race, color, creed, religion, national origin, gen-
der, age or disability. The SUBRECIPIENT will take affirmative action to insure that all em-
ployment practices are free frorn such discrimination. Such ernployment practices include but
are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruit-
ment advertising, layoff, termination, rates of pay or other forms of compensation and selection
for training, including apprenticeship.
B. The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 as
amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section
Page 11 of 26
109 of Title 1 of the Housing and Community Development Act of 1974 as amended, Section
504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age
Discrimination Act of 1975, Executive Order 11063 and Executive Order 11246 as amended by
Executive Orders 11375 and 12086.
C. SUBRECIPIENT will furnish all information and reports requested by the CITY, and will per-
mit access to its books, records, and accounts for purposes of investigation to ascertain compli-
ance with local, state and Federal rules and regulations.
D, In the event of SUBRECIPIENT's non-compliance with the non-discrimination requirements,
CITY may cancel or terminate the Agreement in whole or in part, and SUBRECIPIENT may
be barred from further contracts with CITY.
.
.
. ..� ��
Personnel policies shall be established by SUBRECIPIENT and shall be available for examination.
Such personnel policies shall:
A. Be no more liberal than CITY's personnel policies, procedures, and practices, including poli-
cies with respect to employment, salary and wage rates, working hours and holidays, fringe
benefits, vacation and sick leave privileges, and travel; and
B. Be in writing and shall be approved by the governing body of SUBRECIPIENT and by CITY.
,
!` 1 '
A. SUBRECIPIENT covenants that neither it nor any member of its governing body presently has
any interest, direct or indirect, which would conflict in any manner or degree with the perfor-
mance of services required to be performed under this Agreement. SUBRECIPIENT further
covenants that in the performance of this Agreement, no person having such interest shall be
employed or appointed as a member of its governing body.
B. SUBRECIPIENT further covenants that no member of its governing body or its staff, contrac-
tors or employees shall possess any interest in or use his position for a purpose that is or gives
the appearance of being motivated by desire for private gain for himself/herself, or others, par-
ticularly those with which he/she has family, business, or other ties.
C. No officer, member, or employee of CITY and no member of its governing body who exercises
any function or responsibilities in the review or approval of the undertaking or carrying out of
this Agreement shall participate in any decision relating to the Agreement which affects his or
her personal interest or the interest in any corporation, partnership, or association in which he
or she has a direct or indirect interest.
Page 12 of 26
.�
r
SUBRECIPTENT shall not employ in any paid capacity any person who is a member of the immediate
family of any person who is currently employed by SUBRECIPIENT, or is a member of
SUBRECIPIENT's governing board. The term "member of immediate family" includes: wife, hus-
band, son, daughter, mother, father, brother, sister, in-laws, aunt, uncle, nephew, niece, step-parent,
step-child, half-brother and half-sister.
I' 1 1 ' '
A. Neither the funds advanced pursuant to this Agreement, nor any personnel who may be em-
ployed by the SUBRECIPIENT with funds advanced pursuant to this Agreement shall be in
any way or to any extent engaged in any conduct or political activity in contravention of Chap-
ter 15 of Title 5 of the United States Code.
B. The SUBRECIPIENT is prohibited from using funds provided herein or personnel employed in
the administration of the program for: political activities; sectarian or religious activities, lob-
bying, political patronage or nepotism activities.
C. The SUBRECIPIENT agrees that none of the funds or services provided directly or indirectly
under this Agreement shall be used for any partisan political activity or to further the election
of defeat of any candidate for public office, or for publicity, lobbying and/or propaganda pur-
poses designed to support or defeat pending legislation. Employees of the SUBRECIPIENT
connected with any activity that is funded in whole or in part by funds provided to
SUBRECIPIENT under this Agreement may not under the term of this Agreement:
1. use their official position or influence to affect the outcome of an election or nomination.
2. solicit contributions for political purposes; or
3. take an active part in political management or in political campaigns.
SUBRECIPIENT hereby agrees to sign a Certification Regarding Lobbying included herein as
Attachment "F" and if necessary, the Disclosure of Lobbying Activities provided by the CITY.
