HomeMy WebLinkAboutCommunity Development Department - 2024-07-01 (2) CITY OF HUNTINGTON BEACH
MEMORANDUM OF UNDERSTANDING
(Program No. B-24-MC06-0506)
For Program Year 2024/2025
Community Development Block Grant (CDBG)
(Special Code Enforcement)
THIS MEMORANDUM OF UNDERSTANDING (MOU) is entered into as of this 1st
day of July, 2024 by and between the CITY OF HUNTINGTON BEACH, a municipal
corporation, hereinafter referred to as "City," and the COMMUNITY DEVELOPMENT
DEPARTMENT, hereinafter referred to as "Subrecipient."
RECITALS
WHEREAS,the City has applied for and received funds from the United States •
Government under Title I of the Housing and Community Development Act of 1974, Public Law
93-383; and
WHEREAS,the City wishes to engage the Subrecipient to assist the City in utilizing such
funds; and
WHEREAS,the Community Development Department(Community Enhancement
Division) is delegated the responsibility for the administration of the Community Development
Block Grant Program; and
WHEREAS,the City has environmental clearance to release the funds for this project;
NOW, THEREFORE, in consideration of these recitals, and the mutual covenants
contained herein, the Community Development Department and Subrecipient agree as follows:
1) STATEMENT OF WORK
A. Scope of Services: Subrecipient shall perform all the services described in the
Scope of Services and Budget as set forth on Attachment 1 to this MOU, a copy
of which is attached and incorporated by reference.
B. Time of Performance: Subrecipient is to proceed with obtaining all requisite
approvals to commence the Project on July 1, 2024. Every effort shall be made
by the Subrecipient to expend the allocated funds in their entirety within one year
from the commencement of the Project.
C. Compensation and Method of Payment: The City has allocated Federal 2024-
2025 CDBG funds in the amount of Two Hundred Thirty Two Thousand Five
Hundred Nineteen Dollars ($232,519) for the Scope of Services, as outlined in the
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Scope of Services and Budget(Attachment 1), incorporated herein by reference.
The Subrecipient shall furnish all labor, materials and services and bear all
expenses necessary to provide for the project as outlined in this MOU.
D. National Objectives: The Subrecipient certifies that the activities carried out with
funds provided under this MOU will meet one or more of the CDBG program's
National Objectives: 1) benefit low/moderate income persons; 2) aid in the
prevention or elimination of slums or blight; and 3) meet community development
needs having a particular urgency as defined in 24 CFR Part 570.208.
2) NOTICES
Communication and details concerning this contract shall be directed to the
respective Department Heads executing this MOU.
3) RECORDS AND RETENTION
The Subrecipient shall maintain separate accounting records for the Federal CDBG funds
provided by the City. The City, federal Grantor Agency, Comptroller General of the
United States, or any of their duly authorized representatives shall have access to all
books, documents,papers and records maintained by the Subrecipient which directly
pertain to the above project for the purpose of audit, examination, excerpts and
transcriptions.
Unless otherwise notified by the City, the Subrecipient shall retain all financial records,
supporting documents and statistical reports related to the project identified under this
MOU for a period of five (5) years from the date of project completion and/or
alternatively five years from the date of an audit finding such finding has been cleared by
appropriate officials and the Subrecipient has been given official written notice.
4) REPORTING REQUIREMENTS
The City will provide Subrecipient with a"Quarterly Activity Report" form. Subrecipient
shall submit a completed Quarterly Activity Report and associated documentation within
fifteen (15) calendar days of the end of the first three quarters. The final quarterly report
is due no later than July 15, 2025. The Subrecipient must complete the form in full
indicating the data required by the City within the form(s)to assess appropriate and
compliant program performance measures and accomplishments, including a description
of how and when determination of eligibility status was made for persons assisted. The
report must include sufficient information to assist the City in monitoring the
Subrecipient's performance. The Subrecipient must demonstrate satisfactory performance
prior to reimbursement for expenditures as indicated below. The City will provide the
Subrecipient with a"Monthly CDBG Program Expenditure Report" form, which must be
submitted within fifteen(15) calendar days of the end of each month and may be
submitted along with the Quarterly Activity Report in applicable months. The submission
must include complete documentation verifying eligible program expenditures, including
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employee timesheets, operational expenditures (if allowable) and financial
documentation demonstrating proper accounting and use of CDBG funds as identified in
the approved program budget.
