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HomeMy WebLinkAbout051820_ca03 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST TO: Board of County Commissioners Philip Morley, County Administrator FROM: Julie Shannon,Executive Secretary II DATE: May 4,2020 SUBJECT: AGREEMENT re: Community Development Block Grant(CDBG) Subrecipient -COVID-19 Response Funding; In the Amount of$82,559; Jefferson County Administrator; Clallam County Economic Development Council (EDC) STATEMENT OF ISSUE: This CDBG Subrecipient Agreement is made between Jefferson County and EDC Team Jefferson for the Community Development Block Grant(CDBG) Economic Opportunity Grant-COVID-19 Response Funding, to provide micro-grants to low and moderate income microenterprises impacted by the COVID-19 pandemic. ANALYSIS: Jefferson County has been awarded a$132,517 CDBG Economic Opportunity Grant with the Washington State Department of Commerce, which grant covers both Jefferson and Clallam Counties. Under this dedicated grant, the respective economic development council each county is eligible to contract with Jefferson County to provide services. The two EDCs developed an equitable distribution of the funding between the two county service areas, proportionate to the number of eligible businesses in each county. The proposed subrecipient agreement follows a required template provided by the Washington State Department of Commerce, and incorporates budget and scope from our successful CDBG application. FISCAL IMPACT: This CDBG Subrecipient Agreement is in the Amount of$82,559 and is fully funded by the $132,517 CDBG Economic Opportunity Grant that Jefferson County has with the Washington State Department of Commerce. RECOMMENDATION: Approve and sign the agreement. �W Y: (-'`Philip Mo ey, ounty Administ for Date SUBRECIPIENT AGREEMENT FOR CDBG PUBLIC SERVICES BETWEEN JEFFERSON COUNTY AND CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL This Agreement is made between Jefferson County (herein called the Local Government) and Clallam County Economic Development Council (herein called Subrecipient) for the public services project (herein called the Project). As the Washington State Department of Commerce (Commerce) is authorized by the federal Department of Housing and Urban Development (HUD) to provide funds to units of local government selected to undertake and carry out projects under the Washington State Community Development Block Grant (CDBG) Program in compliance with all applicable local, state, and federal laws, regulations and policies; and As the Local Government has applied for and received a CDBG award, contract number 19-62210-007 Amendment A, to fund the Project with Federal Award Identification Number B-19-DC-53-0001; and As it benefits the Local Government to engage the Subrecipient to accomplish the Scope of Work and the objectives of the local CDBG project; The parties agree that: SCOPE OF SERVICES A. Local Government Responsibilities The Local Government is responsible for administration of the CDBG contract, and ensuring CDBG funds are used in accordance with all program requirements [(24 CFR 570.501(b)] and its CDBG contract with Commerce referenced above. The Local Government will provide such assistance and guidance to the Subrecipient as may be required to accomplish the objectives and conditions set forth in this Agreement. B. Subrecipient Responsibilities The Subrecipient will complete in a satisfactory and proper manner as determined by the Local Government the tasks as described in the Scope of Work and Budget attached to this Agreement and incorporated herein (Attachment A) to accomplish the objectives of the Project. The Subrecipient will periodically meet with the Local Government to review the status of these tasks. 2. TIME OF PERFORMANCE The effective date of this Agreement will be the date the parties sign and complete execution of this agreement through February 28, 2021. AGREEMENT REPRESENTATIVES Each party to this Agreement shall have a representative. Each party may change its representative upon providing written notice to the other party. The parties' representatives are as follows: 1 of 29 A. Subrecipient: Name of Representative: Colleen McAleer Title: Executive Director Mailing Address: 338 West 1st St.,Suite 105 City, State and Zip Code: Port Angeles, Washington 98362 Telephone Number: (360) 457-7793 E-mail Address: cMcAleer@clallam.org B. Local Government : Name of Representative: Philip Morley Title: County Administrator Mailing Address: PO Box 1220 City, State and Zip Code: Port Townsend, WA 98368 Telephone Number: (360) 385-9100 Fax Number: (360) 385-9382 E-mail Address: pmorley@co.iefferson.wa.us 4. BUDGET A budget not to exceed $82,559 is allocated to the Subrecipient for Jefferson County based on the Project Description and CDBG National Objective Table attached in Attachment A. The Local Government will not retain funds for grant administration. The Subrecipient shall follow the budget approved by Commerce and the Local Government and attached to this Agreement and incorporated herein (Attachment A). The Local Government may require a more detailed budget breakdown, and the Subrecipient shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the Local Government. Indirect Cost Rate if the Subrecipient chooses to charge Indirect under this grant, the Subrecipient shall provide their indirect cost rate that has been negotiated between their entity and the Federal Government. If no such rate exists, a de minimis indirect cost rate of 10% of modified total direct costs (MTDC) will be used. "Modified Total Direct Costs (MTDC)" shall mean all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures, and rental costs. Any amendments to this Agreement's Budget must first be determined by the Local Government as consistent with its CDBG contract with Commerce and then approved in writing by the Local Government and the Subrecipient. PAYMENT The Local Government shall make payments to the Subrecipient in accordance with the payment procedures outlined in the CDBG Management Handbook, Financial Management Section for all allowable expenses agreed upon by the parties to complete the Scope of Service. Payments under this Agreement will be based on fully executed micro -grant awards, and/or billings, supported by appropriate documentation of executed micro -grant awards and costs actually incurred. It is expressly understood that requests for payment will not be submitted in excess of actual, immediate cash requirements necessary to carry out the purposes of the 2 of 29 agreement. Funds available under this Agreement will be utilized to supplement rather than supplant funds otherwise available. It is understood that this Agreement is funded in whole or in part with CDBG funds through the Washington State CDBG Program as administered by Commerce and is subject to those regulations and restrictions normally associated with federally -funded programs and any other requirements that the State may prescribe. 