, .
�
A. Where such action is appropriate, SUBRECIPIENT shall publicize the activities conducted by
SUBRECIPIENT under this Agreement. In any news release, sign, brochure, or other advertis-
ing medium, disseminating information prepared or distributed by or for SUBRECIPIENT, the
advertising medium shall state that the U.S. Department of Housing and Urban Development's
Community Development Block Grant Program funding through the City of Denton has made
the project possible.
B. All published material and written reports submitted under this project must be originally de-
veloped material unless otherwise specifically provided in this Agreement. When material not
originally developed is included in a report, the report shall identify the source in the body of
Page 13 of 26
the report or by footnote. This provision is applicable when the material is in a verbatim or ex-
tensive paraphrase format.
All published material submitted under this project shall include the following reference on the
front cover or title page:
This document is prepared in accordance with the City of Denton's Community
Development Block Grant Program, with funding received from the United
States I7epartment of Housing and Urban Development.
C. All reports, documents, studies, charts, schedules, or other appended documentation to any
proposal, content of basic proposal, or contracts and any responses, inquiries, correspondence
and related material submitted by SUBRECIPIENT shall become the property of CITY upon
receipt.
! 1
A. Any alterations, additions, or deletions to the terms of this Agreement shall be by written
amendment executed by both parties, except when the terms of this Agreement expressly pro-
vide that another method shall be used.
B. SUBRECIPIENT may not make transfers between or among approved line items within budget
categories set forth in Attachment B without prior written approval of CITY. SUBRECIPIENT
shall request, in writing, the budget revision in a form prescribed by CITY, and such request for
revision shall not increase the total monetary obligation of CITY under this Agreement. In ad-
dition, budget revisions cannot significantly change the nature, intent, or scope of the program
funded under this Agreement.
C. SUBRECIPIENT will submit revised budget and program information, whenever the level of
funding for SUBRECIPIENT or the program(s) described herein is altered according to the to-
tal levels contained in any portion of Attachment B.
D, It is understood and agreed by the parties hereto that changes in the State, Federal or local laws
or regulations pursuant hereto may occur during the term of this Agreement. Any such modif-
cations are to be automatically incorporated into this Agreement without written amendment
hereto, and shall become a part of the Agreement on the effective date specified by the law or
regulation.
E. CITY may, from time to time during the term of the Agreement, request changes in Attachment
A, which may include an increase or decreased in the amount of SUBRECIPIENT's compensa-
tion. Such changes shall be incorporated in a written amendment hereto, as provided in Subsec-
tion A of this Section.
F. Any alterations, deletion, or additions to the Contract Budget Detail incorporated in Attachment
B shall require the prior written approval of CITY.
Page 14 of 26
G. SUBRECIPIENT agrees to notify CITY of any proposed change in physical location for work
performed under this Agreement at least 30 calendar days in advance of the change.
H, SUBRECIPIENT shall notify CITY of any changes in personnel or governing board composi-
tion.
I. It is expressly understood that neither the performance of Attachrnent A for any program con-
tracted hereunder nor the transfer of funds between or among said programs will be permitted.
,;
,� I ! 1
Upon determination by CITY of SUBRECIPIENT's failure to timely and properly perform
each of the requirements, time conditions and duties provided herein, CITY, without limiting
any rights it may otherwise have, may, at its discretion, and upon ten working days written no-
tice to SUBRECIPIENT, withhold further payments to SUBRECIPIENT. Such notice may be
given by mail to the Executive Ofiicer and the Board of Directors of SUBRECIPIENT. The no-
tice shall set forth the default or failure alleged, and the action required for cure.
The period of such suspension shall be of such duration as is appropriate to accomplish correc-
tive action, but in no event shall it exceed 30 calendar days. At the end of the suspension peri-
od, if CITY determines the default or deficiency has been satisfied, SUBRECIPIENT may be
restored to full compliance status and paid all eligible funds withheld or impounded during the
suspension period. If however, CITY determines that SUBRECIPIENT has not come into com-
pliance, the provisions of Section 26 may be effectuated.
r,
• �,
A, CITY rnay terminate this Agreement for cause under any of the following reasons or for other
reasons not specifically enumerated in this paragraph:
(1) SUBRECIPIENT's failure to attain compliance during any prescribed period of suspension
as provided in Section 24.
