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HomeMy WebLinkAbout2020-09-23 - Chelan Douglas Regional Port Authority - General Agreements / General Service AgreementsAGREEMENT BETWEEN CITY OF EAST WENATCHEE AND THE CHELAN DOUGLAS REGIONAL PORT AUTHORITY FOR EAST WENATCHEE CDBG-CV MICROENTERPRISE GRANT PROGRAM THIS AGREEMENT, is made and entered into this 23rd day of September, 2020 between the City of East Wenatchee (“Grantee”) and Chelan Douglas Regional Port Authority (“Subrecipient”). RECITALS WHEREAS, the Grantee has applied for and received funds from the United States Department of Housing and Urban Development (HUD) under Title I of the Housing and Community Development Act of 1974, as amended (HCD Act), Public Law 93-383; WHEREAS, On March 13, 2020, the COVID-19 pandemic was declared a national emergency and a special source of funding was provided through the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The funds for the CDBG program are identified as “CDBG-CV”. This funding is intended to prevent, prepare for and respond to the coronavirus pandemic. WHEREAS, the Annual Action Plan prepared and adopted for Program Year 2019 was amended on May 19, 2020 to reprogram unspent funds from 2019 and to program CDBG-CV funds for Microenterprise Grant Program; and WHEREAS, CDBG and CDBG-CV recipients have flexibility in serving a special subset of the small business community (24 CFR Section 570.201(o) providing grants, loans, or technical assistance to microenterprise businesses responding to impacts associated with the coronavirus pandemic. WHEREAS, the Grantee has selected the Chelan Douglas Regional Port Authority as a Subrecipient to assist the Grantee in utilizing such funds for the intended purpose; NOW, THEREFORE, the parties, for and in consideration of the promises and mutual obligations set forth below, agree as provided for in this Agreement. I. SCOPE OF SERVICE A. Activities The Subrecipient will be responsible for administering a Microenterprise Grant Program using 2019 CDBG Program Year funds and CDBG-CV funds in a manner satisfactory to the Grantee and consistent with any and all applicable Federal, state, and local rules and regulations as a condition of providing these funds. It should be noted that any reference to CDBG funds throughout this document are intended to be inclusive of CDBG-CV funds. Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 2 - Such program will include the following elements to be eligible under the Community Development Block Grant program: Program Delivery The purpose of the program is to provide direct assistance in the form of a grant to existing eligible microenterprise businesses within the East Wenatchee city limits to prepare, prevent, and respond to impacts associated with the coronavirus pandemic. 1. Location of Business: The microenterprise business requesting the grant must be located within the East Wenatchee City Limits. 2. Definition: A “microenterprise” is a commercial enterprise that has five or fewer employees, one or more of whom owns the enterprise. 3. Maximum Grant Amount: The maximum microenterprise grant amount is $5,000. 4. Eligibility. To be eligible to receive a microenterprise grant through this program, the owner or employees must be from a low to moderate-income household meeting the income qualifications as published annually by the Department of Housing and Urban Development for the Wenatchee Metropolitan Statistical Area. The HUD Income Limits are attached as Exhibit A to this Agreement. a. A microenterprise grant applicant can qualify under the limited clientele criteria for Low Moderate Income (LMI) benefit, if the business owner is LMI. In certifying LMI status, the subrecipient must document the owner’s income. The owner of the microenterprise must have a household income at or below 80% of the Area Median income. b. If the owner is not LMI, the business may still qualify by meeting the LMI job creation/retention criteria if at least 51% of the employees meet the LMI threshold. Income qualification is documented at the time the assistance is provided. For the purpose of determining whether a household is low- and moderate-income under subpart C of 24 CFR 570.3, the Subrecipient will use the following definition of income: Adjusted gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 for individual Federal annual income tax purposes. Estimate the annual income of a family or household by projecting the prevailing rate of income of each person at the time assistance is provided for the individual, family, or household (as applicable). Estimated annual income shall include income from all family or household members, as applicable. Income or Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 3 - asset enhancement derived from the CDBG-assisted activity shall not be considered in calculating estimated annual income. General Administration The Subrecipient must establish and maintain administrative, financial, reporting, and record keeping systems consistent with the requirements of the federal Community Development Block Grant program. These activities generally consist of the following elements: 1. Comply with applicable civil rights requirements. 2. Maintain written procurement procedures. 3. Verify income eligibility of all recipients and maintain income eligibility records. 4. Submit payment requests and supporting documentation to the City of East Wenatchee. 5. Resolve all monitoring issues, if identified. 