AGR-6995 - PUBLIC WORKS DEPARTMENT - 2020-21 CDBG MOU HOOVER NEIGHBORHOOD STREET IMPROVEMENT PROJECTA R—I q
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FY 2020-2021
COMMUNITY DEVELOPIVIENT BLOCK GRANT PROGRAM
MEMORANDU M OF UNDERSTANDING
The CITY OF ORANGE, a municipal corporation (the "CITY"), has received Community Development
Block Grant ("CDBG") funds from the United States Department of Housing and Urban Development
HUD") under Title 1 of the Housing and Urban Development Act of 1974, as amended (the "Act") and
under Grant Number B-20-MC-06-0507. The CDBG Program is listed in the Catalog of Federal
Domestic Assistance ("CFDA") under CFDA Number 14.218. The CITY desires, as of July 1, 2020 (the
Effective Date"), to authorize the CITY's PUBLIC WORKS DEPARTMENT (the "DEPARTMENT")
to provide the Hoover Neighborhood Street Improvement project (the "Project"), as one of the projects to
be funded by the CITY from the FY 2020-2021 CDBG grant as set forth in the CITY's FY 2020-2021
Action Plan, and as more particularly set forth in Attachment "A" to this Memorandum of Understanding
the "Memorandum"). This Memorandum sets forth the obligations of the DEPARTMENT regarding the
Project.
1. DESCRIPTION OF PROJECT
The DEPARTMENT has provided an attachment to this Memorandum designated as Attachment
A"that describes in appropriate detail the Project, consisting of the following components:
a. The Project's name, description, and location;
b. The scope of work to be accomplished under this Memorandum;
c. The Project's performance schedule and estimated timelines; and
d. A budget detailing specific costs by category (i.e., Personnel Services, Miscellaneous Project
Costs, and Capital Outlay/Construction Costs).
Attachment "A" is attached hereto and incorporated herein by this reference and shall form the
basis of performance monitoring.
2.COMPENSATION
The CITY shall pay for Project costs with FY 2020-2021 CDBG funds allocated to the CITY by
HLJD. Under this Memorandum, the CITY shall have no obligation to fund all or any portion of the
Project out of its General Fund or from any other source except CDBG funds. The use of the
General Fund for any non-CDBG Project costs shall be governed under a separate contract. The
CDBG funds shall be disbursed to the DEPARTMENT, subject to availability and approval by
HUD, in an amount not to exceed Six Hundred Eleven Thousand Eight Hundred Thirty Dollars and
00/100 ($611,830.00). Said CDBG funds were approved by the City Council on April 14, 2020,
through the adoption of the FY 2020-2021 budget. The funds to be disbursed under this .
Memorandum shall include all related costs in accordance with the limitations and funding
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requirements set forth in this Memorandum and Attachment"A"hereto. Only expenditures incurred
from July 1, 2020 through December 31, 2021, or as otherwise extended pursuant to this
Memorandum, shall qualify to be reimbursed with CDBG funds.
3. USE OF FUNDS
The DEPARTMENT shall use all funds provided pursuant to this Memorandum exclusively for the
purpose of implementing its approved Project as described in Attachment "A," or as it may be later
amended. No funds provided by the CITY to the DEPARTMENT under this Memorandum shall be
used for any political activity whatsoever or for any other purpose.
The DEPARTMENT shall use funds received under this Memorandum in strict conformity with
applicable provisions of the CDBG Program regulations issued by HUD and found at 24 Code of
Federal Regulations ("CFR"), Subtitle B, Chapter V, Subchapter C, Part 570 ("CDBG Regulations")
and as further specified in other parts of this Memorandum. All services provided hereunder shall
conform to all federal, state and local laws,rules and regulations.
4. TIlVIE OF PERFORMANCE AND MODIFICATION; BUDGET MODIFICATION; SCOPE
OF WORK MODIFICATION; SUSPENSION AND TERMINATION
Time of Performance and Modification: The DEPARTMENT shall expend the funds within a time
period not exceeding eighteen (18) consecutive months following the Effective Date of this
Memorandum.
The City Manager or his designee may amend time of performance when such modifications:
a.In the aggregate do not exceed six(6) additional calendar months;
b. Are requested in writing by the DEPARTMENT;
c.Will not change the Project goals or scope of services;
d. Are in the best interests of the CITY and DEPARTMENT in performing the scope of
services under this Memorandum;
e.Do not alter the amount of funding allocated to the DEPARTMENT under this
Memorandum; and
f.Are approved in writing by the City Manager or his designee as an amendment hereto.