(2) SUBRECIPIENT's failure to materially comply with any of the terms of this Agreement.
(3) SUBRECIPIENT'S VIOIa,LIOIl OA COVPII�ATILSy agreements or guarantees of this Agreement.
(4) Termination or reduction of funding by the United States Department of Housing and Ur-
ban Development.
(5) Finding by CITY that SUBRECIPIENT:
(a) is in such unsatisfactory iinancial condition as to endanger performance under
this Agreement;
Page 15 af 26
(b) has allocated inventory to this Agreement substantially exceeding reasonable re-
quirements;
(c) is delinquent in payment of taxes, or of costs of performance of this Agreement
in the ordinary course of business.
(6) Appointment of a trustee, receiver or liquidator for all or substantial part of
SUBRECIPIENT's property, or institution of bankruptcy, reorganization, rearrangement of
or liquidation proceedings by or against SUBRECIPIENT.
(7) SUBRECIPIENT's inability to conform to changes required by Federal, State and local
laws or regulations as provided in Section 4, and Section 2 of this Agreement.
(8) The commission of an act of bankruptcy.
(9) SUBRECIPIENT's violation of any law or regulation to which SUBRECIPIENT is bound
or shall be bound under the terms of the Agreement.
CITY shall promptly notify SUBRECIPIENT in writing of the decision to terminate and the ef-
fective date of termination. Simultaneous notice of pending termination maybe made to other
funding source specified in Attachment B.
B. CITY may terminate this Agreement for convenience at any time. If CITY terminates this
Agreement for convenience, SUBRECIPIENT will be paid an amount not to exceed the total of
accrued expenditures as of the effective date of termination. In no event will this compensation
exceed an amount which bears the same ratio to the total compensation as the services actually
performed bears to the total services of SUBRECIPIENT covered by the Agreement, less pay-
ments previously made.
C. SUBRECIPIENT may terminate this Agreement in whole or in part by written notice to CITY,
if a termination of outside funding occurs upon which SUBRECIPIENT depends for perfor-
mance hereunder. SUBRECIPIENT may opt, within the limitations of this Agreement, to seek
an alternative funding source, with the approval of CITY, provided the termination by the out-
side funding source was not occasioned by a breach of contract as defined herein or as defined
in a contract between SUBRECIPIENT and the funding source in question.
SUBRECIPIENT may terminate this Agreement upon the dissolution of SUBRECIPIENT's
organization not occasioned by a breach of this Agreement.
D. Upon receipt of notice to terminate, SUBRECIPIENT shall cancel, withdraw or otherwise ter-
minate any outstanding orders or subcontracts, which relate to the performance of this Agree-
ment. CITY shall not be liable to SUBRECIPIENT or SUBRECIPIENT's creditors for any ex-
penses, encumbrances or obligations whatsoever incurred after the termination date listed on
the notice to terminate referred to in this paragraph.
E.. Notwithstanding any exercise by CITY of its right of suspension or termination,
SUBRECIPIENT shall not be relieved of liability to CITY for damages sustained by CITY by
virtue of any breach of the Agreement by SUBRECIPIENT, and CITY may withhold any re-
Page 16 of 26
imbursement to SUBRECIPIENT until such time as the exact amount of damages due to CITY
from SUBRECIPIENT is agreed upon or otherwise determined.
�
I " 1, 1 ; ,! i"�
In the event that any claim, demand, suit or other action is made or brought by any person(s),
firm, corporation or other entity against SUBRECIPIENT, SUBRECIPIENT shall give written
notice thereof to CITY within two working days after being notified of such claim, demand,
suit or other action. Such notice shall state the date and hour of notification of any such claim,
demand, suit or other action; the names and addresses of the person(s), firm, corporation or
other entity making such claim, or that instituted or threatened to institute any type of action or
proceeding; the basis of such claim, action or proceeding; and the name of any person(s)
against whom such claim is being made or threatened. Such written notice shall be delivered ei-
ther personally or by mail.