6. PERFORMANCE MONITORING The Local Government will monitor the performance of the Subrecipient by tracking project progress, reviewing payment requests for applicable costs, managing the timely pass -through of CDBG funds, overseeing compliance with CDBG requirements, and ensuring recordkeeping and audit requirements are met. Substandard performance as determined by the Local Government will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the Local Government, contract suspension or termination procedures will be initiated. 7. SPECIAL CONDITIONS In addition to the requirements and obligations imposed upon the Subrecipient by Section 7F below, the parties agree the following requirements and obligations with respect to insurance are made part of this Agreement and apply to the Subrecipient and where applicable, the County: The Subrecipient shall obtain and keep in force during the terms of the Agreement, policies of insurance as follows: Commercial Automobile Liability Insurance providing bodily injury and property damage liability coverage for all owned and non -owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than $500,000 each occurrence with the County named as an additional insured in connection with the Subrecipient's performance of the contract. General Commercial Liability Insurance in an amount not less than a single limit of one million dollars ($1,000,000) per occurrence and an aggregate of not less than two (2) times the occurrence amount ($2,000,000 minimum) for bodily injury, including death and property damage, unless greater amount is specified in the contract specifications. The insurance coverage shall contain no limitation on the scope of the protection provided and include the following minimum coverage: a. Broad Form Property Damage, with no employee exclusion; b. Personal Injury Liability, including extended bodily injury; c. Broad Form Contractual/Commercial Liability — including completed operations; d. Premises — Operations Liability (M&C); e. Independent Contractors and Subcontractors; f. Blanket Contractual Liability Such insurance coverage shall be evidenced by one of the following methods: * Certificate of Insurance 3 of 29 * Self-insurance through an irrevocable Letter of Credit from a qualified financial institution. Certificates of coverage as required by this section shall be delivered to the County within fifteen (15) days of execution of this agreement. The Subrecipient shall include all subcontractors as insured under its insurance policies or shall furnish separate certificates and endorsements for each subcontractor. All insurance provisions for subcontractors shall be subject to all of the requirements stated herein. Failure of the Subrecipient to take out and/or maintain any required insurance shall not relieve the Subrecipient from any liability under the Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations concerning indemnification. It is agreed by the parties that insurers shall have no right of recovery or subrogation against the County (including its employees and other agents and agencies), it being the intention of the parties that the insurance policies so affected shall protect both parties and be primary coverage for any and all losses covered by the above described insurance. It is further agreed by the parties that insurance companies issuing the policy or policies shall have no recourse against the County (including its employees and other agents and agencies) for payment of any premiums or for assessments under any form of policy. It is further agreed by the parties that any and all deductibles in the above described insurance policies shall be assumed by and be at the sole risk of the Subrecipient. It is agreed by the parties that judgements for which the County may be liable, in excess of insured amounts provided herein, or any portion thereof, may be withheld from payment due, or to become due, to the Subrecipient until such time as the Subrecipient shall furnish additional security covering such judgement as may be determined by the County. The County reserves the right to request additional insurance on an individual basis for extra hazardous contracts and specific service agreements. Any coverage for third party liability claims provided to the County by a "Risk Pool" created pursuant to Ch. 48.62 RCW shall be non-contributory with respect to any policy of insurance the Subrecipient must provide to comply with this Agreement. If the proof of insurance or certificate indicating the County is an "additional insured" to a policy obtained by the Subrecipient refers to an endorsement (by number or name) but does not provide the full text of that endorsement, then it shall be the obligation of the Subrecipient to obtain the full text of that endorsement and forward that full text to the County. The County may, upon the Subrecipient's failure to comply with all provisions of this contract relating to insurance, withhold payment or compensation that would otherwise be due to the Subrecipient. 8. GENERAL CONDITIONS A. General Compliance The Subrecipient agrees to comply with: • The requirements of Title 24 of the Code of Federal regulations, 570 (HUD regulations concerning CDBG); and • All other applicable Federal, State and Local laws, regulations, and policies, governing the funds provided under this Agreement. 4 of 29 CDBG National Obiective The Subrecipient certifies the activities carried out under this Agreement meet a CDBG Program National Objective defined in 24 CFR 570.208. C. Independent Contractor Nothing contained in this Agreement is intended to, or will be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Subrecipient will at all times remain an "independent contractor" with respect to the services to be performed under this Agreement. The Local Government will be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance, as the Subrecipient is an independent contractor. D. Hold Harmless The Subrecipient will hold harmless, defend and indemnify the Local Government from any and all claims, actions, suits, charges and judgments whatsoever that arise out of the Subrecipient's performance or nonperformance of the services or subject matter called for in this Agreement. Workers' Compensation The Subrecipient will provide Workers' Compensation Insurance Coverage for all of its employees involved in the performance of this Agreement. Insurance and Bonding The Subrecipient will carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and as a minimum will purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the Local Government. For purposes of commercial general liability insurance (or similarly named insurance intended to insure Subrecipient against tort or personal injury claims from or by third parties) "sufficient insurance" is deemed to mean insurance having a liability cap in the amount of $1 million per occurrence, $2 million aggregate. Said commercial general liability insurance shall be primary. The Subrecipient shall furnish the Local Government with properly executed certificate of insurance or a signed policy endorsement which shall clearly evidence all insurance required in this section prior to commencement of services. The certificates will, at a minimum, list limits of liability and coverage. The certificate will provide that the underlying insurance contract will not be cancelled or allowed to expire except on thirty (30) days prior written notice to the Local Government. G. Funding Source Recognition The Subrecipient will insure recognition of the roles of Commerce, the WA State CDBG program, and the Local Government in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement will be prominently labeled as to funding source. In addition, the Subrecipient will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. 