5) PROGRAM REQUIREMENTS
The Subrecipient shall adhere to the terms of the City's CDBG Application and this
MOU and with assurances and agreements made by the City to the United States
Department of Housing and Urban Development.
The Subrecipient shall comply with applicable Uniform Administrative Requirements as
described in Section 570.502 of the federal regulations for the CDBG Program. The
Federal requirements are incorporated herein.
The Subrecipient shall carry out all activities in compliance with all Federal laws and
regulations as described in Subpart K, such as labor standards (Davis Bacon Act) fair
housing requirements of the CDBG Program Regulations, except that:
a) The Subrecipient will not assume the City's environmental
responsibilities as described in Section 570.604; and
b) The Subrecipient will not assume the City's responsibility for
initiating the review process required under the provisions of 24 CFR
Part 52.
The provisions of Subpart K of the CDBG Regulations are incorporated, by reference, as
a condition of this MOU.
The Subrecipient shall comply with all Federal regulations related to the use of CDBG
funds by religious organizations, if applicable to this MOU and the approved project
outlined herein.
6) PROGRAM INCOME
The Subrecipient shall report to the City any interest or other income earned as a direct
result of the use of Federal CDBG funds for the program outlined within this agreement.
All reported program income may be retained by the Subrecipient for services as
described in the Scope of Work and Budget (Attachment 1). All provisions of this
Agreement shall apply to these activities.
The program income, retained by the Subrecipient, must be expended before additional
funds are requested from the City. Any program income on hand when the Agreement
expires or received after the Agreement's expiration shall be paid to the City. The
requirements are set forth in the Code of Federal Regulations, Title 24, Section
570.540(c).
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7) SECTION 3 COVERED ASSISTANCE
Where the Subrecipient receives CDBG funds for work arising in connection with
housing rehabilitation, housing construction, or other public improvements, the
requirements of Section 3 of the Housing and Urban Development Act of 1968 shall
apply as follows:
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, with preference for both targeted
workers living in the service area or neighborhood of the project(s) and Youth
Build participants, as defined at 24 CFR Part 75 ("Section 3 Regulations").
B. The parties to this contract agree to comply with HUD's regulations in Section 3
Regulations, 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 Section 3
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 notice of 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; 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 Section 3 Regulations, 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
regulation in Section 3 Regulations. 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 Section 3 Regulations.
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
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regulations of Section 3 Regulations require employment opportunities to be
directed, were not filled to circumvent the contractor's obligations under Section
3 Regulations.
F. Noncompliance with HUD's regulations in Section 3 Regulations,part 135 may
result in sanctions,termination of this contract for default, and debarment or
suspension from future HUD assisted contracts.
8) CHANGES IN USE OF FUNDS
No change in use of the CDBG funds will be permitted by the City without prior formal
approval by the City, subject to the provisions of the City's adopted Citizen Participation
Plan. If the Subrecipient desires a change in the use of the CDBG funds following
approval of this MOU, a written request must be submitted to the City for review by the
Council.
9) NONDISCRIMINATION CLAUSE
The Subrecipient shall comply with all State and Federal laws regarding
nondiscrimination in the provision of services and the equal opportunity employment of
personnel.
10) SUSPENSION AND TERMINATION OF MOU
In accordance with Title 24, Sections 85.43 and 85.44 of the Code of Federal
Regulations, this MOU may be suspended or terminated if the Subrecipient fails to
comply with any term(s) of the award and/or the award is terminated for convenience.
Title 24, Sections 85.43 and 85.44 of the Code of Federal Regulations are incorporated
herein, by reference as provisions of the MOU.
11) REVERSION OF ASSETS
Upon expiration of this MOU, the Subrecipient shall transfer to the City any CDBG
funds on hand at the time of expiration and any accounts receivable attributable to the use
of CDBG funds. The Subrecipient shall be required to use any real property under the
Subrecipient's control that was acquired or improved in whole or in part with CDBG
funds in excess of$25,000 as follows:
a) Used to meet one of the National Objectives in 24 CFR, Section
570.208 until five (5) years after expiration of this MOU; or,
b) Disposed of in a manner that result in the City being reimbursed
in the amount of the current fair market value of the property less
any portion of the value attributable to expenditure of non-CDBG
• funds for acquisition or improvement to the property.
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Reimbursement is not required after the period of time specified in
paragraph(a) of this section.
