Loading...
2006-255 . . ~- S:\Our Documents\Ordinances\06\Interfaith Ministries Ord.doc ORDINANCE NO. d (leG - ,;<S.!J AN ORDINANCE ACCEPTING A PROPOSAL AND AWARDING A CONTRACT FOR A ' UTILITY ASSISTANCE PROGRAM FOR LOW-INCOME HOUSEHOLDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 3504 UTILITY ASSISTANCE PROGRAM AWARDED TO INTERFAITH MINISTRIES). WHEREAS, the City has solicited, received and reviewed Interfaith Ministries' response to the Request for Proposals for a Utility Assistance Program in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or designated employee has reviewed and recommended that the herein described proposal is appropriate for administration of the Utility Assistance Program as submitted; and WHEREAS, funding for the Utility Assistance Program is provided by rate payers through contributions to the Utility Trust Fund; NOW, THERFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The proposal submitted by Interfaith Ministries for the administration of the Utility Assistance Program is hereby accepted and approved as being the most responsible and appropriate proposal for such services; SECTION 2. By the acceptance and aRproval of the above request for proposals, the City accepts the offer of Interfaith Ministries and their proposal and agrees to purchase the services in accordance with the terms, and standards for the specified sums contained in the Request for Proposals and related documents. SECTION 3. The City and Interfaith Ministries having approved and accepted the service proposal, wish to enter into a formal written agreement and as a result of the acceptance, approval and awarding of the contract, the City Manager or his designated representative is hereby authorized to execute the written contracts which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions and specified sums contained in the Request for Proposals and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above Request for Proposals, the City Council hereby authorizes the expenditure of funds therefore in the amount and in accordance with the approved bids or pursuant to a written contract made pursuant thereto as authorized herein. SECTION 5. This ordinance shall be,come effective immediately upon its passage and approval. PASSED AND APPROVED this the /rJ,i!! day of ~f!e,;; 7i:mdtA) ~~OR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ,2006. S:\Om Documents\Contracts\06\CDBG Funding Agreements 2006-07\Utility Asst Agreement06.doc 2006-2007 SERVICE AGREEMENT BETWEEN THE CITY OF DENTON AND INTERFAITH MINISTRIES This Agreement is made and entered into by and between the City of Denton, a Texas municipal corporation, acting by and through its City Manager, pursuant to ordinance, hereinafter referred to as CITY, and Interfaith Ministries, 109 West Sycamore, Denton, TX 76202 a Texas non-profit corporation, hereinafter referred to as CONTRACTOR. WHEREAS, CITY has received certain charitable contributions to help utility customers who face termination of services due to financial hardship through the Utility Assistance Program; and WHEREAS, CITY wishes to engage CONTRACTOR 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 conditions hereinafter described. I. TERM This Agreement shall commence on or as of September I, 2006, and shall terminate on August 31, 2009, unless sooner terminated in accordance with Section 22 "Termination". A two-year extension of the agreement may be granted upon approval of both CONTRACTOR and CITY. 2. RESPONSIBILITIES CONTRACTOR hereby accepts the responsibility for the performance of all services and activities described in the Utility Assistance Program Guidelines attached hereto as Exhibit 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 CONTRACTOR's executive officer to be CONTRACTOR's representative responsible for the management of all contractual matters pertaining hereto, unless written notification to the contrary is received from CONTRACTOR, and approved by CITY. The CITY's Community Development Administrator will be CITY's representative responsible for the administration of this Agreement. 3. CITY'S OBLIGATION A. Limit of Liability. On a monthly basis, CITY will provide CONTRACTOR with a set amount of funding equal to or less than the amount of funding CITY has available in the Utility Assistance Trust Fund account. The Utility Assistance trust account holds funds that have been contributed by citizens. Funds are to be distributed by CONTRACTOR to those utility customers who meet the criteria of the Utility Assistance Program. On a quarterly basis, CITY will review expenditure documentation and reconcile payments and expenditure records. At any time, if CITY funds on hand are exhausted, CONTRACTOR may submit additional payment requests to CITY. B. Measure of Liability. In consideration of full and satisfactory services and activities hereunder by CONTRACTOR, CITY agrees that CONTRACTOR can recover administrative costs from the funds subject to the limitations and provisions set forth in this Section and Section 9 of this agreement. (I) The