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HomeMy WebLinkAboutContract 33503 CITY SECRETARY CONTRACT NO STATE OF TEXAS § COUNTY OF TARRANT § THIS contract ("Contract") is made and entered into by and between the City of Fort Worth ("City"), acting by and through Dale A. Fisseler, its duly authorized Assistant City Manager, and Ability Resources, Inc. ("ARI"), by and through William Fuller, its duly authorized Secretary. (Sometimes City and ARI are referred to individually as a "Party" and collectively as the"Parties"). WHEREAS, the City has received grant monies 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 (42 USC 5301 et seq.), for utilization in connection with its Community Development Block Grant ("CDBG"), Program No. B-05-MC-48-0010 for Year XXXI; WHEREAS, one of the national objectives of the CDBG program is to benefit low and moderate income citizens (the "National Objective"); WHEREAS, the assigned Catalog of Federal Domestic Assistance ("CFDA") for this Federal program is number 14.218; WHEREAS, ARI has received a Firm Commitment for Capital Advance Financing from I-IUD in the amount of FIVE HUNDRED EIGHTY-TWO THOUSAND ONE HUNDRED AND NO/100 DOLLARS ($582,100.00) to assist in the financing of a multifamily rental housing project for persons with disabilities in accordance with Section 811 of the National Affordable Housing Act of 1990, as amended (42 U.S.C. 8013 et seq) and the applicable regulations (the "Section 811 Program"); WHEREAS, the Section 811 Program requires that Capital Advance Financing be made only to eligible single-purpose nonprofit organizations, therefore ARI created Integrated Living Spaces, Inc., a Texas non-profit corporation and a sole asset entity, for the purpose of owning and managing for a minimum of forty (40) years an affordable multifamily rental housing project to be known as the Willow Bend Creek Apartments; WHEREAS, City citizens and the City Council have determined that decent, safe, affordable and accessible housing is needed by City's low and moderate income citizens with special needs. NOW, THEREFORE, THIS AGREEMENT FURTHER WITNESSETH: THAT, the Parties covenant and agree as follows: CDBG Year XXXI Contract Rev. 05-08-06 Ability Resources Inc. Page I 05-15-06 P02 :09 IN 1.Scope of Services a. Integrated Living Spaces, Inc. ("ILSI") will construct a twenty-two (22) unit affordable apartment complex to be known as the Willow Bend Creek Apartments to provide a quality living environment for low-income residents with disabilities (the "Project"). The apartment complex will be constructed in two (2) phases using a Section 811 Capital Advance Grant and a forgivable, non-interest bearing subordinate loan from CDBG funds. Phase I will include nine (9) one-bedroom units and a laundry facility, office and resource room. The CDBG funds will be used specifically for infrastructure and site improvements during Phase I of the Project. b. ARI must convey the real property on which Phase I of the Project is to be constructed to ILSI in order to fulfill certain requirements of the Section 811 Program. To secure performance of ARI's obligations under this Contract, ILSI will execute a forgivable, non-interest bearing Note in favor of City secured by a Deed of Trust against the real property more particularly described as Lot 21132, Block 4, of BANKHEAD ESTATES, an addition to the Map thereof recorded in Cabinet A, Slide 10170, of the Plat Records of Tarrant County, Texas (the "Property"). City's loan shall be subordinate to the Section 811 financing provided by HUD and shall contain such covenants and conditions required by the Section 811 Program and HUD, including but not limited to the conditions under which City may enforce its loan in the event of default. If the Project is occupied by low income tenants for a period of five (5) years as required by the Section 811 Program and CDBG Regulations, the City loan will be forgiven. The five (5) year period shall commence on the date of execution of this Contract. c. The term of this Contract begins on the date of its execution and terminates one (1) year thereafter except for any provisions relating to the fulfillment of the CDBG requirement to meet the National Objective as hereinafter defined. This Contract may be extended or renewed for an additional one (1) year term. ARI shall request such extension in writing and submit the request to City sixty (60) days prior to the end of the Contract term. Any such extension must be in writing as an amendment to this Contract and approved by the City Manager and his or her designee. d. ARI will provide the services and activities as set forth in Exhibit "A" - Project Summary in accordance with Exhibit "B"- Project Activities and Schedule. e. ARI agrees to meet the National Objective of activities benefiting low and moderate- income individuals; and to maintain full documentation supporting fulfillment of this National Objective in its files. All such documentation shall be furnished to City upon request if necessary for City to fulfill its obligations under its Federal grant. L City will monitor and evaluate ARI's performance using goals and performance standards required in this Contract. Substandard performance as determined by City will constitute non-compliance with this Contract. If action to correct such substandard performance is not taken by ARI within a reasonable period of time after being notified in writing by City, procedures to suspend or terminate the Contract will be initiated. 2. Compensation and Method of Payment CDBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. Page 2 a. City will disburse CDBG Year XXXI funds ("CDBG Funds") in an amount up to FIFTY FIVE THOUSAND AND NO/100 DOLLARS ($55,000.00) to ARI for reimbursement of eligible expenses for construction costs and site improvements as more particularly described in Exhibit "A"—Project Summary. b. Payment will be processed by City following receipt from ARI of the following monthly financial documents: (1) Attachment I-Request for Funds, (2) Attachment II-Detail Statement of Costs, and (3) Attachment III-Expenditures Worksheet. Payment by City to ARI shall require completion of all City forms and copies of adequate supporting documentation verifying the eligibility of expenses. No additional CDBG Funds shall be disbursed without the required reports and documentation verifying and accounting for previously disbursed CDBG Funds. Reimbursement for the payment of eligible expenses shall be made against the line item budget specified in Exhibit "C"-Project Budget and in accordance with performance specified in Exhibit "B"-Project Activities and Schedule. Any improvements for which CDBG Funds are used are subject to inspection by City Housing Department inspectors prior to any such reimbursement. City is under no obligation to disburse funds for expenditures that occurred prior to the first day of the month for which the reports are submitted. Costs eligible for reimbursement may, in City's sole discretion, include certain costs directly related to and in support of the Project, as verified by City, which were incurred prior to the execution of this Contract. c. ARI agrees to utilize all disbursed CDBG Funds exclusively for the benefit of the Project. ARI agrees that all CDBG Funds will be expended in accordance with Exhibit "C"- Project Budget. ARI may not increase or decrease line item amounts in the approved CDBG Funds portion of Exhibit "C" - Project Budget without City's prior written approval. d. It is understood that the total cost of the Project is SIX HUNDRED FORTY ONE THOUSAND FIVE HUNDRED FIFTY NINE AND NO/100 DOLLARS ($641,559.00) and that ARI will obtain from other sources the remaining funds in excess of the CDBG Funds as detailed in Exhibit "C" - Project Budget. ARI will notify City promptly of any additional funding it receives for the development of the Project, and City reserves the right to amend Exhibit "C" - Project Budget in such instances. e. ARI agrees to keep all CDBG Funds on hand in interest bearing accounts. All interest earned shall be reported to City on a monthly basis, at the same time as submission of the monthly report following the end of the Contract month during which the interest was earned. Interest in an amount of $25.00 per month or less per month may be used for authorized Project expenses. These amounts must be reported on the financial statements filed pursuant to this Contract. Interest earned in excess of$25.00 per month is subject to remittance to the City as directed by City. f. ARI will not commingle CDBG Funds with any other funds in any manner that would prevent City from readily identifying expenditures for developing the Project. 