HomeMy WebLinkAbout940593.tiff RESOLUTION
RE: APPROVE CONTRACT WITH COLORADO DEPARTMENT OF LOCAL AFFAIRS FOR COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM AND REVOLVING LOAN FUND PROGRAM AND
AUTHORIZE CHAIRMAN TO SIGN
WHEREAS, the Board of County Commissioners of Weld County, Colorado,
pursuant to Colorado statute and the Weld County Home Rule Charter, is vested
with the authority of administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with a Contract for the Community
Development Block Grant Program and Revolving Loan Fund Program between the
County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, and the Colorado Department of Local Affairs, with
terms and conditions being as stated in said contract, and
WHEREAS, after review, the Board deems it advisable to approve said
contract, a copy of which is attached hereto and incorporated herein by
reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Contract for the Community Development Block Grant
Program and Revolving Loan Fund Program between the County of Weld, State of
Colorado, by and through the Board of County Commissioners of Weld County, and
the Colorado Department of Local Affairs be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is,
authorized to sign said contract.
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 20th day of June, A.D. , 1994.
addiMat
BOARD OF COUNTY COMMISSIONERS
ATTEST: WELD COUNTY, COLORADO f
Weld County Clerk to the Board /, / �A) f/, \nW. Webster, Ch irm n
BY: ail� 1�--! Y lLR
Deputy Cl to the Board Dj.e . Hall, P o- m
APPR D AS TO FORM: -., C. Ole„--1
George„c. Baxter
ounty ttorn Constance L. Harbert
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940593
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COLORADO
June 10, 1994
The Honorable William Webster
Chairman, Weld County Commissioners
915 10th Street
Greeley, Colorado 80631
RE: New Weld County Revolving Loan Fund Contract /No. 94-963
Dear Chairman Webster:
Office of
Business Development It is my pleasure Y to inform you that the Financial Review Committee ("FRC") for the
1625 Broadway,suite 1710
Denver,Colorado 80202 Governor's Office of Business Development has conditionally approved a $275,000
(303)892-3840 Community Development Block Grant ("CDBG") award for the operation of the
(303)892-3848 fax Revolving Loan Fund (RLF) program, which will serve Weld and Larimer Counties.
1-800-659-2656 TDD
Roy R.Romer Since Weld County is the lead county for this multi jurisdictional RLF, the contract is
Governor enclosed for your review and signature. Please sign all four contracts and have the
contracts attested by the Corporate Secretary or the equivalent person to that position.
Please return all four contracts with original signatures to me so that I can forward them
for processing at the Department of Local Affairs (DOLA). Please do not date the
contract.
No expenses incurred before the contract is fully executed by all parties will be
reimbursed by the state. As you may also know, federal regulations prohibit local
grantees from obligating CDBG funds or incurring costs for project activities until a
formal release of funds process has been properly followed by the grantee and approved
by the state. This release of funds process involves a thorough review of the project's
possible environmental impact and compliance with other federal regulations.
Please call me at 892-3840 if you have any questions or concerns. We look forward to
working with you and the RLF Administrator(s).
Sin rely, 4244,e,at-ny f
Jaime G. Gomez, Manager YS+'"
Finance and Job Training Pr ms
Enclosures
(4 original contracts)
960593 r 0009
cc: Senator Tom Norton
Senator Don Ament
Senator Jim Roberts
Senator Bob Schaffer
Representative Bill Jerke
Representative David T. Owen
Representative Pat Sullivan
Representative Faye Fleming
Representative William G. Kaufman
Representative Peggy Reeves
Representative Bernhard Strom
William J. Argo
Jodi Hartmann
Bill Timmermeyer, DOLA
Bonnie Kugler, DOLA
Mary Cornish, DOLA
File
940592
DEPARTMENT OR AGENCY NUMBER
NAA
Form 6-AC-021(R 5/85) CONTRACT ROUTING NUMBER
CDBG 94-963 GRANT BUDGET LINE
CONTRACT
THIS CONTRACT, made this day of 19 , by and
between the State of Colorado for the use and benefit of the Department of Local Affairs, 1313
Sherman Street, Denver, Colorado 80203, hereinafter referred to as the State, and Weld County,
hereinafter referred to as the Contractor.
WHEREAS, authority exists in the Law and Funds have been budgeted, appropriated and
otherwise made available and a sufficient unencumbered balance thereof remains available for
payment in Fund Number , Appropriation Code , Org. No.
Contract Encumbrance Number ; and
WHEREAS,required approval,clearance and coordination has been accomplished from and
with appropriate agencies; and
WHEREAS, the United States Government, through the Housing and Community
Development Act of 1974 ("the Act"),Pub.L.No.93-383,as amended,has established a Community
Development Block Grant("CDBG")program and has allowed each state to elect to administer such
federal funds for its nonentitlement areas,subject to certain conditions,including a requirement that
the state's program give maximum feasible priority to activities which will benefit low- and
moderate-income families or aid in the prevention or elimination of slums or blight; the state's
program may also include activities designed to meet other community development needs having
a particular urgency because existing conditions pose a serious and immediate threat to the health
or welfare of the community where other financial resources are not available to meet such needs.
Additionally, the state's program is subject to a federal requirement that not less than seventy
percent (70%) of the aggregate amount of CDBG funds received by the state shall be used for the
support of activities that benefit persons of low- and moderate-income; and
WHEREAS, the State of Colorado has elected to administer such federal funds for its
nonentitlement areas through the Colorado Department of Local Affairs ("Department"), Division
of Local Government, and Division of Housing, pursuant to C.R.S. 1973, 24-32-106(1) (d),
24-32-304(2) (j) and 24-32-705(1) (i); and
WHEREAS,the Department has received applications from political subdivisions in Colorado
for allocations from the federal CDBG funds available to Colorado; and
WHEREAS, the Contractor is one of the eligible political subdivisions to receive CDBG
funds; and
Page 1 of 18 Pages
940tJ
WHEREAS, the Department has approved the proposed Project of the Contractor;
NOW THEREFORE it is hereby agreed that:
1. Scope of Services. In consideration for the monies to be received from the State,the
Contractor shall do, perform, and catty out, in a satisfactory and proper manner, as determined by
the State, all work elements as indicated in the "Scope of Service," set forth in Exhibit A, which is
attached hereto and is incorporated herein by reference, and is hereinafter referred to as the
"Project." Work performed prior to the execution of this Contract shall not be considered part of
this Project.
2. Responsible Administrator.The performance of the services required hereunder shall
be under the direct supervision of Wiliam J. Argo or Jodi Hartmann, with the Greeley/Weld
Economic Development Action Partnership, an employee or agent of Contractor, who is hereby
designated as the administrator-in-charge of this Project. At any time the administrator-in-charge
is not assigned to this Project, all work shall be suspended until the Contractor assigns a mutually
acceptable replacement administrator-in-charge and the State receives notification of such
replacement assignment.
3. Time of Performance. This Contract shall become effective upon proper execution
by the State Controller of this Contract. The Project contemplated herein shall commence as soon
as practicable after the execution of this Contract and shall be undertaken and performed in the
sequence set forth in the attached Scope of Services. The Contractor agrees that time is of the
essence in the performance of its obligations under this Contract,and that completion of the Project
shall occur no later than the termination date set forth in the Scope of Services.