1' " �
A. It is expressly understood and agreed by both parties hereto that CITY is contracting
with SUBRECIPIENT as an independent SUBRECIPIENT and that as such,
SUBRECIPIENT shall save and hold CITY, its off�cers, agents and employees harmless
from all liability of any nature or kind, including costs and expenses for, or on account of,
any claims, audit exceptions, demands, suits or damages of any character whatsoever re-
sulting in whole or in part from the performance or omission of any employee, agent or
representative of SUBRECIPIENT.
B. SUBRECIPIENT agrees to provide the defense for, and to indemnify and hold harmless
CITY its agents, employees, or SUBRECIPIENTs from any and all claims, suits, causes of
action, demands, damages, losses, attorney fees, expenses, and liability arising out of the
use of these contracted funds and program administration and implementation except to
the extent caused by the willful act or omission of CITY, its agents, employees, or
SUBRECIPIENTs.
,
,
ii: � ' _ . 1 � • 1 1 ' �
A. The SUBRECIPIENT will provide all services under this Agreement in a manner that is
exclusively non-religious in nature and scope. There shall be no religious services,
proselytizing, instruction or any other religious preference, influence or discrimination in
connection with providing the services hereunder.
B. As stated in 24 CFR Part 5.109, no organization will be prohibited from participating in
activities funded through the CITY's Community Development Block Grant program including
programs that make funds available through contracts, grants or cooperative agreements.
SUBRECIPIENT shall not discriminate against any organization on the basis of the
organization's religious character or affiliation.
Page 17 of 26
1
�
A. SUBRECIPIENT shall not transfer, pledge or otherwise assign this Agreement or any interest
therein, or any claim arising thereunder, to any party or parties, bank, trust company or other
financial institution without the prior written approval of CITY.
B. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining
provisions shall remain in full force and effect and continue to conform to the original intent of
both parties hereto.
C. In no event shall any payment to SUBRECIPIENT hereunder, or any other act or failure of
CITY to insist in any one or more instances upon the terms and conditions of this Agreement
constitute or be construed in any way to be a waiver by CITY of any breach of covenant or de-
fault which may then or subsequently be committed by SUBRECIPIENT. Neither shall such
payment, act, or omission in any manner impair or prejudice any right, power, privilege, or
remedy available to CITY to enforce its rights hereunder, which rights, powers, privileges, or
remedies are always specifically preserved. No representative or agent of CITY may waive the
effect of this provision.
D. This Agreement, together with referenced attachments, constitutes the entire agreement be-
tween the parties hereto, and any prior agreement, assertion, statement, understanding or other
commitment antecedent to this Agreement, whether written or oral, shall have no force or effect
whatsoever; nor shall an agreement, assertion, statement, understanding, or other commitment
occurring during the term of this Agreement, or subsequent thereto, have any legal force or ef-
fect whatsoever, unless properly executed in writing, and if appropriate, recorded as an
amendment of this Agreement.
E. In the event any disagreement or dispute should arise between the parties hereto pertaining to
the interpretation or meaning of any part of this Agreement or its governing rules, codes, laws,
ordinances or regulations, CITY as the party ultimately responsible to HUD for matters of
compliance, will have the final authority to render or to secure an interpretation.
F. For purposes of this Agreement, all official communications and notices among the parties
shall be deemed made if sent postage paid to the parties and address set forth below:
TO CITY:
City Manager
City of Denton
215 E. McKinney
Denton, Texas 76201
TO SUB CIPIENT:
Executive Director
Denton City County Day School
1603 Paisley St.
Denton Texas 76209
G. This Agreement shall be interpreted in accordance with the laws of the State of Texas and ven-
ue of any litigation concerning this Agreement shall be in a court competent jurisdiction sitting
in Denton County, Texas.
�,.- ;' � �
IN WITNESS OF WHICH this Agreement has been executed an this the �,��;r'�`�,� day of
�
.��'�'�� ���.� � t��c� ,�..,. , 2014.
• � •
�_�. � , ,, �
l� � .,�� � ,�
,il
� � .
