HomeMy WebLinkAboutR-94-0411J-94-407
6/2/94
WE
RESOLUTION NO. �0 4 - 411
A RESOLUTION, WITH ATTACHMENT(S), AUTHORIZING
THE CITY MANAGER TO EXECUTE AN AGREEMENT, IN
SUBSTANTIALLY THE ATTACHED FORM, WITH MIAMI
CAPITAL DEVELOPMENT, INC. (MDCI), FOR THE
PERIOD OF JULY 1, 1994 THROUGH JUNE 30, 1995,
FOR THE PURPOSE OF MAINTAINING MDCI'S
REVOLVING LOAN FUND PROGRAM AND
ADMINISTRATIVE PROCEDURES; ALLOCATING FUNDS
THEREFOR FROM THE TWENTIETH (20TH) YEAR
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS, IN
THE AMOUNT OF $200,000, FOR THE EXISTING
REVOLVING LOAN FUND PROGRAM, AND $250,000 FOR
THE ADMINISTRATION OF THE REVOLVING LOAN
PROGRAM.
WHEREAS, the City Commission is oommitted to eoonomio
development and the expansion of trade and oommeroe; and
WHEREAS, pursuant to Ordinanoe No. 11136, adopted April 14,
1994, the City Commission adopted the report entitled "Community
�. Development 1994-1995", whioh report set forth projects and
programs to be funded by appropriations from the Twentieth (20th)
Year Community Development Block Grant Program (CDBG); and
WHEREAS, said report inoluded an allooation to Miami Capital
Development, Ino. of $200,000 to fund the existing Revolving Loan
Fund and $250,000 to fund the administration of the Working
Capital Revolving Loan Program; and
WHEREAS, funds will be available from the Twentieth (20th)
Year CDBG beginning July 1, 1994, for the period ending June 30,
1995;
A T T A C AAEHT���
c0L`a d St'' u12
CITY CobDUSMOR
MEETING OF.
JUN 0 9 1994
It"Oluu0n Na
�4- 411
W
NOW, THEREFORE, HE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The City Manager is hereby authorizedI/ to
execute an agreement, in substantially the attached form, with
Miami Capital Development, Inc. (MDCI), for the period of July 1,
1994 through June 30, 1995, for the purpose of maintaining MDCI'S
Revolving Loan Fund Program and Administrative Procedures, with
funds therefor hereby allocated from the Twentieth (20th) Year
Community Development Block Grant Funds as follows: $200,000 for
the Revolving Loan Fund Program and $250,000 for the
administration of the Revolving Loan Program.
Section 3. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 9th day of June 1994.
lit Sri.. '• +�t�-.--+
ST PHEN P. CL RK, MAYOR
AT S
M TTY HIRAI
CITY CLERK
The herein authorization is further subject to compliance
with all requirements that may be imposed by the City
Attorney, including but not limited to those prescribed by
applicable City Charter and Code provisions.
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-2-
COMMUNITY
IEW AND APPROVAL:
FRPffK C AN A, DIRECTOR
DEPARTMIENT OF COMMUNITY DEVELOPMENT
BUDGETARY REVIEW AND APPROVAL:
MANOHAR S. SURAN ECTOR
ASSISTANT CITY MANA R
REVIEWED AS TO ACCOUNTING AND
TREASURY REQUIREMENTS:
CIUOE. GARCIA, DIRECTOR
FIN CE DEPARTMENT
PREPARED AND APPROVED BY:
OLGA cTASSISJOIREZ—BEIA
ANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
A. QU N S, III
CITY ATT EY
BSS:M4377
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—3—
CITY OF MIAMI, FLORIDA
MIAMI CAPITAL DEVELOPMENT, INC.
THIS AGREEMENT entered into this day of ,
19 , between the City of Miami, a municipal corporation of the
State of Florida, (hereinafter referred to as the "CITY"), and
Miami Capital Development, Inc., a Florida not for profit
corporation, (hereinafter referred to as the "CONTRACTOR").
FUNDING SOURCE: Twentieth (20th) Year Community Development
Block Grant Funds
TERM OF THE AGREEMENT: July 1, 1994 to June 30, 1995
ADMINISTRATION: $250,000.00 REVOLVING LOAN FUND: $200,000.00
TAX IDENTIFICATION NO: 59-2001628
EXECUTIVE DIRECTOR: Mr. Tony Crapp, Sr.
ADDRESS: 300 Biscayne Boulevard Way, Suite 614,
Miami, Florida, 33131
TELEPHONE NO.: (305) 358-1025
NOW, THEREFORE, in consideration of the mutual covenants and
obligations herein set forth, the parties understand and agree as
follows:
ARTICLE I
1.0 BASIC REQUIREMENTS
1.1 Corporate Resolution authorizing
Agreement.
1.2 Work Program (approved by the CITY).
execution of this
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V, 01 qvo;t IV
The Work Program submitted by the CONTRACTOR to the CITY
became an attachment to this agreement and shall include the
following:
1. A description of the work to be performed;
2. A schedule for completing the work; and
3. A budget.
These items shall be in sufficient detail to provide a sound
basis for the CITY to effectively monitor performance by the
CONTRACTOR under this agreement.
1.3 Budget Summary, to include: completion of CONTRACTOR's
Program/Line-Item Budget/Expenditure Justification, Total
Actual and Projected Funds Disclosure, and Staff Salaries
Schedule (on forms supplied by the CITY); budget for
program -generated revenues; copies of all subcontracts
and/or management services Agreements funded in whole or in
part under this Agreement.
1.4 Certificate of Insurance which reflects CONTRACTOR's
current liability insurance, naming the CITY as primary or
additional insured as determined by the Risk Management
Division of the CITY; current Workers' Compensation
insurance; current Fidelity Bond (applicable for all persons
who are authorized to receive and disburse funds under this
Agreement); and other coverage as deemed necessary, if
applicable (i.e. automobile insurance).
1.5 CONTRACTOR's Corporate Seal (to be affixed to Signatory
Page, and Corporate Resolution).
