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HomeMy WebLinkAboutExhibit 6EXHIBIT D DISBURSEMENT PROCEDURES ARTICLE I 1.1 The Agreement establishes the conditions to the CITY's obligation to disburse the CDBG-R Funds to the SUB -RECIPIENT. The SUB -RECIPIENT may not request disbursement of funds pursuant to this Agreement until such Funds are needed for the payment of eligible costs. Notwithstanding the restrictions of the previous sentence of this paragraph, the Allocation Retainage shall be disbursed by the CITY in accordance with the provisions of Section 1.7 hereof. Provided the CITY is obligated to disburse the CDBG-R Funds pursuant to the Special Grant Agreement, the CITY will disburse such funds in accordance with this Article I. 1.2 The SUB -RECIPIENT shall submit payment requests for the CDBG Funds as needed. The SUB -RECIPIENT will submit or cause to be submitted the following documentation to the CITY: (a) A request for payment, in a form acceptable to the CITY, setting forth such details concerning construction of the PROJECT as the CITY shall require, including: the amount to be paid to the SUB -RECIPIENT not to exceed fifteen percent (15%) of the project cost; the amount paid to date to the contractor(s) constructing the PROJECT (the "Contractor") and pursuant to the contract for the construction of the PROJECT between the SUB -RECIPIENT and the Contractor (the "Construction Contract"); the amounts, if any, paid directly by the SUB - RECIPIENT to subcontractors of the Contractor and materialmen; the amount then currently payable to the Contractor, broken down by trades; the amounts paid on account of the Contractor's construction fee; and the balance of the construction costs which will remain unpaid after the of the amount currently payable. Any request for payment should be submitted to the CITY by no later than the thirtieth (30th) day of each month. Each Request for Payment must be signed by the SUB -RECIPIENT, the Architect for the PROJECT, and the Contractor, as applicable. Applications for receiving CDBG-R Funds for payment of hard costs will include the CITY's Request for Payment Form (letter), AIA Application and Certificate forms (if applicable), the Contractor Request form, and other such documents as the CITY may require. The CITY, as described in Section 1.3 hereof, will review the following in connection with each payment request: the amount of work on the PROJECT that has been completed; the good and acceptable workmanship of the Contractor and its subcontractors; compliance with approved plans and specifications of the PROJECT; and such other matters as the CITY may require. Lien waivers shall be submitted to the CITY for review and approval before each disbursement. (b) Each request for payment for hard costs shall constitute a representation and certification by the SUB -RECIPIENT and the Contractor to the CITY that: (i) The materials have been physically incorporated into the PROJECT, free of liens and security interests, and that the construction of the PROJECT to date has been performed substantially in accordance with the drawings and specifications and in a fust -class workmanlike manner; (ii) All governmental licenses and permits required by the PROJECT as then completed have been obtained and are available for inspection by the CITY; (iii) The PROJECT as then completed does not violate any law, ordinance, rule, regulation, or order or decree of any court or governmental authority; (iv) No Event of Default has occurred and is continuing and there is no continuing default under the Construction Contract; and (v) The SUB -RECIPIENT, the Contractor and each subcontractor has complied with all Federal, state and local laws and regulations relating to labor standards and with HUD Handbook 1344.1. (c) Such other information and documents as the CITY may require. 1.3 The CITY will review the work that is incorporated into the PROJECT and for which each request for payment of the CDBG-R Funds is submitted. The CITY will review and approve the final plans and specifications for the PROJECT. The CITY will also review and approve the payment requests based on the percentage of work completed. All construction change orders must receive the prior written approval of the CITY. Change orders that have not received the prior written approval of the CITY shall not be approved for payment by the CITY. 1.4 Upon receipt of a request for payment, delivered pursuant to Section 1.2 hereof and without attempting to verify the completeness of same, the CITY shall inspect the progress of construction work at the PROJECT. 1.5 If the CITY finds the materials submitted by the SUB -RECIPIENT and the report of inspection to be satisfactory and in accordance with the Special Grant Agreement, the CITY shall field to the SUB -RECIPIENT the sum requested by the SUB -RECIPIENT or such lower sum as the CITY deems appropriate. 1.6 The CITY shall fund payment of the CDBG-R Funds after it has received both the request for payment, in the form required by Section 1.2 hereof, and the inspection report of the CITY, in the form required by Sections 1.2 and 1.3 hereof. -2- 1.7 The CITY may retain 10% of the CDBG-R Funds allocated to the SUB - RECIPIENT (the "Allocation Retainage") until it has received confirmation of completion of the Scope of Work and all the permits are closed. 1.8 The CITY reserves the right to refuse to fund any payment request(s) in the event that the CITY determines that the PROJECT and/or the SUB -RECIPIENT are not in compliance with any local, state or federal law or requirement. ARTICLE II MISCELLANEOUS 2.1 This Agreement may only be amended in writing by all the parties hereto. 2.2 This Agreement, the Special Grant Agreement and the other documents executed by the parties in connection therewith constitute the entire agreement between the parties hereto and no other agreements or representations, unless incorporated in this Agreement, shall be binding upon any of the parties hereto. 2.3 All capitalized terms not defined herein shall have the meanings provided in the Special Grant Agreement. -3- IN WITNESS WHEREOF, this Agreement has been executed by the SUB -RECIPIENT and the CITY on the date first above written. SUB -RECIPIENT: Rafael Hernandez Housing & Economic Development Corp. 2400 N. Miami Avenue Miami, FL 33127 a Florida not -for profit corporation mm Executive Director Date -4-