parties expressly understand and agree that CITY's obligations under this Section are contingent upon the actual receipt of contributions from the utility customers of the CITY. If there are no contributions in the Utility Assistance trust fund account for any month, CITY shall notify CONTRACTOR in writing within a reasonable time after such fact has been determined. The lack of any contributions for any particular month shall not make the CITY liable for any costs that the CONTRACTOR may incur for the administration of the Utility Assistance program. (2) 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. (3) CITY shall not be obligated or liable under this Agreement to any party other than CONTRACTOR for providing funds or provision of any goods or servIces. 4. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS CONTRACTOR shall comply with all applicable federal laws, laws of the State of Texas and ordinances of the City of Denton. 5. REPRESENTATIONS A. CONTRACTOR 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 Agreement. B. The person or persons signing and executing this Agreement on behalf of CONTRACTOR, do hereby warrant and guarantee that he, she, or they have been fully authorized by CONTRACTOR to execute this Agreement on behalf of CONTRACTOR and to validly and legally bind CONTRACTOR to all terms, performances and provisions herein set forth. Page 2 of 17 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 CONTRACTOR or the person signing the Agreement to enter into this Agreement. CONTRACTOR 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 Section. D. CONTRACTOR agrees that the funds and resources provided CONTRACTOR 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 have been available to, or provided through, CONTRACTOR had this Agreement not been executed. 6. PERFORMANCE BY CONTRACTOR CONTRACTOR will provide, oversee, administer, and carry out all of the activities and services set out in the Utility Assistance Program guidelines, attached hereto and incorporated herein for all purposes as Exhibit A, and in accordance with all other terms, provisions and requirements of this Agreement. No modifications or alterations may be made in the Utility Assistance Program's guidelines without the prior written approval of the CITY. 7. WARRANTIES CONTRACTOR 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 CONTRACTOR 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 CONTRACTOR. C. No litigation or legal proceedings are presently pending or threatened against CONTRACTOR. D. None of the provisions herein contravenes or is in conflict with the authority under which CONTRACTOR is doing business or with the provisions of any existing indenture or agreement of CONTRACTOR. Page 3 of 17 E. CONTRACTOR 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 CONTRACTOR is subject to any lien or encumbrance of any character, except for current taxes not delinquent, except as shown in the financial statements furnished by CONTRACTOR to CITY. 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. 8. COVENANTS A. During the period of time that payment may be made hereunder and so long as any payments remain unliquidated, CONTRACTOR shall not: (1) Use the funds provided for any use other than those provided for in the Utility Assistance Program guidelines. 9. ALLOW ABLE COSTS A. Costs shall be considered allowable only if incurred directly and specifically in the performance of and in compliance with this Agreement. B. CITY's prior written authorization is required in order for the following to be considered allowable costs: (1) CITY shall not be obligated to any third parties, including any subcontractors of CONTRACTOR, and CITY funds shall not be used to pay for any contract service extending beyond the expiration of this Agreement. (2) Out of town travel. (3) Any alterations or relocation of the facilities on and in which the activities specified in Exhibit A are conducted. (4) Costs or fees for temporary employees or services. (5) Any fees or payments for consultant services. (6) Fees for attending out of town meetings, seminars or conferences. Written requests for prior approval are CONTRACTOR's responsibility and shall be made within sufficient time to permit a thorough review by CITY. CONTRACTOR must obtain written approval by CITY prior to the commencement of procedures to solicit or purchase services, equipment, or real or personal property. Any procurernent or Page 4 of 17 purchase which may be approved under the terms of this Agreement must be conducted in its entirety in accordance with the provisions of this Agreement. C. Program administration costs recovered for each month's services by CONTRACTOR for Utility Service Trust Funds made available by City up to $25,000 per calendar year, shall be paid at the rate of $333.33 per calendar month or sixteen percent (16%) of the trust funds for a minimum of $4,000.00 per calendar year. Program administration services by CONTRACTOR for Utility Service Trust Funds made available by City in excess of $25,000 per calendar