3. Uniform Administrative Requirements and Program Management Standards CDBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. � y� a. Financial Management i. Accounting Standards ARI agrees to comply with 24 CFR 84 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. ii. Cost Principles ARI shall administer the Project in conformance with OMB Circular A-122, "Cost Principles for Non-Profit Organizations" and attachments and revisions thereto, regarding principles for determining costs for the Project. b. Documentation and Record Keeping i. Requirement ARI shall maintain all records pertinent to the activities to be funded under this Contract required by HUD regulations specified in 24 CFR § 570.506. In addition, ARI agrees to keep records to fully document all expenditures charged to the CDBG portion of the Project. The documentation must support the amounts charged to Project and demonstrate that the expenditures were appropriate to the stated goals of the Project and allowable under applicable Federal, state and City guidelines. Copies of such documentation shall be furnished to City as needed to support request for disbursements of CDBG Funds. ii. Retention (1) All records pertaining to the Project shall be retained for four (4) years following the date of termination of this Contract. ARI may destroy Project records at the end of this four(4)year period if no outstanding audit finding exists. (2) ARI will retain Project loan records until (4)years after the expiration of the loan. iii. Property Records ARI shall maintain real property inventory records which clearly identify properties purchased, improved, or sold. Properties retained shall meet eligibility criteria and shall conform with 24 CFR § 570.505. iv. Close Outs ARI's obligation to City 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 project assets ( including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to City), and determining the custodianship of records. v. Audits and Inspections (1) City, HUD, and the United States Comptroller General, or their respective representatives, shall have access to any books, documents, records and papers relating to the operations of ARI and ILSI under this Contract for the purpose of audit, examination, exception and transcription at all of ARI's offices at all reasonable hours. (2)All non-federal entities that expend $500,000 or more in Federal funds within one (1) year, regardless of the source of the Federal award, must submit to City an annual audit prepared in accordance with 24 CFR Sections § 570.502-570.503 generally, with specific reference to OMB Circulars (with attachments) A-122, "Cost Principles for Non-Profit Organizations", and A-133, "Audits of States, Local Governments, and Non-Profit CDBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. —_. - Organizations", as appropriate. The audit may cover either ARI's fiscal year during which this Contract is in force or cover the period of this Contract. The audit must be prepared by an independent certified public accountant, be completed within twelve (12) months following the end of the period being audited and be submitted to City within thirty (30) days of its completion. ARI's audit certification is attached hereto as Exhibit D - Audit N Certification Form and Audit Requirements. The Audit Certification Form must be submitted to City within sixty (60) days of the end of the period being audited (ARI's fiscal year). Costs of preparation of this audit may be an allowable expenditure of CDBG Funds in an amount proportional to that of the CDBG Funds used in ARI's total agency operating budget. Non-profit entities that expend less than $500,000 a year in Federal funds are exempt from Federal audit requirements for that year, but records must be available for review or audit by appropriate officials of the Federal agency, City, and General Accounting Office ("GAO"). ARI agrees to submit to City copies of any audit submitted to HUD by ILSI in compliance with the requirements of the Section 811 Program and at City's request, agrees to furnish an annual audit on ILSI to City. (3) City reserves the right to perform an audit of ARI's and ILSI's agency operations and finances at any time during the term of this Contract, if City determines that such audit is necessary for City's compliance with OMB Circular A-133. ARI agrees to allow access to all relevant books, records and materials. If such audit reveals a questioned practice or expenditure, such questions must be resolved within fifteen (15) days after notice to ARI. If questions are not resolved within this period, City reserves the right to withhold further funding under this and/or future contract(s) with ARI. (4) If as a result of any audit it is determined that ARI or ISLI have misused, misapplied or misappropriated all or any part of the CDBG Funds, ARI agrees to reimburse the City the amount of such monies so misused, misapplied or misappropriated, plus the amount of any sanctions, penalty or other charge levied against City because of such misuse, misapplication or misappropriation. 4. Reporting Procedures a. Financial Reports ARI will submit to City on a monthly basis: (1) Attachment I-Request for Funds, (2) Attachment II-Detailed Statement of Costs, (3) Attachment III-Expenditures Worksheet, as applicable, for expenses incurred for services and activities accomplished by ARI in performance of this Contract. Actual cash receipts for claimed expenditures must be provided at the time the request for funds is presented. The reports must be signed by a duly authorized agent of ARI and submitted by the 15th of the month following the month being reported. City is under no obligation to disburse funds for expenditures that occurred prior to the firs day of the month for which the report is submitted. b. Progress Reports , ARI will submit to City on a monthly basis: (1)Attachment IV - Monthly Report, and (2) Attachment IVa - Project Services Report for Services and activities undertaken by CDBG Year XXXI Contract Rev. 05-08-06 Ability Resources Inc. petge ARI in performance of this Contract. The report will be signed by a duly authorized agent of ARI and submitted by the 15'h of the month following the month that is reported. City is under no obligation to disburse funds for expenditures that occurred prior to the firs day of the month for which the report is submitted. c. Program Income ARI agrees that all program income from operation of the Project in proportion to the amount of CDBG Funds received hereunder will be expended prior to expending CDBG Funds and that any such program income is subject to the terms of this Contract. ARI may expend CDBG Funds only if program income is insufficient to meet all eligible Project activity expenses. ARI agrees to return to City at the end of the Contract any remaining program income earned from operation of the Project in