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HomeMy WebLinkAboutReso 138-21 Approving the First Amendment to the Grant Agreement with TriValley BMR, LLC to Provide Additional Funding for use of CDBG Capital Project FundsReso. No. 138-21, Item 4.10, Adopted 12/07/2021 Page 1 of 2 RESOLUTION NO. 138 - 21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING THE FIRST AMENDMENT TO THE GRANT AGREEMENT WITH TRIVALLEY BMR, LLC FOR USE OF CDBG CAPITAL PROJECT FUNDS WHEREAS, Open Heart Kitchen is a Tri-Valley-based 501(c)(3) non-profit that has been partnering with the City of Dublin to serve meals to residents in need, and entered into a Memorandum of Understanding (MOU) with TriValley BMR, LLC (Grantee) to build a new permanent kitchen facility (Project) as part of a mixed-use project in Livermore to better serve the residents of the Tri-Valley including Dublin; and WHEREAS, on April 20, 2021, the Parties entered into a Grant Agreement providing $330,000 for construction of the Project for use by Open Heart Kitchen; and WHEREAS, construction costs for the project have risen due to unforeseen circumstances, and there is now Community Development Block Grant (CDBG) funding available in Alameda County Urban County’s Capital Projects Pool for Fiscal Year 2021-2022; and WHEREAS, the County of Alameda (County) has entered into a Grant Agreement with the United States Department of Housing and Urban Development (HUD) for CDBG funds under the Housing and Community Development Act of 1974 and the regulations promulgated thereunder 24 CFR Sections 570 et seq., with said funds to be used for CDBG Programs and its eligible activities; and WHEREAS, the County Board of Supervisors approved an additional $300,000 allocation of fiscal year 2021-22 CDBG Capital Project funds for the Project, and the City of Dublin entered into a contract amendment on October 26, 2021, with the County to incorporate these additional funds into the City’s existing contract with the County for Urban County CDBG programs and services; and WHEREAS, the City of Dublin is an entitlement City and receives CDBG funds through the Urban County Program administered by Alameda County; and WHEREAS, in accordance with the National Environmental Policy Act of 1969, as amended (42 USC 4321-4347) (NEPA), environmental review was completed for all applicable activities proposed to be undertaken unde r the Grant Agreement with TriValley BMR, LLC, and certified by the Alameda County Department of Housing and Community Development and, furthermore, the California Environmental Quality Act (CEQA) imposes no conditions on the City's consideration and approval of the Grant Agreement because the Project is exempt from CEQA requirements under the categorical exemption set forth in 14 California Code of Regulations Section 15332; and WHEREAS, the First Amendment to the Grant Agreement between the City of Dublin and TriValley BMR, LLC reflects the terms for this Project and the use of this amended grant totaling $630,000. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby approve the Grant Agreement with TriValley BMR, LLC, attached hereto as Exhibit A, for use of CDBG Capital Project funds. BE IT FURTHER RESOLVED that the City Manager is authorized to execute the First Amendment to the Grant Agreement and take such further actions as may be necessary or appropriate to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED this 7th day of December 2021, by the following vote: AYES: Councilmembers Hu, Josey, Kumagai, McCorriston and Mayor Hernandez NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: ______________________________ City Clerk FIRST AMENDMENT TO THE GRANT AGREEMENT BETWEEN THE CITY OF DUBLIN AND TRIVALLEY BMR, LLC This First Amendment to the Grant Agreement (“First Amendment”) dated December 7, 2021 (“Effective Date”) is entered into between City of Dublin (hereinafter referred to as "CITY") and TriValley BMR, LLC (hereinafter referred to as "GRANTEE"). The CITY and GRANTEE are each individually referred to as a “Party” and collectively referred to as the “Parties.” Capitalized terms not otherwise defined in this First Amendment shall have the meanings specified in the Grant Agreement. RECITALS WHEREAS, on April 20, 2021, the Parties entered into a Grant Agreement for the Construction of an Open Heart Kitchen facility (hereinafter referred to as the “AGREEMENT”); and WHEREAS, the existing AGREEMENT provided $330,000 in Community Development Block Grant (CDBG) funding for purchase of equipment for the Open Heart Kitchen facility known as Vineyard 2.0 being built in Livermore