4. Eligibility and National Objectives. All project activities shall be eligible under
Section 105 of the Act, as amended, and all related regulations and requirements. Furthermore,
project activities shall meet the following indicated(with an"X") broad national objective(s), as set
forth in Section 104(b)(3) of the Act, as amended, and all related regulations and requirements:
x Benefit persons of low and moderate income;
Prevent or eliminate slums or blight;
Meet other community development needs having a particular urgency because
existing conditions pose a serious and immediate threat to the health or welfare of
the community where other financial resources are not available to meet such needs.
5. Obligation. Expenditure and Disbursement of Funds.
a) Prior Expenses. Expenses incurred by the Contractor in association with said
Project prior to execution of this Contract are not eligible CDBG expenditures and shall not be
reimbursed by the State.
b) Environmental Review Procedures. Funds shall not be obligated or utilized
for any activities requiring a release of funds by the State under the Environmental Review
Page 2 of 18 Pages
9WQsv&
Procedures for the CDBG program at 24 CFR Part 58 until such release is issued in writing.
Administrative costs, reasonable engineering and design costs, and costs of other exempt activities
identified in 24 CFR 58.34 (a)(1) through (8) do not require a release of funds by the State. For
categorically excluded activities listed in 58.35 (a) determined to be exempt because there are no
circumstances which require compliance with any other Federal laws and authorities cited at 58.5,
the Contractor must make and document such a determination of exemption prior to incurring costs
for such activities.
c) Community Development Plan Requirement. Prior to receiving disbursements
of CDBG funds from the State,the Contractor shall identify its community development and housing
needs,including the needs of low-and moderate-income persons,and the activities to be undertaken
to meet such needs.
6. Definition of Low- and Moderate-Income Persons. Low-income and
moderate-income persons are defined, for the purposes of this contract, as those persons who are
members of low-income and moderate-income families as set forth in Exhibit B, which is attached
hereto and is incorporated herein by reference, or as subsequently promulgated in writing by the
State.
7. Citizen Participation. The Contractor shall provide citizens with reasonable notice
of, and opportunity to comment on, any substantial change proposed to be made in the use of
CDBG funds from one eligible activity to another by following the same citizen participation
procedures required for the preparation and submission of its CDBG application to the State. The
Contractor shall also comply with the procedure set forth herein regarding the modification and
amendment of this Contract.
Additionally,the Contractor shall have and follow a Citizen Participation Plan which includes
the six elements specified in Section 104(a)(3)the Act. The Citizen Participation Plan must include
a provision for at least one public hearing during the course of the Project to allow citizens to review
and comment on the Contractor's performance in carrying out the Project.
8. Residential Antidisplacement and Relocation Assistance Plan. The Contractor shall
follow a residential antidisplacement and relocation assistance plan which, should displacement
occur, provide that:
a) governmental agencies or private developers shall provide within the same
community comparable replacement dwellings for the same number of occupants as could have been
housed in the occupied and vacant occupiable low and moderate income dwelling units demolished
or converted to a use other than for housing for low and moderate income persons,and provide that
such replacement housing may include existing housing assisted with project based assistance
provided under Section 8 of the United States Housing Act of 1939;.
b) such comparable replacement dwellings shall be designed to remain affordable
to persons of low and moderate income for ten (10) years from the time of initial occupancy;
c) relocation benefits shall be provided for all low or moderate income persons
who occupied housing demolished or converted to a use other than for low or moderate income
Page 3 of 18 Pages
housing, including reimbursement for actual and reasonable moving expenses, security deposits,
credit checks,and other moving-related expenses,including any interim living costs; and,in the case
of displaced persons of low and moderate income, provide either:
i) compensation sufficient to ensure that, for a 5-year period, the
displaced families shall not bear, after relocation, a ratio of shelter
costs to income that exceeds 30 percent; or
ii) if elected by a family, a lump-sum payment equal to the capitalized
value of the benefits available under subclause (i) to permit the
household to secure participation in a housing cooperative or mutual
housing association;
d) Persons displaced shall be relocated into comparable replacement housing that
is:
i) decent, safe, and sanitary;
ii) adequate in size to accommodate the occupants;
iii) functional equivalent; and,
iv) in an area not subject to unreasonably adverse environmental
conditions.
Persons displaced shall have the right to elect,as an alternative to the benefits under this paragraph
to receive benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970, as amended, if such persons determine that it is in their best interest to do so; and,
where a claim for assistance under subparagraph d) is denied by the Contractor,the claimant may
appeal to the State, and that the decision of the State shall be final unless a court determines the
decision was arbitrary and capricious.
The Contractor shall follow the Residential Antidisplacement and Relocation Assistance Plan except
that paragraphs a) and b) shall not apply in an case in which the Secretary of the U.S. Department
of Housing and Urban Development finds,on the basis of objective data, that there is available in
the area an adequate supply of habitable affordable housing for low and moderate income persons.
A determination under this paragraph is final and nonreviewable.
9. AffirmativelyFurthering Fair Housing. The Contractor shall affirmatively further fair
housing in addition to conducting and administering its Project in conformity with the equal
opportunity requirements of Title VI of the Civil Rights Act of 1964 and the Fair Housing Act, as
required herein.
10. Recovery of Capital Costs of Public Improvements. The Contractor shall not attempt
to recover any capital costs of public improvements assisted in whole or part with CDBG funds by
assessing any amount against properties owned and occupied by persons of low and moderate
Page 4 of 18 Pages
910593
income, including any fee charged or assessment made as a condition of obtaining access to such
public improvements, unless:
a) CDBG funds are used to pay the proportion of such fee or assessment that
relates to the capital costs of such public improvements that are financed from revenue sources other
than the CDBG program, or
b) for the purposes of assessing any amount against properties owned and
occupied by persons of moderate income who are not persons of low income,it certifies that it lacks
sufficient CDBG funds to comply with the requirements of subparagraph a) hereinabove.
11. Compensation and Method of Payment. The State agrees to pay to the Contractor,
in consideration for the work and services to be performed, a total amount not to exceed 'ltvo
Hundred Seventy-five Thousand Dollars ($275,000). The method and time of payment shall be
made in accordance with the "Payment Method" set forth herein.
12. Financial Management. At all times from the effective date of this Contract until
completion of this Contract,the Contractor shall comply with the administrative requirements,cost
principles and other requirements set forth in the Financial Management section of the CDBG
Grantee Handbook, hereinafter referred to as the "Financial Management Requirements".
13. Payment Method. Unless otherwise provided in the Scope of Services:
a) the Contractor shall periodically initiate all drawdown requests by submitting
to the Department a written request using the State-provided form,for reimbursement of actual and
proper expenditures of State CDBG funds plus an estimation of funds needed for a reasonable
length of time.
b) The State may withhold any payment if the Contractor has failed to comply
with the Financial Management Requirements,program objectives,contractual terms,or reporting
requirements.
c) The State will withhold payment of the final five (5) percent of the total
contract amount until the Contractor has submitted and the Department has accepted all required
quarterly Financial Status Report and Performance Report information.