proportion to the amount of CDBG Funds in Exhibit "A" - Project Summary and Exhibit "C" -Project Budget. d. Procurement L Compliance ARI shall comply with City policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property, as defined by such policy, procured with funds provided under this Contract. ii. OMB Standards ARI shall procure all materials, property, or services in accordance with the requirements of 24 CFR Part 84, Procurement Standards and Property Standards, as modified by 24 CFR Part 570.502(b)(6), covering utilization and disposal of property. e. Tenant Records L ARI will keep or cause to be kept an accurate record of all actions taken and all CDBG Funds expended, with source documents, in performance of this Contract. Such records shall be kept for the period mandated by the CDBG Regulations and this Contract. ii. ARI will obtain and keep on file the following information on each tenant served by the Project and furnish to City on request: a. Annual income and size of the household; b. Race and ethnicity of each tenant household, using reporting categories as required by HUD. c. Whether the head of household is male or female, whether the head of household is single, and whether there are children in the household; d. Any additional Project performance data and statistical information as may be required by the City Housing Department, CDBG Regulations or other HUD regulations and any amendments thereto. iii.ARI will keep on file the following information and documentation and furnish to City on request: a. Proof that the Project meets applicable property, building construction and housing quality standards; b. Documentation verifying compliance with any applicable affirmative marketing requirements and existence of acceptable procedures; c. Documentation verifying compliance with ARI's or ILSI's temporary relocation plan and HUD relocation requirements, if applicable. CDBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. 5. Reversion of Assets a.ARI agrees to return to City any CDBG Funds remaining on hand at the end of the Contract. b. All property purchased with CDBG Funds under this Contract will be used solely for operation of the Project. ARI agrees to obtain City approval prior to purchase of property and ARI agrees to notify City upon receipt of property so that it may be properly tagged and inventoried. Title to such property will be vested in the City, and ARI will deliver all such property to City for disposition, at City's sole discretion at the termination of the Project. c. In the event ARI is dissolved, this Contract shall thereupon terminate. In the event this Contract is terminated with or without cause, or for any reason whatsoever, all CDBG assets including cash, interest payments thereon from loans or otherwise, all outstanding notes, mortgages and other instruments to secure CDBG Funds shall belong to the City and shall be transferred to the City or to such assignees as the City may designate. d. Real property under either ARI's or ILSI's control that was acquired or improved, in whole or in part, with CDBG Funds furnished under this Contract in excess of$25,000.00 shall be used to meet one of the CDBG National Objectives until five (5) years after the expiration of this Contract. If ARI or ILSI fails to use CDBG-assisted real property in a manner that meets a CDBG National Objective for the prescribed time period, ARI shall repay City the CDBG Funds expended. ARI and ILSI may retain real property acquired or improved under this Contract after the expiration of the five (5) year period. 6. Applicable Laws a. Federal ARI agrees to comply with the following laws and the applicable regulations as they are currently written or are hereafter amended during performance of this Contract: • Regulations at 24 CFR Part 570 pertaining to CDBG ("CDBG Regulations" or Regulations") • Title VI of the Civil Rights Act of 1964 (42 USC 2000d et.req.) ' • Title VIII of the Civil Rights Act of 1968 (42 USC 3601 et.req.) • Executive Orders 11063, 11246, as amended by Executive Orders 11375 and 12086 and as supplemented by 41 CFR Part 60 • The Age Discrimination in Employment Act of 1967 (29 USC 621) • The Age Discrimination Act of 1975 (42 USC 6101 et seq.) • Section 504 of the Rehabilitation Act of 1973 (29 USC 794 et seq.) and 24 CFR Part 8 where applicable • The Americans with Disabilities Act of 1990 • Executive Order 11063, Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107 and 12086. CDBG Year XXXI Contract Rev. 05-08-06 Ability Resources Inc. Page 7 • National Environmental Policy Act of 1969, as amended, 42 USC 4321 et req. ("NEPA") and the related authorities listed 24 CFR Part 58 • The Clean Air Act, as amended (42 USC 7401 et req.), the Clean Water Act of 1977, as amended (33 USC 1251 et seg.) and the related EPA regulations at 40 CFR Part 50, as amended from time to time, and Executive Order 11738. In no event shall any amount of the assistance provided under this Contract be utilized with respect to a facility that has given rise to a conviction under the Clean Air Act or the Clean Water Act • Federal Water Pollution Control Act, as amended (33 U.S.C. 1251 et seg.) relating to inspection, monitoring, entry, reports, and information, as well as other requirements spelled out in Sections 114 and 308 and regulation and guidelines issued thereunder. • Flood Disaster Protection Act of 1973 (42 USC 4001 et seg.) • The Immigration Reform and Control Act of 1986 (8 USC 1101 et seg.), specifically including the provisions requiring employer verification of the legal status of its employees • The Housing and Community Development Act of 1987 (42 USC 5301 et seg.) • The Americans with Disabilities Act of 1990 (42 USC 12101 et seg.) • Drug Free Workplace Act of 1988 (41 USC 701 et seg.) and 24 CFR Part 23, Subpart F • Regulations as 24 CFR Part 87 related to lobbying, including the requirement that certifications and disclosures be obtained from all covered persons • Executive Order 12549 and 24 CFR Part 5.105 (c) pertaining to restrictions on participation by ineligible, debarred, or suspended persons or entities. • Regulations at 24 CFR Part 882.708 (c) pertaining to site and neighborhood standards for new constructions projects b. Section 3 of the Housing and Urban Development Act of 1968, as amended, (12 USC 1701 u et seq.) and its related regulations at 24 CFR Part 135 As the work to be performed under this Contract is on a project assisted under a program providing direct Federal financial assistance from HUD, Section 3 of 24 CFR 135.38 ("Section 3") requires that the following clause be inserted in all covered contracts ("Section 3 Clause"): "A. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. . B. The Parties to this contract agree to comply with HUD's regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this contract, the Parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a CDBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. rase 8 notice advising the labor organization or workers' representative of the contractor's commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR Part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR Part 135. F. Noncompliance with HUD's regulations in 24 CFR Part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 and section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b)." City and ARI understand and agree that compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of HUD shall be a condition of the Federal financial assistance provided to the Project, binding upon City and ARI, and their respective successors, assigns and contractors. Failure to fulfill these requirements shall subject ARI and its contractors, and their respective successors and assigns, to those sanctions specified by the Grant Agreement through which Federal assistance is provided and to such sanctions as are specified by 24 CFR Part 135. c. Other Laws ARI covenants and agrees that its officers, members, agents, employees, Project participants and contractors shall abide by and comply with all other laws, Federal, state and local, relevant to the performance of this Contract, including all applicable City ordinances, rules and regulations and the Housing and Community Development Act of 1974 (43 USC 5301 et CDBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. Page 9 seq.), as amended, and the Community Development Block Grant Entitlement Program Regulations, as amended, (24 CFR Part 570 et seq.). ARI further promises and agrees that it has read, and is familiar with, terms and conditions of the Community Development Block Grant under which CDBG Funds are granted, including but not limited to any applicable provisions of the CDBG Regulations, and that it will fully comply with them. It is agreed and understood that, if City notifies ARI of any such violation on the part of ARI or any of its officers, members, agents, employees, Project participants or contractors, then ARI shall immediately desist from and correct such violation. d. Labor Standards i. ARI aggress 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 those acts apply to the performance of this Contract. ARI 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. ARI shall maintain documentation that demonstrates compliance with hour and wage requirements of this Contract and CDBG Regulations. Such documentation shall be made available promptly to City for review upon request. ii. ARI agrees that, except with respect to the rehabilitation or construction of residential property containing less than eight (8) units, all contractors engaged under contract 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 City 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 these regulations are imposed by state or local law, nothing hereunder is intended to relieve ARI of its obligation, if any, to require payment of the higher wage. ARI shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. 7. Nondiscrimination a. ARI will not unlawfully discriminate against any person or persons because of sex, race, religion, age, disability, color, national origin, or familiar status, nor will ARI permit its officers, members, agents, employees, contractors or Project participants to,engage in such discrimination. b. ARI covenants that neither it nor any of its officers, members, agents, employees, Project participants or contractors, while engaged in performing this Contract, shall, in connection with the employment, advancement or discharge of employees or in connection with the terms, conditions or privileges of their employment, discriminate against persons because of their age except on the basis of bona fide occupational qualification, retirement plan or statutory requirement. CDBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. ��- c. ARI further covenants that neither it.nor any of its officers, members, agents, employees, Project participants or contractors or persons acting on their behalf, shall specify, in solicitations or advertisements for employees to work on this Contract, a maximum age limit for such employment unless the specified maximum age limit is based upon a bona fide occupational qualification, retirement plan or statutory requirement. d. In accordance with the provisions of the Americans With Disabilities Act of 1990 ("ADA"), ARI warrants that it and any and all of its contractors will not unlawfully discriminate on the basis of disability in the provision of services to the general public, nor in the availability, terms and/or conditions of employment for applicants for employment with ,ARI, or'employees of ARI or any of its contractors. ARI warrants it will fully comply with ADA's provisions and any other applicable Federal, state and local laws concerning disability and will defend, indemnify and hold City harmless against any claims or allegations asserted by third parties or contractors against City arising out of ARI's and/or its contractors' alleged failure to comply with the above-referenced laws concerning disability discrimination in the performance of this Contract. e. This Contract is made and entered into with reference specifically to the ordinances codified at Chapter 17,Article III, Division 3 "Discrimination in Employment Practices", of the City Code, and ARI hereby covenants and agrees that ARI, its officers, members, agents, employees and subcontractors, have fully complied with all provisions of same and that no employee, employee-applicant or Project participant has been discriminated against by the terms of such ordinances by either the ARI or its officers, members, agents, employees or subcontractors. 8. Prohibition Against Interest a. No member, officer or employee of City or its designees or agents; no member of the governing body of the locality in which the Project is situated; and no other public official of such locality or localities, who exercises any functions or responsibilities with respect to the Project funded hereunder during his or her tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed hereunder. ARI shall incorporate, or cause to be incorporated, like language prohibiting such interest in all contracts and subcontracts entered into in connection with the Project. b. No member, officer, employee, or Project participant of ARI or its contractors shall have a financial interest, direct or indirect, in this Contract or the CDBG Funds transferred hereunder or be financially interested, directly or indirectly, in the sale to ARI or ILSI of any land, materials, supplies or services purchased with CDBG Funds transferred hereunder, except on behalf of ARI, as an officer, employee, member or Project participant. Any willful violation of this paragraph with the expressed or implied, knowledge of ARI or its contractors shall render this Contract voidable by the City. 9. Minority and Women Business Enterprise Commitment CDBG Year XXXT Contract Rev. 05-08-06 Ability Resources Inc. ARI agrees to abide by the City's policy to involve Minority and Women Business Enterprises (MWBEs) in all phases of its procurement practices and to provide them an equal opportunity to compete for contracts for construction, provision of professional services, purchase of equipment and supplies and provision of other services required by City. ARI agrees to incorporate City Ordinance No. 15530, and all amendments or successor policies thereto, into all contracts and will further require all persons or entities with whom it contracts to comply with said Policy. 10. Non Assienment No assignment or delegation of duties under this Contract by ARI shall be effective without City's prior written approval. 11. Independent Contractor a. ARI shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of City. ARI shall have exclusive control of, and the exclusive right to control, the details of the work and services performed hereunder, and all persons performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, contractors, Project participants, licensees or invitees. The doctrine of respondeat superior shall not apply as between City and ARI, its officers, members, agents, servants, employees, contractors, Project participants, licensees or invitees, and nothing herein shall be construed as creating a partnership or joint enterprise between City and ARI. It is expressly understood and agreed that no officer, member, agent, employee, contractor, licensee or invitee of ARI, nor any Project participant hereunder, is in the paid service of City and that City does not have the legal right to control the details of the tasks performed hereunder by ARI, its officers, members, agents, employees, contractors, Project participants, licensees or invitees. b. City shall in no way nor under any circumstances be responsible for any property belonging to ARI, its officers, members, agents, employees, contractors, Project participants, licensees or invitees, which may be lost, stolen, destroyed or in any way damaged; and ARI hereby indemnifies and holds harmless City and its officers, agents, and employees from and against any and all claims or suits. 