to serve meals to residents of the Tri-Valley including Dublin; and WHEREAS, construction costs for the project have risen due to unforeseen circumstances, and there is now CDBG funding from Alameda County Urban County’s Capital Projects Pool for fiscal year 2021-2022; and WHEREAS, the existing funding has been used as planned for kitchen equipment, and the Parties submitted an application to Alameda County Department of Housing and Community Development (“County”) for an additional $300,000 in CDBG funding in August 2021; and WHEREAS, the County Board of Supervisors approved Amendment No. 1 to the 2021-22 CDBG Agreement between the City of Dublin and the County on October 26, 2021, to add $300,000 in Capital funds for Open Heart Kitchen at Vineyard 2.0; and WHEREAS, the Parties now wish to amend the AGREEMENT to incorporate these additional funds and update the work program accordingly. NOW THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the AGREEMENT is amended as follows: 1)Section 2 shall be rescinded in its entirety and replaced with the following: 2. Grant. The City shall disburse to the Grantee a sum not to exceed $630,000 in accordance with Exhibit B (“Budget”) to this Agreement for the performance described in the Exhibit A, said exhibits (“Work Program”) attached hereto and incorporated herein by reference. The funds disbursed by the City under this Agreement are referred to as “Grant Funds.” First Amendment to Grant Agreement between December 7, 2021 City of Dublin and TriValley BMR Page 2 of 6 2)Exhibit A to the AGREEMENT is hereby deleted in its entirety and replaced to read as shown in Exhibit A to this First Amendment. 3)Except to the extent inconsistent with this First Amendment, the Parties ratify and confirm all of the terms and conditions of the AGREEMENT. 4)All requisite insurance policies to be maintained by the GRANTEE pursuant to the AGREEMENT, as may have been amended from time to time, shall include coverage for the amended terms, as described above. 5)The individuals executing this First Amendment and the instruments referenced in it on behalf of GRANTEE each represent and warrant that they have the legal power, right and actual authority to bind GRANTEE to the terms and conditions of this First Amendment. SIGNATURES ON THE FOLLOWING PAGE First Amendment to Grant Agreement between December 7, 2021 City of Dublin and TriValley BMR Page 3 of 6 IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed as of the date of the City Manager’s signature below. CITY OF DUBLIN TRIVALLEY BMR, LLC By: _____________________________ By: _____________________________ Linda Smith, City Manager Darin Lounds, Executive Director Dated: ATTEST: By: _____ Marsha Moore, City Clerk APPROVED AS TO FORM: By: _____________________________ City Attorney First Amendment to Grant Agreement between December 7, 2021 City of Dublin and TriValley BMR Page 4 of 6 EXHIBIT A UPDATED WORK PROGRAM TRIVALLEY BMR, LLC CONSTRUCTION OF PERMANENT FACILITIES FOR OPEN HEART KITCHEN OF LIVERMORE CDBG funds are being used to build a commercial kitchen to serve residents of Dublin from this facility in Livermore. GRANTEE shall: 1)Demolish an existing structure on the site (460 N. Livermore Avenue, Livermore, CA). 2)Pay for all design services and necessary permit fees for project. 3)Construct a new structure to accommodate the proposed kitchen along with the housing and other facilities in the building. 4)Execute a long term lease in accordance with existing Memorandum of Understanding with Open Heart Kitchen. 5)Construct all tenant improvements for Open Heart Kitchen. 6)Purchase and install kitchen equipment at the project site. 7)Complete construction and make kitchen operational. Timeline June 30, 2021 TriValley BMR, LLC and/or Open Heart Kitchen purchased kitchen equipment and submitted an invoice to City of Dublin for $330,000. November 2021 Complete contractor bid negotiation and contract. Finalize and approve all plans. January 2021 Construction begins on building structure. March 2022 Open Heart Kitchen and TriValley BMR execute the long-term lease. April 30, 2022 Deadline for submitting invoices for final $300,000. March 2023 Construction is completed. Finalize permits for opening. 1.This timeline may be amended with prior approval of the Community Development Director or designee. 