year, shall be paid at the rate of fifteen percent (15%) of the trust fund amount that exceeds $25,000 up to a maximum combined total of$12,000.00 per calendar year. Program administration costs will be deducted by CONTRACTOR from the monthly funding amount provided by the CITY. 10. MAINTENANCE OF RECORDS A. CONTRACTOR 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 this Agreement and the Utility Assistance Program Guidelines, and with any other applicable Federal and State regulations establishing standards for financial management. CONTRACTOR'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 CONTRACTOR of fiscal accountability and liability under any other provision of this Agreement or any applicable law. CONTRACTOR shall include the substance of this provision in all subcontracts. B. CONTRACTOR agrees to retain all books, records, documents, reports, and written accounting procedures pertaining 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 relieve CONTRACTOR of responsibility for retaining accurate and current records which clearly reflect the level and benefit of services provided under this Agreement. D. Notwithstanding any other provisions of this Agreement or Utility Assistance Program guidelines, at any reasonable time and as often as CITY may deem necessary, the CONTRACTOR shall make available to, all of its records and shall permit CITY, or any of its authorized representatives to audit, examine, make excerpts 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. Page 5 of 17 11. REPORTS AND INFORMATION At such times and in such form as CITY may require, CONTRACTOR shall furnish such statements, records, data and information as CITY may request and deem pertinent to matters covered by this Agreement. Unless a written exemption has been granted by the CITY, CONTRACTOR shall submit the most recent yearly audit conducted by independent examiners within ten (10) days after receipt of such request. 12. MONITORING AND EVALUATION A. CITY shall perform on-site monitoring of CONTRACTOR's performances under this Agreement. B. CONTRACTOR agrees that CITY may carry out monitoring and evaluation activities to ensure adherence by CONTRACTOR to the Utility Assistance Program guidelines which are attached hereto as Exhibit A, as well as other provisions of this Agreement. C. CONTRACTOR 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 necessary for CITY to effectively fulfill its monitoring and evaluation responsibilities. D. CONTRACTOR 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 to coordinate the monitoring process as requested by CITY staff. E. After each official monitoring visit, CITY shall provide CONTRACTOR with a written report of monitoring findings. F. CONTRACTOR shall submit copies of any fiscal, management, or audit reports by any of CONTRACTOR's funding or regulatory bodies to CITY within ten (10) days of receipt by CONTRACTOR. 13. DIRECTORS' MEETINGS During the terms of this Agreement, CONTRACTOR shall cause to be delivered to CITY copies of all notices of meetings 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. CONTRACTOR understands and agrees that CITY representatives shall be afforded access to all of the Board of Directors' meetings. Minutes of all meetings of CONTRACTOR's governing body shall be available to CITY within ten (10) working days of approval. Page 6 of 17 14. INSURANCE A. CONTRACTOR shall observe sound business practices with respect to providing such bonding and insurance as would provide adequate coverage for services offered under this Agreement. CONTRACTOR shall be allowed a reasonable time to obtain such insurance and bonding from the time of the signing of the contract. B. The premises on and in which the activities described in Exhibit A are conducted, and the employees conducting these activities, shall be covered by premise liability insurance, commonly referred to as "Owner/Tenant" coverage with CITY named as an additional insured, within a reasonable time of signing the contract. Upon request of CONTRACTOR, CITY may, at its sole discretion, approve alternate insurance coverage arrangements. C. CONTRACTOR will comply with applicable workers' compensation statues and will obtain employers' liability coverage where available and other appropriate liability coverage for program participants, if applicable. D. CONTRACTOR will maintain adequate and continuous liability insurance on all vehicles owned, leased or operated by CONTRACTOR. All employees of CONTRACTOR who are required to drive a vehicle in the normal scope and course of their employment 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 CONTRACTOR'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 CONTRACTOR. F. The policy or policies of insurance shall contain a clause which requires that City and Contractor be notified in writing of any cancellation of change in the policy at least thirty (30) days prior to such change or cancellation. 