12. Indemnification and Release a. ARI COVENANTS AND AGREES TO INDEMNIFY, HOLD HARMLESS AND DEFEND, AT ITS OWN EXPENSE, CITY AND ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED CDBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. Page 12 PERFORMANCE OR NONPERFORMANCE OF THIS CONTRACT AND/OR THE OPERATIONS, ACTIVITIES AND SERVICES OF THE PROJECT DESCRIBED HEREIN, WHETHER OR NOT CAUSED, IN WHOLE OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY, AND ARI HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY OF CITY AND ITS OFFICERS, AGENTS, SERVANTS, AND EMPLOYEES FOR ANY AND ALL CLAIMS OR SUITS FOR PROPERTY LOSS OR DAMAGE AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KINDS OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE EXECUTION, PERFORMANCE, ATTEMPTED PERFORMANCE OR NON-PERFORMANCE OF THIS CONTRACT AND AGREEMENT AND/OR THE OPERATIONS,ACTIVITIES AND SERVICES OF THE PROJECTS DESCRIBED HEREIN, WHETHER OR NOT CAUSED IN WHOLE OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY. ARI LIKEWISE COVENANTS AND AGREES TO AND DOES HEREBY INDEMNIFY AND HOLD HARMLESS CITY FROM AND AGAINST ANY AND ALL INJURY, DAMAGE OR DESTRUCTION OF PROPERTY OF CITY, ARISING OUT OF OR IN CONNECTION WITH ALL ACTS OR OMISSIONS OF ARI, ITS OFFICERS, MEMBERS, AGENTS, EMPLOYEES, SUBCONTRACTORS, INVITEES, LICENSEES, OR PROJECT PARTICIPANTS, OR CAUSED, IN WHOLE OR IN PART, BY ALLEGED NEGLIGENCE OF OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS OR SUBCONTRACTORS OF CITY. ARI AGREES TO AND SHALL RELEASE CITY, ITS AGENTS, EMPLOYEES, OFFICERS AND LEGAL REPRESENTATIVES FROM ALL LIABILITY FOR INJURY, DEATH, DAMAGE OR LOSS TO PERSONS OR PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO PERFORMANCE UNDER THIS CONTRACT, EVEN IF THE INJURY, DEATH, DAMAGE OR LOSS IS CAUSED BY THE CITY'S SOLE OR CONCURRENT NEGLIGENCE. ARI SHALL REQUIRE ALL OF ITS CONTRACTORS TO INCLUDE IN THEIR CONTRACTS A RELEASE AND INDEMNITY IN FAVOR OF THE CITY IN SUBSTANTIALLY THE SAME FORM AS ABOVE. 13. Insurance and Bonding a. ARI will maintain blanket fidelity coverage in the form of an insurance bond in the amount of $30,000.00 or more to insure against loss from the fraud, theft or dishonesty of any of ARI's or ILSI's officers, agents, trustees, directors or employees. The proceeds of such bond shall be used to reimburse City for any and all loss of CDBG Funds occasioned by such misconduct. To effectuate such reimbursement, such bond shall include a rider stating CUBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. Page 13 that reimbursement for any loss or losses thereunder shall be made directly to City for the use and benefit of ARI. b. ARI shall furnish to City, in a timely manner, certificates of insurance as proof that it has secured and paid for policies of commercial insurance as specified herein. Such insurance shall cover all insurable risks incident to or in connection with the execution, performance, attempted performance or nonperformance of this Contract. ARI shall maintain the following coverages and limits thereof: i. Commercial General Liability Insurance $500,000 each occurrence $1,000,000 aggregate limit ii. Business Automobile Liability Insurance $1,000,000 each accident on a combined single-limit basis, or $250,000 Property Damage $500,000 Bodily Injury per person per occurrence $2,000,000 Aggregate Insurance policy shall be endorsed to cover"Any Auto". Pending availability of the following coverage, and at the discretion of ARI, the policy shall be the primary responding insurance policy versus a personal auto insurance policy if or when in the course of ARI's business as contracted herein. iii. Directors and Officers Insurance Optional (Highly Recommended) Note: This insurance shall cover ARI and any associated Board of Directors members. iv. Workers' Compensation Insurance Part A: Statutory Limits Part B: Employer's Liability $100,000 each accident $100,000 disease - each employee $500,000 disease—policy limit Note: Such insurance shall cover employees performing work on any and all projects including but not limited to construction, demolition, and rehabilitation. ARI or its subcontractors shall maintain such coverage. In the event ARI's subcontractors do not maintain such coverage, ARI shall maintain the coverage on such subcontractors for each applicable subcontract. v. Additional Requirements Such insurance amounts shall be revised upward at City's option and ARI shall revise such amounts within thirty (30) days following notice to ARI of such requirements. ARI will submit to City documentation that it has obtained insurance coverage and has executed bonds as required in this Contract and prior to payment of any monies hereunder. Each insurance policy shall be endorsed to provide City with a maximum sixty (60) day's notice of cancellation, non-renewal, and/or material change in policy terms or coverage. Insurance policies required herein shall be endorsed to include the CDBG Year XXXI Contract Rev. 05-08-06 Ability Resources Inc. Page 14 City as an additional insured as its interests may appear. Additional insured parties shall include City employees, officers, agents, and volunteers. The Workers' Compensation Insurance policy shall be endorsed to include a waiver of subrogation, also referred to as a waiver of rights of recovery, in favor of City. c. Any failure on part of the City to request certificate(s) of insurance shall not be construed as a waiver of such requirement or as a waiver of the insurance requirements themselves. Insurers of ARI's insurance policies shall be licensed to do business in the state of Texas by the Department of Insurance or be otherwise eligible and authorized to business in the state of Texas. Insurers shall be acceptable to City insofar as their financial strength and solvency and each such company shall have a current minimum A.M. Best Key Rating Guide rating of A: VII or other equivalent insurance industry standard rating unless otherwise approved by City. Deductible limits on insurance policies shall not exceed $5,000 per occurrence unless otherwise approved by City. d. Any local, federal or other regulatory insurance or bonding requirements for the Project that exceed those specified herein shall prevail. e. ARI shall agree to require its contractors to maintain applicable insurance coverages, limits, and other requirements as those specified herein; and, ARI shall require its contractors to provide ARI with certificate(s) of insurance documenting such coverage. Also, ARI shall require its subcontractors to have City and ARI endorsed as additional insured (as their interests may appear) on their respective insurance policies. ARI shall require its contractors to maintain builders risk insurance at the limit of applicable project(s) costs when the value of materials involved exceeds $10,000 or at a different limit value limit as specified by City. 14 Waiver of Immunity If ARI is a charitable or nonprofit organization and has or claims an immunity or exemption (statutory or otherwise) from and against liability for damages or injury, including death, to persons or property; ARI hereby expressly waives its rights to plead defensively such immunity or exemption as against City. This section shall not be construed to affect a governmental entity's immunities under constitutional, statutory or common law. 15 Termination a.