5 of 29 H. Amendments The Local Government or Subrecipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the Local Government's governing body. Such amendments will not invalidate this Agreement, nor relieve or release the Local Government or Subrecipient from its obligations under this Agreement. I. Suspension or Termination In accordance with 2 CFR 200.338-9, the Local Government may suspend or terminate this Agreement if the Subrecipient materially fails to comply with any terms of this Agreement, which include (but are not limited to) the following: 1. Failure to comply with any of the rules, regulations or provisions referred to herein, or such statues, regulations, executive orders, and HUD guidelines, policies or directives as may become applicable at any time; 2. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper manner its obligations under this Agreement. 3. Ineffective of improper use of funds provided under this Agreement; or 4. Submission by the Subrecipient to the Local Government of reports that are incorrect or incomplete in any material respect. In accordance with 2 CFR 200.339, this Agreement may also be terminated by either the Local Government or the Subrecipient, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if in the case of a partial termination, the Local Government determines that the remaining portion of the award will not accomplish the purpose for which the award was made, the Local Government may terminate the award in its entirety. 9. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Subrecipient agrees to comply with 2 CFR 200 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Subrecipient will administer its program in conformance with 2 CFR 200. These principles will be applied for all costs incurred whether charged on a direct or indirect basis. 3. Duplication of Costs The Subrecipient certifies that work to be performed under this Agreement does not duplicate any work to be charged against any other contract, subcontract or other source. 6 of 29 Documentation and Record Keeping 1. Records to Be Maintained The Subrecipient will maintain all records required by the Federal regulations specified in 24 CFR 570.506 that are pertinent to the activities to be funded under this Agreement and those records described in the CDBG Management Handbook. Such records will include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the civil rights components of the CDBG program; f. Financial records as required by 24 CFR 570.502, and 2 CFR 200.333; g. Labor standards records required to document compliance with the Davis Bacon Act, the provisions of the Contract Work Hours and Safety Standards Act, and all other applicable Federal, State and Local laws and regulations applicable to CDBG-funded construction projects; and h. Other records necessary to document compliance with Subpart K of 24 CFR 570. 2. Access to Records and Retention The grantee, the Washington State Department of Commerce, and other authorized representatives of the state and federal governments shall have access to any books, documents, papers and records of the Subrecipient that are directly pertinent to this Agreement for the purposes of making audit, examination, excerpts and transcriptions. All such records and all other records pertinent to this Agreement and work undertaken under this Agreement will be retained by the Subrecipient for a period of six years after final audit of the Local Government's CDBG project, unless a longer period is required to resolve audit findings or litigation. In such cases, the Local Government will request a longer period of record retention. 3. Audits and Inspections All Subrecipient records with respect to any matters covered by this Agreement will be made available to the Local Government, Commerce, and duly authorized officials of the state and federal government, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. 7 of 29 The Subrecipient that expends $750,000 or more in a fiscal year in federal funds from all sources hereby agrees to have an annual agency audit conducted in accordance with current Local Government policy concerning Subrecipient audits and 2 CRF 200.501. The Catalog of Federal Domestic Assistance (CFDA) number is 14.228. C. Reporting 1. Program Income The Subrecipient will report annually all program income (as defined at 24 CFR 570.500(a)) generated by activities carried out with CDBG funds made available under this Agreement. The use of program income by the Subrecipient will comply with the requirements set forth at 24 CFR 570.504. 2. Periodic Reports The Subrecipient, at such times and in such forms as the Local Government may require, will furnish the Local Government such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by this Agreement. D. Use and Reversion of Assets The use and disposition of real property and equipment under this Agreement will be in compliance with the requirements of 2 CFR 200.311 and 313, 24 CFR 570.502, 570.503, 570.504, as applicable, which include but are not limited to the following: 1. The Subrecipient will transfer to the Local Government any CDBG funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination. 2. Real property under the Subrecipient's control that was acquired or improved, in whole or in part, with funds under this Agreement in excess of $25,000 will be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until ten (10) years after the contract between Commerce and the Local Government is closed. If the Subrecipient fails to use CDBG-assisted real property in a manner that meets a CDBG National Objective for this 10-year period of time, the Subrecipient will pay the Local Government an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property after the CDBG program's approval. Such payment will constitute program income to the Local Government. The Subrecipient may retain real property acquired or improved under this Agreement after the expiration of the ten- year period. 3. In cases in which equipment acquired, in whole or in part, with funds under this Agreement is sold, the proceeds will be program income. Equipment not needed by the Subrecipient for activities under this Agreement will be (a) transferred to the Local Government for CDBG-eligible activities as approved by the CDBG program or (b) retained after compensating the Local Government. 