14. Audit.
a) Discretionary Audit. The State, through the Executive Director of the
Department, the State Auditor, or any of their duly authorized representatives, including an
independent Certified Public Accountant of the State's choosing,or the federal government or any
of its properly delegated or authorized representatives shall have the right to inspect, examine, and
audit the Contractor's (and any subcontractor's) records, books, accounts and other relevant
documents. Such discretionary audit may be requested at any time and for any reason from the
effective date of this Contract until five (5) years after the date final payment for this Project is
received by the Contractor, provided that the audit is performed during normal business hours.
Page 5 of 18 Pages
9403,92
b) Mandatory Audit. Whether or not the State calls for a discretionary audit
as provided above, the Contractor shall include the Project in an annual audit report as required by
the Colorado Local Government Audit Law,C.R.S.1973,29-1-601, et semc and the Single Audit Act
of 1984, Pub. L. 98-502, and federal and State implementing rules and regulations. Such audit
reports shall be simultaneously submitted to the Department and the State Auditor. Thereafter,the
Contractor shall supply the Department with copies of all correspondence from the State Auditor
related to the relevant audit report. If the audit reveals evidence of non-compliance with applicable
requirements, the Department reserves the right to institute compliance or other appropriate
proceedings notwithstanding any other judicial or administrative actions filed pursuant to C.R.S.
1973, 29-1-607 or 29-1-608.
15. Contractor, An Independent Contractor. Contractor shall be an independent
contractor and shall have no authorization, express or implied, to bind the State to any agreements,
settlements, liability or understanding except as expressly set forth herein.
16. Personnel. The Contractor represents that it has, or will secure at its own expense,
unless otherwise stated in the Scope of Services, all personnel, as employees or agents of the
Contractor,necessary to perform the work and services required to be performed by the Contractor
under this Contract. Such personnel may not be employees of or have any contractual relationship
with the State and no such personnel are eligible for any employee benefits, unemployment
compensation or any other benefits accorded to State employees. Contractor shall pay when due
all required employment taxes and income tax withholding. All of the services required hereunder
will be performed by the Contractor or under its supervision,and all personnel engaged in the work
shall be fully qualified and shall be authorized under State and local law to perform such services.
The Contractor is responsible for providing Workman's Compensation Coverage and Unemployment
Compensation Coverage for all of its employees to the extent required by law,and for providing such
coverage for themselves. In no case is the State responsible for providing Workman's Compensation
Coverage for any employees or subcontractors of Contractor pursuant to this agreement.
17. Contract Suspension. If the Contractor fails to comply with any contractual provision,
the State may, after notice to the Contractor, suspend the contract and withhold further payments
or prohibit the Contractor from incurring additional obligations of contractual funds, pending
corrective action by the Contractor or a decision to terminate in accordance with provisions herein.
The State may determine to allow such necessary and proper costs which the Contractor could not
reasonably avoid during the period of suspension provided such costs were necessary and reasonable
for the conduct of the project.
18. Contract Termination. This contract may be terminated as follows:
a) Termination Due to Loss of Funding. The parties hereto expressly recognize
that the Contractor is to be paid, reimbursed,or otherwise compensated with federal CDBG funds
provided to the State for the purpose of contracting for the services provided for herein or with
program income, and therefore, the Contractor expressly understands and agrees that all its rights,
demands and claims to compensation arising under this Contract are contingent upon receipt of such
funds by the State. In the event that such funds or any part thereof are not received by the State,
the State may immediately terminate or amend this Contract.
Page 6 of 18 Pages
94693
b) Termination for Cause. If, through any cause, the Contractor shall fail to
fulfill in a timely and proper manner his obligations under this Contract, or if the Contractor shall
violate any of the covenants, agreements, or stipulations of this Contract,the State shall thereupon
have the right to terminate this Contract for cause by giving written notice to the Contractor of such
termination and specifying the effective date thereof,at least five (5) days before the effective date
of such termination. In that event, all finished or unfinished documents, data, studies, surveys,
drawings, maps, models, photographs, and reports or other material prepared by the Contractor
under this Contract shall, at the option of the State, become its property, and the Contractor shall
be entitled to receive just and equitable compensation for any satisfactory work completed on such
documents and other materials.
Notwithstanding the above, the Contractor shall not be relieved of liability to the
State for any damages sustained by the State by virtue of any breach of the Contract by the
Contractor, and the State may withhold any payments to the Contractor for the purpose of setoff
until such time as the exact amount of damages due the State from the Contractor is determined.
c) Termination for Convenience. The State may terminate this Contract at any
time the State determines that the purposes of the distribution of State CDBG monies under the
Contract would no longer be served by completion of the Project. The State shall effect such
termination by giving written notice of termination to the Contractor and specifying the effective
date thereof; at least twenty (20) days before the effective date of such termination. In that event,
all finished or unfinished documents and other materials as described in subparagraph b)above shall,
at the option of the State, become its property. If the Contract is terminated by the State as
provided herein, the Contractor will be paid an amount which bears the same ratio to the total
compensation as the services actually performed bear to the total services of the Contractor covered
by this Contract, less payments of compensation previously made: Provided, however, that if less
than sixty percent (60%) of the services covered by this Contract have been performed upon the
effective date of such termination, the Contractor shall be reimbursed (in addition to the above
payment)for that portion of the actual out-of-pocket expenses(not otherwise reimbursed under this
Contract) incurred by the Contractor during the Contract period which are directly attributable to
the uncompleted portion of the services covered by this Contract. If this Contract is terminated due
to the fault of the Contractor, Paragraph 18b hereof relative to termination shall apply.
19. Modification and Amendment.
a) Modification by Operation of Law. This Contract is subject to such
modifications as may be required by changes in federal or state law or regulations. Any such
required modification shall be incorporated into and be part of this Contract as if fully set forth
herein.
b) Programmatic or Budgetary Modifications. Contractor shall follow the
revision procedures set forth in the Financial Management Requirements if programmatic or
budgetary modifications are desired:
i) The contractor must submit a written request to the Department and
obtain prior written approval from the Department under the
following circumstances:
Page 7 of 18 Pages
a. unless otherwise specified in the Scope of Services, when
cumulative budgetary changes exceed five (5) percent of the
total contract amount or Five Thousand Dollars ($5,000),
whichever is less;
b. when any budget transfers to or between administration
budgetary categories are proposed;
c. when the scope, objective or completion date of the Project
changes;
d. when additional or less State funding is needed;
e. when revisions involve the transfer of amounts budgeted for
indirect costs to absorb increases in direct costs; and
f. when revisions pertain to the addition of items requiring
approval in accordance with the provisions of the subsection
of the Financial Management Requirements entitled "Cost
Principles."
ii) Under the following circumstances and in addition to the foregoing
procedure, prior approval for changes must be authorized by the
State in an amendment to this contract properly executed and
approved in accordance with applicable law:
a. when cumulative budgetary changes exceed ten (10) percent
of the total contract amount or Twenty Thousand Dollars
($2O,000),whichever is greater;
b. when the scope, objective or completion date of the Project
changes substantially,as determined by the Department; and
c. when any additional State funding is needed.