1.6 Copy of CONTRACTOR's Article of Incorporation, Charter and
Bylaws.
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1.7 List of Present Principal Governing Board Officers and
Members of the Board (names, addresses and telephone
numbers).
1.8 List of Key Staff Persons, with their titles, who will carry
out this program.
1.9 Completion of Authorized Representative Statement.
1.10 Completion of Statement of Accounting System.
1.11 A letter from an independent Certified Public Accountant
which expresses the opinion that the CONTRACTOR's internal
controls are adequate to safeguard the organization's
assets.
1.12 Copy of last Audit Report cis performed by an independent
C.P.A.
1.13 Corporate Personnel Policies and Procedures.
1.14 Job Description and Resumes for all positions funded in
whole or in part under this Agreement.
1.15 Acceptance of Office of Management and Budget (OMB) Circular
A-110, Attachments "A" (Cash Depositaries), "B" (Bonding and
Insurance), "C" (Retention and Custodial Requirements for
Records), "F" (Standards for Financial Management Systems),
"H" (Monitoring and Reporting Progress Performance), "N"
(Property Management Standards), and 110" (Procurement
Standards), as modified by 24 CFR Part 570.502 (b),
"Applicability of Uniform Administrative Requirements," of
the Community Development Block Grant (CDBG) Program
regulations, Final Rule, and provided as an attachment to
this Agreement (Attachment I).
1.16 Copy of last Income Tax Return (IRS Form 990) .
(3) 94- 411
ARTICLE II
2.0 RECORDS TO BE MAINTAINED
2.1 CONTRACTOR shall establish and maintain sufficient records
to enable the CITY to determine whether the CONTRACTOR has
met the requirements of this part. At a minimum, the
following records are needed.
(a) Records providing a full description of each activity
assisted (or being assisted) with CDBG funds, including
its location (if the activity has a geographical
locus), the amount of CDBG funds budgeted, obligated
and expended for the activity, and the provision in 24
CPR Subpart C under the CDBG Program regulations which
it is eligible.
(b) Records demonstrating that each activity undertaken
meets one of the criteria set forth in 24 CPR 570.208
of the CDBG Program regulations. Where information on
income by family size is required, the CONTRACTOR may
substitute evidence establishing that the person
assisted qualified under another program having income
qualification criteria at least as restrictive as that
used in the definitions of "low and moderate income
person" and "low and moderate income household" as set
forth by 24 CPR 570.3; or the CONTRACTOR may substitute
a copy of a verifiable certification from the assisted
person that his or her family income does not exceed
the applicable income limit established in accordance
with 24 CPR 570.3; or the CONTRACTOR may substitute a
notice that the assisted person is a referral from a
(4)
94- 411
tate, to refer individuals it determines to be low and
oderate income persons based on HUD's criteria and
grees to maintain documentation supporting these
eterminations. Such records shall include the
ollowing information.
1) For each activity determined to benefit low and
moderate income persons, the income limits applied
and the point in time when the benefit was
determined.
2) For each activity determined to benefit low and
moderate income persons based on the area served
by the activity:
(i) The boundaries of the service area;
(ii) The income characteristics of families and
unrelated individuals in the service area;
and
(iii) If the percent of low and moderate income
persons in the service area is less than 51
percent, data showing that the area qualifies
under the exception criteria set forth at
570.208(a)(1)(ii);
3) For each activity determined to benefit low and
moderate income persons based on the creation of
jobs, the recipient shall provide the
documentation described in either (i) or (ii)
below.
(5)
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(i) Where the recipient chooses to document that
at least 51 percent of the jobs will be
available to low and moderate income persons,
documentation for each assisted business
shall include:
(A) A copy of a written agreement
containing:
(1) A commitment by the business that
it will make at least 51 percent of
the jobs available to low and
moderate income persons and will
provide training for any of those
jobs requiring special skills or
education;
(2) A listing by job title of the
permanent jobs to be created
indicating which jobs will be
available to low and moderate
income persons, which jobs require
special skills or education, and
which jobs are part-time, if any;
and
(3) A description of actions to be
taken by the recipient and business
to ensure that low and moderate
income persons receive first
consideration for those jobs; and
(6) �4- 411
(B) A listing by job title of the permanent
jobs filled and which jobs of those were
available to ].ow and moderate income
persons, and a description of how first
consideration was given to such persons
for those jobs. The description shall
include what hiring process was used;
which low and moderate income persons
were interviewed for a particular job;
and which low and moderate income
persons were hired.
Where the recipient chooses to document that
at least 5.1 percent of the jobs will be held
by low and moderate income persons,
documentation for each assisted business
shall include:
(A) A copy of a written agreement
containing:
(1) A commitment by the business that
at .least 51 percent of the jobs, on
a full-time equivalent basis, will
be held by low and moderate income
persons; and
(2) A listing by job title of the
permanent jobs to be created,
identifying which are part-time, if
any;
j
(B) A listing by job title of the permanent
jobs filled and which jobs were
initially held by low and moderate
income persons; and
(C) For each such low and moderate income
person hired, the size and annual income
of the person's family prior to the
person being hired for the job.
(4) For each activity determined to benefit low and
moderate income persons based on the retention of
jobs:
(i) Evidence that in the absence of CDBG
assistance jobs would be lost;
(ii) For each business assisted, a listing by job
title of permanent jobs retained, indicating
which of those jobs are part-time and (where
it is known) which are held by low and
moderate income persons at the time the CDBG
assistance is provided. Where applicable,
identification of any of the retained jobs
(other than those known to be held by low and
moderate income persons) which are projected
to become available to low and moderate
income persons through job turnover within
two years of the time CDBG assistance is
provided. Information upon which the job
turnover projections were based shall also be
included in the record;
(8) P4- 411
For each retained job claimed to be held by a
low and moderate income person, information
on the size and annual income of the person's
family;
(iv) For jobs claimed to be available to low and
moderate income persons based on job
turnover, a description covering the items
required for "available to" jobs in paragraph
(5) of this section; and
(v) Where jobs were claimed to be available to
low and moderate income persons through
turnover, a listing of each job which has
turned over to date, indicating which of
those jobs were either taken by, or available
to, low and moderate income persons. For
jobs made available, a description of how
first consideration was given to such persons
for those jobs shall also be included in the
record.