8 of 29 10. PERSONNEL AND PARTICIPANT CONDITIONS A. Civil Rights Title VI of the Civil Rights Act of 1964: Under Title VI of the Civil Rights Act of 1964, no person will, on the grounds of race, color, creed, religion, sex or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. Section 109 of the Housing and Community Development Act of 1974: No person in the United States will on the grounds of race, color, creed, religion, sex or national origin be excluded from participation in, be denied benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title. Age Discrimination Act of 1975, as Amended No person will be excluded from participation, denied program benefits, or subjected to discrimination on the basis of age under any program or activity receiving federal funding assistance. (42 U.S.C. 610 et. seq.) Section 504 of the Rehabilitation Act of 1973, as Amended No otherwise qualified individual will, solely by reason or his or her disability, be excluded from participation (including employment), denied program benefits, or subjected to discrimination under any program or activity receiving Federal funds. (29 U.S.C. 794) Public Law 101-336, Americans with Disabilities Act of 1990 Subject to the provisions of this title, no qualified individual with a disability will, by reason of such disability, be excluded from participation in or be denied the benefits of the services, programs, or activities of a public entity, or be subjected to discrimination by any such entity. Section 3 of the Housing and Community Development Act of 1968 Compliance in the Provision of Training, Employment, and Business Opportunities: 1. The work to be performed under this agreement is on a project assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given lower -income residents of the project area; and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part, by persons residing in the area of the project. 2. The parties to this contract will comply with the provisions of said Section 3 and the regulations set forth in 24 CFR 135, and all applicable rules and orders of HUD and Commerce issued thereunder prior to the execution of this contract. The parties to this contract certify and agree that they are under no contractual or other disability that would prevent them from complying with these provisions. 9 of 29 3. The Subrecipient will send to each labor organization or representative of workers with which he has a collective bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization or workers' representative of his commitments under this Section 3 clause and will post copies of the notice in conspicuous places available to employees and applicants for employment or training. 4. The Subrecipient will include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the applicant, or recipient of federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of HUD, 24 CFR 135. The Subrecipient will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR 135 and will not let any subcontract, unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. 5. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders of HUD and Commerce issued hereunder prior to the execution of the contract, will be a condition of the federal financial assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements will subject the applicant, or recipient, its consultants and subcontractors, its successors and assigned to those sanctions specified by the grant or loan agreement or contract through which federal assistance is provided, and to such sanctions as are specified by 24 CFR 135. C. Conduct 1. Assignability The Subrecipient will not assign or transfer any interest in this Agreement without the prior written consent of the Local Government thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Local Government under this contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer will be furnished promptly to the Local Government and Commerce. Conflict of Interest No member of the Local Government's governing body and no other public official of such locality, who exercises any functions or responsibilities in connection with the planning or carrying out of the project, will have any personal financial interest, direct or indirect, in this Agreement; and the Subrecipient will take appropriate steps to assure compliance. The Subrecipient agrees to abide by the provisions of 2 CFR 200.318 and 24 CFR 570.611, which includes maintaining a written code or standards of conduct that will govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds. The Subrecipient covenants that its employees have no interest and will not acquire interest, direct or indirect, in the study area or any parcels therein or any other interest which would conflict in any manner or degree with the performance of services 10 of 29 hereunder. The Subrecipient further covenants that in the performance of this Agreement, no person having such interest will be employed. 3. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions The lower tier contractor certifies, by signing this contract that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. b. Where the lower tier contractor is unable to certify to any of the statements in this contract, such contractor will attach an explanation to this contract. C. The contractor further agrees by signing this contract that it will not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction. D. Copyright If this Agreement results in any copyrightable material or inventions, the Local Government and/or Commerce reserves the right to royalty -free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for governmental purposes. E. Religious Activities The Subrecipient agrees that funds provided under this Agreement will not be utilized for inherently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction, or prose lytization. 11. SEVERABILITY If any provision of this Agreement is held invalid, the remainder of this Agreement will not be affected thereby and all other parts of this Agreement will nevertheless be in full force and effect. 12. PERFORMANCE WAIVER The Local Government's failure to act with respect to a breach by the Subrecipient does not waive its right to act with respect to subsequent or similar breaches. The failure of the Local Government to exercise or enforce any right or provision will not constitute a waiver of such right or provision. 13. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the Local Government and the Subrecipient for the use of funds received under this Agreement and it supersedes all prior communications and proposals, whether electronic, oral, or written between the Local Government and the Subrecipient with respect to this Agreement. 