• In addition to, and not in substitution for, other provisions of this Contract regarding the provision of public services with CDBG funds, pursuant to Title I of the Housing and Community Development Act of 1974, as amended, it is expressly understood and agreed by and between the Parties that this Contract is wholly conditioned upon the actual receipt by City of Federal CDBG Year XXXI funds; that all monies distributed to ARI hereunder shall be exclusively from Federal monies received under said grant and not from any other monies of City; and that if such funds under City's grant are not timely forthcoming, in whole or in part, City may, at its sole discretion, terminate this Contract CDBG Year XXXI Contract R e V. - - _ Ability Resources Inc. ^ Pgc^�5 li and City shall not be liable for payment for any work or services performed by ARI under or in connection with this Contract. b. City may terminate this Contract whenever such termination is determined to be in City's best interest, in event of ARI's default, inability or failure to perform or to comply with any of the terms herein, or for other good cause. c. The Parties acknowledge that CDBG Funds paid hereunder are intended to provide only partial funding for ARI's program operations. City may terminate this Contract if non- CDBG funds included in the Operating Budget are not forthcoming to ARI during the Contract term. d. CDBG Funds provided hereunder may not be used as collateral for loans to ARI to defray program operation expenses, and any attempted use of CDBG Funds for this purpose will result in termination of this Contract by City. e. Termination will be effected by written notice to ARI, specifying the portions of the Contract affected and the effective date of termination. Upon ARI's receipt of such termination notice,ARI will: • Stop work under the Contract on the date and to the extent specified by City; • Cease expenditures of CDBG Funds, except as necessary for completion of the portions of the Contract not terminated; and • Terminate all orders and contracts to the extent that they relate to terminated portions of the Contract being terminated. E ARI will return to City any unused CDBG Funds previously advanced by City under this Contract within thirty (30)'days of the effective date of Contract termination. City will have no responsibility or liability for ARI's expenditures or actions occurring after the effective date of Contract termination. 16. Certification Rezardin,-Lobbying a. The undersigned representative of ARI hereby certifies, to the best of his or her knowledge and belief, that: No federal appropriated funds have been paid or will be paid, by or on behalf of ARI, 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. ARI shall require that the language of this certification be included in all contracts or agreements involving the expenditure of Federal funds. 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, ARI shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying" in accordance with its instructions. CDBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. Page 16 e. This certification is a material representation of fact upon which reliance was placed when this Contract was made or entered into. Submission of this certificate is a prerequisite for making or entering into this Contract imposed by 31 USC Section 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000.00 and no more than $100,000.00 for each such failure. 17. Miscellaneous Provisions a. All terms of this Contract shall apply to any and all contractors of ARI who are in any way paid with CDBG Funds or who perform any work in connection with ARI's Project. b. The provisions of this Contract are severable, and, if for any reason a clause, sentence, paragraph or other part of this Contract shall be determined to be invalid by a court or Federal or state agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect other provisions which can be given effect without the invalid provision. c. City's failure to insist upon the performance of any term or provision of this Contract or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of City's right to assert or rely upon any such term or right on any future occasion. d. Should any action, whether real or asserted, at law or in equity, arise out of the execution, performance, attempted performance or nonperformance of this Contract, venue for said action shall lie in Tarrant County,Texas. e. This written instrument and the exhibits attached hereto, which are incorporated by reference and made a part of this Contract for all purposes, constitute the entire agreement between the Parties concerning the work and services to be performed hereunder, and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. Any amendments to the terms of this Contract must be in writing and must be approved by each Party. E All notices required or permitted by this Contract must be in writing and are deemed delivered on the earlier of the date actually received or the third day following (i) deposit in a United States Postal Service post office or receptacle; (ii) with proper postage (certified mail, return receipt requested); and (iii) addressed to the other Party at the address set out in the preamble of this Contract or at such other address as the receiving Party designates by proper notice to the sending Party. g. None of the performance rendered under this Contract shall involve, and no portion of the CDBG Funds received hereunder shall be used, directly or indirectly, for the construction, operations, maintenance or administration of any sectarian or religious facility or activity, nor shall said performance rendered or funds received be utilized so as to benefit, directly or indirectly, any such sectarian or religious facility or activity. h. ARI represents that it possesses the legal authority, pursuant to any proper, appropriate and official motion, resolution or action passed or taken, to enter into this Contract and to perform the responsibilities herein required. CDBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. Page 17 i. ARI certifies that it has obtained a 501 (c) (3) Certificate from the Internal Revenue Service. ARI shall notify City in writing of any changes to its 501 (c) (3) tax-exempt status during the term of this Contract. [SIGNATURES APPEAR ON FOLLOWING PAGE] CDBG Year XXXI Contract Rev.05-08-06 Ability Resources Inc. Pae 18 �.2�h;:; IN WITNESS WHEREOF, the parties hereto have executed four copies of this Contract in l'ort Worth, Tarrant County, Texas, this ),�S day of ) 2006. CITY OF FO WOR 1 ABILIT'V�RESOUR ES, INC. 13y: By: Dale A. Fissele Williat"t Fuller, Secretary Assistant City Manager APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney ATTEST: Contracuthoriaation 40• City ecretary Date STATE OF TEXAS § COUNTY OF TARRANT § L I This instrument was acknowledged before me on s , 2006 by Dale A. Fisseler, the Assistant City Manager of the City of Fort rth, on behalf of the City of Fort Worth. PpV PU@•. JONI R JACOBS — 'z' '`L`�`• of NOTARY PUBLIC Not Public, State exas m rjN State of Texas Comm. Exp. 05-27-2007 STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on A!