Loading...
HomeMy WebLinkAbout2000-12-12 - AGENDA REPORTS - CDBG FUNDING FAMILY CENTER (2)CITY OF SANTA CLAR.ITA AGENDA REPORT City Manager Approval: Item to be presented by: Dennis Lupnens CONSENT CALENDAR DATE: December 12, 2000 SUBJECT: CDBG FUNDING OPTION FOR CHILD & FAMILY CENTER DEPARTMENT: Administrative Services City Council authorize the City Manager to modify the 1998 MOU, between the Child & Family Center (Center) and the City of Santa Clarita, to include the following changes, subject to the City Attorney approval: 1) Accelerate the CDBG (Community Development Block Grant) payment schedule by appropriating $100,000 to Account No. 2518-8001 to be reimbursed by HUD, and 2) Defer the Center's Bridge and Thoroughfare fees until the building occupancy permit is issued. In 1998, the Child and Family Center kicked off a funding drive to acquire land and build a new facility. Both the City and County of Los Angeles agreed to provide CDBG dollars to the Center. The City Council pledged, through a MOU, to provide $250,000 over a five-year period, if the Center continued to meet all US Department of Housing and Urban Development (HUD) eligibility requirements. Under the MOU, $50,000 is allocated annually for five years, or until FY 2002-2003. Presently, the Center has received $150,000, leaving a payout balance of $100,000 for fiscal years 2001-2002 and 2002-2003. The chart below details the current agreement: Fiscal Year MOU Amount Amount Schedule A roved Received 1998-99 $50000 $50000 $50,000 1999-00 50000 $50 000 $50 000 2000-01 $50000 $60 000 $50 000 2001-02 $50 000 $ 0 $ 0 2002-03 11950 000 $ 0 $ 0 Total $250 o0o 1502000 $150000 APPROWED Agtmdap Iter:& CDBG FUNDING OPTION FOR CHILD & FAMILY CENTER December 12, 2000 — Page 2 Subsequently, the City and Center met to discuss City fees and the timeliness of those fee Payments. We agreed that an advance payment and the deferment of B&T fees would greatly assist the Center in their building construction process. The early payment of CDBG funds and deferment of B&T fees will not impact the City's General Fund. City staff will continue to partner with the Center to search out and submit applications to foundations and charities that support capital projects benefiting children to provide additional funding for play yard, building, and landscaping enhancements. The Center's receipt of accelerated CDBG funds and deferment of B & T fees would mean $100,000 more in FY 2000-2001 to assist in the timely construction of the Child and Family Center. This advanced payment does not result in additional or new monies to the Center. ALTERNATIVE aCIMN Not modify the existing agreement. Other action as determined by Council. FISCAL IMPACT Due to delayed CDBG projects, funds are available to accelerate a $100,000 payout to the Center without impacting current or future projects. The Center will pay their share of B & T fees upon occupancy, and this deferment will not impact eligible B & T projects. Additionally, the actions will not impact the City's General Fund. ATTACHMENT 1998 MOU between the City and the Center (Available in City Clerk's reading file.) DEL:hds ewjnWXWr � MEMORANDUM OF UNDERSTANIDNG BETWEEN THE CITY OF SANTA CLARITA AND THE SANTA CLARITA CHILD & FAMILY DEVELOPMENT CENTER 1. 1_NTRODUCTIOl� The Santa Clarita Child & Family Development Center (Center) requested that the City of Santa Clarita (City) consider using its Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) to partially fund the acquisition of real property and construction of a new 22,000 square foot facility over five years. The Center is a private, non-profit 501(c)(3) public benefit corporation started in 1976. The Center provides mental health and other early intervention services for children and adults in the Santa Clarita Valley. It is the only nonprofit community health clinic in the Santa Clarita Valley. The Center provides a broad range of services, including services to all of the children and youth and their families who meet the criteria for outpatient Short Doyle(Medi-Cal mental health services (under contract with the Los Angeles County Department of Mental Health). The Center, to fully fund the land acquisition and construction of a facility, will also peruse similar requests to other Santa Clarita Valley organizations, the County of Los Angeles, and conduct fundraising activities. City staff reviewed the Center's request for eligibility under CDBG regulations and found that the request met a HUD national objective (area benefit) and is an activity eligible under 24CFR 570.208(a)(2)(i)(A). The Center's activity benefits clientele who are generally presumed to be principally low and moderate -income persons or activities that exclusively service a group of persons in any one or a combination of the following categories of which 51 percent are: abused children, battered spouses, elderly persons, adults meeting the Bureau of the Census' Current Population Reports definitions of "severely disabled," homeless persons, illiterate adults, person living with AIDS, and migrant farm workers. Under Section 570.208(a)(i)(b), the Center may qualify servicing its clientele with CDBG funds if 51 percent does not exceed the low and moderate -income limit. The Santa Clarita City Council, at their regular meeting on April 7, 1998, approved for submission to HUD the City's 1998-1999 CDBG Annual Plan. The 1998 Annual Plan included a line item providing $50,000 to the Center for the purpose of real property acquisition and facility construction. On July 1, 1998, HUD approved the City's 1998 Annual Plan. 1 2. 