6. Submit CDBG Performance Reports, when requested. B. National Objectives All activities funded with CDBG and CDBG-CV funds must meet one of the CDBG program’s National Objectives: benefit low- and moderate-income persons; aid in the prevention or elimination of slums or blight; or meet community development needs having a particular urgency, as defined in 24 CFR 570.208. The Subrecipient certifies that the activities carried out under this Agreement will meet the following National Objective: The proposed activity qualifies as a Low-Moderate Income Limited Clientele (LMC) benefit under §570.208(2) to facilitate economic development under §570.201(o) - Matrix Code 18C. C. Levels of Accomplishment – Goals and Performance Measures The goal for businesses to be served under this program is 26 in the Amended 2019 Annual Action Plan. The Subrecipient agrees to provide microenterprise grant assistance services based upon that general goal. D. Staffing The Subrecipient will commit to assign staff as necessary to carry out the provisions of this contract for the CDBG and CDBG-CV Program. Any procurement of professional service contracts must meet the requirements of federal, state, and local laws, and this contract. Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 4 - E. Performance Monitoring The Grantee will monitor the performance of the Subrecipient against goals and performance standards as stated above. Substandard performance as determined by the Grantee will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. II. TIME OF PERFORMANCE Services of the Subrecipient must start on the 22nd day of September, 2020 and end on the 25th day of January, 2021. The term of this Agreement and the provisions herein must be extended to cover any additional time period during which the Subrecipient remains in control of CDBG funds or other CDBG assets. III. BUDGET Line Item Amount Microenterprise Grants - CDBG $50,000 Microenterprise Grants – CDBG-CV 83,927 TOTAL $133,927 Any amount expended for Program Operations must not exceed 10% of the Total Grant Amount. Any costs and time charged must be documented through the appropriate means (i.e., invoices, receipts, time and attendance records, etc.) and submitted at the time of payment request. The documentation must be kept on file and will be reviewed at financial monitoring. There are no indirect costs authorized to be included in the billing. In addition, the Grantee may require a more detailed budget breakdown than the one contained herein, and the Subrecipient must provide such supplementary budget information in a timely fashion in the form and content prescribed by the Grantee. Any amendments to the budget must be approved in writing by both the Grantee and the Subrecipient. IV. PAYMENT It is expressly agreed and understood that the total amount to be paid by the Grantee under this Agreement shall not exceed $133,927. Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in Paragraph III herein and in accordance with performance. If applicable, expenses for general administration shall also be paid against the Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 5 - line item budgets specified in Paragraph III and in accordance with performance. Payments may be contingent upon certification of the Subrecipient’s financial management system in accordance with the standards specified in 24 CFR 84.21. V. NOTICES Notices required by this Agreement shall be in writing and delivered via mail (postage prepaid), commercial courier, or personal delivery or sent by facsimile or other electronic means. Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending. All notices and other written communications under this Agreement shall be addressed to the individuals in the capacities indicated below, unless otherwise modified by subsequent written notice. Communication and details concerning this contract shall be directed to the following contract representatives: Grantee Lori Barnett Community Development Director East Wenatchee City Hall 271 9th St. NE East Wenatchee, WA 98802 Phone: 509.884.5396 Fax: 509.884.6233 Email: lbarnett@eastwenatcheewa.gov Subrecipient Jim Kuntz Chief Executive Officer Chelan Douglas Regional Port Authority One Campbell Parkway, Suite A East Wenatchee, WA 98802-9290 Phone: 509.884.4700 Fax: 509.662.5151 Email: Jim@cdrpa.org VI. SPECIAL CONDITIONS Venue and Law Unless preempted by federal law, the laws of the State of Washington govern the interpretation, construction, and enforcement of this Agreement. The venue for any dispute regarding the terms of this Agreement is Douglas County Superior Court. In the event of a lawsuit between the parties to this Agreement, the substantially prevailing party shall be entitled to recover judgment against the other party for reasonable attorney’s fees and other costs either at trial or on appeal. VII. GENERAL CONDITIONS A. General Compliance The Subrecipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the U.S. Housing and Urban Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 6 - Development regulations concerning Community Development Block Grants (CDBG)) including subpart K of these regulations, except that (1) the Subrecipient does not assume the recipient’s environmental responsibilities described in 24 CFR 570.604 and (2) the Subrecipient does not assume the recipient’s responsibility for initiating the review process under the provisions of 24 CFR Part 52. The Subrecipient also agrees to comply with all other applicable Federal, state and local laws, regulations, and policies governing the funds provided under this contract. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. B. “Independent Contractor” Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Subrecipient shall at all times remain an “independent contractor” with respect to the services to be performed under this Agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers’ Compensation Insurance, as the Subrecipient is an independent contractor. C. Hold Harmless The Subrecipient shall hold harmless, defend and indemnify the Grantee from any and all claims, actions, suits, charges and judgments whatsoever that arise out of the Subrecipient’s performance or nonperformance of the services or subject matter called for in this Agreement. D. Workers’ Compensation (Subsection not applicable) E. Insurance & Bonding The Subrecipient shall carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the Grantee. The Subrecipient shall comply with the bonding and insurance requirements of 24 CFR 84.31 and 84.48, Bonding and Insurance. F. Grantee Recognition The Subrecipient shall insure recognition of the role of the Grantee in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition, the Subrecipient will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 7 - G. Amendments The Grantee or Subrecipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the Grantee’s governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Grantee or Subrecipient from its obligations under this Agreement. The Grantee may, in its discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Grantee and Subrecipient. H. Suspension or Termination In accordance with 24 CFR 85.43, the Grantee may suspend or terminate this Agreement if the Subrecipient materially fails to comply with any terms of this Agreement, which include (but are not limited to) the following: 1. Failure to comply with any of the rules, regulations or provisions referred to herein, or such statutes, regulations, executive orders, and HUD guidelines, policies or directives as may become applicable at any time; 2. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper manner its obligations under this Agreement; 3. Ineffective or improper use of funds provided under this Agreement; or 4. Submission by the Subrecipient to the Grantee reports that are incorrect or incomplete in any material respect. In accordance with 24 CFR 85.44, this Agreement may also be terminated for convenience by either the Grantee or the Subrecipient, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if in the case of a partial termination, the Grantee determines that the remaining portion of the award will not accomplish the purpose for which the award was made, the Grantee may terminate the award in its entirety. Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 8 - VIII. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Subrecipient agrees to comply with 24 CFR 84.21−28 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Subrecipient shall administer its program in conformance with OMB Circulars A-122, “Cost Principles for Non-Profit Organizations”. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record Keeping 1. Records to be Maintained The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21−28; and g. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. 2. Retention The Subrecipient shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of four (4) years. The retention period begins on Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 9 - the date of the submission of the Grantee’s annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the four-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the four-year period, whichever occurs later. 3. Client Data The Subrecipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Grantee Monitors or their designees for review upon request. 4. Disclosure The Subrecipient understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the Grantee’s or Subrecipient’s responsibilities with respect to services provided under this contract, is prohibited by the Public Records Act as set forth in Chapter 42.56 RCW unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. 5. Close-outs The Subrecipient’s obligation to the Grantee shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Grantee), and determining the custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the Subrecipient has control over CDBG funds, including program income. 6. Audits & Inspections All Subrecipient records with respect to any matters covered by this Agreement shall be made available to the Grantee, grantor agency, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 10 - must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Subrecipient hereby agrees to have an annual agency audit conducted in accordance with current Grantee policy concerning subrecipient audits and OMB Circular A-133. C. Reporting and Payment Procedures 1. Program Income No program income shall be derived from this program. 2. Indirect Costs No indirect costs shall be charged to this program. 3. Payment Procedures The Grantee will pay to the Subrecipient funds available under this Agreement based upon information submitted by the Subrecipient and consistent with any approved budget and Grantee policy concerning payments. Payments will be made for eligible expenses actually incurred by the Subrecipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Subrecipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Subrecipient. 4. Progress Reports The Subrecipient shall submit regular Progress Reports to the Grantee in the form, content, and frequency as required by the Grantee. D. Procurement 1. Compliance The Subrecipient shall comply with current Grantee policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this Agreement. 2. OMB Standards Unless specified otherwise within this agreement, the Subrecipient shall procure all materials, property, or services in accordance with the requirements of 24 CFR 84.40−48. Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 11 - 3. Travel The Subrecipient is not authorized to use funds under this Agreement for travel outside the metropolitan area. E. Use and Reversion of Assets The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502, 570.503, and 570.504, as applicable, which include but are not limited to the following: 1. The Subrecipient shall transfer to the Grantee any CDBG funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination. 