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Res 003-94 1/18/1994RESOLUTION NO. 5 -q-`-1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A SUBGRANTEE AGREEMENT WITH THE WICHITA FALLS DEVELOPMENT CORPORATION TO OPERATE THE SMALL BUSINESS DEVELOPMENT LOAN PROGRAM; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, the City of Wichita Falls has applied for and received approval for a grant award pursuant to the Housing and Community Development Act of 1974, as amended, and WHEREAS, the City Council of Wichita Falls has determined that it be in the public interest to provide economic development assistance for the employment of low and moderate income people. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS: SECTION 1. That the City Council of Wichita Falls, Texas hereby approves the City Manager to execute a subgrantee agreement with the Wichita Falls Development Corporation to operate the Small Business Development Loan Program; and SECTION 2. It is hereby officially found and determined that the meeting at which this Ordinance was passed was open to the public as required by law. PASSED AND APPROVED this the 18th da ; . , 1 ary, 1994 ` Ale:eri/ Will MAYOR ATTEST: 1 c `1t CITY LERK CONTRACT WITH THE WICHITA FALLS DEVELOPMENT CORPORATION FOR ADMINISTRATION OF A SMALL BUSINESS DEVELOPMENT LOAN PROGRAM A.,022.10.1 This contract made and entered into this the day of d-antrary, 1994 by and between the City of Wichita Falls, Texas, hereinafter referred to as "City" and the Wichita Falls Development Corporation hereinafter referred to as "Contractor" . Whereas, the City has applied for and received approval for a grant award pursuant to the Housing and Community Development Act of 1974, as Amended; and Whereas, it has been determined by the Wichita Falls City Council to be in the public interest to provide Economic Development Assistance for the employment of low and moderate income people, and has identified the need for such services in the Statement of Objectives for the above referenced grant award. WITNESSETH: For and in consideration of the mutual convenants herein contained, the parties do hereby agree as follows: 1. Scope of Services. The Contractor agrees to perform the following in a satisfactory and proper manner as determined by the City: a. Provision of small business development loans for eligible and qualified applicants. b. Clients will be charged interest on the loan and a generation fee which shall be partially utilized to support administrative aspects, including the staff assistance of the Small Business Development Center at Midwestern State University. Other interest income and loan principal repayment shall be utilized as a revolving fund for economic development as eligible under CDBG regulations. c. Maintain client confidentiality as stipulated by HUD. d. Maintain operational and fiscal records as specified by HUD. 2. Term of Contract. The term of this agreement shall be for a period beginning with the execution of this agreement and subject to satisfactoryendingSeptember30, 1994, subj 7 yP performance by the Contractor as outlined herein. 3 . Compensation. The City agrees to pay to the Contractor a maximum amount of One Hundred Thousand Dollars ($100, 000) , which shall constitute full compensation for the Contractor's actual services and expenses incurred in the performance of services described under this contract. 4 . Method of Payment. Payments will be made by the City to the Contractor based upon the Contractor's approval of a loan and subsequent request for payment. Payment shall be processed upon receipt of such request and any required supporting documentation. 5. Budget. In performing the services called for under the provisions of this contract, the Contractor shall conform his expenditures to the approved budget. Said budget and any account, set out herein can be altered, amended or modified as mutually agreeable between the two parties hereto so that the full intent and purpose of this contract can be carried out. Upon request of the Contractor, line item changes may be made in the budget referred to herein further City Council action if approved by the CitywithoutPPYY Manager; provided, however, no such change may alter the intent of purpose of this contract without further approval by the City Council of the City. In no event shall the City be required to pay more than One Hundred Thousand Dollars 100, 000) to the Contractor under the terms of this contract. 6. Financial Reports. A budget report, to contain such reasonable financial information and data as the City deems necessary, shall be submitted to the City by the Contractor at least annually. 7. Future Funding. The funding of this project in no way commits the City to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the Contractor. The Contractor understands and agrees that the assistance made available under this agreement is contingent upon the actual receipt of adequate federal funds to meet the City's liabilities under this contract. It is expressly understood that this agreement in no way obligates the General Fund or any other monies or credit of the City of Wichita Falls. 8. Termination of the Contract. This agreement shall continue in full force and effect until the expiration of the term set forth above. If either party fails to fulfill their obligations under this contract in a timely and proper manner, the other party shall have the right to terminate this contract for cause. Written notice stating the grounds for termination will be given the other party, not less than thirty (30) days prior to the effective date of such termination. This contract shall at all times be subject to any corrective actions taken, or directives issued by HUD in relation to the City's CDBG Program. The Contractor shall comply with any and all such communications received by the City from HUD, including elimination of this contract, as if such communication were made a part hereof. If either party to the contract should desire to terminate the contract prior to the date of expiration, they may do so by giving written notice to the other party not less than sixty (60) days prior to the intended termination date. The Contractor shall be entitled to receive just and equitable compensation from the City for any loan obligations completed prior to the termination. Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of the Contractor. The City may withhold any payments due the Contractor for the purposes of setoff until such time as the exact amount of damages due the City from the Contractor are determined. 9. Changes. This City may, from time to time, request changes in the Scope of Services of the Contractor as may be mutually agreed to be performed hereunder. Such changes, including any increase or decrease in the amount of the Contractor's compensation, which are mutually agreed upon by and between the City and the Contractor, shall be incorporated in written amendments to the contract. 10. Assignability. The Contractor shall not assign any interest in this contract, and shall not transfer any interest in the same (whether by assignment or novation) without the prior written consent of the City; provided, however, that claims for money due or to become due to the Contractor from the City under this contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the City. 11. Records. a. Establishment and Maintenance of Records. The contractor shall maintain, prepare and disseminate records and reports as required by HUD. Except as otherwise authorized by the City, the Contractor shall retain such records for a period of five years after receipt of the final payment under this contract or termination of this contract. b. Reports and Information. The Contractor shall submit reports listing each person receiving assistance through this contract indicating the person's name, address, ethnic group, age, sex, monthly gross family income, client contribution, census tract. The Contractor at such time and in such forms as the City may require, shall furnish to the City such statements, records, reports, data, and information as the City may request pertaining to matters covered by this contract. All of the reports, information, data and other related materials, prepared or assembled by the ContractorPPY under this contract are confidential and shall not be made available to anyone without the prior written approval of the City. Information restricted by law or Contractor policy and relating to personal, medical and financial data will be treated as confidential and will not be released by the City except as may be required pursuant to Article 6252-17 V.A.C.S. and any amendments thereto. Audits and Inspections. The Contractor shall at anyAudiYP time during normal business hours and as often as the City may deem necessary, make available to the City for examination all of its records and data with respect to all matters covered by this contract and shall permit the City or its designated authorized representative to audit and inspect data relating to all matters covered by this contract. The Contractor shall submit an audit report which is in compliance with the provisions of the Single Audit Act of 1984 and OMB Circular No 133. The audit shall be prepared by an independent Certified Public Accountant and shall include as supplemental information statements of compliance and internal control with respect to federal financial assistance provide to the Contractor by the City. The audit report shall be submitted no later than 180 days following the end of the Contractor's fiscal year. If the Contractor receives less than $25, 000 in federal funds in a given fiscal year, the Contractor is not required to submit an audit; however, the Contractor shall submit year-end financial reports and asset/liability reports. d. Accounting. The Contractor shall establish and maintain on a current basis an adequate accounting system on an accrual or other accounting basis in accordance with generally accepted accounting principles and standards. 12. Limitation on Compensation for Personal Services. Compensation for personal services includes, but is not limited to, wages, salaries, and supplementary compensation and benefits. Compensation for employees of the Contractor shall not exceed that paid for similar work paid by the City. In cases where the kinds of personal services provided have no counter part in local governmental agencies, compensation shall not exceed that paid for similar work in the labor market in which the Contractor competes for the kinds of personal services involved or the compensation level established by the Contractor's primary funding source. 13 . Compliance with Local Laws. The Contractor shall comply with applicable laws, ordinances, and codes of the State and local governments and the Contractor shall save and hold harmless the City with respect to damages arising from any tort committed in performing any of the work embraced by this contract. 14. Compliance with Federal Laws. It is expressly understood by the Contractor that this assistance is made available as part of the City's Community Development Block Grant Program, and as such, the activities undertaken must comply with all of the rules and regulations established by said program, including those assurances and conditions which are incorporated as Part II of this contract and hereby adopted for all purposes. Contractor agrees that the services provided by the Contractor under this agreement shall be devoted primarily to assist low and moderate income households. 15. Political Activity Prohibited. None of the funds, materials, property or services provided directly or indirectly under this contract shall be used in the performance of this contract for any partisan political activity. 