Bud;et Modification: The City Manager or his designee may increase the amount of funding allocated
to the DEPARTMENT under this Memorandum up to a maximum of$30,000, when such increase is
warranted and is approved in writing by the City Manager or his designee as an amendment hereto.
Time of performance extensions and budget/funding increases greater than those limits delegated to
the City Manager will require City Council approval. The CITY reserves the right to reduce funding
allocations contained in this Memorandum at any time and for any reason.
Scope of Work Modification: Minor modification to the scope of work for the Project as set forth in
Attachment "A," may be requested by either the CITY or the DEPARTMENT. A modification to
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the scope of work is considered "minor" when it does not require an increase to the budget, is
generally within the scope of work contemplated for the Project, meets the goals of the Project, is
authorized under the terms of the CDBG Program, and otherwise is in compliance with all CITY,
state and federal guidelines. Such minor modifications shall be a written amendment hereto
approved by the City Manager or his designee. Major modifications to the scope of work for the
Project require City Council approval.
Suspension and Termination of MOU: In accordance with the requirements of 2 CFR Subtitle A,
Chapter II, Part 200 and other applicable provisions of this Memorandum, the CITY, acting through
its City Manager, may, in its sole discretion, suspend or terminate this Memorandum if the
DEPARTMENT materially fails to comply with any term or provision of this Memorandum. The
Memorandum and the funds allocated hereunder may also be terminated for convenience as provided
for in 2 CFR Subtitle A, Chapter II, Part 200. Upon receipt of notice, the DEPARTMENT shall
immediately cease the rendition of services and the expenditure of any funds, unless the notice
provides otherwise.
5. REVERSION OF ASSETS
Upon the earlier to occur of ternunation of this Memorandum or within five (5) CITY business days
following the final date for performance as authorized pursuant to this Memorandum, the
DEPARTMENT shall transfer to the CITY any undisbursed funds or accounts receivable
attributable to the use of CDBG funds. As provided for in Section 570.503 of the CDBG
Regulations, any real property acquired or improved in whole or in part with CDBG funds in excess
of$25,000 must either:
a.Continue to be used to meet one of the National Objectives as set forth in Section 570.208 of
the CDBG Regulations for at least five (5) years from the expiration of the term of this
Memorandum; or
b.Be disposed of so as to reimburse the CITY at the full fair market value of the property, less
any portion thereof that is attributable to any non-CDBG funds contributed to the acquisition
or improvement. This provision shall expire and lapse upon the fifth anniversary of the
expiration of the term of this Memorandum
6. PROGRAM INCOME
Any income earned by the DEPARTMENT as a result of the CDBG-funded Project must be
returned to the CITY within thirty(30) days of its receipt.
7. RECORD-KEEPING REOUIREMENTS
The DEPARTMENT shall maintain,on a current basis,a Project records file and an adequate accounting
system pursuant to the provisions of Sections 570.502 and 570.506 of the CDBG Regulations and in
accordance with generally accepted accounting principles and standards.
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The Project shall meet the National Objective of benefiting Low and Moderate Income persons in
the limited clientele benefit category under 24 CFR 570.208(a)(2)(ii)(A), under which the
DEPARTMENT is obligated to demonstrate that the Project serves to remove material or
architectural barriers to the mobility or accessibility of elderly persons or of adults meeting the
Bureau of the Census' Current Population Reports definition of"severely disabled," and is restricted,
to the extent practicable, to the removal of such barriers by assisting the reconstruction of a public
facility or improvement, or portion thereof, that does not qualify under Section 570.208(a)(1) of the
CDBG Regulations.
The DEPARTMENT sha11 maintain detailed records in a format prescribed by the CITY to demonstrate
compliance with the CDBG Regulations. Said records sha11 include a map of the CITY depicting the
location of the proposed access ramps; a description of the Project; and documentation of stafftime that
is attributable to the CDBG funds.
Except in the event of any litigation, claim, negotiation, audit or other action started before the
expiration of the four-year records retention period, the DEPARTMENT shall retain all fmancial
and programinatic records, supporting docutnents, statistical records and other records, which are
pertinent to the Project or this Memorandum (the "Records"), for at least four (4) years after the
DEPARTMENT submits to the CITY its final Annual Stunmary Report for the Proj ect.
