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CFDA NO. 14.218 COMMUNITY DEVELOPMENT BLOCK GRANT CONTRACT CONTRACT #10-08 This Contract is entered into by District XI Human Resource Council (the Grantee), and the City of Missoula, Montana, (the City). The Grantee and the City agree to the following terms: 1. PURPOSE The purpose of this Contract is to provide funding for project activities approved by the City under the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) Program. 2. APPLICATION INCORPORATED BY REFERENCE The Grantee's application for CDBG assistance is incorporated into this Contract by this reference and the representations made in the application are binding upon the Grantee. 3. ACCEPTANCE OF CDBG PROGRAM REQUIREMENTS The Grantee will comply with all applicable parts of Title I of the Housing and Community Development Act of 1974, as amended; the applicable Department of Housing and Urban Development (HUD) regulations in 24 CFR Part 570, as now in effect or as they may be amended during the term of this contract; all requirements established by the City; applicable State and federal laws, regulations, administrative directives and procedures; and local ordinances and resolutions. The Grantee agrees that all contracts entered into by it for the completion of the activities described in Section 5 of this Contract will contain special provisions requiring contractors to comply with all applicable state and federal requirements. The Grantee expressly agrees to repay to the City any funds advanced to the Grantee under this Contract which the Grantee, its subcontractors or subrecipient entities, or any public or private agent or agency to which it delegates authority to carry out portions of this Contract expends in violation of the terms of this Contract or the federal statutes and regulations governing the CDBG Program. 4. EFFECTIVE DATE AND TIME OF PERFORMANCE This Contract takes effect upon execution by the parties and will terminate upon completion of the final project closeout by the City. ---PAGE BREAK--- 5. SCOPE OF ACTIVITIES The Grantee will engage in the activities set forth in the Grantee's application for CDBG grant assistance. The major components of the project include: Continue the development and operation of the Human Resource Council Home Rehabilitation Loan Program in the City of Missoula. Offer low interest home rehabilitation loans to homeowners with incomes below 80% of the area median income. Make health and safety related repairs and repairs to reduce home energy costs a priority. Tailor terms of the loan to the financial circumstance of the borrower, including deferred payment loans. Serve a minimum of 15 households. Will comply with all applicable codes, regulations and standards, including those contained in the Americans with Disabilities Act (ADA), in modifications to above-referenced homes. Will provide reports to the City of Missoula on prescribed forms and including family size and income information for all program participants. Will make requests for payment based on invoices submitted and documented completion of construction components. 6. BUDGET The total amount of this Contract will not exceed $279,500.00. A copy of the project budget is included as Attachment A to this Contract, and by this reference is made a part of this Contract and binding upon the Grantee. Budget adjustments must be approved in advance by the City. For adjustments between line items of the CDBG portion of Attachment A, in an amount not to exceed $1,000, City approval of the Request for Payment form will constitute approval of the budget adjustment. The Grantee must describe the rationale for a budget adjustment in the Project Progress Report and the adjustments noted in the Request for Payment and Status of Funds Report submitted with draws against the grant funding reserve. Budget adjustments in excess of $1,000 are subject to written City approval. 7. AMOUNT OF GRANT AND METHOD OF PAYMENT The City will pay to the Grantee funds available under this Contract upon approval by the City of the Grantee's Request for Payment. The City may agree to make advance payments to the Grantee for activities set forth in Section 5. SCOPE OF ACTIVITIES upon satisfactory demonstration of need as presented by the Grantee and approved by the City. In expending funds advanced by the City, the Grantee will limit expenditures to those included in the Request for Payment and expressly approved by the City. The City will reimburse the Grantee for approved, eligible and necessary expenses according to the documentation submitted by the Grantee to support the expenditures. The City will not reimburse the Grantee for any expenses not included in the approved budget or not clearly and ---PAGE BREAK--- accurately supported by the Grantee's records. Any authorized funds not expended under this grant will revert to the City and will be used to finance other CDBG projects. The reimbursement of eligible costs incurred is contingent upon the Grantee's completion of Section 16. SPECIAL PROJECT START UP CONDITIONS. In the event the Grantee is unable to comply with the terms and the conditions of this Contract, any costs incurred will be the Grantee's sole responsibility. If the actual total cost of completing the project is less than has been projected by the Grantee in the budget (Attachment the City may, at its discretion, reduce the amount to be provided under this Contract in proportion to the overall savings If the City determines that the Grantee has failed to satisfactorily carry out its responsibilities under this Contract, the City may revoke the Grantee's authority to draw against the reservation described in this Contract until the City and the Grantee agree on a plan to remedy the deficiency. The City reserves the right to withdraw a commitment for any CDBG funds which remain unobligated 24 months after the date of execution of this Contract. 