16. Lobbying prohibited. None of the funds provided under this contract shall be used for publicity or propaganda purposes designed to support or defeat legislation pending before any governmental entity. 17. Eaual Employment Opportunity. During the performance of this contract, the Contractor agrees as follow: a. The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Contractor will take affirmative action to insure that applicants are employed, and that employees are treated durin g employment gtoentwithoutregard to their race, color,P religion, sex, or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other terms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places available to all employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. b. The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applications will receive consideration for employment without regard to race, color, religion, sex, or national origin. c. The Contractor shall keep such records and submit such reports concerning the racial and ethnic origin of its employees as the City may require. 18. Renegotiation. This contract may be renegotiated at the request of either party in the event alternate sources of funding become available during the term of the contractual agreement. The Contractor must notify the City of all occurrences where alternate funding becomes available. t This agreement, with the attachments adopted herein by reference, constitutes and expresses the entire agreement between the parties hereto and shall not be amended or modified except by written instrument signed by both parties. This agreement made and entered into the 1- day of January 1994. C Y OF W CHITA F TEXAS B. 4' i i, a • s Ber na, ity . -pager I ATTEST: Ci y Clerk APPROVED AS TO FORM: City Forney WICHITA DEVELOPMENT CORPORATION BY: Adriglirm.. il / WFDC CONTR 1/7/94 PART II - ASSURANCES AND CONDITIONS COMMUNITY DEVELOPMENT BLOCK GRANT The recipient of Community Development Block Grant assistance hereby certifies it possesses legal authority to execute this contractual agreement and its governing body has duly adopted or passed as an official act authorizing the person to identified as the official representative of the recipient to execute and carry out the activities in this agreement. This agreement is subject to the provisions of 24 CFR 570. 600 Subpart K of the Community Development Block Grant regulations as set forth as follows: UNIFORM ADMINISTRATIVE REQUIREMENTS AND COST PRINCIPLES The recipient, its agencies or instrumentalities, and subrecipients shall comply with the policies, guidelines, and requirements of OMB Circular Nos. A-102, A-128, A-110, A-87, and A-122, as applicable, as they relate to the acceptance and use of Federal funds under this part. Pub.L. 88-352 AND PUB.L. 90-284; EXECUTIVE ORDER 11063 Assistance under this agreement will be conducted and administered in conformity with Pub.L.88-352 and Pub.L. 90-284. a. "Pub.L. 88-352" refers to Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq. ) , which provides that no person in the United States shall on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. Section 602 of the Civil Rights Act of 1964 directs each Federal department and agency empowered to extend Federal financial assistance to any program or activity by way of grant to effectuate the foregoing prohibition by issuing rules, regulations, or orders of general applicability which shall be consistent with achievement of the statue authorizing the financial assistance. HUD regulations implementing the requirements of Title VI with respect to HUD programs are contained in 24 CFR Part 1. b. "Pub.L. 90-284" refers to Title VIII of the Civil Rights Act of 1968 (42 U.S.0 3601 et seq. ) popularly known as the Fair Housing Act, which provides that it is the policy of the United States to provide, within constitutional limitations, for fair housing throughout the United States and prohibits any person from discriminating in the sale or rental of housing, the financing of housing, or the provision of brokerage services, including in any way making unavailable or denying a dwelling to any person, because of race, color, religion, sex, or national origin. Title VIII further requires the Secretary to administer the programs and activities relating to housing and urban development in a manner affirmatively to further the purposes of Title VIII. Pursuant to this statutory direction, the Secretary requires that grantees administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing. c. Executive Order 11063 , as amended by Executive Order 12259, directs the Department to take all action necessary and appropriate to prevent discrimination because of race, color, religion (creed) , sex, or national origin, in the sale, leasing, rental, or other disposition of residential property and related facilities including land to be developed for residential use) , or in the use of occupancy thereof, of such property and related facilities are, among other things, provided in whole or in part with the aid of loans, advances, grants, or contributions agreed to be made by the Federal Government. HUD regulations implementing Executive Order 11063 are contained in 24 CFR Part 107. SECTION 109 OF THE ACT (Housing and Community Development Act of 1974 the Act) Pub.L. 96-399) a. Section 109 of the Act requires that no person in the United States shall on the ground of race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with community development funds made available pursuant to the Act. For purposes of this section "program or activity" is defined as any function conducted by an identifiable administrative unit of the recipient, or by any unit of government, subrecipient, or private contractor receiving community development funds or loans from the recipient. "Funded in whole or in part with community development funds" means that community development funds in any amount in the form of grants or proceeds from HUD guaranteed loans have been transferred by the recipient or a subrecipient to an identifiable administrative unit and disbursed in a program or activity. ATTACHMENT A PAGE 2 b. Specific discriminatory actions prohibited and corrective actions. 