The DEPARTMENT shall make available for inspection to authorized CITY and HUD personnel,
the DEPARTMENT's Records pertaining to the Project and allow those personnel to inspect and
monitor its facilities and Project operations, including the interview of the DEPARTMENT's staff
and Project participants as required to enable the CITY and HUD officials to fulfill their obligations
to ensure compliance with all applicable laws and regulations.
8. PROJECT REPORTS
The DEPARTMENT shall provide to the CITY's Community Development Department ("CDD"),
on forms provided by CDD, a Quarterly Performance Report on the status of the Project, and
evidence of compliance with CDBG Regulations no later than the 15 h day of each October,
January, April, and July during the term of this Memorandum. If any of those dates fall on a
Saturday, Sunday or other day on which CITY is not generally open for business, then the
submittal date for such Quarterly Performance Report shall be extended to the next following
CITY business day.
Said Reports shall at a minimum provide sufficient information to assess performance against the
specifications included in Attachment "A." The DEPARTMENT shall maintain Project data and
make available Project Records that might be required for the annual evaluation (as hereinafter
defined). The DEPARTMENT shall be required to compile and maintain, as part of the Records,
files that verify that the Project meets applicable Project eligibility requirements pursuant to 24
CFR Section 570.506.
The DEPARTMENT shall submit a cumulative FY 2020-2021 Annual Summary Report no later
than January 15, 2022 to CDD. The Annual Report shall include cumulative beneficiary statistics
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and Project accomplishments from July 1, 2020 through December 31, 2021, and the status of the
Project as of December 31, 2021; and shall provide CDD with such information as may be
reasonably required at various times for reporting to HUD, the City Council and citizen
committees.
9. UNIFORM ADMINISTRATIVE REQUIREMENTS
The DEPARTMENT shall inform itself of all the requirements set forth in Subpart J of the CDBG
Regulations, and to adhere to all applicable grant administration requirements established therein.
To the extent not required under the regulatory references cited above, the DEPARTMENT shall
maintain a11 Project administration and financial Records that the CITY is obligated to maintain by
HUD by virtue of its status as a Subrecipient of CDBG funds under Section 570.506 of the CDBG
Regulations.
10. OTHER PROGRAM REQUIREMENTS
The DEPARTMENT agrees to comply with the provisions of Subpart K of the CDBG Regulations
that are applicable to the Project.
The DEPARTMENT agrees to comply with the provisions of 24 CFR, Subtitle B, Chapter I,
Subchapter B, Part 135, Economic Opportunities for Low and Very-Low Income Persons, that are
applicable to the Project.
The DEPARTMENT agrees to comply with the provisions of the Notice of Outcome Performance
Measurement System for Communiry Planning and Development Formula Grant Programs,
published in Federal Register Vol. 71,No. 44 on March 7, 2006.
The DEPARTMENT shall comply with all requirements of the Office of Management and Budget
OMB") guidance in 2 CFR Subtitle A, Chapter II, Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Property acquired in whole or in part with funds provided pursuant to this Memorandum shall be
managed in accordance with the applicable provisions of 2 CFR Subtitle A, Chapter II, Part 200,
and any amendments thereto that might become effective during the term of this Memorandum.
The DEPARTMENT shall obtain three (3) written and documented bids prior to purchasing or
leasing any nonexpendable personal property described in Attachment"A." The DEPARTMENT
must purchase or lease from the lowest responsible bidder. All nonexpendable property purchased
or leased pursuant to this Memorandum shall be properly identified and inventoried and shall be
charged at its actual price, deducting all cash discounts, rebates and allowances received by the
DEPARTMENT. This inventory shall be provided to the CITY upon request.
11. COMPLIANCE WITH FEDERAL AND STATE LAW AND CERTIFICATION AND
ASSURANCES
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The DEPARTMENT acknowledges that it understands that the funds subject to this Memorandum
were originally provided by HLJD and that, consequently, the expenditure of these funds is subject
to specific requirements set forth in various federal regulations and agreements between the CITY
and HUD. In particular, this Memorandum is subject to requirements contained in the CDBG
regulations and the Act. The DEPARTMENT shall ensure compliance with all federal
requirements in all subcontracts or subgrants entered into pursuant to this Memorandum.