8. LIAISON Mike Barton, Grants Administrator in the Missoula Office of Planning and Grants (OPG), is the City's liaison with the Grantee regarding all administrative and technical matters concerning this Contract. Jim Morton is the Grantee's liaison with the City for administrative and technical matters. Either party may change its liaison upon notification of the other party. 9. OWNERSHIP AND PUBLICATION OF MATERIALS All reports, information, data, and other materials prepared by any contractor or subcontractor pursuant to this Contract are to be the property of the Grantee and the City which have exclusive and unrestricted authority to release, publish or otherwise use, in whole or in part, information relating thereto. No material produced in whole or part under this Contract may be copyrighted or patented in the United States or in any other country without the City's prior written approval. 10. ACCESS TO RECORDS AND PROJECT MONITORING The Grantee will maintain adequate and reasonable records of its performance under this Contract and will allow access to these records at any time during normal business hours by the City, the U.S. Department of Housing and Urban Development and the Comptroller General. These records will be kept in the Grantee's offices in Missoula, Montana. The City or its agents may monitor and inspect all phases and aspects of the Grantee's performance to determine compliance with the Scope of Work, and other technical and administrative requirements, including the adequacy of the Grantee's records and accounts. The City will advise the Grantee of any specific areas of concern and provide the Grantee opportunity to propose corrective actions acceptable to the City. 11. PROJECT PROGRESS REPORTING During the term of this contract, the Grantee will submit a Project Progress Report to the City during each quarter for the periods ending June, September, December and March. This report will describe the status of the project with respect to each implementation objective including, at a ---PAGE BREAK--- minimum, the percentage of the project which has been completed, costs incurred, funds remaining, anticipated completion date, and direct benefit data. The report must also describe any significant problems encountered and any necessary modification of the project scope or implementation schedule that are being requested. The Grantee will submit the Project Progress Report to the City within 10 days of the close of each quarter. The City will not honor claims for payment until the required quarterly report has been submitted to and approved by the City. Project Progress Reports submitted during a quarter in conjunction with a Request for Payment will satisfy the quarterly progress-reporting requirement. 12. EQUAL EMPLOYMENT OPPORTUNITY Any hiring of employees by the Grantee under this Agreement will be on the basis of merit and qualification, and the Grantee will not discriminate against any person on the basis of race, color, religion, creed, political ideas, sex, age, marital status, physical or mental disability or national origin. As used herein, "qualifications" means qualifications as are generally related to competent performance of the particular occupational task. 13. AVOIDANCE OF CONFLICT OF INTEREST The Grantee will comply with the provisions of the applicable HUD regulations of 24 CFR 570.611; and with sections 2-2-125, 2-2-201, and 7-5-4109, MCA, (as applicable) regarding the avoidance of conflict of interest. 14. OPEN MEETINGS All meetings of the Grantee’s Board of Directors will be open to the public as per the applicable Montana Code Annotated provisions in 2-3-203, MCA. 15. MODIFICATION AND ASSIGNABILITY OF CONTRACT This Contract contains the entire agreement between the parties, and no statements, promises, or induce- ments made by either party, or agents of either party, which are not contained in or authorized by this written Contract, are valid or binding. This Contract may not be enlarged, modified, or altered except upon written agreement, and does not imply any continuing commitment by the City of Missoula beyond the termination date noted in this Contract. The Grantee accepts responsibility for the adherence to the terms of this Contract by subcontractor or subrecipient entities and by public or private agents or agencies to which it delegates authority to carry out portions of this Contract. 