11 of 29 IN WITNESS WHEREOF, the Local Government and the Subrecipient have executed this Agreement as of the date and year last written below. CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL Name: Title: JEFFERSON COUNTY BOARD OF COMMISSIONERS Date Greg Brotherton, Chair Attest: Carolyn Gallaway Deputy Clerk of the Board Approved as to form only: Date Date Philip Hunsucker Date Chief Civil Deputy Prosecuting Attorney 12 of 29 ATTACHMENT A: SCOPE OF WORK AND BUDGET Oil% Washington State 'V4aJ*V Co plYllt][ ernt ce The state Community Development Block Grant (CDBG) program is accepting Economic Opportunity Grant requests to fund targeted recovery services through amendments of existing CDBG Public Services Grant contracts and local partnerships. Eligible Applicants: Counties with a current CDBG Public Services Grant contract, recovering from significant economic, housing and public health impacts resulting from a declared emergency/disaster Eligible Activities: CDBG public services and microenterprise assistance that address urgent economic, housing, or public health needs Funds Available: Currently $1.8 million total, to be distributed at 120% of the county's existing CDBG Public Services Grant, with additional amounts on a fund available basis Due Date: As soon as possible, and within 60 days of the applicable declaration of emergency Proposed Use of Funds/Request Amendment Process: County emails completed forms to Jeff Hinckle, jeffhincklegcommerce.wa.gov, outlining proposed use of funds and authorizes 2019 CDBG Public Services Grant amendment to include Economic Opportunity Grant funding for COVID-19 response services The CDBG program offers Economic Opportunity Grants for a wide range of activities. To provide immediate assistance and promote economic stability to communities impacted by an emergency/disaster, a portion of the Economic Opportunity Grant fund is available for essential and urgent public services. Since the need for economic, housing and public health services is urgent when an emergency/disaster strikes, Commerce utilizes existing CDBG-funded county partnerships with Community Action Programs (CAP) and Associate Economic Development Organizations (ADO) across the state, and contract amendments to distribute the CDBG Economic Opportunity Grants for disaster recovery services. The Economic Opportunity Grant application process for disaster recovery services is streamlined. The regular Economic Opportunity Grant application materials for non -disaster related economic development projects are on the Commerce CDBG website. Kaaren Roe, CDBG Program kaaren.roegcommerce.wa. gov (360) 725-3018 FAX (360) 586-8440 2525 www.commerce.wa. ovg /cdbg 1011 Plum Street SE, Olympia WA 98504- 2/29/2020 The Washington State Governor Proclamation 20-05, 06 and 07 declare that a State of Emergency exists in all counties of Washington State due to the statewide COVID-19 public health emergency. 13 of 29 ATTACHMENT A: SCOPE OF WORK AND BUDGET CDBG PROJECT SUMMARY Grant Type: Economic Opportunity — COVID-19 Response Services 2. Jurisdiction: JEFFERSON COUNTY Telephone: 360-385-9231 3_ Contact Person: JUDY SHEPHERD Title: CHIEF ACCOUNTANT jshepherd@co.jefferson.wa.us Email: 4. Subrecipient: EDC TEAM JEFFERSON; BRIAN KUH Title: EXECUTIVE DIRECTOR director edcteamjefferson.or Email: Subrecipient: CLALLAM EDC; COLLEEN McALEER Title: EXECUTIVE DIRECTOR cMcAleer@clallam.org (if a 2nd subrecipient) 5. Budget: CDBG 1 $ 132,517 Up to amount on COVID-19 Response Fund Distribution List LMI National Objective # of Persons 50 Urgent Need National Objective # of Microenterprises # of Persons 6. EST Beneficiaries (if applicable) 50 (if applicable) N/A 7. Certification of Chief Administrative Official: I certify to meeting the National Environmental Policy Act (NEPA) through a re-evaluation and determination that the proposed services will not have a physical impact or result in any physical changes and are exempt under 24 CFR 58.34(a) and are not applicable to the other requirements under 24 CFR 58.6; and are categorically exempt under the State Environmental Policy Act (SEPA) per WAC 197-11-305 (2); I certify that any CDBG COVID-19 response activities funded under the Urgent Need CDBG National Objective pose a serious and immediate threat to the health or welfare of the community, are of recent origin or recently became urgent, the county is unable to finance the activity on its own, and other sources of funding are not available to carry out the activity, and I certify the information provided in this funding request is true and correct to the best of the county's belief and knowledge, it is understood the state may verify information, and that untruthful or misleading information may be cause for rejection or termination of any subsequent grant agreement. Request for Amendment: I approve a request for an amendment to add CDBG Economic Opportunity Grant funds to the county's CDBG Public Services Grant contract # 19-62210-007. d4s�7 4/28/2020 Sign Date PHILIP MORLEY JEFFERSON COUNTY ADMINISTRATOR Print Name Title 14 of 29 ATTACHMENT A: SCOPE OF WORK AND BUDGET PROJECT SUMMARY INSTRUCTIONS 1. Economic Opportunity - COVID-19 Response Services is already checked as the grant type available. 2. The applicant jurisdiction must be a county with an existing CDBG Public Services Grant contract. 3. Provide information on the county contact person, should we need more information about this request for funding/amendment. 4. Provide information on any subrecipient organization(s) to benefit from the project or to receive CDBG funds to implement the project on behalf of the county. 5. List the amount requested. It cannot be more than the amount being made available on the Eligible Counties and Fund Distribution List. List the estimated number of beneficiaries to benefit from these funds by CDBG National Objective. First complete the application's Project Description and CDBG National Objectives Table before summarizing the data here. ➢ To estimate the number, you can use service organization data and proposed income qualification criteria for direct benefit activities; or use service area population data for LMI area benefit activities or Urgent Need activities, as applicable. ➢ Estimate the total number of unduplicated persons. If you estimate a person is to receive more than one service, pick the best service number to add up to the estimated total number of persons to be served. ➢ Estimate the total number of microenterprises to be assisted (if applicable). ➢ Detailed demographic data on actual persons served will be reported on the Quarterly Beneficiary Reporting Form. 7. The form and certifications must be signed by the county's chief administrative official. Guidance on the environmental review (NEPA and SEPA) requirements and exemptions is available in the CDBG Management Handbook on the CDBG website. Guidance on the CDBG Urgent Need National Objective requirements are in the Project Description and CDBG National Objective Table Instructions. Insert the 2019 contract number for the county's open CDBG Public Services Grant contract to be amended. Print the official's name and title. The form and original signature must be retained in the county CDBG records. CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 15 of 29 www.commerce.wa.gov/cdbg