2.Invoices can only cover costs incurred between April 20, 2021, and April 30, 2022. First Amendment to Grant Agreement between December 7, 2021 City of Dublin and TriValley BMR Page 5 of 6 EXHIBIT B CONDITIONS FOR PAYMENT TRIVALLEY BMR, LLC CONSTRUCTION OF PERMANENT FACILITIES FOR OPEN HEART KITCHEN OF LIVERMORE 1.BUDGET Before disbursement of Grant Funds may be made, Grantee shall establish a budget, to be approved in writing by the Community Development Director or designee, specifying by line item the expenditures to be made with Grant Funds. Once a budget is approved by the City, changes may be made only with a written request to be approved by the Director or designee in advance of a request for disbursement of funds. 2.METHOD OF PAYMENT All requests for a funding draw or reimbursement will be in a format approved by the City and the County. a.All requests for a funding draw or reimbursement shall be on Grantee’s letterhead, contain an original authorized signature, unique invoice number (current year’s contract number); total amount requested and amounts towards each line item on the approved budget. This document shall be called an “Invoice”, and shall track disbursements made by budget line item, current requests, and amount remaining in the budget line item, as demonstrated in the table below. Line Item Total Budget Previous Requests Current Request Balance Remaining b.Invoices must state the Service Period which is the period for which payment is requested. The dates on the backup invoice documentation must be within this period. c.All invoices shall be paid on a funding draw or reimbursement basis and be made no more than monthly with supporting documentation of actual costs incurred during the period of time covered by the invoice. If under a specific line item, Grantee has more than one form of back up or supporting documentation, Grantee must summarize the documentation and include a subtotal of items which add up to the line-item total. Invoices must be properly organized and are subject to return to Grantee if they are not. d.Requests for funding draw or reimbursement must be received within 60 days of the end of each month or period covered. e.All funds disbursed to Grantee must be expended within fifteen (15) days of approval of the receipt of funds. The final disbursement shall be requested by GRANTEE not less than sixty (60)days before project completion. f.Any adjustments made by the fiscal auditors at the year-end audit, under the American Institute of Certified Public Accountants (AICPA) guidelines and other relevant federal regulations should be brought to the attention of City staff for reconciliation. g. Grantee is responsible for reporting any matching funds used on this project which do not originate from HCD sources. These funds can include funding to cover staff that are working on this project but paid from another source of funds. First Amendment to Grant Agreement between December 7, 2021 City of Dublin and TriValley BMR Page 6 of 6 3.REQUESTS FOR ADJUSTMENTS TO BUDGET LINE ITEMS Once the line-item budget has been approved, there can be no more than four (4) requests for adjustments to the budget during the contract period, including any final adjustments done at the end of the project, unless otherwise approved by the City of Dublin Community Development Director, which approval shall not be unreasonably withheld. Any change in the budget that results in lower costs shall be communicated immediately. If Director or designee determines that the total amount of funds under this contract exceeds the amount necessary to complete the project, Director or designee may adjust the contract accordingly. The budget amendment should be on letterhead, must contain an original signature, and must track the requested change by line item, showing original budget amount, balance expended to date, remaining funding by each line item, the amount to be moved between line items, and the final new budget amount. Budget amendments take between two and three weeks to process and must be processed prior to receipt of an invoice requesting funding under the new budget. The Director or designee reserves the right to deny any budget modification request. 4.COMPLIANCE WITH FEDERAL REGULATIONS Grantee's administrative procedures must be in compliance with the following regulations: a.2 CFR Part 200. b.24 CFR Part 570.502 Applicability of uniform administrative requirements. 5.PUBLIC RECOGNITION OF FUNDING Grantee will publicly recognize the funding provided by the City of Dublin and the Alameda County Housing and Community Development Department (HCD) and in all newspaper articles and any other public relations opportunities related to this project. HCD staff and members of the Board of Supervisors will be invited to participate in the groundbreaking and grand opening ceremonies, if held.