(5) For each activity determined to aid in the
prevention or elimination of slums or blight based
on addressing one or more of the conditions which
qualified an area as a slum or blighted area;
(i) The boundaries of the area; and
(ii) A description of the conditions which
qualified the area at the time of its
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(9)
designation in sufficient detail to
demonstrate how the area met the criteria in
570.208(b)(1).
(6) For each activity determined to aid in the
prevention or elimination of slums or blight based
on the elimination of specific conditions of
blight or physical decay not located in a slum or
blighted area:
(i) A description of the specific condition of
blight or physical decay treated; and
(ii) For rehabilitation carried out under this
category, a description of the specific
conditions detrimental to public health and
safety which were identified and the details
and scope of the CDBG assisted rehabilitation
by structure.
(7) For each activity determined to aid in the
prevention or elimination of slums or blight based
on addressing slums or blight in an urban renewal
area, a copy of the Urban Renewal Plan, as in
effect at the time the activity is carried out,
including maps an supporting documentation.
(a) Records which demonstrate compliance with 24
CFR 570.505 regarding any change of use of
real property acquired or improved with CDBG
assistance.
(10) IIA- 411
(C)
(b) Records which demonstrate compliance with the
requirements in 570.606 regarding
acquisition, displacement, relocation, and
replacement housing.
Equal Opportunity Records containing:
(1) Data indicating the racial/ethnic character of
each business entity receiving a contract or
subcontract of $25,000 or more paid, or to be
paid, with CDBG funds, data indicating which of
those entities are women's business enterprises as
defined in Executive Order 12138, the amount of
the contract or subcontract, and documentation of
recipient's affirmative steps to assure that
minority business and women's business enterprises
have an equal opportunity to obtain or compete for
contracts and subcontracts as sources of supplies,
equipment, construction and services. Such
affirmative steps may include, but are not limited
to, technical assistance open to all businesses
but designed to enhance opportunities for these
enterprises and special outreach efforts to inform
them of contract opportunity. Such steps shall
not include preferring any business in the award
of any contract or subcontract solely or in part
on the basis of race or gender.
(2) Data on the extent to which each racial and ethnic
group and single -headed households and ethnic
group and single -headed households (by gender of
(11) �4- 411
household head) have applied for, participated in,
or benefited from, any program or activity funded
in whole or in part with CDBG funds. Such
information shall be used only as a basis for
further investigation as to compliance is required
to attain or maintain any particular statistical
measure by race, ethnicity, or gender in covered
programs.
(3) Documentation of actions undertaken to meet the
requirements of 24 CFR 570.607(b) which implements
section 3 of the Housing Development Act of 1968,
as amended (12 U.S.C. 1701U) relative to the
hiring and training of low and moderate income
persons and the use of local businesses.
(d) Financial records, in accordance with the applicable
requirements listed in 24 CFR 570.502.
(e) Records required to be maintained in accordance with
other applicable laws and regulations set forth in
Subpart K of 24 CFR.
2.2 As a necessary part of this Agreement, the CONTRACTOR shall
provide the following documents to the Department of
_ f
Community Development, in accordance with the requirements
of the Agreement:
A. Final Expenditure Report to be submitted no later than
thirty (30) days after contract expiration.
B. Certified Independent Audit to be submitted sixty (60)
days after contract expiration. CONTRACTORS receiving
monies from the Department of Community Development
(12)
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1
must allocate in its budget sufficient funds to secure
an annual independent audit which must include the an
opinion on the Contractor's financial statements, and a
compliance letter stating whether the CONTRACTOR is in
conformity with federal grant regulations (Office of
Management and Budget Circular A-110 Attachment I).
Said audit must be submitted no later than sixty (60)
days after the expiration of the Miami Capital, Inc.
agreement with the Department of Community Development.
The City of Miami's Department of Internal Audits and
Reviews shall have the authority to review CONTRACTOR's
records, including programmatic records and books of
account, for a period of up to three (3) years from the
termination date of the Agreement. All books of
account and supporting documentation should be kept by
the Contractor at least three (3) years for audit
purposes.
ARTICLE III
3.0 PROCEDURES
3.1 TIME OF PERFORMANCE
The term of this Agreement shall be from July 1, 1994, to
June 30, 1995.
3.2 CITY AUTHORIZATION
For the purpose of this Agreement, the City of Miami
Department of Community Development (hereinafter the
"DEPARTMENT") will act on behalf of the CITY in the fiscal
control, programmatic monitoring, and modification of this
Agreement, except as otherwise provided by this Agreement.
(13) �4— 411
3.3 ENTIRE AGREEMENT
This instrument and its attachments constitute the only
Agreement of the parties hereto relating to said grant and
correctly sets forth the rights, duties, and obligations of
each to the other as of its date. Any prior agreements,
promises, negotiations, or representations not expressly set
forth in this Agreement are of no force or effect.
3.4 OBLIGATION OF CONTRACTOR
The CONTRACTOR shall carry out the services as prescribed in
its Work Program (Attachment II), which is attached and
incorporated herein and made a part of this Agreement, in a
lawful, and proper manner, satisfactory to the CITY, in
accordance with the written policies, procedures, and
requirements as prescribed in this Agreement, as set forth
by the U.S. Department of Housing and Urban Development
(HUD) and the City of Miami Department of Community
Development.
3.5 POLICIES AND PROCEDURES MANUAL
CONTRACTOR is aware and accepts the Policies and Procedures
Manual (Attachment III) for Community Based Organizations as
the official document which outlines the fiscal,
administrative and Federal guidelines and which shall
regulate the day-to-day operations of the CONTRACTOR, which
is attached and incorporate herein and made a part of this
Agreement.