Under such circumstances, the Department's approval is not binding
until memorialized in the contract amendment.
c) Other Modifications. If either the State or the Contractor desires to modify
the terms of this Contract other than as set forth in subparagraphs a and b above,written notice of
the proposed modification shall be given to the other party. No such modification shall take effect
unless agreed to in writing by both parties in an amendment to this Contract properly executed and
approved in accordance with applicable law.
2O. Integration. This Contract,as written,with attachments and references, is intended
as the complete integration of all understanding between the parties at this time and no prior or
contemporaneous addition,deletion or amendment hereto shall have any force or effect whatsoever,
Page 8 of 18 Pages
9103,92
unless embodied in a written authorization or contract amendment incorporating such changes,
executed and approved pursuant to applicable law.
21. Reports.
a) Financial Reports. The Contractor shall submit to the Department three (3)
copies of quarterly financial status reports in the manner and method set forth in the Financial
Management Requirements.
b) Performance Reports. The Contractor shall submit to the Department three
(3) copies of quarterly performance reports and of a project completion report in a manner and
method prescribed by the Department.
22. Conflict of Interest.
a) In the Case of Procurement. In the procurement of supplies, equipment,
construction and services by the Contractor and its subcontractors,no employee,officer or agent of
the Contractor or its subcontractors shall participate in the selection or in the award or
administration of a contract if a conflict of interest, real or apparent, would be involved. Such a
conflict would arise when the employee,officer or agent; any member of his immediate family; his
partner; or an organization which employs,or is about to employ, any of the above, has a financial
or other interest in the party or firm selected for award. Officers, employees or agents of the
Contractor and its subcontractors shall neither solicit nor accept gratuities, favors,or anything of
monetary value from parties or potential parties to contracts. Unsolicited items provided as gifts
are not prohibited if the intrinsic value of such items is nominal.
b) In all Cases Other Than Procurement. In all cases other than procurement
(including the provision of housing rehabilitation assistance to individuals,the provision of assistance
to businesses, and the acquisition and disposition of real property), no persons described in
subparagraph i)below who exercise or have exercised any functions or responsibilities with respect
to CDBG activities or who are 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.
i) Persons Covered. The conflict of interest provisions of this paragraph
b) apply to any person who is an employee,agent,consultant,officer,
or elected official or appointed official of the Contractor or of any
designated public agencies or subcontractors receiving CDBG funds.
ii) Threshold Requirements for Exceptions. Upon the written request
of the Contractor,the State may grant an exception to the provisions
of this subparagraph b) when it determines that such an exception
will serve to further the purposes of the CDBG program and the
effective and efficient administration of the Contractor's Project. An
Page 9 of 18 Pages
9CQS cS
exception may be considered only after the Contractor has provided
the following:
a. A disclosure of the nature of the conflict, accompanied by an
assurance that:
i. there has been or will be a public disclosure of the
conflict and a description of how the public disclosure
was or will be made; and
ii. the affected person has withdrawn from his or her
functions or responsibilities, or the decision making
process with respect to the specific CDBG assisted
activity in question; and
b. An opinion of the Contractor's attorney that the interest for
which the exception is sought would not violate State or local
law; and
c. A written statement signed by the chief elected official of the
Contractor holding the State harmless from all liability in
connection with any exception which may be granted by the
State to the provisions of this subparagraph b);
iii) Factors to be Considered for Exceptions. In determining whether to
grant a requested exception after the Contractor has satisfactorily met
the requirements of subparagraph ii) above, the State shall consider
the cumulative effect of the following factors,where applicable:
a. Whether the exception would provide a significant cost
benefit or an essential degree of expertise to the Project
which would otherwise not be available;
b_. Whether an opportunity was provided for open competitive
bidding or negotiation;
c. Whether the person affected is a member of a group or class
of low or moderate income persons intended to be
beneficiaries of the CDBG assisted activity,and the exception
will permit such person to receive generally the same benefits
as are being made available or provided to the group or class;
d. Whether the interest or benefit was present before the
affected person was in a position as described in this
subparagraph b);
Page 10 of 18 Pages
e. Whether undue hardship will result either to the Contractor
or the person affected when weighed against the public
interest served by avoiding the prohibited conflict; and
f. Any other relevant considerations.
23. Compliance with Applicable Laws. At all times during the performance of this
Contract, the Contractor and any subcontractors shall strictly adhere to all applicable federal and
State laws, orders, and all applicable standards, regulations, interpretations or guidelines issued
pursuant thereto. The applicable federal laws and regulations include:
a) National Environmental Policy Act of 1969 (42 USC 4321 et seq.), as
amended, and the implementing regulations of HUD (24 CFR Part 58) and of the Council on
Environmental Quality (40 CFR Parts 1500.- 1508) providing for establishment of national policy,
goals, and procedures for protecting, restoring and enhancing environmental quality.
b) National Historic Preservation Act of 1966(16 USC 470 et seq.),as amended,
requiring consideration of the effect of a project on any district, site, building, structure or object
that is included in or eligible for inclusion in the National Register of Historic Places.
c) Executive Order 11593. Protection and Enhancement of the Cultural
Environment,May 13, 1971 (36 FR 8921 et seq.) requiring that federally-funded projects contribute
to the preservation and enhancement of sites, structures and objects of historical, architectural or
archaeological significance.
d) The Archaeological and Historical Data Preservation Act of 1974,amending
the Reservoir Salvage Act of 1960 (16 USC 469 et seq.),providing for the preservation of historic
and archaeological data that would be lost due to federally-funded development and construction
activities.
e) Executive Order 11988.Floodplain Management,May 24,1977(42 FR 26951
et seq.) prohibits undertaking certain activities in flood plains unless it has been determined that
there is no practical alternative, in which case notice of the action must be provided and the action
must be designed or modified to minimize potential damage.
t) Executive Order 11990.Protection of Wetlands,May 24, 1977 (42 FR 26961
et seq.) requiring review of all actions proposed to be located in or appreciably affecting a wetland.
Undertaking or assisting new construction located in wetlands must be avoided unless it is
determined that there is no practical alternative to such construction and that the proposed action
includes all practical measures to minimize potential damage.
g) Safe Drinking Water Act of 1974 (42 USC 201, 300 f et seq., 7401 et seq.),
as amended, prohibiting the commitment of federal financial assistance for any project which the
Environmental Protection Agency determines may contaminate an aquifer which is the sole or
principal drinking water source for an area.
Page 11 of 18 Pages
94
h) The Endangered Species Act of 1973 (16 USC 1531 et seq.), as amended,
requiring that actions authorized,funded,or carried out by the federal government do not jeopardize
the continued existence of endangered and threatened species or result in the destruction or
modification of the habitat of such species which is determined by the Department of the Interior,
after consultation with the State, to be critical.
i) The Wild and Scenic Rivers Act of 1968 (16 USC 1271 et seq.),as amended,
prohibiting federal assistance in the construction of any water resources project that would have a
direct and adverse affect on any river included in or designated for study or inclusion in the National
Wild and Scenic Rivers System.
j) The Clean Air Act of 1970 (42 USC 1857 et seq.),as amended, requiring that
federal assistance will not be given and that license or permit will not be issued to any activity not
conforming to the State implementation plan for national primary and secondary ambient air quality
standards.
k) HUD Environmental Criteria and Standards (24 CFR Part 51) providing
national standards for noise abatement and control,acceptable separation distances from explosive
or fire prone substances and suitable land uses for airport runway clear zones.
1) Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970 -- Title III, Real Property Acquisition (Pub. L. 91-646 and implementing regulations at 24
CFR Part 42),providing for uniform and equitable treatment of persons displaced from their homes,
businesses,or farms by federal or federally-assisted programs and establishing uniform and equitable
land acquisition policies for federal assisted programs. Requirements include bona fide land
appraisals as a basis for land acquisition, specific procedures for selecting contract appraisers and
contract negotiations, furnishing to owners of property to be acquired a written summary statement
of the acquisition price offer based on the fair market price,and specified procedures connected with
condemnation.
m) Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970, as amended -- Title H. Uniform Relocation Assistance (Pub. L. 91-646 and implementing
regulations at 24 CFR Part 42),providing for fair and equitable treatment of all persons displaced
as a result of any federal or federally-assisted program. Relocation payments and assistance,
last-resort housing replacement by displacing agency, and grievance procedures are covered under
the Uniform Act. Payments and assistance will be made pursuant to state or local law,or the grant
recipient must adopt a written policy available to the public describing the relocation payments and
assistance that will be provided. Moving expenses and up to$22,500 for each qualified homeowner
or up to $5,250 for each tenant are required to be paid.
n) Section 104(d)of the Housing and Community Development Act of 1974(42
USC 5301 as amended and implementing regulations at 24 CFR Part 570), providing for the
replacement of all low/moderate income dwelling units that are demolished or converted to another
use as a direct result of the use of CDBG funds, and which provides for relocation assistance for all
low/moderate income households so displaced.
Page 12 of 18 Pages
O!S61:ccv
o) Davis-Bacon Fair Labor Standards Act(40 USC 276a-276a-5)requiring that,
on all contracts and subcontracts which exceed$2,000 for federally-assisted construction,alteration
or rehabilitation, laborers and mechanics employed by contractors or subcontractors shall be paid
wages at rates not less than those prevailing on similar construction in the locality as determined by
the Secretary of Labor. (This requirement applies to the rehabilitation of residential property only
if such property is designed for use of eight or more families.)
p) Contract Work Hours and Safety Standards Act of 1962(40 USC 327 et seq.)
requiring that mechanics and laborers employed on federally-assisted contracts which exceed$2,000
be paid wages of not less than one and one-half times their basic wage rates for all hours worked
in excess of forty in a work week.
q) Copeland "Anti-Kickback" Act of 1934 (40 USC 276 (c)) prohibiting and
prescribing penalties for"kickbacks"of wages in federally-financed or assisted construction activities.
r) The Lead-Based Paint Poisoning Prevention Act -- Title IV (42 USC 4831)
prohibiting the use of lead-based paint in residential structures constructed or rehabilitated with
federal assistance, and requiring notification to purchasers and tenants of such housing of the
hazards of lead-based paint and of the symptoms and treatment of lead-based paint poisoning.
s) Section 3 of the Housing and Community Development Act of 1968 (12 USC
1701 (u)), as amended,providing that, to the greatest extent feasible,opportunities for training and
employment that arise through HUD-financed projects,will be given to lower-income persons in the
unit of the project area, and that contracts be awarded to businesses located in the project area or
to businesses owned, in substantial part, by residents of the project area.
t) Section 109 of the Housing and Community Development Act of 1974 (42
USC 5309), as amended, providing that no person shall be excluded from participation (including
employment), denied program benefits or subjected to discrimination on the basis of race, color,
national origin or sex under any program or activity funded in whole or in part under Title I
(Community Development) of the Act.
u) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352; 42 USC 2000 (d))
prohibiting discrimination on the basis of race, color, religion or religious affiliation, or national
origin in any program or activity receiving federal financial assistance.
v) The Fair Housing Act (42 USC 3601-20), as amended, prohibiting housing
discrimination on the basis of race,color,religion,sex, national origin,handicap and familial status.
w) Executive Order 11246 (1965), as amended by Executive Orders 11375,
prohibiting discrimination on the basis of race, color, religion, sex or national origin in any phase
of employment during the performance of federal or federally-assisted contracts in excess of$2,000.
x) Executive Order 11063 (1962), as amended by Executive Order 12259,
requiring equal opportunity in housing by prohibiting discrimination on the basis of race, color,
religion, sex or national origin in the sale or rental of housing built with federal assistance.
Page 13 of 18 Pages
y) Section 504 of the Rehabilitation Act of 1973 (29 USC 793), as amended,
providing that no otherwise qualified individual shall, solely by reason of a handicap, be excluded
from participation (including employment),denied program benefits or subjected to discrimination
under any program or activity receiving federal funds.
z) Age Discrimination Act of 1975 (42 USC 6101),as amended, providing that
no person shall be excluded from participation, denied program benefits or subjected to
discrimination on the basis of age under any program or activity receiving federal funds.
24. Monitoring and Evaluation. The State will monitor and evaluate the Contract with
the Contractor under the CDBG program. The Contract will be monitored for compliance with the
rules,regulations,requirements and guidelines which the State has promulgated or may promulgate
and will be monitored periodically during the operation of the project and upon its completion. The
Contract will also be subject to monitoring and evaluation by the U.S.Department of Housing and
Urban Development. The Contract will be evaluated to gauge its impact upon low- and
moderate-income residents of the community, slums or blighted areas, or other urgent need
conditions and for the effective and efficient utilization of CDBG funds.
25. Severability. To the extent that this Contract may be executed and performance of
the obligations of the parties may be accomplished within the intent of the Contract, the terms of
this Contract are severable,and should any term or provision hereof be declared invalid or become
inoperative for any reason, such invalidity or failure shall not affect the validity of any other term
or provision hereof. The waiver of any breach of a term hereof shall not be construed as waiver of
any other term.
26. Binding on Successors. Except as herein otherwise provided, this agreement shall
inure to the benefit of and be binding upon the parties, or any subcontractors hereto, and their
respective successors and assigns.
27. Subletting,Assignment or Transfer. Neither party nor any subcontractors hereto may
sublet, sell, transfer, assign or otherwise dispose of this Contract or any portion thereof, or of its
rights, title, interest or duties therein, without the prior written consent of the other party. No
subcontract or transfer of Contract shall in any case release the Contractor of liability under this
Contract.
28. Non-Discrimination. The Contractor shall comply with all applicable State and
Federal laws, rules, regulations and Executive Orders of the Governor of Colorado involving non-
discrimination on the basis of race, color, religion, national origin, age, handicap or sex. In
compliance with Paragraph 5 of the Special Provisions section of this contract,Contractor agrees to
consider minorities or minority businesses as employees, specialists, agents, consultants or
subcontractors under this Contract. Contractor may utilize the expertise of the State Minority
Business Office within the Office of the Governor for assistance in complying with the non-
discrimination and affirmative action requirements of this contract and applicable statutes.