12) HOLD HARMLESS AND INDEMNITY AGREEMENT
The city, its elected and appointed officers, employees and agents shall not be liable for
any claims, liabilities, penalties, fines, or any damage to goods, properties, or effects of
any person whatsoever, nor for personal injuries or death caused by, or claimed to have
been caused by, or resulting from, any intentional or negligent acts, errors or omission of
Subrecipient or Subrecipient's agents, employees, or representatives in completion of the
project outlined in the MOU.
Subrecipient agrees to defend, indemnify and save free and harmless the city and its
elected and appointed officers, employees and agents against any of the foregoing
liabilities or claims of any kind and any cost/and expense that is incurred by the City on
account of any of the foregoing liabilities, including liabilities or claims by reason of
alleged defects in any plans and specifications for the project or facility.
13) ASSIGNMENT OF MOU
The Subrecipient shall not assign this MOU or any monies due thereunder without the
prior written consent of the City.
14) SUCCESSORS OR ASSIGNS
Subject to the provisions of this MOU, "Hold Harmless and Indemnity Agreement," all
terms, conditions, and provisions hereof shall inure to and shall bind each of the parties
hereto, and each of their respective heirs, executors, administrators, successors, and
assigns.
15) INSURANCE
If the Subrecipient is approved through this MOU to hire a subcontractor to provide the
program or service utilizing CDBG funds, and if the cost of such services is more than
$5,000, the subcontractor shall obtain and maintain policies of automobile insurance,
general liability insurance and a combined policy of worker's compensation and
employers liability insurance from an insurance company authorized to do business in the
State of California which meets the requirements of the City in an insurable amount of
not less than$1,000,000 each, unless a lower amount is approved by the City Attorney.
This insurance shall be in force during the term of this MOU and shall not be canceled
without thirty (30) days prior written notice to the City sent by certified mail.
The City shall be named as an additional insured on these policies. The Subrecipient
shall furnish certificates of insurance to the City before commencement of work.
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16) AUTHORITY TO EXECUTE THIS MOU
The person or persons executing this MOU on behalf of Subrecipient warrants and
represents that he/she has the authority to execute this MOU on behalf of the Subrecipient
and has the authority to bind Subrecipient to the performance of its obligations hereunder.
IN WITNESS WHEREOF, the parties hereto have caused this MOU to be executed as of
the day and year first written above.
CITY OF HUNTINGTON BEACH CITY OF HUNTINGTON BEACH
COMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT DEPARTMENT
DEPARTMENT/CODE ENFORCEMENT
DIVISION
ik • _,
/V
Jimmy o• Code nforcement Supervisor Je ife Villasenor, Director of Community
Devel pment
APPROVED FOR \fif
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CHAEL ATES
CITY A ORNEY
CITY OF HU INGTON BEACH
Receive and File
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City Clerk S/23/a1/e
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ATTACHMENT 1
SCOPE OF SERVICES AND BUDGET
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ATTACHMENT 1
FY 2024-25
SCOPE OF SERVICES AND BUDGET
SPECIAL CODE ENFORCMENT
A. SCOPE OF SERVICES
Outcome Statement:
This project will provide two full-time Special Code Enforcement Officers for all CDBG districts.
Officers will conduct daily area sweeps, exterior and interior field inspections that result in
proactive cases. Officers will also participate as City liaisons at community meetings, clean-
up events, and actively attend the quarterly Oak View Task Force Meetings.
This project furthers Priority #1 in the City of Huntington Beach's adopted Housing and
Community Development Consolidated Plan (HUD 5-year plan), which is to sustain and
strengthen neighborhoods.
Principal Task:
Between July 1, 2024 and June 30, 2025, Special Code Enforcement will:
1. Provide Code Enforcement services in the Oak View neighborhood resulting in servicing
600 Housing Units.
Special Code Enforcement will submit a quarterly Grantee Performance Report (GPR) on these
goals by the 15th of each month following the end of the quarter over the duration of this
agreement.
B. PROJECT FUNDING & COST ESTIMATES
With the submission of monthly invoices together with proper support documentation, for the
services and authorized budget items described in Section A of this Attachment, Special Code
Enforcement will be reimbursed on a quarterly basis in accordance with the following annual
project budget:
Code Enforcement Officers: $232,519
Total Special Code Enforcement Budget: $232,519
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