15. EQUAL OPPORTUNITY A. CONTRACTOR shall comply with all applicable equal employment opportunity and affirmative action laws or regulations. B. CONTRACTOR will furnish all information and reports requested by the CITY, and will permit access to its books, records, and accounts for purposes of investigation to ascertain compliance with local, state and Federal rules and regulations. C. In the event of CONTRACTOR's non-compliance with the non- Page 7 of 17 discrimination requirements, CITY may cancel or terminate the Agreement in whole or in part, and CONTRACTOR may be barred from further contracts with CITY. 16. PERSONNEL POLICIES Personnel policies shall be established by CONTRACTOR and shall be available for examination. Such personnel policies shall: A. Be consistent with CITY's personnel policies, procedures, and practices, including policies with respect to employment, salary and wage rates, working hours and holidays, fringe benefits, vacation and sick leave privileges, and travel, unless exceptions approved by CITY; and B. Be in writing and shall be approved by the governing body of CONTRACTOR and by CITY. 17. CONFLICT OF INTEREST A. CONTRACTOR 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 performance of services required to be performed under this Agreement. CONTRACTOR 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. CONTRACTOR further covenants that no member of its governing body or its staff, subcontractors 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, or others, particularly those with which he 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 (I) participate in any decision relating to the Agreement which affects his personal interest or the interest in any corporation, partnership, or association in which he has direct or indirect interest; or (2) have any interest, direct or indirect, in this Agreement or the proceeds thereof. 18. NEPOTISM CONTRACTOR 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 CONTRACTOR, or is a member of CONTRACTOR's governing board. The term "member of immediate family" includes: wife, husband, son, daughter, mother, father, brother, sister, in-laws, aunt, uncle, nephew, niece, step-parent, step-child, half-brother and half-sister. Page 8 of 17 19. POLITICAL OR SECTARIAN ACTIVITY A. None of the performance rendered hereunder shall involve, and no portion of the funds received by CONTRACTOR hereunder shall be used, either directly or indirectly, for any political activity (including, but not limited to, an activity to further the election or defeat of any candidate for public office) or any activity undertaken to influence the passage, defeat or final content of legislation. B. None of the performance rendered hereunder shall involve, and no portion of the funds received by CONTRACTOR hereunder shall be used for or applied directly or indirectly to the construction, operation, maintenance or administration, or be utilized so as to benefit in any manner any sectarian or religious facility or activity, unless authorized by this contract and ordinance authorizing Utility Assistance Program. 20. CHANGES AND AMENDMENTS 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 provide that another method shall be used. B. CONTRACTOR may not make transfer from the funds provided in this agreement to any other budget item or fund unless provided for in this Agreement and Utility Assistance Program guidelines. C. 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 modifications 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. D. CITY may, from time to time during the term of the Agreement, request changes in Exhibit A Such changes shall be incorporated in a written amendment hereto, as provided in Subsection A of this Section. E. CONTRACTOR agrees to notify CITY of any proposed change in physical location for work performed under this Agreement at least thirty (30) calendar days in advance of the change. F. CONTRACTOR shall notify CITY of any changes in personnel or governing board composition. G. It is expressly understood that neither the performance of Exhibit A for any program contracted hereunder nor the transfer of funds between or among said programs will be permitted. Page 9 of 17 21. SUSPENSION OF FUNDING Upon determination by CITY of CONTRACTOR'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 (10) working days written notice to CONTRACTOR, withhold further payments to CONTRACTOR. Such notice may be given by mail to the Executive Officer and the Board of Directors of CONTRACTOR. The notice 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 corrective action, but in no event shall it exceed thirty (30) calendar days. At the end of the suspension period, if CITY determines the default or deficiency has been satisfied, CONTRACTOR may be restored to full compliance status and paid all eligible funds withheld or impounded during the suspension period. If however, CITY determines that CONTRACTOR has not come into compliance, the provisions of SECTION XXII may be effectuated. 