* Il 2006 by William Fuller, Secretary of Ability Resources, Inc., a Texas non-profit corporation, on behalf of said corporation. NAE IC�t �iiN/i Nota Public, State of Texas CDBG Year XXXI Contract NT Rev. 05-08-06 Ability Resources Inc. � ••;FkOF \ 19 � 201 •���\ ��������//JIIIIIINNIIN� EXHIBIT"A" PROJECT SUMMARY ABILITY RESOURCES, INC. WILLOW BEND CREEK APARTMENTS 2005 CDBG PERSONAL SERVICES $0.00 SUPPLIES $0.00 CONTRACTUAL SERVICES (NEW MULTI-FAMILY HOUSING DEVELOPMENT-INFRASTRUCTURE) $55,000.00 CAPITAL OUTLAY _ $0.00 TOTAL CDBG FUNDS _ $55,00.000 DESCRIPTION: Ability Resources, Inc. will construct and manage a nine (9) unit apartment development to be leased to low income persons with disabilities. CDBG Funds will be used to supplement a Section 811 Program Capital Advance Grant of $582,100 ARI received from HUD for the development of the Willow Bend Creek Apartments. CDBG Funds will provide funds for following infrastructure and site improvements: Scope of Work Installation of Water and Sewer Lines $32,000.00 Roads and Walks $10,000.00 Land Compaction $4,500.00 Retaining Wall $8,500.00 Total CDBG Funds $55,000.00 The contract term shall be for one year from the date of execution. ARI will submit a copy of its annual audit to City during the term of this Contract. PROGRAM OBJECTIVES: To construct and lease a nine (9) unit, new apartment development for low income persons with special needs. PROGRAM MEASURES: Projected Goals Number of units constructed 9 ( je § _ x \ Q w 0 § o k � / \ « E > > CL \ c } 2 u \ e § ® E > _ \ \ © q (1) ¥ k 2 ( u \f ° 2 / a 2 § § � E w o > u > < § _ § ) \ n > o j b 0 \� \ / z a § � < = i \ j \ f 0 = = 2 ) / B m \ § o � ) § g / % Co \ CL o n cl Z) _ ) \ k \ \ ƒ § o < « o o c u s :5 J. EXHIBIT "C" ABILITY RESOURCES, INC. WILLOW BEND CREEK APARTMENTS PROJECT BUDGET SCOPE OF WORK SECTION 811 FUNDS CDBG FUNDS Building Construction $498,516.00 Architectural $ 31,471.00 Carrying Charges $ 15,000.00 Legal and Audit $ 8,000.00 Developer's Fee $ 33,572.00 Subtotal Section 811 Funds $586,559.00 Installation of Water and $32,000.00 Sewer Lines Road and Walks $10,000.00 Land Compaction $ 4,500.00 Retaining Wall $ 8,500.00 Subtotal CDBG Funds $55,000.00 TOTAL PROJECT DEVELOPMENT COST- $641,559.00 EXHIBIT D CITY OF FORT WORTH HOUSING DEPARTMENT Audit Certification Form Subrecipient: Fiscal Year Ending: I I Mo Day Yr ❑ We have exceeded the federal expenditure threshold of $500,000. We will have our Single Audit or Program Specific Audit completed and will submit the audit report within nine (9) months after the end of the audited fiscal year. ❑ We did not exceed the $500,000 federal expenditure threshold required for a Single Audit or a Program Specific Audit to be performed this fiscal year. (Fill out schedule below) Federal Expenditure Disclosure FPdPral Funds Must be filled out if Single Audit or Program Audit is not required: Pass Through Program Name & Contract Federal Grantor Grantor CFDA Number Number Expenditures Total Federal Expenditures for this Fiscal Year $ Printed Name Title (Must be CFO, CEO or equivalent) Authorized Signature (Must be CFO, CEO or equivalent) Phone Number Date Failure to submit this or a similar statement or failure to submit a completed single audit package as described in the audit requirements by the required due date will result in suspension of funding and will affect eligibility for future funding. Submit this form to the City of Fort Worth within 60 days after the end of your Fiscal year --- CITY OF FORT WORTH HOUSING DEPARTMENT AUDIT REQUIREMENTS Organizations expending $500,000 or more in federal awards (from City of Fort Worth and other funding sources) during their fiscal years shall obtain either an annual single audit or a program specific audit. Organizations may have a program specific audit in accordance with OMB Circular A-133 if they expended funds for only one federal program as listed in the Catalog of Federal Domestic Assistance (CFDA). If funds are spent for more than one federal program, a single audit is required. The audited time period is the organization's fiscal year, and not the City of Fort Worth's funding period. The audit shall be conducted by a certified public accountant (CPA) that is licensed at the time of the audit by the appropriate regulatory body. The CPA shall meet all of the general standards concerning qualifications, independence, due professional care and quality control as required by Government Auditing Standards, including the requirements for continuing professional education and external peer reviews. Auditor selection must adhere to federal procurement requirements. A separate supplementary schedule of revenues, expenditures and changes in fund balance for each City of Fort Worth contract is no longer required. The Schedule of Expenditures of Federal Awards should list City of Fort Worth 's contract numbers, the total expended for each individual federal program, and the CFDA number (OMB A-133 § .310). The independent auditor's report should include all of the relevant items listed on the "Audit Report Checklist." Additional guidance on the conduct and reporting of these audits is contained in the latest issuance of the following publications: Government Auditing Standards issued by the Comptroller General of the United States, 2003 OMB Circular A-133 as revised 6/30/97 and amended June 2003 OMB Circular A-133 Compliance Supplement AICPA's Statement of Position 98-3, "Audits of States, Local Governments, and Not-for-Profit Organizations Receiving Federal Awards" Various AICPA audit guides for nonprofits, colleges and universities and health and welfare organizations AICPA's Audit Risk Alert "State and Local Governmental Developments" All organizations that receive a City of Fort Worth award must submit the provided Audit Certification Form which certifies whether you are subject to a single/program audit. Organizations receiving federal awards from the City of Fort Worth who are not required to have an audit shall certify in writing to the agency. The organizations Chief Executive Officer or Chief Financial Officer shall make the certification within 60 days of the end of the organization's fiscal year. The following items should be submitted to the City of Fort Worth Housing Department within the required timeframe: Due 60 days after organization's fiscal year end: (required for all subrecipients) • Completed Audit Certification Form Due within the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period. • Two copies of the entire audit report issued by the CPA • Two copies of any management letter issued by the CPA in conjunction with the audit report • Two copies of management's comments on all findings, recommendations, & questioned costs contained in the audit report and management letter, including a detailed corrective action plan Failure to submit any of these items by the required due date may result in holds on current draw requests, suspension of the organization's contract(s) and eligibility for future funding. If the organization does not meet the- requirements of having a single/program audit conducted, records must still be kept available for review or audit by City of Fort Worth staff(OMB A-133 Subpart B Sec 200(d). If additional information is needed concerning the audit requirements, please call (817) 392-6141. CITY OF FORT WORTH HOUSING DEPARTMENT SINGLE AUDIT REPORT CHECKLIST The Department developed this checklist to help organizations improve the quality and completeness of audit reports. General Purpose or Basic Financial Statements of the Organization Opinion/Report on Organization's Financial Statements in accordance with Government Auditing Standards Notes to the General Purpose or Basic Financial Statements of the Organization A Schedule of Expenditures of Federal Awards, including the Department's contract numbers, the total expended for the federal program, and the CFDA number (OMB A-133 Subpart C Sec 310). Opinion/Report on Schedule of Expenditures of Federal and State Awards Report on Compliance and on Internals Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards. (OMB A-133 § 505 (b)) Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133. (OMB A-133 § 505 (c)) Schedule of Findings and Questioned Costs (OMB A-133 §. 