�
� � �,P�� .�-
. ..,��
BY: ���� '�� ~��. � ,� �
._ .....w.
G � I�GE C. CAMpBELL,
CITY MANAGER
.
. , . . ..
� �� r �
BY: ����'�.;��`��'-:'��� i�`� i:��•�,�'a �'��,' •���`'
....� � . � . �.
. . ; • . ;� •
�r
�u �� '� � � ��
� y,.�.�°
� , y,.
s � '�
BY: -� � � # � .� � s ,
�, �.-��� �„� , ,� �-,� �-�, r
, a., -�
—�-� � � . �� .,.� �� .�...
,. ..
D1�i�1�`�C:�[�Y COUNTY DAY SCHOOL
�
: '� ; ,
,
.. � :•. . �; • � . •.
� �i '� �� f � � ��
BY: � ; � :, x...� �. � �.�� �
CAROI � �'�� �� � BEACH
EXECLw]"1„I ��t DIRECTOR
Page 19 af 26
ATTACHMENT "A"
SCOPE OF SERVICES
Description of Rehabilitation Improvements
Project consists of making needed improvements to the kitchen to comply with kitchen
commercial standaxds. Improvements will include but not be limited to replacement of the
grease trap with one of a larger capacity that meets current City of Denton health codes,
installation of new sinks, installation of built in commercial appliances and exhaust hood. All
work will meet current health and fire regulations.
Work Statement
Denton Cit�ounty Day School, Inc.
In order to complete the agreed upon activity SUBRECIPIENT shall provide the following
services from the improved facility:
Denton City County Day School (DCCDS) is a nonprofit childcare facility for low-income fami-
lies. DCCDS will provides quality care for 81 children, ranging in age frorn 2 years to 5'/2 years.
Parents must be working, going to school full time or doing a combination of both be eligible.
DCCDS will be open Monday through Friday from 6:30 a.m. to 6:00 p.m. The children will be
served breakfast, lunch and an afternoon snack that meet the child food and nutrition guidelines.
DCCDS will provide a safe and healthy environment for childcare and a learning program for all
age groups. The curriculum places emphasis on cognitive, affective and psychomotor learning
skills, good health habits and physical development. The preschool teachers receive 24 hours of
continuing education hours each year in child development and early childhood education.
The most important element is the emphasis placed on enhancing the self-concept of each individual
child, as this is very significant for his/her future success.
Page 20
ATTACHMENT "B"
BUDGET
Kitchen Improvements Approximate
Costs*
_ ......�. ._.__ v �.�,aa.�._
Total Funds Available $102,767.00
_..� �,_. . �._.�.
Improvement List
_e ��,.m
750 gal. Grease Trap, Installation, $ 11,750.00
exterior
_ �.,._...__. ..�_.�._..�.�. . _
3 compartment Stainless sink, stainless $ 1,595.00
drain boards
� _� _ ._ a
Hand sink, stainless, wall mount $
450.00 '
—�...� ,�._ � .�..
Plumbing: floor $ 9,835.00
drains,demolish,relocations
..�._ _ �m.A_A �. _... _
Commerical Dishwasher built-in $ 4,285.00
undercounter
w�..��.��..�.. _ . — ��������
Exhaust Hood, Fire supression sys,Duct $ 9,000.00
work
.� ��,.. . � .�.�
Gas Range, 6 burner, oven $ 2,407.00
�,�.�. �...�.���.....__.� __ �......
Ice Maker,30# storage, undercounter $ 2,421.00
.� � �.. v � - � �.. -..�_.�.
Stainless shelvin� units, 5 units $ 1,860.00
3-Stainless Preparation tables �� �' $ 1,197.00 ,
Griddle tops, Pre rinse faucets,Ice scoop, $ 1,192.00 '
Garbage Disp,Misc equip.
�_. - _ �_ _ ...._. _ �...._.
Comm. Freezer, 3 door built in $ 7,497.00
_ _.� ....._A �.��
' Comm. Refrigerator, 3 dr, built in $ 5,974.00
Demolition and�f NµNN W�M �-�
removal, relocates $ 2,500.00
.v.W..� . ....._ _ _.....�.�.�� m�._..