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(14)
3.6 OBLIGATION OF CITY
To provide an additional $200,000 in funds for the expansion
of a City of Miami Revolving Loan Fund (RLF) Program subject
to the attached work program; further to provide funds not
to exceed $250,000 for the CONTRACTOR'S administrative cost
for this fiscal year.
3.7 CONTRACT MODIFICATION
The CITY or CONTRACTOR may, from time to time, request
changes in the scope of services to be performed hereunder.
Such changes, including an increase or decrease in the
amount of CONTRACTOR compensation or in the Work Program,
which are mutually agreed upon by and between the CITY and
the CONTRACTOR, must be incorporated in written amendments
to this Agreement, following approval thereof by the City
Manager and City Commission.
3.8 BONDING AND INSURANCE
CONTRACTOR shall maintain insurance and bonding coverages
acceptable to the CITY's Risk Management Division of the
Personnel Management Department. Prior to commencing any
activity under this Agreement, the CONTRACTOR shall furnish
to the CITY original certificates of insurance and bonding
indicating that the CONTRACTOR is in compliance with the
provisions of this article.
CONTRACTOR shall provide the following coverages:
(a) Insurance coverage that reflects sound business
practices acceptable to the CITY's Risk Management
Division of the Personnel Management Department.
(15) VO4— 411
(b) Fidelity bonding for all persons handling funds
received or disbursed under this Agreement in an amount
equal. to or greater_ than the amount of the City grant.
City shall be named as Loss Payee.
(c) Current liability insurance shall be in amount of not
less than $500,000 General Aggregate which shall
include Fire Legal. City shall be named as Primary
Additional Insured and there shall be no exclusions in
such policies to override the CITY coverage.
(d) Contractor shall provide the CITY with proof of
Automobile Liability Coverage in an amount of not less
than $100,000 Bodily Injury and Property Damage
combined, if Contractor is to be reimbursed for mileage
by the CITY.
(e) The Contractor shall obtain Workers' Compensation and
Employers' Liability coverage as per statutory
requirement.
Compliance with the foregoing requirements shall not relieve
the CONTRACTOR of its liability and obligations under this
section or under any other section of this Agreement.
3.9 NON-DELEGABILITY
It is understood and agreed that the obligations undertaken
by the CONTRACTOR pursuant to this Agreement shall not be
delegated to any other person or firm unless the CITY shall
first consent in writing to the performance of such services
or any part thereof by another person or firm.
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(16)
3.10 BOARD OF DIRECTORS
The CONTRACTOR's Board of Directors, in accordance with its
revised Articles of Incorporation, shall contain a majority
membership who represents the civic and business sectors of
Metro -Miami private sector.
In accordance with the Bylaws of the CONTRACTOR, the Board
of Directors and Executive Committee shall each meet on a
half_ yearly and quarterly basis respectfully or when needed,
to set policy and renew the implementation of policy.
3.11 LEVEL OF SERVICE
Should start-up time for a program be required or any delays
in service occur, the Department of Community Development is
to be notified in writing immediately, giving all pertinent
details and indicating when service shall begin and/or
continue. It is understood and agreed that the level of
services, activities, and expenditures by the CONTRACTOR, in
existence prior to the initiation of services hereunder.,
shall be continued and shall not be reduced in any way as a
result of this Agreement. Programs funded through this
Agreement shall not result in the displacement of employed
workers, impair existing contracts for services, or result
in the substitution of funds allocated under this Agreement
for other funds in connection with work which would have
been performed in the absence of this Agreement.
3.12 LOAN PROGRAM SPECIFICATIONS
In Administering the Loan Program that is a part of the
CONTRACTOR's Work Program Specifications, the CONTRACTOR
agrees to the following covenants and conditions;
(17) 94- 411
1. To disburse loan funds within thirty (30) days after or
as expeditiously as possible after. the Loan Committee
has approved a loan.
2. To establish and implement a Work -Out Program to
formulate policy pertaining to past due loans. This
policy would encompass the establishment of collection,
extension, and foreclosure procedures for defaulted
loans.
3.13 OTHER PROGRAM REQUIREMENTS
(a) CONTRACTOR shall comply with its obligations as
described in its Management By Objectives (MBOs)
(Attachment IV) which is attached and incorporated
herein and made a part of this Agreement.
(b) CONTRACTOR shall carry out its Work Program in
compliance with all Federal laws and regulations
described in Subpart K of the CDBG Program regulation
(24 CFR 570.600-612), (Attachment I).
(c) CONTRACTOR shall not assume the CITY's environmental
responsibilities described at 24 CFR 570.604 of the
CDBG Program regulations, and the CITY's responsibility
for initiating the review process under Executive Order
12372 (Attachment I).
3.14 REPORTS, AUDITS AND EVALUATIONS
The CONTRACTOR shall comply with the Federal Directive
required by the U.S. Department of Housing and Urban
Development (USHUD) to document that program activities are
provided for the benefit of low to moderate income persons.
(18) 94- 411
In accordance with the Code of Federal Regulations 24 CFR
Part 570.506, records shall be maintained for each activity
to determine that services benefit .low and moderate income
persons.
At the request of CITY, CONTRACTOR shall transmit to CITY
written statements of CONTRACTOR's official policy on
specified issues relating to CONTRACTOR's activities. CITY
may carry out monitoring and evaluation activities,
including visits and observations by CITY staff; CONTRACTOR
shall ensure the cooperation of its employees and Board
members in such efforts. Any inconsistent, incomplete, or
inadequate information either received by the CITY or
obtained through monitoring and evaluation by the CITY,
shall constitute good cause for the CITY to terminate this
Agreement at any time thereafter.
ARTICLE IV
4.0 FUNDING
4.1 REVOLVING LOAN FUND
The total aggregate funding for the City of Miami Revolving
Loan Fund (RLF) Program shall not exceed the maximum sum of
$7,252,475. This sum includes $200,000 in new funds
allocated under this contract. The CONTRACTOR further
agrees that it shall not expend these funds as
administrative expenses.