16. SPECIAL PROJECT START UP CONDITIONS The Grantee will not obligate or utilize funds for any activities provided for by this Contract until: The City completes an Environmental Review Record, if applicable, and issues a Notice of Release of Funds. The Grantee submits to the City evidence of the firm commitment of the other resources necessary for the completion of the project as defined in Section 5 and Attachment A of this Contract. ---PAGE BREAK--- Within six months of the date of the announcement of the tentative grant award by the City, the Grantee will have completed all necessary arrangements to assure that those resources are available for commitment to and participation in the project in order to guarantee timely project completion. Unless the Grantee can demonstrate the existence of unusual or extenuating circumstances that justify an extension of time, the City will withdraw the tentative award and reallocate the funds. The City will not release any CDBG funds to the Grantee until the Grantee has obtained firm commitments for all non-CDBG resources to be involved in the project. The Grantee may not expend or obligate any CDBG funds, other than for administrative purposes, until the City determines that this condition has been satisfied. 17. CONSTRUCTION AND VENUE This Contract will be construed under and governed by the laws of the State of Montana. In the event of litigation concerning it, venue is in the District Court of the Fourth Judicial District in and for the County of Missoula, State of Montana. 18. INDEMNIFICATION The Grantee waives any and all claims and recourse against the City including the right of con- tribution, for loss or damage to persons or property arising from, growing out of, or in any way connected with or incidental to the Grantee's or any subrecipient's performance under this Contract. Further, the Grantee will indemnify, hold harmless, and defend the City against any and all claims, demands, damages, costs, expenses, or liability arising out of the Grantee's or any subrecipient's performance of this Contract. In the event that the City is named as a codefendant in any action relating to activities to be performed by the Grantee or a subrecipient under this Contract, the Grantee will notify the City of the action and will represent the City in the action unless the City undertakes to represent itself as a codefendant, in which case the City will bear its own litigation costs, expenses, and attorneys' fees. 19. CONTRACT AMENDMENT The Grantee may request that this contract be amended. However, the City will allow an amendment only if the Grantee clearly demonstrates that the modification is justified and will enhance the overall impact of the original project. The City will consider each request to determine whether the modification is substantial enough to necessitate reevaluating the project's original ranking. If warranted, the City will analyze the impact of the proposed modification on the scores assigned the Grantee's application in the original grant competition. The City will not approve amendments to the scope of work or the budget that will affect high priority activities or improvements that would materially alter the circumstances under which the grant was originally ranked. If the City determines that the proposed amendment represents a substantial change in the project activities proposed in the original application for CDBG funds, the City will hold a public hearing on the amendment with reasonable notice. ---PAGE BREAK--- 20. PROPERTY MANAGEMENT Title to real property or equipment acquired under a grant or subgrant will vest upon acquisition in the Grantee or subgrantee. The Grantee or subgrantee will use, manage, and dispose of this property or equipment in accordance with the requirements set out in 24 CFR Part 85, Subpart C and 24 CFR Part 570, Subpart J. 21. TERMINATION OF CONTRACT This contract may be terminated as follows: Termination and Modification Due to Loss of Funding. If, for any reason, the federal financial resources required by the City to fund the Grantee’s project are withdrawn from the City, the City may unilaterally terminate or modify the terms of this Contract to reflect the loss of funding. If a termination or modification is required, the City will, to the extent permitted by available CDBG funds, compensate the Grantee for eligible work elements the Grantee has completed and for actual, necessary and eligible expenses incurred by the Grantee as of the revised termination date. The City will give the Grantee written notice of the effective date of the modification or termination of this Contract and, if a reduction in funding is required, will provide the Grantee with a modified project budget. Termination Due to Noncompliance with Contract Terms. If the City determines that the Grantee has failed to comply with the general terms and conditions of this Contract, the project schedule, or any special conditions, and if upon notification of the defect the Grantee does not remedy the deficiency within a reasonable period to be specified in the notice, the City may terminate this Contract in whole or in part at any time before the date of completion. The City will notify the Grantee in writing of the decision to terminate, the reasons for the termination, and the effective date of the termination. Termination Due to Adverse Environmental Impact. This Contract will terminate at the conclusion of the environmental review