22. TERMINATION A. CITY may terminate this Agreemcnt for cause under any of the following reasons or for other reasons not specifically enumerated in this paragraph: (I) CONTRACTOR's failure to attain compliance during any prescribed period of suspension as provided in Section 21 (2) CONTRACTOR's violation of covenants, agreements or guarantees of this Agreement. (3) Finding by CITY that CONTRACTOR: (a) is in such unsatisfactory financial condition as to endanger performance under this Agreement; (b) is delinquent in payment of taxes, or of costs of performance of this Agreement in the ordinary course of business. (4) Appointment ofa trustee, receiver or liquidator for all or substantial part of CONTRACTOR's property, or institution of bankruptcy, reorganization, rearrangement of or liquidation proceedings by or against CONTRACTOR. (5) The commission of an act of bankruptcy. Page 100fl? (6) CONTRACTOR's violation of any law or regulation to which CONTRACTOR is bound or shall be bound under the terms of the Agreement. CITY shall promptly notify CONTRACTOR in wntmg of the decision to terminate and the effective date of termination. CONTRACTOR will refund any funds not yet distributed less any administrative cost allowed by this Agreement within thirty (30) days of termination. B. CITY may terminate this Agreement for convenience at any time. If this Agreement is terminated by CITY for convenience, the termination shall be made effective by the CITY giving written notice to the CONTRACTOR. C. CONTRACTOR may terminate this Agreement in whole or in part by written notice to CITY, if a termination of outside funding occurs upon which CONTRACTOR depends for performance hereunder. CONTRACTOR may terminate this Agreement upon the dissolution of CONTRACTOR's organization not occasioned by a breach of this Agreement. D. Upon receipt of notice to terminate by CITY or by termination of contract under subsection C of this paragraph, CONTRACTOR shall return any funds not yet distributed less any administrative costs allowed by this Agreement, within thirty (30) days of the termination. E. Notwithstanding any exercise by CITY of its right of suspension or termination, CONTRACTOR shall not be relieved of liability to CITY for damages sustained by CITY by virtue of any breach of the Agreement by CONTRACTOR. 23. NOTIFICATION OF ACTION BROUGHT 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 CONTRACTOR, CONTRACTOR shall give written notice thereof to CITY within two (2) 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 either personally or by mail. 24. INDEMNIFICATION A. It is expressly understood and agreed by both parties hereto that CITY is contracting with CONTRACTOR as an independent contractor and that as such, CONTRACTOR shall save and hold CITY, its officers, 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 resulting in whole Page 11 of 17 or in part from the performance or omission of any employee, agent or representative of CONTRACTOR. B. CONTRACTOR agrees to provide the defense for, and to indemnify and hold harmless CITY its agents, employees, or contractors 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 contractors. 25. MISCELLANEOUS A. CONTRACTOR shall not transfer, pledge or otherwise assign this Agreement or any interest therein, or any claim arising thereunder, to any party or parties, company or other 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 CONTRACTOR hereunder, or any other act or failure of CITY to insist in anyone 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 default which may then or subsequently be committed by CONTRACTOR. 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 exhibits and attachments, constitutes the entire agreement between 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 effect 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 will have the final authority to render or to secure an interpretation. F. For purposes of this Agreement, all official communications and notices Page 12 of 17 among the parties shall be deemed made if sent postage paid to the parties at the address set forth below: TO CITY: TO CONTRACTOR: Community Development Administrator City of Denton 101 S Locust Ste 500 Denton, Texas 76205 Condell Garden, Exec. Dir Interfaith Ministries 109 W Sycamore St Denton TX 76201 G. This Agreement shall be interpreted in accordance with the laws of the State of Texas and venue of any litigation concerning this Agreement shall be in a court competent jurisdiction sitting in Denton County, Texas. IN WITNESS OF WHICH day of &,ptElJ1h A) this Agreement has been executed on this the _ /:2.--g. ,2006. CITY OF DENTON BY~~ HOWARD MARTIN, CIT MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY ~~\\~~<1liuA-> APPR~~~ LEGAL FpRM: EDWIN:UPORNEY BY: r BY: ((Ndt} JJI(U:& /J,,- EXECUTIVE DIRECTOR ATTEST: By:d;~v / At~J/) BOARD SECRETARY Page 13 of 17 EXHIBIT A UTILITY ASSISTANCE PROGRAM GUIDELINES This utility funding program is set up to encourage utility customers to add a monthly contribution amount to their utility bill or payment. The contributed funds will be used to provide financial assistance to utility customers experiencing financial hardship and whose service is pending termination or has been terminated for reason of non-payment. These funds are first collected by the City of Denton and placed in a special Trust Fund designated solely for this utility assistance program. The City of Denton then disburses the funds monthly to the CONTRACTOR, who administers the program. A. The following guidelines will apply to the use of Program funds to provide assistance: 1. Qualifying Denton Municipal Utility customers will be eligible for one payment during a twelve-month period, unless otherwise designated as an extreme hardship. 