1. A recipient may not, under any program or activity to which the regulations of this Part may apply directly or through contractual or other arrangements, on the ground of race, color, national origin, or sex: i. Deny any facilities, services, financial aid or other benefits provided under the program or activity. ii. Provide any facilities, services, financial aid or other benefits which are different, or are provided in a different form from that provided to others under the program or activity. iii. Subject to segregated or separate treatment in any facility in, or in any matter of process related to receipt of any service or benefit under the program or activity. iv. Restrict in any way access to, or in the enjoyment of any advantage or privilege enjoyed by others in connection with facilities, services, financial aid or other benefits under the program or activity. v. Treat an individual differently from others in determining whether the individual satisfies any admission, enrollment, eligibility, membership, or other requirement or condition which the individual must meet in order to be provided any facilities, services or other benefit provided under the program or activity. vi. Deny an opportunity to participate in a program or activity as an employee. 2 . A recipient may not utilize criteria or methods of administration which have the effect of subjecting individuals to discrimination on the basis of race, color, national origin, or sex, or have the effect of defeating or substantially impairing accomplishment of the objectives of the program or activity with respect to individuals of a particular race, color, national origin, or sex. 3 . A recipient, in determining the site or location of housing or facilities provided in whole or in part with funds under this part, may not make selections of such site or location which have the effect of excluding individuals from denying them the benefits of, or subjecting them to discrimination on the ground of race, color, national origin, or sex; or which have the purpose or effect of defeating or substantially impairing the accomplishment of the objectives of the Act and of the section. 4 . i. In administering a program or activity funded in whole or in part with CDBG funds regarding which the recipient has previously ATTACHMENT A PAGE 3 discriminated against persons on the ground of race, color, national origin, or sex, the recipient must take affirmative action to overcome the effects of prior discrimination. ii. Even in the absence of such prior discrimination, a recipient in administering a program or activity funded in whole or in part with CDBG funds should take affirmative action to overcome the effects of conditions which would otherwise result in limiting participation by persons of a particular race, color, national origin or, sex. Where previous discriminatory practice or usage tends, on the ground of race, color, national origin, or sex, to exclude individuals from participation in, to deny them the benefits of, or to subject them to discrimination under any program or activity to which this part applies, the recipient has an obligation to take reasonable action to remove or overcome the consequences of the prior discriminatory practice or usage, and to accomplish the purpose of the Act. iii. A recipient shall not be prohibited by this part from taking any action eligible under Subpart C to ameliorate an imbalance in services or facilities provided to any geographic area or specific group of persons within its jurisdiction, where the purpose of such action is to overcome prior discriminatory practice or usage. 5. Notwithstanding anything to the contrary in the section, nothing contained herein shall be construed to prohibit any recipient from maintaining or constructing separate living facilities or rest room facilities for different sexes. Furthermore, selectivity on the basis of sex is not prohibited when institutional or custodial services can properly be performed only by a member of the same sex as the recipients of the services. AGE DISCRIMINATION ACT OF 1975 AND REHABILITATION ACT OF 1983 Section 109 of the Act further provides that any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.C.C. 6101 et seq. ) or with respect to an otherwise qualified handicapped individual as provided in Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) shall also apply to any program or activity funded in whole or in part with funds made available pursuant to the Act. ATTACHMENT A PAGE 4 LABOR STANDARDS; SECTION 110 OF THE ACT (PUB.L.93-399) Section 110 of the Act requires that all laborers and mechanics employed by contractors or subcontractors on construction work financed in whole or in part with assistance received under the Act shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-- 276a-5) . By reason of the foregoing requirement, the Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seg. ) also applies. However, these requirements apply to the rehabilitation of residential property only if such property is designated for residential use of eight or more families. With respect to the labor standards specified in the section, the Secretary of Labor has the authority and functions set forth in Reorganization Plan Number 14 of 1950 (5 U.S.C. 1332-15) and section 2 of the Act of June 13 , 1934 , as amended (40 U.S.C. 276c) . EMPLOYMENT AND CONTRACTING OPPORTUNITIES: EXECUTIVE ORDER 11246 AND SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968 A. Recipients shall comply with Executive Order 11246 and the regulations issued pursuant thereto (41 CFR Chapter 60) which provides that no person shall be discriminated against on the basis of race, color, religion, sex, or national origin in all phases of employment during the performance of Federal or federally assisted construction contracts. As specified in Executive Order 11246 and the implementing regulations, contractors and subcontractors on Federal or federally assisted construction contracts shall take affirmative action to insure fair treatment in employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay, or forms of compensation and selection for training and apprenticeship. B. Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) requires, in connection with the planning and carrying out of any project assisted under the Act, that to the greatest extent feasible opportunities for training and employment be given to lower income persons residing within the unit of local government or the metropolitan area (or non-metropolitan county) in which the project is located, and that contracts for work in connection with the project be awarded to eligible business concerns which are located in, or owned in substantial part by persons residing in the same metropolitan area or non-metropolitan county) as the project. LEAD-BASED PAINT Section 401(b) of the Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4831(b) directs the Secretary to prohibit the use of lead based paint in residential structures constructed or rehabilitated with Federal assistance in any form. Such prohibitions are contained in 24 ATTACHMENT A PAGE 5 CFR Part 35, Subpart B, and are applicable to residential structures constructed or rehabilitated with assistance provided under this part. CONFLICT OF INTEREST A. Applicability 1. No member or delegate of the Congress of the United States and no resident commissioner shall be admitted to any share or part of this contract or to any benefit to arise herefrom. 2. In the procurement of supplies, equipment, construction, and services by recipients, and by subrecipients the conflict of interest provisions in Attachment 0 of OMB Circulars A-102, and A-110, respectively, shall apply. 3 . In all cases not governed by Attachment 0 of the OMB Circulars, the provisions of this section shall apply. Such cases include the acquisition and disposition of real property and the provision of assistance by the recipient, by its entities under eligible activities which authorize such assistance (e.g. , rehabilitation, preservation, and other improvements of private properties of facilities pursuant to section 570.202, or grants, loans and other assistance to businesses, individuals and other private entities pursuant to sections 570.203, 570.204 or 570.455) . B. Conflicts prohibited. Except for approved eligible administrative or personnel costs the general rule is that no persons described in paragraph (c) below who exercises or have exercised any functions or responsibilities with respect to CDBG activities assisted under this Part or who in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. C. Persons covered. The conflict of interest provisions of paragraph (b) of this section apply to any person who is an employee, agent, consultant, officer, or elected official, or appointment official of the recipient, or of any designated public agencies, or subrecipients under section 570.204, which are receiving funds under this part. RELIGIOUSLY-ORIENTED ORGANIZATIONS In addition to, and not in substitution, for other provisions of this Part regarding the provision of public services with Community Development Block Grant funds, pursuant to Title I of the Housing and Community Development Act of 1974, as amended. ATTACHMENT A PAGE 6 A. The Recipient represents that it is, or may be deemed to be, a religious or denominational institution or organization or an organization operated for religious purposes which is supervised or controlled by or in connection with a religious or denominational institutional or organization. B. The Recipient will agree that in connection with such public services: 1. It will no discriminate against any employee of applicant for employment on the basis of religion and will not limit employment or give preference in employment to persons on the basis of religion. 2 . It will not discriminate against any person applying for any such public services on the basis of religion and will not limit such services or give preference to persons on the basis of religion. 3 . It will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing, and exert no other religious influence in the provision of such public services. 4. The portion of a facility used to provide public services assisted in whole or in part under this Agreement shall contain no sectarian or religious symbols or decorations. 5. The funds received under this Agreement shall not be used to construct, rehabilitate, or restore any facility which is owned by the Recipient and in which the public services are to be provided. Provided that, minor repairs may be made if such repairs (1) are directly related to the public services, (2) are located in a structure used exclusively for non-religious purposes, and (3) constitute in dollar terms only a minor portion of the CDBG expenditure for the public service. ATTACHMENT A PAGE 7 A DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOW/MODERATE INCOME LEVELS Income levels are defined by gross annual earnings for every number of a household, including income from wages, tips, retirement benefits, Social Security, worker compensation, SSI, AFDC, child support, stocks, bonds, and royalties. Food Stamps and Assisted Housing Payments are NOT counted as income. Income levels are ceilings and adjusted to the household size. INCOME LEVELS for Wichita Falls, TX effective May 5, 1993 Annual Median Family Income Family Size Low Income Moderate Income 50% of Median)80% of Median) 1 I 11, 600 I 18, 600 2 I 13, 300 I 21, 250 3 15,000 I 23,900 4 I 16, 500 I 26, 650 5 I 17,950 I 28,700 6 I 19,250 I 30,800 7 I 20, 600 I 32,950 8 I 21,900 35, 050 ATTACHMENT A PAGE 8