505d), including: Summary Schedule of Prior Audit Findings reporting the status of all findings included in the prior audit's schedule of findings and questioned costs. (OMB A- 133 Sec. 315 (a) and (b)) Corrective Action Plan including (OMB A-133 Sec. 315 (c)) name of person responsible for the corrective action, corrective action planned, anticipated completion date, and explanation and reason if auditee does not agree with findings or believes correction is not required. All reports are signed and dated by the auditor Two copies of the audit reports are submitted Two copies of the management letter, if issued in conjunction with the audit report Two copies of comments by management concerning all findings and recommendations included in management letter, including a corrective action plan CITY OF FORT WORTH ATI--ACHr4ENTI HOUSD G DEPARTMENT SUBGRA.INTEE'S REQUEST FORFUNDS- Agency Program Name: ContractNumber- ReportPeriod: Date of Request: �. . CASH BALANCE ANALYSIS FOR 1, Beginning Cash Balance $ $ 2. Amount Received: Program Income $ $ City of Fort Worth $ $ Interest Earned $ $ 3. Total Funds Available(1 +2) $ $ 4. Less Expenditure(detail statement cost) $ $ 5. ENDING CASH BALANCE (3-4) $ $ 6. Estimated Expenditures $ 7. Funds Needed(6-5) S S. Less Estimated Program Income $ 9. Unpaid Request for Payment Previously Submitted $ 10.Amount of This Request(7-8 &9) $ L. v= S -Pi*rchasinQ P_ TI7 es .-b__.-.1._....... A. MARS INPUT: Vendor/PO Number/Requisition Number B. Fund/Accouut/Center C. Total Amount of this Request - w I. Verification A. Model BIocks PIanner: (Namc) B. Contract Manager. (N C_ Accounting: (Namc) Z. Authorization A_ Agency: B. Mgint&Budget Administrator 1 / (i:axnc) Housing Director /. IF OVER S8,500.00 " c V i CITY OF FORT WORTH ATTACHMENT If HOUSING DEPARTMENT MANAGEMENT AND BUDGET DIVISION DET-AMSTATEMENT OF COSTS CONTRACLNO. DATE , AGENCY TO PROGRAM REPORT PERIOD PROGRAM MONTHLY CUMULATIVE COST CATEGORY ACCOUNT BUDGET EXPENDITURES TO DATE BALANCE PERSONAL SERVICES Salaries 516010 FICA 518010. Life Insurance 518050 Health Insurance 518060 Unem to ent-Federal 518090 Un, 10 ent Tax-State 518090 Worker's Co 518040 Retirement 518070 SUPPLIES Ofce Su lies 521010 Postage 521020 TvAchin Aids 522030 Food Supplies 522030 Other-Operating Supplies 523300 CONTRACTUAL SERVICES Tel one 535040 Electric. 5-35.020 Gas till 535010 Water/Waste Disposal 5-35030 Rent(Building) 537010 Custodial Services 539220 Office E ui went Rental 53 703 0 Printing . 533030 Re airs 53600 jFidelity.Bond 538210 LiabiliInsurance 534020 Legal&Accountin538060 Private Auto Allowance-Local j 532.130 Advertisiug- 533010 Conferences&Searninars 5311.80 Contractual Services 539120 direct Cost 517010 ::APTTAL OUTLAY �umiture,Fixtures 541330 Dffice Equipment 541370 'roe Insurance 'OT_AL Sub-Contractors Ceriitiication. I certify that the costs incurred are taken from the books of accounts and that such costs are valid and consistent with the teens of the ageement- AME and TITLE OF AUTHORIZED OFFICER SIGNATURE and DATE C=OF FORTWORTH ATTACHMENT III HOUSING DEPARTMENT M-A,NAGn=AND BUDGET DIVISION EXPENDITURES WORKSHEET CONTRACT NO. DATE , AGENCY TO . PROGRAM REPORT PERIOD CHECK NO. DATE # PAYEE DESCRIPTION ACCOUNT NO. AMOUNT 1 2 3 4 5 6 T 8 9 10 11 12 13 14 15 16 1 1 17 1 1 18 19 20 ZI 22 1 23 34 25 TOTAL Sub-Contractors Certification: I certify that the costs incurred ar6 taken from the books of accounts and that such costs are valid and.consistent with the terms of the agreement uvLE and TITLE OF AUTHORIZED OFFICER SIGIts LTrTRE an D ATTACHMENT IV MONTHLY NARRATIVE REPORT MONTH REPORTING FROM: TO: I_ ACCOMPLISHMENTS II_ ADDITIO2�Lkl, COMllENTS REGARDING ACCOMPLISIiM_ENTS 'THIS MONTH: III . PROBLEMS ENCOUNTERED AND SOLUTIONS PROPOSED: IV_ ANTICIPATED ACTIVITIES DURING NEXT MONTH: ATTACHMENT IV(a) k b v d LOld z � z h f.1 h W BEV E! < 0 u ''X'i ami p u q d .d cc u U a Cq 3 H tj U Cwt rt CV c7 et Y) Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 1/19/2006 DATE: Thursday, January 19, 2006 LOG NAME: 05ABILITY RESO REFERENCE NO.: C-21257 SUBJECT: Authorize Execution of Contract with Ability Resources, Inc., for a Forgivable Development Loan using Community Development Block Grant Funds for Installation of Infrastructure and Site Improvements for the Willow Bend Creek Apartments RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to execute a contract with Ability Resources, Inc. (ARI) for a forgivable development loan not to exceed a total of $55,000.00 in Community Development Block Grant (CDBG) Program funds; 2. Authorize the contract performance period to begin on the date of contract execution and end twelve months thereafter; 3. Authorize the City Manager to extend or renew the contract for up to one year if ARI requests an extension; and 4. Authorize the City Manager to amend the contract, if necessary, to achieve project goals provided that the amendment is within the scope of the project and in compliance with applicable laws and regulations. DISCUSSION: ARI is a Community Housing Development Organization (CHDO) certified by the City of Fort Worth and a registered 501(c)3 non-profit organization, whose purpose is to provide quality housing to low and moderate income individuals with disabilities. The loan will provide supplemental funding to a Section 811, Capital Advance Grant ARI received from the U.S. Department of Housing and Urban Development (HUD). ARI received the Section 811 Grant to construct the Willow Bend Creek Apartments, a housing development that will provide affordable rental housing for low and moderate income persons with special needs. The CDBG funds will be used to fund the installation of a water and sewer line, a retaining wall, walks, drives, and land compaction. ARI is proposing to construct the Willow Bend Creek Apartments, a 22-unit affordable, apartment community for persons with disabilities on vacant land located at 7822-7841 Albert Ave in two phases. Phase I will include nine one-bedroom units and a laundry facility/office/resource room. The project site is accessible to public transportation, shopping, social activities and employment opportunities, e.g., Lockheed. The City Council originally supported this project in 2003 contingent upon funding being received from the Texas Department of Housing and Community Affairs (TDHCA). Due to regulatory and underwriting differences between funding entities, funding from TDHCA was not received. However, HUD has provided ARI a funding commitment under the Section 811 Supportive Housing for Persons with Disabilities' Capital Advance Grant that includes a capital advance of $582,100 and a five-year renewable rental subsidy of$113,000. http://www.cfwnet.org/council_packet/Reports/mc_print.asp 5/16/2006 Page 2 of 2 The total capital project cost for Phase I is $642,986. ARI is requesting CDBG funds to meet additional project development costs not covered by the Section 811 Grant. Phase II will not begin until the successful completion and lease-up of Phase I. Funding is recommended as follows: Scope of Work Cost Installation of Water and Sewer Lines $32,000.00 Roads and Walks $10,000.00 Land Compaction $4,500.00 Retaining Wall $8,500.00 Total $55,000.00 The proposed project is located in COUNCIL DISTRICT 3. The above recommendations were approved by the Central City Revitalization Economic Development Committee at its December 6, 2005 meeting. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current operating budget, as appropriated, of the Grant Fund. TO Fund/Account/Centers FROM Fund/Account/Centers GR76 539120 005206127910 $55,000.00 GR76 539120 005206127900 $55,000.00 Submitted for City Manager's Office bT. Dale Fisseler (6140) Originating Department Head: Jerome Walker(7537) Additional Information Contact: Jason Hall (7381) http://www.cfwnet.org/council_packet/Reports/mc_print.asp 5/16/2006