29. Excessive Force. In accordance with section 519 of Public Law 101-144, the HUD
Appropriations Act, and Section 906 of Cranston-Gonzalez Affordable Housing Act of 1990, the
Contractor has adopted and is enforcing a policy prohibiting the use of excessive force by law
Page 14 of 18 Pages
940592
enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights
demonstrations; and has adopted and is enforcing a policy of enforcing applicable state and local
laws against physically barring entrance to or exit from a facility or location which is the subject of
such non-violent civil rights demonstration within its jurisdiction.
30. Lobbying. The Contractor assures and certifies that:
a) No Federal appropriated funds have been paid or will be paid,by or on behalf
of the undersigned,to any person for influencing or attempting to influence an officer or employee
of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a
Member of Congress in connection with the awarding of any federal contract, the making of any
federal grant, the making of any federal loan, the entering into of any cooperative agreement, and
the extension, continuation, renewal, amendment, or modification of any federal contract, grant,
loan, or cooperative agreement.
b) If any funds other than federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an offer or employee of any agency,
a Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with this federally funded contract, grant, loan, or cooperative agreement,
it shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions.
c) It shall require that the language of this certification be included in the award
documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under
grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose
accordingly.
d) It understands that this certification is a material representation of fact upon
which reliance was placed when this transaction was made or entered into. Submission of this
certification is a prerequisite for making or entering into this transaction imposed by section 1352,
title 31,U.S. Code. Any person who fails to file the required certification shall be subject to a civil
penalty of not less than $10,000 and not more than $100,000 for each such failure.
31. Applicant Statement of Assurances and Certifications. The Contractor has previously
signed an"Applicant Statement of Assurances and Certifications"which is hereby incorporated and
made a part of this contract by reference.
32. Survival of Certain Contract Terms. Notwithstanding anything herein to the contrary,
the parties understand and agree that all terms and conditions of this contract and the exhibits and
attachments hereto which may require continued performance or compliance beyond the termination
date of the contract shall survive such termination date and shall be enforceable by the State as
provided herein in the event of such failure to perform or comply by the Contractor or its
subcontractors.
Page 15 of 18 Pages
94L0TS2
Form 6-AC-02B(Re:.1/93)
SPECIAL PROVISIONS
CONTROLLER'S APPROVAL
1. This contract shall not be deemed valid until it shall have been approved by the Controller of the State of Colorado or such
assistant as he may designate. This provision is applicable to any contract involving the payment of money by the State.
FUND AVAII.ABIIITY
2. Financial obligations of the State of Colorado payable after the current fiscal year are contingent upon funds for that
purpose being appropriated,budgeted and otherwise made available.
BOND REQUIREMENT
3. If this contract involves the payment of more than fifty thousand dollars for the construction,erection,repair,maintenance,
or improvement of any building,road,bridge,viaduct,tunnel,excavation or other public work for this State,the contractor shall,before
entering upon the performance of any such work included in this contract,duly execute and deliver to the State official who will sign the
contract,a good and sufficient bond or other acceptable surety to be approved by said official in a penal sum not less than one-half of
the total amount payable by the terms of this contract. Such bond shall be duly executed by a qualified corporate surety conditioned upon
the faithful performance of the contract and in addition,shall provide that if the contractor or his subcontractors fail to duly pay for any
labor,materials,team hire,sustenance,provisions,prevendor or other supplies used or consumed by such contractor or his subcontractor
in performance of the work contracted to be done or fails to pay any person who supplies rental machinery,tools,or equipment in the
prosecution of the work the surety will pay the same in an amount not exceeding the sum specified in the bond,together with interest
at the rate of eight percent per annum. Unless such bond is executed,delivered and filed,no claim in favor of the contractor arising
under such contract shall be audited,allowed or paid. A certified or cashier's check or a bank money order payable to the Treasurer
of the State of Colorado may be accepted in lieu of a bond. This provision is in compliance with CRS 38-26-106.
INDEMNIFICATION
4. To the extent authorized by law,the contractor shall indemnify,save and hold harmless the State,its employees and agents,
against any and all claims,damages,liability and court awards including costs,expenses,and attorney fees incurred as a result of any act
or omission by the contractor,or its employees,agents,subcontractors,or assignees pursuant to the terms of this contract.
DISCRIMINATION AND AFFIRMATIVE ACTION
5. The contractor agrees to comply with the letter and spirit of the Colorado Antidiscrimination Act of 1957,as amended,and
other applicable law respecting discrimination and unfair employment practices(CRS 24-34-402),and as required by Executive Order,
Equal Opportunity and Affirmative Action,dated April 16,1975. Pursuant thews,the following provisions shall be contained in all State
contracts or sub-contracts
During the performance of this contract,the contractor agrees as follows:
(a) The contractor will not discriminate against any employee or applicant for employment because of race,creed,color,
national origin,sex,marital status,religion,ancestry,mental or physical handicap,or age. The contractor will take affirmative
action to insure that applicants are employed,and that employees are treated during employment,without regard to the above
mentioned characteristic. Such action shall include,but not be limited to the following: employment upgrading,demotion,
or transfer,recruitment or recruitment advertisings;lay-offs or terminations;rates of pay or other forms of compensation;and
selection for training,including apprenticeship. The contractor agrees to post in conspicuous places,available to employees
and applicants for employment, notices to be provided by the contracting officer setting forth provisions of this non-
discrimination clause.
(b) The contractor will,in all solicitations or advertisements for employees placed by or on behalf of the contractor,state that
all qualified applicants will receive consideration for employment without regard to race,creed,color,national origin,sex,
marital status,religion,ancestry,mental or physical handicap,or age.
(c) The contractor will send to each labor union or representative of workers with which he has a collective bargaining
agreement or other contract or understanding,notice to be provided by the contracting officer,advising the labor union or
workers'representative of the contractor's commitment under the Executive Order,Equal Opportunity and Affirmative Action,
dated April 16,1975,and of the rules,regulations,and relevant Orders of the Governor.
(d) The contractor and labor unions will furnish all information and reports required by Executive Order,Equal Opportunity
and Affirmative Action of April 16,1975,and by the rules,regulations and Orders of the Governor,or pursuant thereto,and
Page 16 of 18 Pages
940592
will permit access to his books,records,and accounts by the contracting agency and the office of the Governor or his designee
for purposes of investigation to ascertain compliance with such rules,regulations and orders.
(e) A labor organization will not exclude any individual otherwise qualified from full membership rights in such labor
organization,or expel any such individual from membership in such labor organization or discriminate against any of its
members in the full enjoyment of work opportunity because of race,creed,color,sex,national origin,or ancestry.
(f) A labor organization,or the employees or members thereof will not aid,abet,incite,compel or coerce the doing of any
act defined in this contract to be discriminatory or obstruct or prevent any person from complying with the provisions of this
contract or any order issued thereunder,or attempt,either directly or indirectly,to commit any act defined in this contract to
be discriminatory.