2. No acquisition of real property is authorized with funds under this Agreement. IX. RELOCATION, REAL PROPERTY ACQUISITION AND ONE-FOR- ONE HOUSING REPLACEMENT - (Section not applicable.) X. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Subrecipient agrees to comply with local and state civil rights ordinances and with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107 and 12086. 2. Nondiscrimination The Subrecipient agrees to comply with the non-discrimination in employment and contracting opportunities laws, regulations, and executive orders referenced in 24 CFR 570.607, as revised by Executive Order 13279. The applicable non-discrimination provisions in Section 109 of the HCDA are still applicable. 3. Land Covenants This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P. L. 88-352) and 24 CFR 570.601 and 570.602. In Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 12 - regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this contract, the Subrecipient shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the Grantee and the United States are beneficiaries of and entitled to enforce such covenants. The Subrecipient, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. 4. Section 504 The Subrecipient agrees to comply with all Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination against the individuals with disabilities or handicaps in any Federally assisted program. The Grantee shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement. B. Affirmative Action 1. Approved Plan The Subrecipient agrees that it shall be committed to carry out pursuant to the Grantee’s specifications an Affirmative Action Program in keeping with the principles as provided in President’s Executive Order 11246 of September 24, 1966. The Grantee shall provide Affirmative Action guidelines to the Subrecipient to assist in the formulation of such program. The Subrecipient shall submit a plan for an Affirmative Action Program for approval prior to the award of funds. 2. Women- and Minority-Owned Businesses (W/MBE) The Subrecipient will use its best efforts to afford small businesses, minority business enterprises, and women’s business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this contract, the terms “small business” means a business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and “minority and women’s business enterprise” means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, “minority group members” are Afro-Americans, Spanish-speaking, Spanish surnamed or Spanish-heritage Americans, Asian-Americans, and American Indians. The Subrecipient may rely on written representations by businesses regarding their Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 13 - status as minority and female business enterprises in lieu of an independent investigation. 3. Access to Records The Subrecipient shall furnish and cause each of its own subrecipients or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Grantee, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. 4. Notifications The Subrecipient will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or worker’s representative of the Subrecipient’s commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5. Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action employer. 6. Subcontract Provisions The Subrecipient will include the provisions of Paragraphs X.A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own subrecipients or subcontractors. C. Employment Restrictions 1. Prohibited Activity The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for: political activities; inherently religious activities; lobbying; political patronage; and nepotism activities. 2. Labor Standards The Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable Federal, state and local laws and regulations pertaining to labor standards insofar as Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 14 - those acts apply to the performance of this Agreement. The Subrecipient agrees to comply with the Copeland Anti-Kick Back Act (18 U.S.C. 874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. The Subrecipient shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the Grantee for review upon request. The Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance provided under this contract, shall comply with Federal requirements adopted by the Grantee pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. The Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. 3. “Section 3” Clause a. Compliance Compliance with the provisions of Section 3 of the HUD Act of 1968, as amended, and as implemented by the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this contract, shall be a condition of the Federal financial assistance provided under this contract and binding upon the Grantee, the Subrecipient and any of the Subrecipient’s subrecipients and subcontractors. Failure to fulfill these requirements shall subject the Grantee, the Subrecipient and any of the Subrecipient’s subrecipients and subcontractors, their successors and assigns, to those sanctions specified by the Agreement through which Federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists that would prevent compliance with these requirements. The Subrecipient further agrees to comply with these “Section 3” requirements and to include the following language in all subcontracts executed under this Agreement: Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 15 - “The work to be performed under this Agreement is a project assisted under a program providing direct Federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701). Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to low- and very low-income residents of the project area, and that contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for low- and very low-income persons residing in the metropolitan area in which the project is located.” The Subrecipient further agrees to ensure that opportunities for training and employment arising in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project are given to low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to low- and very low-income persons within the service area of the project or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs; and award contracts for work undertaken in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project to business concerns that provide economic opportunities for low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to business concerns that provide economic opportunities to low- and very low-income residents within the service area or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs. The Subrecipient certifies and agrees that no contractual or other legal incapacity exists that would prevent compliance with these requirements. b. Notifications The Subrecipient agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 16 - a notice advising said labor organization or worker’s representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. c. Subcontracts The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the tract upon a finding that the subcontractor is in violation of regulations issued by the grantor agency. The Subrecipient will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. D. Conduct 1. Assignability The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Grantee thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Grantee 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 Grantee. 2. Subcontracts a. Approvals The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of the Grantee prior to the execution of such agreement. b. Monitoring The Subrecipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 17 - c. Content The Subrecipient shall cause all of the provisions of this contract in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. d. Selection Process The Subrecipient shall undertake to insure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis in accordance with applicable procurement requirements. Executed copies of all subcontracts shall be forwarded to the Grantee along with documentation concerning the selection process. 3. Hatch Act The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C. 4. Conflict of Interest The Subrecipient agrees to abide by the provisions of 24 CFR 84.42 and 570.611, which include (but are not limited to) the following: a. The Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds. b. No employee, officer or agent of the Subrecipient shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. c. No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted 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 financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG-assisted activity, or with respect to the proceeds from the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 18 - a “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Grantee, the Subrecipient, or any designated public agency. 5. Lobbying The Subrecipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 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 this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions; and c. It will require that the language of paragraph (d) of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all Subrecipients shall certify and disclose accordingly: d. Lobbying Certification 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.C. 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. Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 19 - 6. Copyright If this contract results in any copyrightable material or inventions, the Grantee and/or grantor agency reserves the right to royalty-free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for governmental purposes. 7. Religious Activities The Subrecipient agrees that funds provided under this Agreement will not be utilized for inherently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction, or proselytization. XI. ENVIRONMENTAL CONDITIONS – (Section not applicable) XII. SEVERABILITY If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect. XIII. SECTION HEADINGS AND SUBHEADINGS The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. XIV. WAIVER The Grantee’s failure to act with respect to a breach by the Subrecipient does not waive its right to act with respect to subsequent or similar breaches. The failure of the Grantee to exercise or enforce any right or provision shall not constitute a waiver of such right or provision. XV. ENTIRE AGREEMENT This agreement constitutes the entire agreement between the Grantee and the Subrecipient for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between the Grantee and the Subrecipient with respect to this Agreement. Subrecipient Agreement: Chelan Douglas Regional Port Authority East Wenatchee CDBG-CV Microenterprise Grant Program (CDBG PY 2019) - 21 - Exhibit A HUD Income Limits Wenatchee, WA MSA Income Limits Median Family Income: $69,000 FY 2020 Income Limit Category 1 2 3 4 5 6 7 8 Extremely Low (30%) Income Limits ($) 14,600 17,240 21,720 26,200 30,680 35,160 39,640 44,120 Very Low (50%) Income Limits ($) 24,300 27,800 31,250 34,700 37,500 40,300 43,050 45,850 Low - Mod (80%) Income Limits ($) 38,850 44,400 49,950 55,500 59,950 64,400 68,850 73,300 Persons in Family