process if the Grantee or the City determines that the project would have a significant adverse impact on the quality of the human environment and that this impact cannot be avoided or sufficiently mitigated by reasonable, cost-effective means. Effect of Termination. In the event of termination due to the Grantee's failure to comply with the terms of this Contract or the project's adverse environmental impact, any costs incurred will be the responsibility of the Grantee. However, at its discretion, the City may approve requests by the Grantee for reimbursement of expenses incurred. The City's decision to authorize payment of these costs or to recover expended CDBG funds will be based on a consideration of the extent to which the expenditure of those funds represented a good faith effort of the Grantee to comply with the terms of this Contract and on whether any failure to comply with the terms of this Contract was the result of circumstances beyond the Grantee's control. IN WITNESS OF THE TERMS SET OUT ABOVE, the parties have executed this Contract. City of Missoula: John Engen, Mayor Date: District XI Human Resource Council: Leon Ac Stalcup, President, Board of Directors Date: ATTEST: Martha L. Rehbein, CMC City Clerk ---PAGE BREAK--- ATTACHMENT A Project Budget C. Project Budget Expenditures and Revenue Sources Source: CDBG Source: HRC Source: Source: Total Project Budget PROJECT COSTS (Include all costs directly related to delivering this service or accomplishing this project. Bases for project costs must be documented. Please include a Budget Narrative explanation of projected costs.) Salaries & Wages Employee Benefits Contracted Services Insurance, Legal & Financial Services Direct Client Assistance (Rehabilitation Loans, Loan Processing, Counseling, & Inspection Fees) $279,500 $279,500 Travel/Training Office Expenses (include detail for rent, utilities, postage, printing, supplies, etc. in narrative) Construction Costs (complete and attach separate construction budget; place totals here—do not duplicate line items) SUBTOTAL: Project Costs $279,500 $0 $279,500 OTHER COSTS (include other costs needed to implement this service or project) Administrative Costs: Indirect Cost Allocation $27,950 $27,950 SUBTOTAL: Other Costs GRAND TOTAL $279,500 $27,950 $307, 450 ---PAGE BREAK--- ATTACHMENT A Budget Narrative The following budget narrative includes a detailed discussion of all budget line items from each funding source and demonstrates that the projected program costs are reasonable. PROJECT COSTS Direct Client Assistance: Rehabilitation Loans Cost estimates are based on the average per unit rehabilitation costs for the program over the past several years. Rehabilitation costs are based on an estimated 15 loans at an average per unit loan amount of $16,833 for a total of $252,500. The actual per unit average will vary depending on the specific rehabilitation needs of each participant. Should the per unit loan amounts be less than anticipated, additional homeowners will be served. Direct Client Assistance: Loan Processing/Counseling, and Inspection Fees A per loan fee for loan counseling, loan processing, household financial analyses, initial home inspections, credit reports, etc. has been calculated based on the past program actual costs. The per unit processing fee is $1,500. Based on a 15 loan project, the total is $22,500. Inspection fees for home inspections, work write-ups, cost estimates, bid reviews, and construction monitoring are set at an average $300/unit. Based on a 15 loan project, the total is $4,500. The loan processing and inspection fees are also in accordance with the approved per unit costs of the ongoing regional home rehabilitation loan program funded by the Montana HOME Program. Direct Client Assistance Total Rehabilitation Loans $252,500 Loan Processing & Counseling Fees $22,500 Inspection & Const. Monitoring Fees $4,500 Total $279,500 OTHER COSTS Administrative Costs Note Administrative costs for the project have been incorporated into the overall HRC administrative budget. HRC pays for all project administration. Because direct administrative costs vary and are difficult and cumbersome to track, they have not been included in the project budget. However, because the approved HRC Indirect Cost Allocation Plan establishes indirect costs at a set percentage of project costs, the HRC contribution for indirect costs is included. Indirect Cost Rate HRC Administrative Costs are in accordance with the Federal Office of Management and Budget requirement for an approved Indirect Cost Rate Plan. An Indirect Cost Rate Plan for the period coinciding with the corporate fiscal year is prepared annually and is submitted for approval to the agency recognized by grantors as the cognizant agency. Currently, the Department of Public Health and Human Services is the cognizant agency. The current approved Indirect Cost Rate is 10% of the project costs for each contract HRC administers. The Indirect Cost Rate for the CDBG Project is based on a CDBG contract of $279,500 at 10% = $27,950. Indirect Costs for the CDBG Grant include the indirect project administrative costs of Fiscal Officer, clerical support, Executive Director, board and loan committee meeting costs, unallocated space costs, etc.