HomeMy WebLinkAboutAGR-7862.0.8 - CITY OF ORANGE PUBLIC WORKS DEPARTMENT - MOU - CDBG FY 25-26 STREET REHABILITATIONDocusign Envelope ID:38013B7A-3034-477C-BA4B-05BBFE3D3BB1
MIWI
AG R-7862.0.8 FL•f7
FY 2025-2026
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF ORANGE AND
THE CITY OF ORANGE PUBLIC WORKS DEPARTMENT
The CITY OF ORANGE, a municipal corporation ("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("Act")and under Grant Number B-25-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, 2025 ("Effective Date"), to authorize the CITY's PUBLIC WORKS
DEPARTMENT ("DEPARTMENT") to provide the ADA Street Improvement project
Project"), as one of the projects to be funded by the CITY from the FY 2025-2026 CDBG grant
as set forth in the CITY's FY 2025-2026 Action Plan, and as more particularly set forth in
Attachment"A"to this Memorandum of Understanding ("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 2025-2026 CDBG funds allocated to the CITY
by HUD. 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 FOUR HUNDRED AND EIGHTY EIGHT THOUSAND SIX
HUNDRED AND SIXTEEN DOLLARS AND 00/100 ($488,616.00). Said CDBG funds were
approved by the City Council on June 24, 2025, and through the adoption of the FY 2025-2026
budget. The funds to be disbursed under this Memorandum shall include all related costs in
accordance with the limitations and funding requirements set forth in this Memorandum and
Attachment"A"hereto. Only expenditures incurred from July 1,2025,through June 30,2027 shall
qualify to be reimbursed with CDBG funds.
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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. TIME OF PERFORMANCE AND MODIFICATION; BUDGET MODIFICATION;
SCOPE OF WORK MODIFICATION; SUSPENSION AND TERMINATION
A. Time of Performance and Modification: The DEPARTMENT shall expend the funds
within a time period not exceeding twenty four(24)consecutive months following the Effective Date
of this Memorandum.
The City Manager or designee may amend time of performance when such modifications:
1) In the aggregate do not exceed six(6) additional calendar months;
2) Are requested in writing by the DEPARTMENT;
3) Will not change the Project goals or scope of services;
4) Are in the best interests of the CITY and DEPARTMENT in performing the
scope of services under this Memorandum;
5) Do not alter the amount of funding allocated to the DEPARTMENT under
this Memorandum; and
6) Are approved in writing by the City Manager or designee as an amendment
hereto.
Time of performance extensions greater than those stated above will require City Council
approval.
B. Budget Modification: The City Manager or 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 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.
C. Scope of Work Modification:
1) 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
the scope of work is considered "minor" when it does not require an increase to the budget above
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30,000, 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 designee.
2) Major modifications to the scope of work for the Project require City Council
approval.
D. 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
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 termination of this Memorandum or within five (5) CITY
business days following the end of FY 2025-2026, the DEPARTMENT shall transfer to the CITY
any undisbursed funds or accounts receivable attributable to the use of CDBG funds. As provided
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 REQUIREMENTS
A. 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.
B. 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
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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
C. The DEPARTMENT shall maintain detailed records in a format prescribed by the CITY
to demonstrate compliance with the CDBG Regulations. Said records shall include a map of the CITY
depicting the location of the proposed access ramps;agreements with subcontractors,a description of the
Project;and documentation of staff time that is attributable to the CDBG funds.
D. 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
financial and programmatic records, supporting documents, statistical records and other records,
which are pertinent to the Project or this Memorandum("Records"), for at least four(4)years after
the DEPARTMENT submits to the CITY its final Annual Summary Report for the Project.
E. 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
A. The DEPARTMENT shall provide to the 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 15t' day of each October,
January, April, and July during the term of this Memorandum. If any of those dates falls 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.
B. 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 defined herein). 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.
C. The DEPARTMENT shall submit a cumulative FY 2025-2026 Annual Summary
Report no later than July 15, 2026 and a cumulative FY 2026-2027 Annual Summary Report no
later than July 15,2027 to CDD if any project expenses are incurred after July 1,2026. The Annual
Report shall include cumulative beneficiary statistics and Project accomplishments from July 1,2025
through June 30, 2026 and July 1, 2026 thought June 30,2027 if any project costs are incurred after
July 1,2026,and the status of the Project as of June 30,2026 and June 30,2027 is applicable;and shall
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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
A. 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.
B. To the extent not required under the regulatory references cited above, the
DEPARTMENT shall maintain all 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
A. The DEPARTMENT shall comply with:
1) The provisions of Subpart K of the CDBG Regulations that are applicable
to the Project.