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(19)
4.2 ADMINISTRATIVE EXPENSE
The total compensation for this contract shall not exceed
$250,000 for CONTRACTOR's 1994-1995 budget. Funds not used
for administration during the contract will revert back to
CITY.
4.3 COVENANTS AND CONDITIONS
Funds paid under this Agreement are paid to the CONTRACTOR
for the purposes set forth in this Agreement and shall be
used solely therefore. The following covenants and
conditions apply thereto:
A. Revolving Loan Fund
1. Whenever money d.rawdown and intended to be loaned to
disbursed pursuant to a loan/grant program approved
under this Agreement is not so loaned or disbursed,
it must be returned to the CITY within seventy-two
(72) hours.
2. When loans are repaid by the borrower, .funds may be
used solely for new loan agreements unless approved
for other purposes by the Departments of Community
Development.
3. The principal loan repayment amount received from
the aggregate $7,252,475 RLF Program, and any and
all other_ loan fund monies provided or issued to
MCDI by the CITY, whether currently in possession of
the CONTRACTOR or to be provided in the future by
the CITY, should be used only for new RLF Loans.
(20) v4- 411
Any interest received from the aforementioned
amounts, shall be used by the CONTRACTOR to cover
administrative cost only.
4. Upon termination and/or final disposition of assets,
interest on loans made by the CONTRACTOR and
accruing to the CONTRACTOR shall be deemed to be
part of the funds allocated to the CONTRACTOR by the
CITY and shall belong to the CITY.
5. The CONTRACTOR shall request loans funds after it
has a scheduled date for loan closing and within
seven (7) working days prior to the date of closing.
B. ADMINISTRATIVE EXPENSES
1. CITY shall have the right to review and audit the
time records and related records of CONTRACTOR
pertaining to any payments by CITY.
2. All payments shall be reimbursements for
expenditures incurred only during the term of this
Agreement, and in compliance with the previously
approved Line -Item Budget. Such written request
shall contain a statement declaring and affirming
that all expenditures were made in accordance with
the approved budget. All documentation in support
of such request shall be subject to approval by CITY
at the time the request is made and all invoices are
required to be paid by CONTRACTOR prior to
submission. All reimbursements must be in line -item
form and be in accord with this Agreement. All
(21) 014— 411
expenditures must be verified by original invoice
with a copy of the check which was used to pay that
specific invoice. Within 60 days of submitting
reimbursement request, copies of the cancelled
checks shall be submitted. In the event that an
invoice is paid by various funding sources, a copy
of the invoice may be submitted but must indicate
the exact amount paid by various funding sources
equaling the total of the invoice. No miscellaneous
categories shall be accepted as a line item in the
budget. Request for line -item changes are
allowable, with prior review and approval by the
CITY. All line -item changes must be made prior to
the end of the term of. the Agreement.
3. Requests for payment should be made at least on a
monthly basis. Reimbursement requests should be
submitted to the CITY within thirty (30) calendar
days after the indebtedness has been incurred.
Failure to comply may result in the rejection for
repayment of those invoices within the reimbursement
package which do not meet this requirement.
4. CONTRACTOR must submit the final request for payment
to the CITY within 30 calendar days following the
expiration date or termination date of. this
Agreement. If the CONTRACTOR fails to comply, all
rights to payment are forfeited and the CITY shall
not honor any request submitted after the aforesaid
agreed upon period.
(22) 24- 411
4.4 FINANCIAL ACCOUNTABILITY
CITY reserves the right to audit the records of CONTRACTOR
at any time during the performance of this Agreement and for
a period of three years after final payment is made under
this Agreement. CONTRACTOR agrees to provide all financial
and other applicable .records and documentation of services
to CITY. Any payment made shall be subject to reduction for
amounts included in the related invoice which are found by
CITY, on the basis of such audit, not to constitute
allowable expenditures. Any payments made to CONTRACTOR
are subject to reduction for overpayments on previously
submitted invoices.
4.5 RECAPTURE OF FUNDS
CITY shall reserve the right to recapture funds when the
CONTRACTOR shall fail (i) to comply with the terms of this
Agreement or (ii) to accept conditions imposed by CITY at
the direction of the federal, state and local agencies.
4.6 CONTINGENCY CLAUSE
Funding for this Agreement is contingent on the availability
of funds and continued authorization for program activities
and is subject to amendment or termination due to lack of
funds or authorization, reduction of funds, and/or change in
regulations.
4.7 SEPARATION OF CHURCH/STATE
In accordance with First Amendment Church/State principles,
CDBG assistance may not be used for religious activities or
provided to primarily religious entities for any activities,
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including similar activities, as directed by
24 CFR 570.200(j). CONTRACTOR shall comply with this
provision when entering into subcontracts.
4.8 ENVIRONMENTAL REVIEW
CONTRACTOR shall not assume the CITY's environmental
responsibilities described at 24 CFR 570.604 of the CDBG
Program regulations, and the CITY's responsibility for
initiating the review process under Executive Order 12372
(Attachment I).
4.9 PROGRAM INCOME
Program income means gross income received by the CONTRACTOR
which has been directly generated via the use of CDBG funds.
When such income is generated by an activity that is only
partially assisted with CDBG funds, the income shall be
prorated to reflect the percentage of CDBG funds used.
Program income generated by CDBG funded activities shall be
F
retained by CONTRACTOR and shall be used to only undertake
those activities specifically approved by the CITY on the
Work Program. 4
The CONTRACTOR shall utilize all interest payments received
on its City's loan for administrative cost prior to
requesting reimbursement from the Department of Community
Development. All monies received on the principal amount of
r
the loan shall be deposited into the CONTRACTORS revolving
loan fund account and used for any approved loans prior to
requesting a draw from the Department of Community
Development.
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4- 411
All provisions of this Agreement shall apply to such
activities. Any program income on hand when the Agreement
expires or received after such expiration shall be paid to
the CITY, as required by 24 CFR 570.503(b)(8) of the CDBG
Program regulation.