12. INTERPRETATION
In the event there are inconsistencies or conflicts in this Memorandum or any attachments hereto,
unless otherwise provided herein the inconsistencies shall be resolved by giving precedence in the
following order:
a.The Act, including any amendments thereto;
b. The CDBG Regulations, as approved by the Secretary of HUD, and any additional
regulations codified in the CFR applicable to the CDBG Program; and, thereafter,
c.The provisions of this Memorandum and its Attachments.
In case of conflict between the terms of this Memorandum and the terms contained in any
document attached as an Attachment, the terms of this Memorandum will strictly prevail unless
the terms are in conflict with federal, state or local law, in which case that particular law shall
strictly prevail.
IN WITNESS WHEREOF, the parties have caused this Memorandum to be executed as of the Effective
Date.
CITY"
CITY OF ORANGE, a municipal corporation
G' _B . Y
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C'ity Manager
APPROVED AS TO FORM:
ary She
ey
Remainder of Signatures on next page]
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The terms and conditions of the foregoing Memorandum are understood and accepted:
DEPARTMENT"
PUBLIC WORKS DEPARTMENT, a department of the
City of Orange
By:
istop er Cash
Director
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ATTACHMENT "A"
PROGRAM DESCRIPTION
Beneath this sheet.]
FY 2020-21
CITY OF ORANGE
COMMUNITY DEVELOPMENT SLOCK GRANT PROGRAM
Memorandum of Understanding
ATTACHMENT "A"
1. City Department
Department Name: Public Works
Director: Christopher Cash
Contact Person: Kevin Yamakawa
Title: Associate Civil Engineer
Extension: 5553
E-mail: kyamakawa@cityoforange.org
2. Project/Program Title: Hoover Neighborhood Street Improvement
3. Project/Program Location: Orange,CA(Census Tract 07625;Block Group 2)
4. Funding Period:July 1, 2020- December 31, 2021
5. CDBG Funds Amount: 611,830
6. Funding Summary:
Total
Other Funding
R'ogram/Project
Cost Category CDBG Funds
So,
Budget
All Funding
Sources)
1.Personnel Services
91,775 91,775
Salaries, benefits, etc.)
2.Miscellaneous Program/Project Costs
Office supplies, travel expenses,professional
services, etc.)
3.Construction Costs
520,055 520,055
4.TOTAL 611,830 611,830
7. Activity Summary:
Describe project/program for which CDBG funds will be used.
The pavement structural section on Streets in the Hoover Ave neighborhood are nearing the
end of its service life. Pavement distress is characterized by weathered cracking and raveling
which poses a safety risk to both pedestrians and vehicles alike. In addition, there are
segments of sidewalks, driveways, curb and gutter, and cross-gutters that have failed and
need to be addressed. The proposed project will address these issues by installing asphalt
concrete overlay and reconstructing concrete portions of the roadway corridor.
Attachment "A"
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Timeline Estimated Reimbursable Ex enditures
Q3-2020 22,500
4-2020 4,500
Q1 -2021 4,500
Q2-2021 290,000
3-2021 290,330
8. Estimated Accomplishments and estimated timelines:
Describe planned goals and accomplishments. Include the anticipated project timeline that
will be associated with/attributable to the CDBG funds for the program.
The distressed roadway in the Hoover neighborhood has a Pavement Condition Index (PCI)
of 23-72, which range from a very poor to a fair rating. The roadway rehabilitation will
increase the PCI to a good rating and thus, improve the overall roadway quality of this
neighborhood.
Timeline Pro'ect Milestone S ecif the tasks accom lished for each uarter
Q3 -2020 Design Started
Q4-2020 Design Completed,Environmental Compliance Completed
Q1 -2021 Bid Advertisement/Evaluation/Award
Q2-2021 Construction Started
Q3-2021 Construction Completed
9. Beneficiary Information
For programs that will serve specific areas, provide the following documentation. Attach a map
Attachment "A"—Exhibit 1) showing the location of the program and the boundaries of the service
area that will benefit from the program. In the table below, list the Census Tracts, Block Groups,
and income data for the service area. Add rows as needed.
Census Tract
Block
of Residents #
of Low/Mod
Grou Residents Low/Mod
07625 2 1,305 730 55.94
Attachment "A"
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LOCATION MAP
CITY OF ORANGE - PUBLIC WORKS - ENGINEERINGTHOMASGUIDEPage799, G1,
G2, H1, H2
Service Area
Residential Overlay CDBG FY 20-21: Hoover Neighborhood Street Rehabilitation