Electrical, lighting, fans $ 3,500.00
floorin�, slip resistant tile $ 3,052.00
_ _ _ _. _ _ _ �
Polywall covering, ceiling $ 5,616.00
panels,painting
� � - - �,a�a��.... �.. �
Any approved additional improvements
can be made with residual funds.
Prior to the start of construction, Denton City County Day School, shall provide the Community
Development Division with a project budget, documentation of any additional funding sources and
commitments (if other funding sources are included in the project), and a project plan-
ning/construction schedule.
*The "approximate cost" amounts listed above are estimates. Funding may reallocated as needed to
complete improvements listed above.
Page 21
A� 1 ��riMEl\ 1 66l�57
...
24 CFR § 570.505
The standards described in this section apply to real property within the recipient's control which
was acquired or improved in whole or in part using CDBG funds in excess of $25,000. These
standards shall apply from the date CDBG funds are first spent for the property until iive years after
closeout of an entitlement recipient's participation in the entitlement CDBG program or, with
respect to other recipients, until five years after the closeout of the grant from which the assistance
to the property was provided.
(a) A recipient may not change the use or planned use of any such property (including
the beneficiaries of such use) from that for which the acquisition or improvement was made
unless the recipient provides affected citizens with reasonable notice of, and opportunity to
comment on, any proposed change, and either:
(1) The new use of such property qualifies as meeting one of the national
objectives in Section 570.208 and is not a building for the general canduct of
government; or
(2) The requirements in paragraph (b) of this section are met.
(b) If the recipient determines, after consultation with affected citizens, that it is
appropriate to change the use of the property to a use which does not qualify under
paragraph (a)(1) of this section, it may retain or dispose of the property for the changed use
if the recipient's CDBG program is reimbursed in the amount of the current fair market
value of the property, less any portion of the value attributable to expenditures of non-
CDBG funds for acquisition of, and improvements to, the property.
(c) If the change of use occurs after closeout, the provisions governing income from the
disposition of the real property in Section 570.504(b) (4) or (5), as applicable, shall apply to
the use of funds reimbursed.
(d) Following the reimbursement of the CDBG program in accordance with paragraph
(b) of this section, the property no longer will be subject to any CDBG requirements.
Page 22
ATTACHMENT "D"
24 CFR § 570.503
(a) Before disbursing any CDBG funds to a subrecipient, the recipient shall sign a written
agreement with the subrecipient. The agreement shall remain in effect during any period
that the subrecipient has control over CDBG funds, including program income.
(b) At a minimum, the written agreement with the subrecipient shall include provisions
concerning the following items:
(1) Statement of Work. The agreement shall include a description of the
work to be performed, a schedule for completing the work, and a budget. These
items shall be in sufficient detail to provide a sound basis for the recipient
effectively to monitor performance under the agreement.
(2) Records and Reports. The recipient shall specify in the agreement the
particular records the subrecipient must maintain and the particular reports the
subrecipient must submit in order to assist the recipient in meeting its
recordkeeping and reporting requirements.
(3) Pro�ram Income. The agreement shall include the program income
requirements set forth in Section 570.504(c).
(4) Uniform Administrative Requirements. The agreement shall require the
subrecipient to comply with applicable uniform administrative requirements, as
described in Section 570.502.
(5) Other Pro�ram Requirements. The agreement shall require the
subrecipient to carry out each activity in compliance with all Federal laws and
regulations described in subpart K of these regulations, except that:
(i) The subrecipient does not assume the recipient's environmental
responsibilities described at Section 570. 604; and
(ii) The subrecipient does not assume the recipient's responsibility
for initiating the review process under the provisions of 24 CFR Part 52.
(6) Conditions for Reli ious Or�;anizations. Where applicable, the conditions
prescribed by HUD for the use of CDBG funds by religious organizations shall
be included in the agreement. .
(7) Suspension and Termination. The agreement shall specify that, in
accordance with 24 CFR 85.43, suspension or termination may occur if the
subrecipient materially fails to comply with any term of the award, and that the
award may be terminated for convenience in accordance with 24 CFR 85.44.