(g) In the event of the contractor's non-compliance with the non-discrimination clauses of this contract or with any of such
rules,regulations,or orders,this contract may be cancelled,terminated or suspended in whole or in part and the contractor
may be declared ineligible for further State contracts in accordance with procedures,authorized in Executive Order,Equal
Opportunity and Affirmative Action of April 16, 1975 and the rules, regulations, or orders promulgated in accordance
therewith,and such other sanctions as may be imposed and remedies as may be invoked as provided in Executive Order,Equal
Opportunity and Affirmative Action of April 16,1975,or by rules,regulations,or orders promulgated in accordance therewith,
or as otherwise provided by law.
(h) The contractor will include the provisions of paragraphs(a)through(h)in every sub-contract and subcontractor purchase
order unless exempted by rules,regulations,or orders issued pursuant to Executive Order,Equal Opportunity and Affirmative
Action of April 16,1975,so that such provisions will be binding upon each subcontractor or vendor. The contractor will take
such action with respect to any sub-contracting or purchase order as the contracting agency may direct,as a means of enforcing
such provisions,including sanctions for non-compliance;provided,however,that in the event the contractor becomes involved
in,or is threatened with,litigation,with the subcontractor or vendor as a result of such direction by the contracting agency,
the contractor may request the State of Colorado to enter into such litigation to protect the interest of the State of Colorado.
COLORADO LABOR PREFERENCE
6a. Provisions of CRS 8-17-101&102 for preference of Colorado labor are applicable to this contract if public works within
the State are undertaken hereunder and are financed in whole or in part by State funds.
b. When construction contract for a public project is to be awarded to a bidder,a resident bidder shall be allowed a preference
against a non-resident bidder from a state or foreign country equal to the preference given or required by the state or foreign country
in which the non-resident bidder is a resident. If it is determined by the officer responsible for awarding the bid that compliance with
this subsection .06 may cause denial of federal funds which would otherwise be available or would otherwise be inconsistent with
requirements of federal law,this subsection shall be suspended,but only to the extent necessary to prevent denial of the moneys or to
eliminate the inconsistency with federal requirements(CRS 8-19-101 and 102).
GENERAL
7. The laws of the State of Colorado and rules and regulations issued pursuant thereto shall be applied in the interpretation,
execution and enforcement of this contract. Any provision of this contract whether or not incorporated herein by reference which
provides for arbitration by any extra-judicial body or person or which is otherwise in conflict with said laws,rules,and regulations shall
be considered null and void. Nothing contained in any provision incorporated herein by reference which purports to negate this or any
other special provision in whole or in part shall be valid or enforceable or available in any action at law whether by way of complaint,
defense or otherwise. Any provision rendered null and void by the operation of this provision will not invalidate the remainder of this
contract to the extent that the contract is capable of execution.
8. At all times during the performance of this Contract,the Contractor shall strictly adhere to all applicable federal and state
laws,rules,and regulations that have been or may hereafter be established.
9. The signatories hereto aver that they are familiar with CRS 18-8-301,et.seq.,(Bribery and Corrupt Influences)and CRS
18-8-401,et.seq.,(Abuse of Public Office),and that no violation of such provisions is present.
10. The signatories aver that to their knowledge,no state employee has a personal or beneficial interest whatsoever in the
service or property described herein.
Page 17 of 18 Pages
•
9'105.2
IN WITNESS WHEREOF,the parties hereto have executed this Contract on the day first above written.
Contractor.
(Full Legal Name)Weld County Board of Commissioners STATE OF COLORADO
ROY ROMER,GOVERNOR
915 10th Street
Greeley,CO 80631 By:
a5 Executive Director
Position(Title)
Department of Local Affairs
84-6000-813
Social Security Number or Federal ID.Number
Br. III_ 6,22O,.„ 0,427/9,7/
its: (1/ ai_/1 Ina/k))
,J
(If Corporation:) �G�y%r�r
Attest(Seal
By: ()A YYIa DU
Corporate Sere or Equivalent,
Town/City/ ty Clerk
APPROVALS:
ATTORNEY GENERAL CONTROLLER
Br
B
Page 18 of 18 Pages
94,0392
EXHIBIT A
Scope of Services
9'10S2
Exhibit A
1. Scope of Services
a. General Provisions. This Project consists of providing Community Development
Block Grant ("CDBG") funds to the Contractor to continue a Revolving Loan Fund
("RLF'), the purpose of which is to encourage economic diversification and job creation and
retention which addresses the CDBG program objective of benefit to low- and moderate-
income persons, in Weld and Larimer Counties with the lead county designated as Weld
County and subject to the following provisions:
1. CDBG funds will be used exclusively to operate a revolving loan fund
program through which assistance is provided to private, for-profit businesses for job
creation and/or job retention activities which are necessary or appropriate to carry
out an economic development project. This assistance may include direct loans, loan
guarantees or the provision of funds in exchange for shares in the business or royalty
payments. The rate of return for businesses which receive assistance generally shall
not exceed industry standards.
2. The Contractor shall leverage funds from private and/or public financial
institutions and individuals for businesses which receive CDBG assistance. Such
funds shall comprise the majority of funds used to assist businesses.
3. All revenues received by the Contractor which result directly from the CDBG-
assisted activity, including but not limited to principal and interest payments,
origination fees, servicing charges, interest earned on program income and proceeds
from the sale of acquired assets, shall be considered program income. All program
income shall be retained by the Contractor or subgrantee, added to other funds
committed to projects and used to continue operation of the revolving loan fund.
Program income shall be expended on assistance to businesses prior to requesting
an additional allocation from the state. Based on the current statute, program
income earned from this specific contract will not lose its federal identity and must
always continue to meet federal and state program requirements. The requirements
of the current statute will not apply to program income generated from previous
CDBG revolving loan fund contracts since there was not an "open stream"of CDBG
contracts for Contractor.
4. Neither the Contractor nor assisted business(es) shall earn interest on
advances of CDBG funds. Draw down of funds shall be requested on an as-needed
basis.
5. Funds will be provided to small businesses according to specific policies
developed by the Contractor which define the criteria and manner by which
Page 1 of 6 pages
910592
•
assistance will or will not be provided to applicant businesses. Project descriptions
and a financial analysis will be provided to the state for review and approval and to
verify the Project is necessary or appropriate prior to processing requests for
advances or reimbursements. Upon request from the state and mutual agreement
with Contractor, Contractor may act as the administrator for state funded projects
located in Contractor's project area.
6. Interest rates charged to borrowers on the CDBG portion of loans shall be
no greater than the prime interest rate as stated by New York Prime as published
in the Wall Street Journal at the time of loan commitment, excluding any processing
or service charge imposed on the borrower by the Contractor.
7. The Contractor shall encourage financial institutionsparticipating in a CDBG-
assisted project to charge the assisted business a rate comparable to other business
loans in the market area.
8. No CDBG funds shall be drawn down or expended by Contractor until the
Contractor has negotiated agreements with participating banks, agencies and
investors which set forth the amounts and terms of each party's participation in
financing projects and which meets all applicable provisions as set forth in this
Contract.