March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET PROJECT DESCRIPTION AND CDBG NATIONAL OBJECTIVE TABLE (See instructions on the next page) A. Activities B. Level of C. D. Method for Ensuring CDBG Service EST Number National Objective — LMI Benefit NAME of Service Program DESCRIPTION of Services (N) New HUD CODE of or and and (1) Increase Persons COVID-19 Urgent Need NAME of Service Organization COUNTY s Service Area () (S) No Longer or *and to only CDBG non - Substandard MicroEs entitlement residents Microenterprise Assistance EDC Team Jefferson will provide 18C N 19 Eligibility restricted by household EDC Team Jefferson Microenterprise Assistance via technical assistance, packaging loans/grants not to income. exceed $25,000, and managing loan portfolio payments for qualifying microenterprises that are LMI households; or in limited circumstances when an emergency has been declared, assistance may qualify as meeting an urgent need. Service Area: Jefferson County Microenterprise Assistance Clallam EDC will provide Microenterprise 18C N 31 Eligibility restricted by household Clallam EDC Assistance via technical assistance, packaging loans/grants not to exceed income. $25,000, and managing loan portfolio payments for qualifying microenterprises that are LMI households; or in limited circumstances when an emergency has been declared, assistance may qualify as meeting an urgent need. Service Area: Clallam Count FOR ADDITIONAL SERVICE ACTIVITIES, ADD ROWS OR ATTACH ANOTHER COPY OF THIS PAGE CDBG funded services must begin as soon as possible and not later than 90 days from the CDBG amendment execution date. PROJECT DESCRIPTION AND CDBG NATIONAL OBJECTIVE TABLE (See instructions on the next page) CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 16 of 29 www.commerce.wa.gov/cdb¢ March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET Additional information can be included here to describe how the proposed services will address a CDBG National Objective in response to the COVID-19 emergency and promote economic recovery and stability in the region: The proposed program will provide micro -grants and microenterprise assistance to LMI microenterprises in Jefferson County and Clallam County that have experienced substantial economic injury directly resulting from the COVID-19 pandemic. Priority will be given to microenterprises providing goods or services that are (1) essential to the region's ability to weather the COVID-19 pandemic and/or (2) contribute to the region's recovery and resilience following the COVID-19 pandemic. Applicants could include, for example, day care providers for children of first responders, home care providers for people with disabilities or the elderly, tailors and others manufacturing personal protection equipment for health care providers, small farms providing healthy local foods and contributing to food banks, and many others. CDBG funds will be managed by EDC Team Jefferson (for Jefferson County microenterprises) and by Clallam Economic Development Council (for Clallam County microenterprises). The funds will be allocated to each EDC based on county population, with $82,559 for Clallam County and $49,958 for Jefferson County. Each EDC will create micro -grant fund. The Clallam Economic Development fund will be $76,329. The EDC Team Jefferson fund will be $46,188. Each EDC will use the funds for micro -grants up to $10,000 (average $4,000) to an estimated 12 LMI microenterprises located in Jefferson County and 19 LMI microenterprises in Clallam County. Each EDC will establish and lead a micro -grant selection committee (see section below regarding the selection process). Each EDC will disburse micro -grants to the microenterprises selected by its respective micro -grant selection committee until all funds are disbursed. The EDCs will disburse 80% of each micro -grant upon execution of a micro -grant agreement with a LMI microenterprise. The EDCs will disburse the remaining 20% of each micro -grant upon verification that the recipient has (1) used the micro -grant for the purposes set forth in their micro -grant application and micro -grant agreement, and (2) completed at least 2 hours of post -award microenterprise assistance to strengthen the microenterprise and ensure that that it has a viable plan to continue operations during and after the COVID-19 pandemic. The EDCs will contract with the Center for Inclusive Entrepreneurship (CIE) to help establish an application and intake process and provide up to 250 hours (at a rate of $40 per hour) of direct one-on-one technical assistance to up to 50 LMI microenterprises. Microenterprise assistance will include assistance in completing and submitting the micro -grant application as well as ongoing post - award technical assistance (described below). The Clallam EDC will budget $6,230 for up to 156 hours of microenterprise assistance to at least 31 microenterprises (including 19 micro -grant recipients and 12 other microenterprises). EDC Team Jefferson will budget $3,770 for up to 94 hours of microenterprise assistance to at least 19 microenterprises (including 12 micro -grant recipients and 7 other microenterprises). CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 17 of 29 www.commerce.wa.gov/cdb¢ March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET Microenterprises interested in the program will be encouraged to register with CIE to get help completing the application. Micro - grant recipients are required to register with CIE for at least 2 hours of post -award microenterprise assistance, to include (1) verification of the use of funds, (2) strengthening the microenterprise, (3) developing a plan to continue operations during and after the COVID-19 pandemic, and (4) tracking whether/how the micro -grant funds resulted in getting the business back on its feet during and after the COVID-19 pandemic. The disbursement of the remaining 20% of each micro -grant will be conditioned on the recipient's completion of the post -award microenterprise assistance to the satisfaction of the funding EDC. Applicants not selected may also be referred to CIE for microenterprise assistance. The EDCs will announce the program as soon as funding is approved. The EDCs will coordinate with OlyCAP, CIE, local chambers and business associations, and other community -based business development and social service organizations to outreach the program quickly and broadly, with a goal of receiving at least 60 applications. The initial deadline for applications will be no later than 10 days from executing a subrecipient agreement by each EDC with Jefferson County to provide program funding. Selections will be finalized, and the 80% portion of the micro -grant funds will be disbursed after executing a micro -grant award with each microenterprise, and with a target of within 30 days from executing each EDC's subrecipient agreement. Post -award microenterprise assistance will be completed, and the remaining 20% portion of the micro -grant funds will be disbursed within a target date of