.,,.
(8) Reversion of Assets. The agreement shall specify that upon its expiration
the subrecipient shall transfer to the recipient any CDBG funds on hand at the
time of expiration and any accounts receivable attributable to the use of CDBG
funds. It shall also include provisions to the use of CDBG funds. It shall also
include provisions designed to ensure that any real property under the
subrecipient's control that was acquired or improved in whole or in part with
CDBG funds in excess of $25,000 is either:
(i) Used to meet one of the national objectives in Section 570.208
until five years after expiration of the agreement, or for such longer
period of time as determined to be appropriate by the recipient; or
(ii) Disposed of in a manner that results in the recipient's being
reimbursed in the amount of the current fair market value of the property
less any portion of the value attributable to expenditures of non-CDBG
funds for acquisition of, or improvement to, the property.
(Reimbursement is not required after the period of time specified in
paragraph (b) (8) (1) of this section.)
Page 24
ATTACHMENT "E"
24 CFR § 570.504
(a) Recordin� Prog;ram Income. The receipt and expenditure of program income as defined in
Section 570.500(a) shall be recorded as part of the financial transactions of the grant
program.
(b) Disposition of Pro�ram Income Received bv Recipients.
(1) Program income received before grant closeout may be retained by the
recipient if the income is treated as additional CDBG funds subject to all
applicable requirements governing the use of CDBG funds.
(2) If the recipient chooses to retain program income, that income shall affect
withdrawals of grant funds from the U.S. Treasury as follows:
(i) Program income in the form of repayments to, or interest
earned on, a revolving fund as defined in Section 570.500(b) shall be
substantially disbursed from the fund before additional cash withdrawals
are made from the U.S. Treasury for the same activity. (This rule does
not prevent a lump sum disbursement to finance the rehabilitation of
privately owned properties as provided for in Section 570.513.)
(ii) Substantially all other program income shall be disbursed for
eligible activities before additional cash withdrawals are made from the
U.S. Treasury.
(3) Program income on hand at the time of closeout shall continue to be
subject to the eligibility requirements in Subpart C and all other applicable
provisions of this part until it is expended.
(4) Unless otherwise provided in any grant closeout agreement, and subject
to the requirements of paragraph (b) (5) of this section, income received after
closeout shall not be governed by the provisions of this part, except that, if at the
time of closeout the recipient has another ongoing CDBG grant received directly
from HUD, funds received after closeout shall be treated as program income of
the ongoing grant program.
(5) If the recipient does not have another ongoing grant received directly
from HUD at the time of closeout, income received after closeout from the
disposition of real properiy or from loans outstanding at the time of closeout shall
not be governed by the provisions of this part, except that such income shall be
used for activities that meet one of the national objectives in Section 570.208 and
the eligibility requirements described in Section 105 of the Act.
Page 25
ATTACHMENT "F"
Certification Regarding Lobbying
The undersigned certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid by or on behalf of the un-
dersigned, 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 em-
ployee of a Member of Congress in connection with the awarding of any Federal con-
tract, 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.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member
of Congress in connection with a Federal contract, grant, loan or cooperative agreement,
the undersigned shall complete and submit Standard Form-ILL, "Disclosure Form to Re-
port Lobbying," in accordance with its instructions.
(3) The undersigned shall require that the language of this Certification be included in the
award documents for all subawards at all tiers (including subcontractors, subgrants and
contracts under grants, loans and cooperative agreements) and that all subrecipients shall
certify and disclose accordingly.
This certification is a material representation of fact upan which reliance was placed when this
transaction was made or entered into. Submission of the certification is a prerequisite for making
or entering into this transaction imposed by Section 1352, title 31, US Code. Any person who
fails to file the required certification shall be subject to a civil penalty of not less than $10,000
and not more than $100,000 for each such failure.
Carolyn Beach, Denton City County Day School
Grantee
.- � .� p�
„�. �
.._.,w
, , ,�
�.�,��.�, � � Executive Director
�' � �
� ....;��� �,��..� � � �
�x
�� � ���� �� � ��.�.:
�.
�. � � �, ���e�:,�,
Date.
Page 26