3. (A) The City will assist the Center by providing up to $250,000 in CDBG funds over a five-year period, allocating $50,000 in each of the next five CDBG Annual Plans, beginning July 1, 1998 and ending June 30, 2003. (B) The City's assistance to the Center with CDBG funds is always contingent upon HUD approval of the City's CDBG Annual Plan. (C) The Center will expend CDBG funds solely for land acquisition and facility construction purposes to provide direct mental health services which are CDBG eligible activities described within the introduction of this Memorandum of Understanding (MOM. (D) The Center will acquire the real property, construct a facility, and provide the above described mental health services by June 30, 2003. (E) Should the Center not meet one or all of the Provisions (C), (D) and/or . (E) described above, the Center shall reimburse the City for all or a portion of the CDBG assistance provided to the Center within a reasonable time and amount as decided by the City Manager and in accordance with the Code of Federal Regulations. (A) The Center must establish and maintain on a current basis an adequate accounting system in accordance with generally accepted accounting principles and standards, and 24 CFR Part 85. The Center shall submit to the City a quarterly progress report. The report shall fiat fundraising, land acquisition, and facility construction efforts. The Center shall retain and the City shall have access to any books, documents, papers and records of the Center for audit or examination to City representatives, upon request, at any time for the duration of this MOU and during a period of three (3) years after final payments are issued and all other pending matters are closed in accordance with 24 CFR 85.42 (b). 2 (B) The Center will be acting in an independent capacity and not as an agent, employee, partner, joint venture, or associate of the City. The employees or agents of the Center shall not be deemed or construed to be the agent or employees of the City f or any purpose whatsoever. (B) The Center agrees to indemnify, defend with counsel approved by City, and hold harmless City, its agents, elected and appointed officers, and employees from and against any and all liability, expense, including defense costs and legal fees, and claims for damage of any nature whatsoever, including *but not limited to, bodily injury, death, personal injury, or property damage arising from or connected in any way with the Center's operations or its services hereunder. (C) Withopt limiting the Center's indemnification of City, the Center shall provide and maintain at its own expense during the term of this MOU a program of insurance satisfactory to the City's Risk Manager covering its operations hereunder as specifically defined: (i) Worker's Compensation The Center shall carry adequate Worker's Compensation Insurance at its sole expense, for its employees as required by California law, including employer's liability limits of $1,000,000 (one million dollars) per occurrence, combined single limit. f1=91-411 i—ab Mil i tYThe Center shall carry Comprehensive General Liability Insurance at its sole expense, including any contractual liability coverage, in an amount of not less than $1,000,000 (one million dollars) per occurrence, combined single limit. (iii) professional Liability. The Center shall carry Professional Liability at its sole expense, including errors and omissions in the amount of $1,000,000 (one million). (iv) Additional Insured Concurrent with the execution of this MOU, the. Center shall provide the City with a certificate or certificates of such insurance naming the City as an additional insured. (v) Canol_1_ation. All of the aforementioned policies of insurance shall contain a provision rendering the policy not subject to cancellation except upon thirty (30) days written notice to both the Center and City. (D) Failure on the part of the Center to procure or maintain required insurance shall constitute a material breach of this MOU under which City may immediately terminate this MOU or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, and all monies so paid by City shall be repaid by the Center