CONTRACTOR shall submit a Program Income Report on a monthly
basis along with the required monthly Work Program Status
Report. The Program Income Report will identify CDBG
activities in which income was derived and how income has
been utilized (See attachment).
4.10 REIMBURSEMENT
1. Request for payment shall be made on a monthly basis.
Reimbursement request for expenditures incurred during
the term of this Agreement shall not be honored unless
received by the CITY within thirty (30) days following
the invoice date. In addition, the CITY shall make
reimbursement to the CONTRACTOR within ten (10) working
days after receipt of reimbursement package.
2. The CONTRACTOR agrees to submit to the CITY reports as
may be required by the U.S. Department of Housing and
Urban Development (USHUD) and/or the Secretary of Labor
and/or Department of Community Development, along with
reports to the CITY on the Work Program and reports
comparing loans approved, closed and disbursed.
The reports that the CONTRACTOR will transmit to the
CITY, in writing, shall include a Monthly Loan Portfolio
Status Report, Monthly Past Due Loan Report, as well as,
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:°4- 411
Cash Position, Bank Reconcilement and Grantee
Performance Report. Summary of Income, which is due
within thirty (30) days following the appropriate
period. The CONTRACTOR further agrees to develop and
transmit to the CITY comprehensive manuals outlining all
of the CONTRACTOR's operating procedures, unless
previously submitted.
The CONTRACTOR also agrees to prepare, retain and permit
the CITY, in conjunction with Federal and State
officials, to inspect as it deems necessary for grant
purposes, records that may be relevant to Federal and
State grants or directives (i.e., EDA, RLF, HUD RLF, and
CD RLF). At the request of the CITY, CONTRACTOR will
transmit to the CITY written statements of CONTRACTOR's
official policy on specified issues relating to
CONTRACTOR's activities.
The CONTRACTOR further agrees that the CITY may carry
out quarterly programmatic and fiscal monitoring
activities by the CITY staff and will effectively ensure
the cooperation of the CONTRACTOR's employees and board
members in such efforts. All reports and evaluation
either submitted to the CITY, or acquired through
ongoing monitoring and evaluation will be thoroughly
:reviewed by the CITY. Any material discrepancies,
incomplete or inadequate information either received on
a monthly basis or through monitoring and evaluation,
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will give the CITY just the legal cause to terminate
this Agreement at any time thereafter, as hereinafter
provided in Section 7.6.
4.11 DEFAULT PROVISIONS
1. Funds may be withheld by the CITY for any of the
following reasons:
a) It the CONTRACTOR makes any substantial
misrepresentation of any material fact in any of its
periodic reports.
b) If there is litigation pending with respect to the
performance of the CONTRACTOR which adversely
affects the operation of the CONTRACTOR.
c) If the CONTRACTOR is in substantial breach of any of
the provisions of its Agreement with the CITY.
d) If reports as required by the CITY have not been
submitted within the time required or reasonable
cause shown for such delay.
e) Failure, for any reason, of the CONTRACTOR to
fulfill in a timely and proper manner its
obligations under this Agreement, including
substantial compliance with the approved Work
Program and attached conditions, the budget and such
directives such as may become generally applicable
at any time; submission by the CONTRACTOR to the
CITY, of reports that are substantially incorrect in
any material; and ineffective or improper use of
funds provided under this Agreement.
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2. Upon dissolution of the CONTRACTOR, termination of this
Agreement by either party, or its inability to
materially comply with the approved work program, all of
its rights, title and interest in said monies and all
assets of the CONTRACTOR related to the $5,835,975
Revolving Loan Fund (RLF) Program, and any and all other
monies provided or issued to CONTRACTOR by the CITY,
whether currently in possession of the CONTRACTOR or to
be provided in the future by the CITY, shall immediately
accrue to the City of Miami and shall be transferred
within five (5) days by the CONTRACTOR to the City of
Miami. This would include unused or unencumbered funds
deposited with any lending institution, which shall also
be returned to the City.
5.0 GENERAL REQUIREMENTS
5.1 EQUAL OPPORTUNITY
The CONTRACTOR agrees that there will be no discrimination
against any employee or person served on account or race,
color, sex, religious creed, ancestry, physical handicap or
national origin in its performance of this Agreement; and it
is expressly understood that upon the receipt of evidence of
such discrimination, the CITY shall have the right to
terminate this Agreement.
5.2 CONFLICT OF INTEREST
No official or employee of the CONTRACTOR may be admitted
directly or indirectly to any share or part of this contract
or to any benefits to arise from the same, nor own or
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acquire any personal interest in any property, contract or
proposed contract which would conflict with or relate to the
performance, their duties or responsibilities under this
contract. If any such person presently or in the future
acquires, owns or controls any such share, benefit, or
personal interest, he shall immediately disclose such
interest to the CITY and other appropriate agencies. Upon
such disclosure, such person shall not continue his
participation unless it is determined by the CITY that his
participation is not contrary to public interest. The
CONTRACTOR will comply with all Federal, State and local
conflict of interest laws and requirements.
5.3 INDEMNIFICATION
CONTRACTOR, shall pay on behalf, and save the CITY harmless
from and against any and all claims, liabilities, losses,
and causes of action which may arise out of CONTRACTOR's
activities under this Agreement, including all other acts or
omissions to act on the part of the CONTRACTOR, including
any or any of them, including any person acting for or on
its behalf; from and against any relevant orders, judgements
or decrees which may be entered against all costs attorney's
fees, expenses, and liabilities incurred by the CITY in the
defense of any such claims or in the investigation thereof.
5.4 LEVEL OF SERVICE
It is expected that funds are provided to insure quality
service to City residents. Should start-up time for a
program be required or any delays in service occur, the
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Department of Community Development is to be notified in
writing immediately giving all pertinent details and
indicating when service will begin and/or continue.