2. Persons receiving assistance must be a City of Denton residential service customer and have received a statement that reflects a previous balance, indicating the customer's utility service is in jeopardy of disconnection. 3. Assistance will be used for short-term crisis intervention to restore or maintain utility service. 4. Apparent consistent excessive utility usage will be a negative factor in determining eligibility. These cases will be referred to the City of Denton department for review prior to providing Program assistance. 5. The overall financial resources available to the applicant will be considered in determining eligibility. 6. Program assistance will be in the form of payment made or obligated to the City of Denton for Denton Municipal Utility service only. 7. Priority will be given to households whose circumstances are as follows: a. Gross family income 65% or less of Area Median Income (AMI). b. Electricity powered life support systems are in use. c. Serious illness exists therein. d. Disabled or homebound or elderly residents existing on a fixed Income. Page 140fl7 e. Small children reside therein. f. Recent emergencies such as home fire, layoffs from work, excessive medical expenses, etc., have occurred. 8. Preferences will be given to families that meet the income guidelines, have resided in Denton for at least six (6) months, and have not received utility assistance within twelve months of the current application. 9. Although income is not the only criteria for determining eligibility, it will serve as a strong indicator of need and ability to pay. All requests will be treated on a case-by-case basis. B. Following are the current guidelines for Program administration: I. CONTRACTOR is required to provide monthly quarterly financial and/or beneficiary reports to the CITY and give a Program accounting to the Public Utilities Board not less than once per year if requested. 2. A portion of Program funds may be used to help cover Program administration costs not to exceed the amount of the bid. 3. It is the responsibility of the Utilities Customer Service Department to obtain the dollar amount collected from customers each month and deposit in the Trust Fund. 4. The Community Development Division will provide the contractor with necessary information to allow the Contractor to provide Program servIces. C. Denial of Utility Assistance Trust Funds ('Trust Funds") to utility customer: I. Except in designated cases of "extreme hardship", the guidelines for the distribution, use and administration of the Utility Assistance Trust Funds provided by the City shall be distributed and or applied under these utility assistance program guidelines. 2. In the event the Contractor does not approve the distribution or use of Trust Funds to a utility customer and the customer requests a review and or appeal of the denial, the Contractor shall first have the right to require a written request from the customer in accordance with current policy guidelines as may be established from time to time by the Board of Directors of the Contractor. 3. In the event the Contractor does not approve the distribution or use of Trust Funds to a utility customer after the review and or appeal of the denial, the Contractor shall provide customer with a copy of this EXHIBIT Page 15 of 17 "A" of the Service Agreement and identify the applicable guideline used for denial of utility assistance. 4. Quarterly reports submitted by Contractor to the City will include information on number of clients denied assistance and the various reasons for denial. 5. Periodically or on a case-by-case basis, the City may request a copy of the Contractor's review and or appeal file established for purposes of the City's Utility Assistance Program. Page 16 of 17 EXHIBIT B Qualifying Income Limits for Utility Assistance Program Maximum Income Levels Family Low Income Very-Low Income Extremely-Low Income Size 65% AMI - <50% AMI 50% AMI- <30% AMI ~30% AMI $30,250 . $23,301 $23,300 - $13,951 $13,950 or Below 2 $34,600 . $26,601 $26,600 - $15,951 $15,950 or Below 3 $38,900 . $29,951 $29,950 - $17,951 $17,950 or Below 4 $43,250 . $33,251 $33,250 - $19,951 $19,950 or Below 5 $46,700 . $35,901 $35,900 - $21,551 $21,550 or Below 6 $50,150 . $38,551 $38,550 - $23,151 $23,150 or Below 7 $53,600. $41,251 $41,250 - $24,751 $24,750 or Below 8 $57,050. $43,901 $43,900 - $26,351 $26,350 or Below Source: U.S. Department of Rousing and Urban Development Effective: March 2006 Page 17 of 17