to City upon demand or City may offset the cost of the premiums against any monies due to the Center from City. (D) All parties agree to be bound by applicable Federal, State and local laws, ordinances, regulations, and directives as they pertain to the performance of this MOU. This MOU is subject to and incorporates the terms of the Act; 24 Code of Federal Regulations, Part 570, including but not limited to uniform administrative requirements described in 24 CFR Section 570.502, and program income requirements set forth in Section 570.504 (c), Chapter V; 24 CFA Part 85; U.S. OMB Circular A- 87; A-122, and A-128, as applicable, as they relate to the acceptance and use of Federal funds under this part and Auditor -Controller Contract Accounting and Administration Handbook. (F) The Center will be audited in accordance with the City's policy and funding source guidelines. Audits may also be conducted by Federal or State funding source guidelines. The City or its authorized representatives shall, at all times, have access for the purpose of audit or inspection to any and all books, documents, papers, records, property, and premises of the Center. The Center's staff will cooperate fully with authorized auditors when they conduct audits and examinations of program. If indications of misappropriation or misapplication of the funds of this MOU cause the City to require a special audit, the cost of the audit will be encumbered and deducted from this MOU budget. (G) The City reserves the right to reduce the grant allocation when the City's fiscal monitoring indicates that the Center's rate of expenditure will result in unspent funds at the end of the program year. Changes in the grant allocation done after original approval will be incorporated into this MOU by written amendments. (H) The Center shall make every effort to ensure that all projects funded wholly or in part by CDBG funds shall provide equal employment and career advancement opportunities for minorities and women. To the greatest extent feasible, the Center shall make every effort to employ and provide opportunities for training low and moderate income persons 4 residing within the community where the project is located as well as award contracts to local businesses in the community and utilize small minority and women's firms. The Center shall keep a record of the opportunities and positions that have been created directly as a result of this program. (I) In accordance with Public Law 88-352, no person shall, on the grounds of age, race, sex, creed, color, religion, national origin, or handicapped status be excluded from participating in, or be refused the benefits of, or otherwise be subjected to discrimination in any activities, programs, or employment supported by this MOU. (J) The Center shall make available for inspection its performance, financial and all other records pertaining to performance of this MOU to authorized U.S. Department of Housing and Urban Development personnel, and allow the City to inspect, evaluate and monitor its facilities and have access to program operation and activities including the interviewing of the Center and program participants as required by the City. Facilities include all files, records, and other documents related to the performance of this MOU. Activities include attendance at staff, board of directors, advisory committee, and advisory board meetings, and observation of ongoing program functions. The Center will ensure the cooperation of its staff and board members in such efforts. City Project Coordinator or his/her designee will conduct periodic program progress review. These reviews will focus on the extent to which the planned program has been implemented and measurable goals achieved effectiveness of program management, and impact of the program. The Center agrees to submit all data that are necessary to complete the Annual Grantee Performance Report and monitor program accountability and progress in accordance with applicable Housing and Urban Development (HUD) requirements and City performance goals. () The Center agrees that in the event the program established hereunder is subject to audit exceptions by appropriate State and Federal audit agencies, it shall be responsible for complying with such exceptions and paying the U.S. Department of Housing and Urban Development the full amount of City's liability to the funding agency resulting from such audit exceptions. (L) The Center, its agents and employees shall comply with all applicable Federal provisions, City, County and State laws prohibiting conflict of interest activities in accordance with 24 CFR 85.36(b)(3) of Community Development Block Grant 5 regulations. The Center shall make available to its agents and employees copies of these laws governing conflict of interest. (M) Upon expiration of this MOU, the Center shall transfer to the City any CDBG funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG funds. (N) The Center agrees to complete all necessary financial phase-out procedures required by the City Project Coordinator, or his/her designee, within a period of not more than forty-five (45) calendar days from the expiration date of this MOU. This time period will be referred to as the financial phase-out period. The City is not liable to provide reimbursement for any expenses or costs associated with this MOU after the expiration of the financial phase-out period, those funds not paid to the Center under this MOU, if any, may be immediately reprogrammed by City into other eligible activities in the City. A final financial audit shall be conducted in accordance with 24 CFR 85.26 for activities performed under this MOU at the expiration of the final phase-out period. , (0) The Center shall not hire nor permit the hiring of any person to fill a position funded through this MOU if a member of that Person's immediate family is employed in an administrative capacity by the Center. For the purposes of this section, the term "immediate family" means spouse, child, mother, father, brother, sister, brother-in-law, sister-in-law, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, step-parent, and step -child. The term "Administrative capacity" means having selection, hiring, supervisory or management responsibilities, including serving on the governing body of the Center. The Center agrees that funds under this MOU will be used exclusively for performance of the work required under this MOU, and that no funds made available under this MOU shall be used to promote religious or political activities in connection with the performance of this MOU. (Q) The United States of America through HUD may in the future place programmatic fiscal limitation(s) on CDBG funds not presently anticipated. Accordingly, the City reserves the right to revise this MOU in order to take into account actions affecting HUD program funding. In the event of funding reduction, the City may reduce the budget of this MOU as a whole or as a cost category, may limit the rate of the Center's authority to commit and spend funds, or may restrict the Center's use of both its uncommitted and its unspent funds. Where the U.S. Department of Housing and Urban Development has directed or. requested the City to implement a reduction in funding, in whole or as to cost category, with respect to funding for this MOU, City Project Coordinator or his/her designee may act for the City in implementing and effecting such a reduction and in revising the MOU for such purpose. Where City Project Coordinator has reasonable grounds to question the fiscal accountability, financial soundness, or the Center's compliance with this MOU, City Project Coordinator may act for the City in suspending the operation of this MOU for up to thirty (30) days upon three (3) days' written notice to the Center of his or her intention to so act, pending an audit or other resolution of such questions. In no event, however, shall any revision made by the City affect expenditures and legally binding commitments made by the Center before it received notice of such revision, provided that such amounts have been committed in good faith and are otherwise allowable and that such commitments are consistent with HUD cash withdrawal guidelines. (R) This MOU may be terminated at any time by either party upon giving thirty (30) days' written notice. City may immediately terminate this MOU by written notice upon the termination, suspension, discontinuation or substantial reduction in CDBG funding for the MOU activity,' if for any reason the Center materially fails to comply with any term of this MOU, or the timely completion of this work under this MOU is rendered improbable, infeasible or impossible. In such event, the Center shall be compensated for all services rendered and all necessarily incurred costs performed in good faith in accordance with the terms of this MOU that have not been previously reimbursed, to the date of said termination to the extent CDBG funds are available. In accordance with 24 CFR 85.43, suspension or termination may occur if the Center materially fails to comply with any term of the award and the award may be terminated for convenience in accordance with 24 CFR 85.44. (S) In the event legal proceedings are necessary to enforce the terms, provisions, or conditions of this MOU, the prevailing party in such legal proceedings shall be entitled to recover reasonable attorney fees. (T) This MOU, with attachments, constitutes the entire MOU between City and the Center. There are no oral amendments between parties. This MOU shall not be amended, except in writing, executed by both parties to this MOU. 7 CITY OF SANTA CLARITA SANTA CLARITA CHILD & FAMILY DEVELOPMENT CENTER Jo Anne Darcy Mayor panb%*wwHdkCm® dw U I fm Liz Seipe Chief Executive Officer