9. The Contractor may charge the business applying for and/or receiving a loan
reasonable fees associated with processing loan applications. Application review fees
may not exceed fifty dollars ($50.00) and loan origination fees may not exceed two
percent (2%) of the approved loan amount. No other fees shall be charged to or
collected from the borrower by Contractor.
10. The term of assistance provided to businesses with CDBG funds shall not
exceed ten (10) years unless it is demonstrated that a longer term is necessary to
leverage other public or private funds. Providing assistance for a term of greater
than ten years shall be done only after receiving prior approval from the state on a
case-by-case basis.
11. In the event that any business which received assistance through the revolving
loan fund is sold, consolidated or merged to an extent that controlling ownership
changes prior to repayment of funds owed to the Contractor through the agreement
for.CDBG assistance, Contractor shall provide that those funds shall then become
due and payable unless prior written approval to do otherwise is obtained from the
state's Office of Business Development.
12. Copies of contracts and agreements entered into by the Contractor in order
to accomplish this Project including agreements with subgrantees, agencies providing
program administration services, the Job Training Partnership Act vendor, the Job
Page 2 of 6 pages
94L05'93
Service Center office and other CDBG grantees shall be submitted to the state's
Office of Business Development upon execution.
13. An advisory committee which is representative of public and private economic
development organizations,businesses and/or local governments in the area served
by the Project shall review policies and criteria, and shall directly or through an
appointed subcommittee approve all requests for assistance.
14. The Contractor shall exhibit due diligence in pursuit of remedies should
businesses not fulfill contractual provisions under which the assistance was provided.
b. Specific Provisions. The following specific provisions are made hereby a part of this
Scope of Services:
1. The CDBG contribution to the Project, exclusive of program income,shall not
exceed Two Hundred Seventy-five Thousand Dollars ($275,000.00).
2. Contractor shall be required to seek leveraged funds provided by participating
banks and investors, but these leveraged funds shall not be considered matching
funds subject to federal audit requirements. Unless modification is authorized in
writing by the state's Office of Business Development, the Contractor will be
responsible for ensuring that at least$500,000 from the participating banks, agencies,
and investors are committed to this Project during the term of this Contract. In
addition, Contractor and other sources shall inject a minimum contribution of
$35,000 for the administration of the RLF.
3. Contractor agrees that funds provided as assistance to businesses shall be
evidenced through legally binding loan agreements that adhere to federal regulations.
4. The Contractor commits that at least twenty five(25)full-time permanent jobs
will be directly created or retained through the provision of CDBG funds. The
Contractor shall make all reasonable efforts to obtain a goal that at least thirteen
(13) full-time permanent positions of all jobs created are filled by low- and
moderate- income persons. At least fifty-one percent (51%) of jobs created or
retained by each borrower must be filled by low- and moderate-income persons.
5. CDBG funds may be used to finance "General Administration" expenses,
including but not limited to the costs of performing those general project activities
related to contract compliance, financial management, loan packaging and review,
loan servicing and technical assistance necessary for operation of the revolving fund
program.
Page 3 of 6 pages
91USS2
6. The Contractor shall submit requests for approval of any equipment purchase
over $500 to the state's Office of Business Development for item(s) that shall be paid
out of CDBG administrative funds.
c. Contractor shall provide the Office of Business Development with a copy of Weld
and Larimer's Excessive Force Policies (required under the statement of assurances
and certifications in the CDBG application executed by Weld and Lorimer Counties)
satisfactory to OBD prior to the release of CDBG contract funds.
2. Time of Performance
a. This Contract shall be effective upon full execution by State Controller's Office.
b. The Project shall be completed within twelve (12) months of the effective date of this
Contract, unless modification of the Contract is authorized in writing by the Department
of I nral Affairs prior to expiration of the Contract Any request(s) for a contract extension
by the Contractor shall be submitted to the Office of Business Development at least thirty
(30) days prior to the expiration of the Contract with a full justification for the extension
request In order to complete the Contract in the above time period, one hundred percent
(100%) of funds provided through this Contract shall have been expended, unless
Department of Local Affairs and Contractor mutually agree to de-obligate a portion of such
funds.
In addition, Contractor shall provide written evidence that projected number of jobs have
been actually created or retained by each individual project and collectively meet the
requirement in provision 1.6.4. of this Exhibit A. Hiring requirements of low-to-moderate
income persons must be achieved per project as well. In the event there is any deviation
from job creation, retention or low/moderate income hiring requirements, Contractor must
submit written documentation to substantiate the reasons for such deficiencies at or prior
to project close out If a deficiency exists, a review by the Department of Local Affairs
and/or Office of Business Development will be made to determine the ability to close out
this Contract
3. Budget
a. REVENUE
Community Development Block Grant Funds $275,000
Contractor/Other (a minimum of) 35,000
Other Leveraged Funds (a minimum of) 500000
TOTAL $810,000
Page 4 of 6 pages
b. EXPENDITURES
Other Funds
Line Item Total State CDBG (a minimum of) Source
Assistance to $750,000 $250,000 $500,000 Banks, Investors,
Private Other Lenders, etc.
Businesses
Administration $60,000 $25,000 $35,000 Contractor/
RevolvedFunds/OtheI
TOTAL $810,000 $275,000 $535,000
4. Payment Method
All payments to the Contractor shall be made in accordance with provisions set forth in
Paragraph 13 within the main body of this Contract except for the requirements that the
state withhold a five percent (5%) retention payment which is herein waived.
5. Contract Monitoring
The Contractor and the Greeley/Weld Economic Development Action Partnership shall
allow Contractor and CDBG program representatives to make on-site visits to verify CDBG
program information if reasonable notice has been provided by the Office of Business
Development.
The Office of Business Development or its agent shall monitor this contract at least once
during the Contract period and as needed.
6. Reporting Schedule
The,Contractor shall provide quarterly financial and program reports to the state's Office
of Business Development in accordance with the provisions set forth in Paragraph 21 within
the main body of this Contract. The Contractor is required to continue reporting to the
OBD information on all persons which first fill jobs created by assisted businesses until the
number of jobs specified by provision 1.b.4. of this Exhibit A have been created or retained,
but in no event less than for a period of one (1) year from the effective date of the project
loan agreement, even if this Contract has been closed out. In the event more jobs are
actually created/retained by assisted businesses as a result of CDBG funds than originally
committed, Contractor shall ensure that at least fifty-one percent (51%) of all jobs
created/retained (as a result of CDBG funds) are provided to low- and moderate-income
persons.
Page 5 of 6 pages
The Contractor shall provide updated Disclosure Reports as applicable to the Office of
Business Development.
7. Training
The Administrator for the Revolving Loan Fund will be required to attend all training
seminars provided by OBD unless a mutual agreement (between. OBD and the
Administrator) has been reached prior to the training seminar.
8. Contract Requirements
The Contractor shall submit all documentation required by this Contract, as applicable, to
the Office of Business Development except for the Audits required in Paragraph 14 within
the main body of this Contract.
Page 6 of 6 pages
EXHIBIT B
Definition of Low and Moderate Income Households and Persons
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