on or before September 30, 2020. This program supports microenterprise development. Microenterprises comprise over 95% of businesses in the U.S., perhaps more in rural communities They provide diversity that is essential to the resilience of the economy. They are consistently a net contributor of jobs, even during periods of economic distress. They often provide goods and services essential to community well-being. They are more agile, and often more able to adapt and innovate, than many larger businesses. They are essential to the region's economic recovery and a stronger and more resilient post -disaster regional economy. CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 18 of 29 www.commerce.wa.gov/cdb¢ March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET Briefly describe the local prioritization process used to allocate CDBG COVID-19 response funding: Jefferson County consulted with OlyCAP, our local community action program agency which serves the entire two -county region of Jefferson and Clallam Counties, and consulted with the separate economic development council for each county. OlyCAP suggested prioritizing microenterprise assistance, because of the severe economic impact the COVID-19 pandemic is having on small businesses in our communities. In consulting with the EDCs, the County asked that they evaluate if there was a sufficient number of qualifying microenterprises that would meet the criteria of the CDBG Economic Opportunity — COVID-19 Response Services guidelines, and their capacity to serve them. The County also asked the two EDCs to develop a joint proposal to the County for how to allocate funding between them as subrecipients. Through this process, full consensus was reached by OlyCAP, EDC Team Jefferson, and Clallam EDC for prioritizing and delivering services as outlined in this application. CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 19 of 29 www.commerce.wa.gov/cdb¢ March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET PROJECT DESCRIPTION AND CDBG NATIONAL OBJECTIVE TABLE INSTRUCTIONS The project description must be detailed enough for Commerce to understand what direct services will be accomplished with CDBG funds and to confirm CDBG eligibility. All proposed services must be on the attached list of CDBG eligible activities for COVID-19 response. All proposed services must meet a CDBG National Objective. CDBG funded services must begin as soon as possible and not later than 90 days from the CDBG amendment execution date. Column A: Activities List each type of COVID-19 response service to be CDBG funded in each row following these steps: 1. NAME of Service Program and Name of Service Organization: List the activity by the program or service name used by the service delivery organization. Also list the name of the organization delivering the service (such as the specific county department, regional community action program name or the associate development organization name). Here is guidance on specific types of services that are eligible under only limited conditions: • Resource Referral - If CDBG is to fund a staff person (such as a receptionist) who refers clients to both COVID-19 response and non COVID-19 response services, then CDBG can cover the referral service costs only in the proportion of total persons receiving COVID-19 response services. The LMI National Objective may need to be documented as well. Contact CDBG if you seek to fund resource referral services. • Outreach costs to inform clients of a specific program can be an allowable expense, but only as part of that program's service delivery costs. Outreach is not an eligible CDBG public service in of itself. Specific partnership building costs necessary to provide a direct client service could be an allowable expense as part of that program's service delivery costs and that Program Name and service description would be listed in the table. • Housing Related Services — Many housing related activities are not eligible as a CDBG public service because they are eligible instead for a housing rehabilitation, facility or homeownership assistance type of CDBG grant. Make sure your program name and service description of any housing related services clearly shows how the service meets the definition of an eligible CDBG public service. Additional guidance is provided in attached list of eligible housing related services. 2. DESCRIPTION of Services: Provide a DESCRIPTION of the direct service received by the client. The service description must be detailed enough and similar to the service descriptions provided in the attached lists of eligible and ineligible services for Commerce to confirm eligibility. The service must be targeted to address essential and urgent needs resulting from the COVID-19 declared emergency. Also include the COUNTY(s) SERVICE AREA, which is all counties served by that COVID-19 response service. 3. HUD CODE: Use the lists of eligible and ineligible services to identify the applicable code. If a HUD heading or definition doesn't match the service, then provide a clear description of the client service and code it as 05Z (Other Public Services). Column B: In each row, choose whether the service is providing persons with a (N) new or continuing access to a service, (1) improved access to a service, or (S) a service that is no longer substandard. HUD has provided only limited guidance for defining these levels of service. While a service might fit under more than one level of service, please select the one that most applies for that service. (N) New or Continuing Access to a Service - A client service that was not offered by the subrecipient prior to the new CDBG program year or that would not be continuing but for the CDBG funding. (1) Increased Access to a Service - A quantifiable increase in the number of persons served; an expansion of the type of clientele; an addition of new locations, or the removal of barriers to access the service as a result of CDBG funding. CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 20 of 29 www.commerce.wa.gov/cdbg March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET (S) No Longer Substandard Service — A client service that, after being documented as not meeting a standard defined by the service program's primary funder or by agency plans, meets a standard level of service as a result of CDBG funding. HUD does not define a substandard service in its CDBG guidance. Column C: For each row, estimate the total unduplicated number of persons to receive that COVID-19 response service. For microenterprise assistance services, estimate the total unduplicated number of microenterprise businesses to benefit from CDBG funds. Detailed demographic data on actual persons served and microenterprises assisted will be reported on a Quarterly Beneficiary Reporting Form. Column D: All proposed activities must be COVID-19 responses services. In addition, they must qualify under one of two CDBG national objectives. For each row, describe the METHOD for ensuring each CDBG-funded activity either 