It is understood and agreed that the level of services,
activities and expenditures by the CONTRACTOR, in existence
prior to the initiation of services hereunder, shall be
continued and not be reduced in any was as a result of this
Agreement except for reductions unrelated to the provision
or purposes herein stated. It is further understood and
agreed that the program funded through this Agreement will
not result in the displacement of employed workers, impair
existing contracts for services, or result in the
substitution of funds allocated under this Agreement for
other funds in connection with work which would have been
performed even in the absence of this Agreement.
5.5 DISCLOSURE OF FUNDS
The CONTRACTOR shall disclose all sources (Public and
Private) and amounts of funds reflecting the total budget
whether they be real or in -kind at the commencement of the
contract period, as well as any changes in the amount of
funds through program income or other sources received
during the terms of agreement, within thirty (30) days of
such changes. Examples of in -kind funds to include free
rent, labor, office equipment, etc.
5.6 PURCHASING AND INVENTORY
The CONTRACTOR agrees to use its best efforts to obtain all
supplies and equipment for use under this Agreement at the
lowest practicable cost and must obtain three (3) bids for
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the purchase of capital equipment to accompany all requests
and, agrees to pursue the procurement of sources available
to it to the extent applicable to all Federal, State and
local laws. All non -expendable property acquired for the
program with City funds will revert to the CITY at the end
of the CITY 's funding of the program, non -expendable
property being properties which will not be consumed or lose
identity. The CONTRACTOR shall establish and maintain a
property control system and shall be responsible for
maintaining a current inventory on all capital items
purchased with CITY funds. It should be clearly understood
that all Capital Expenditures over five hundred dollars
($500) must be approved by the CITY prior to purchase. It
should also be noted that all items purchased remain the
property of the CITY and should be inventoried as such.
This will include listing on a property record by
description, model serial number, date of acquisition and
cost. Such property shall be inventoried annually and an
inventory report submitted to the CITY. The CONTRACTOR
shall permit designated CITY staff access to the premises
where property is kept for the purpose of performing
inventory monitoring functions on an annual basis. The
CONTRACTOR shall not dispose of real or personal property
purchased with CITY funds through sale, use, loan or
relocation without the written permission of the CITY.
The CONTRACTOR shall be subject to and comply with the
City's current Minority Procurement Program.
(31) 94- 411
The CONTRACTOR, in the procurement of supplies, equipment,
construction or service to implement this project, shall
make a positive effort to utilize small business and
minority owned business sources of supplies and services,
and provide these sources the maximum feasible opportunity
to compete for contracts to be performed pursuant to this
Agreement. To the maximum extent feasible, these small
business and minority owned business sources shall be
located in or owned by residents of the Community
Development Target Area(s) designated by the City of Miami
in the Community Development Grant application approved by
the U.S. Department of Housing and Urban Development.
5.7 FINAL EXPENDITURE REPORT
A final budget report shall be submitted to the CITY within
sixty (60) days after the expiration of the contract period.
This report should reflect actual expenditures, by line -
items, versus proposed expenditures submitted at the
beginning of the Contract year. All persons employed and
paid pursuant to this Agreement should be listed by name,
title, Social Security number, date hired or terminated,
ethnic background, and total salary reflecting both City and
other funding sources.
5.8 AMENDMENTS
The CITY and the CONTRACTOR may, at their discretion, amend
this Agreement, to conform with any contingencies which may
require such. amendment. Amendments, if required, shall be
incorporated, in writing, to this Agreement upon approval
and concurrence of the CITY and the CONTRACTOR.
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94- 411
5.9 OWNERSHIP OF DOCUMENTS
All documents developed by CONTRACTOR under this Agreement
shall be delivered to CITY by said CONTRACTOR upon
completion of the services required pursuant to this
Agreement and shall become the property of CITY, without
restriction or limitation on its use. CONTRACTOR agrees
that all documents maintained and generated pursuant to this
contractual relationship between CITY and CONTRACTOR shall
be subject to all provisions of the Public Records Law,
Chapter 119, Florida Statutes (Attachment I).
It is further understood by and between the parties that any
document which is given by CITY to CONTRACTOR pursuant to
this Agreement shall at all time remain the property of CITY
and shall not be used by CONTRACTOR for any other purposes
whatsoever without the written consent to CITY.
5.10 AWARD OF AGREEMENT
CONTRACTOR warrants that it has not employed or retained any
person employed by the CITY to solicit or secure this
Agreement and that it has not offered to pay, paid, or
agreed to pay any person employed by the CITY and fee,
commission percentage, brokerage fee, or gift of any kind
contingent upon or resulting from the award of this
Agreement (Attachment I).
5.11 LEVERAGING
The CONTRACTOR agrees to seek additional supportive funding
from other sources. This will allow, to the greatest extent
possible, the leveraging of Community Development Block
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Grant funds. Proposals to other agencies will be made in
writing and a copy of such provided to the Department of
Community Development.
5.12 CONSTRUCTION OF AGREEMENT
This Agreement shall be construed and enforced according to
the laws of the State of Florida.
5.13 OBLIGATION TO RENEW
Upon expiration of the term of this Agreement, CONTRACTOR
agrees and understands that CITY has no obligation to renew
this Agreement.
5.14 TERMINATION OF CONTRACT
CITY retains the right to terminate this Agreement at any
time prior to the completion of the services required
pursuant to this Agreement without penalty to CITY. In that
event, notice of termination of this Agreement shall be in
writing to CONTRACTOR, who shall be paid for those services
performed prior to the date of its receipt to the notice of
termination. In no case, however, shall CITY pay CONTRACTOR
an amount in excess of the total sum provided by this
Agreement.
It is hereby understood by and between CITY and CONTRACTOR
that any payment made in accordance with this Section to
CONTRACTOR shall be made only if said CONTRACTOR is not in
default under the terms of this Agreement. If CONTRACTOR is
in default, then CITY shall in no way be obligated and shall
not pay to CONTRACTOR any sum whatsoever.
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It is also understood that in accordance with 24 CFR 85.43-
44 of the CDBG rules and regulations, suspension or
termination may occur if CONTRACTOR fails to comply with any
term of this Agreement, or if the CITY deems it convenient
to terminate it.