2) 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.
3) The provisions of the Notice of Outcome Performance Measurement System
for Community Planning and Development Formula Grant Programs, published in Federal
Register Vol. 71,No. 44 on March 7,2006.
4) 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.
B. 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.
1) The DEPARTMENT shall obtain three (3) written and documented bids
prior to purchasing or leasing any nonexpendable personal property described in Attachment"A."
2) The DEPARTMENT shall purchase or lease from the lowest responsible
bidder.
3) 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.
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4) This inventory shall be provided to the CITY upon request.
11. COMPLIANCE WITH FEDERAL AND STATE LAW AND CERTIFICATION
AND ASSURANCES
The DEPARTMENT acknowledges that the funds subject to this Memorandum were
originally provided by HUD 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.
SIGNATURES ON FOLLOWING PAGE.
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IN WITNESS WHEREOF, the parties have caused this Memorandum to be executed as
of the Effective Date.
CITY"
CITY OF ORANGE, a municipal corporation
r—Sawl br•
By: 24
arRrtFA Snbrand, City Manager
ATTEST:
Signd by:
Yaamela Megan, City Clerk
APPROVED AS TO FORM:
tDocuSigned
by:
c) 1il cx.,
at al%Dnounan, City Attorney Al
The terms and conditions of the foregoing Memorandum are understood and accepted:
DEPARTMENT"
PUBLIC WORKS DEPARTMENT, a department
of the City of Orange
Signed by:
By: ( 'lStDpur S. (AL
25sE opRer 'ash, Director
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FY 2025-2026
CITY OF ORANGE
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
Memorandum of Understanding
ATTACHMENT "A"
1. City Department
Department Name: Public Works
Director: Christopher Cash
Contact Person: Dien Vu
Title: Senior Civil Engineer
Extension: 5551
E-mail: dienvu@cityoforange.org
2. Project/Program Title: CDBG Fiscal Year 25-26 Street Rehabilitation
3. Project/Program Location: Various Locations throughout Orange,CA
4. Funding Period:July 1,2025—June 30,2027
5. CDBG Funds Amount: 488,616
6. Funding Summary:
Total
Other Funding
Program/Project
Cost Category CDBG Funds
Sources
Budget
All Funding
Sources)
1.Personnel Services
48,861 48,861
Salaries, benefits, etc)
2.Miscellaneous Program/Project Costs
Office supplies, travel expenses,professional
services, etc.)
3.Capital Outlay 439,755 S439,755
Property acquisition, construction costs, etc)
4.TOTAL 488,616 488,616
7. Activity Summary:
Describe project/program for which CDBG funds will be used.
The proposed project will rehabilitate roadway pavement on various public streets included
in the location map included. The proposed project will address issues with existing
infrastructure such as pavement distress that causes cracking and raveling of roadways which
can be a safety risk to both pedestrians and motorists. The street rehabilitation improvements
will enhance safety and quality of life for neighborhood residents and improve the service
life of local infrastructure.
Attachment "A"
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Timeline Reimbursed Expenditures
Q 1 —2025
Q2—2025
Q3—2026 30,000
Q4—2026 5,000
Q1 —2026 350,000
Q2-2026 103,616
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.
As part of the City's strategic plan goals, the City's mission is to provide outstanding public
service through City facilities and services to meet customer expectations. That proposed
project will improve and rehabilitate street pavement that is in need of improvement. CDBG
funds will be used for these street improvements on several public streets in eligible areas.
Timeline Project Milestone(Specify the tasks accomplished for each quarter)
Q1 —2025
Q2—2025
Q3—2026 Begin Design
Q4—2026 Complete Design and Advertise Bids
Q1 -2026 Evaluate and Award Bids,Start Construction
Q2-2026 Complete Construction-
9. Beneficiary Information
For programs that will serve specific areas, provide the following documentation. Attach a
map showing the location of the project.
Please see attached street locations.
Attachment "A"
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