5.15 REVERSION OF ASSETS
Upon expiration of this Agreement, the CONTRACTOR shall
transfer to the CITY any CDBG funds on hand at the time of
expiration any accounts receivable attributable to the use
of CDBG funds.
Any real estate property that was acquired or improved by
CONTRACTOR in whole or in part with CDBG funds in excess of
$25,000 shall be either:
A. Used to meet one of the three (3) CDBG National
Objectives set forth by 24 CFR 570.208 of the CDBG
Program regulations, until five (5) years after
expiration of this Agreement, or such longer period of
time as determined appropriate by the City; or
B. Disposed of in a manner resulting in the CITY being
reimbursed in the amount of the current fair market
value of the property less any portion thereof
attributable to expenditures of non-CDBG funds for
acquisition of, or improvements to, the property.
5.16 GENERAL CONDITIONS
A. All notices or other communications which shall or may
be given pursuant to this Agreement shall be in writing
and shall be delivered by personal service, or by
registered mail addressed to the other party at the
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94- 411
address indicated herein or as the same may be changed
from time to time. Such notice shall be deemed given on
the day on which personally served; or, if by mail, on
the fifth day after being posted or the date of actual
receipt, whichever is earlier.
CITY OF MIAMI CONTRACTOR
3500 Pan American Drive Miami Capital Development, Inc.
Miami, Florida 33133 300 Biscayne Boulevard Way
Suite 614
Miami, Florida 33131
B. Title and paragraph headings are for convenient
reference and are not a part of this Agreement.
C. In the event of conflict between the terms of this
Agreement and any terms or conditions contained in any
attached documents, the terms in this Agreement shall
control.
D. No waiver or breach of any provision of this Agreement
shall constitute a waiver of any subsequent breach of
the same or any other provision hereof_, and no waiver
shall be effective unless made in writing.
E. Should any provisions, paragraphs, sentences, words or
phrases contained in this Agreement be determined by a
court of competent jurisdiction to be invalid, illegal
or otherwise unenforceable under the laws of the State
of Florida or the City of Miami, such provisions,
paragraphs, sentences, words or phrases shalt be deemed
modified to the extent necessary in order to conform
with such laws, or if not modifiable to conform with
such laws, then same shall be deemed severable, and in
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either event, the remaining terms and provisions of this
Agreement shall remain unmodified and in full force and
effect.
5.17 INDEPENDENT CONTRACTOR
CONTRACTOR and its employees and agents shall be deemed to
be independent contractors and not agents or employees of
the CITY, and shall not attain any rights or benefits under
the Civil Service or Pension Ordinances of the CITY or any
rights generally afforded classified or unclassified
employees; further, they shall not be deemed entitled to the
Florida Worker's Compensation benefits and an employee of
the CITY.
5.18 SUCCESSORS AND ASSIGNS
This Agreement shall be binding upon the parties herein,
their heirs, executors, legal representatives, successors,
and assigns.
ARTICLE VI
6.0 CONTRACTOR CERTIFICATIONS
CONTRACTOR certifies that:
It possesses the legal authority to enter into this
Agreement by way of a resolution, motion, or similar action
that has been duly adopted or passed as an official act of
the CONTRACTOR's governing body, authorizing the execution
of. the Agreement, including all understandings and
assurances contained herein, and directing and authorizing
the person identified as the official representative of the
CONTRACTOR to act in connection with the Agreement and to
provide such additional information as may be required.
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94- 411
IN WITNESS WHEREOF, the parties hereto, have caused this
instrument to be executed by the respective officials thereunto
duly authorized on the first date above written.
CITY OF MIAMI, a municipal
Corporation of the State of
Florida
ATTEST:
MATTY HIRAI CESAR H. ODIO
} CITY CLERK CITY MANAGER
i
1
i ATTEST: CONTRACTOR: Miami Capital
' Development, Inc.
ADDRESS: 300 Biscayne Boulevard Way
j Suite 614
j CITY STATE ZIP: Miami, Florida 33131
I
i
CORPORATE SECRETARY PRESIDENT
WITNESS:
SEAL
APPROVED AS TO INSURANCE REQUIREMENTS:
FRANK K. ROLLASON DIRECTOR
DEPUTY FIRE CHIEF
RISK MANAGEMENT DIVISION
1 APPROVED AS TO FORM AND CORRECTNESS:
i
I
j
i
A. QUINN JONES, III
CITY ATTORNEY
(38) 114- 411
j
05/5/94/DCD/gjd
CiTY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
Honorable Mayor and Members
' of the C' ty Commission
G'.
ROM . Cesar H. Odio
City Manager
RECOMMENDATION:
DATE MAY 31 1994 FILE
Resolution authorizing the City
SUBJECT Manager to Execute a Contract
Agreement with Miami Capital
Development, Inc. (MCDI)
REFERENCES
ENCLOSURES.
It is respectfully recommended that the City Commission approve
the attached resolution authorizing the execution of an
agreement, in a form acceptable to the City Attorney, between
Miami Capital Development, Inc. (MCDI) and the City of Miami for
the purpose of maintaining its Revolving Loan Fund Program and
continuation of its administrative procedures in accordance with
the terms and conditions set forth therein.
BACKGROUND:
The Department of Community Development (DCD) has analyzed the
need to execute an agreement with Miami Capital Development, Inc.
The proposed agreement will be for the period of twelve (12)
months, commencing on July 1, 1994 and terminating on June 30,
1995.
Miami Capital Development, Inc. (MCDI) a quasi -public lending
institution, serves as the City's financial arm to provide
financial business. development loan packaging services, and
managerial/technical assistance to its loan recipients.
In addition to providing the aforementioned administrative
support to minority entrepreneurs, MCDI also administers a
Revolving Loan Fund Program which is used mainly to fill the gaps
in the existing financial markets for those entrepreneurs who
have had inadequate access to credit and business opportunities
generally required by private lending institutions.
The Citywide Revolving Loan Fund will be funded at a level of
$200,000, and the administrative fund will be $250,000.
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