1) benefits low- and moderate - income (LMI) persons impacted by the COVID-19 emergency; OR 2) meets the CDBG urgent need definition in response to the COVID-19 emergency. LMI Benefit: • Community action programs already document how they principally benefit LMI persons with the county's current CDBG Public Services Grant. These procedures should continue with these amended funds. • Microenterprise assistance programs must be structured to benefit only LMI households. • If the CDBG-funded services are to be made available to everyone in a service area, then the HUD LMI data must document that service area population is at 51 percent or greater LMI. • The LMI Benefit Guide (steps 1-3) outlines how to use LMI data sources to document meeting the LMI benefit national objective. The current LMI income limits by county are on the CDBG website here. Urgent Need: To qualify, an activity must be designed to alleviate existing conditions which the county certifies and state determines: • Pose a serious and immediate threat to the health or welfare of the community, • Are of recent origin or recently became urgent, • The state grant recipient is unable to finance the activity on its own, and • Other sources of funding are not available to carry out the activity, as certified by both the State and the grant recipient. The Washington State Governor Proclamation 20-05, 06 and 07 declare that a State of Emergency exists in all counties of Washington State due to the statewide COVID-19 public health emergency. The CDBG Project Summary form contains the required certification to be signed by the county chief administrative official if activities are to meet the Urgent Need National Objective. CDBG funded services must begin as soon as possible and not later than 90 days from the CDBG amendment execution date. Activities qualified under the Urgent Need National Objective must be completed once the emergency conditions are met. CDBG Non -entitlement - The following community action program regional service areas include CDBG entitlement jurisdictions or other state areas: CAP (Lewiston, ID), C-DCAC (East Wenatchee, Wenatchee), LCCAC (Longview), B-FCAC (Kennewick, Pasco, Richland), OC (Bellingham), SCCAA (Anacortes, Mt. Vernon), CACLMT (Thurston Co), BMAC (Walla Walla). Applications for these subrecipients must describe the method for ensuring the grant ONLY benefits CDBG non -entitlement Washington State residents. Verifying the client's address or the location of services are examples of methods for targeting the benefit to only CDBG non -entitlement area residents. Local Prioritization Process: Briefly describe the local prioritization process used to allocate CDBG COVID-19 response funding. CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 21 of 29 www.commerce.wa.gov/cdbg March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET BUDGET BUDGET BY COVID-19 SERVICES COUNTY ADMINISTRATION RESPONSE SERVICE PROVIDER AMOUNT COST DESCRIPTION AMOUNT COST DESCRIPTION County emergency $ $ services (not including county administration of CDBG contract) Community Action $ $ Program services Associate $132,517 $49,958 for Microenterprise Assistance by EDC Team $0 County Administration costs Development Jefferson ($46,188 for micro -grants, $3,770 for Organization services technical assistance) $82,559 for Microenterprise Assistance by the Clallam EDC ($76,329 for micro -grants, $6,230 for technical assistance Other economic development organization services Other emergency $ $ response services Cannot exceed the amendment amount minus the Up to $3,500 of the amendment amount TOTAL $132,517 county administration budget. $0 can be for county administration costs. BUDGET INSTRUCTIONS All costs must be eligible under 2 CFR 200 and CDBG program requirements. All services costs must be tied to direct service delivery to address impacts resulting from the COVID-19 emergency. Expand the Budget form as necessary to provide adequate description of costs. Below is guidance on eligible costs by categorv. COST CATEGORY SERVICES COST DETAIL COUNTY ADMINISTRATION COST DETAIL I All services costs must be tied to County administration costs are limited to CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 22 of 29 www.commerce.wa.gov/cdb¢ March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET the delivery of the CDBG eligible services. administering the Economic Opportunity Grant amendment. Staffing Include program staff salaries and benefits. Can include supervisory Include county staff salaries and benefits. For staff time to be staff directly involved in the management of the CDBG eligible public eligible for reimbursement, staff must sign and supervisors must service program. For staff time to be eligible for reimbursement, staff approve time sheets linking actual time worked. must sign and supervisors must approve time sheets linking actual time worked on each service activity to the CDBG fund source. Goods and Must be tied to the delivery of the COVID-19 response service, Must be tied to the administration of the Economic Opportunity services including staff training costs. Professional services must be contracted Grant amendment. according to CDBG requirements. See CDBG Management Handbook Section 5 — Procuring Professional Services. Equipment Items costing $300 or more require Commerce approval prior to Items costing $300 or more require Commerce approval prior to requesting grant payment. requesting grant payment. Travel Out-of-state travel must follow federal travel per diem and requires Out-of-state travel must follow federal travel per diem and requires Commerce approval prior to requesting grant payment. Commerce approval prior to requesting grant payment. Indirect Costs Must be tied to a COVID-19 response service through a approved cost Prior to invoicing Commerce for "Indirect Cost' the grantee must allocation plan. Example: the portion of costs established for submit to Commerce the approval indirect rate letter from the operating and maintaining the space in which the service is located. cognizant agency or the "Certification of Indirect Costs." The cost allocation plan must be applied equitably and demonstrate the cost of providing the service. Cannot exceed the total grant minus the county administration budget. The county can allocate from the total amendment amount up to $3,500 per year for county administration costs tied to COVID-19 TOTAL response activities and partners. Further budget detail on the funded services is to be provided Commerce with each grant payment request using the Expenditure Report available in the CDBG Management Handbook, Section 4. If unsure about eligible costs, consult your CDBG project manager. CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 23 of 29 www.commerce.wa.gov/cdb¢ March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET Washington State Department of Commerce ELIGIBLE ACTIVITIES CDBG eligible activities are in the Housing and Community Development Act of 1974, Section 105. Eligible COVID-19 response services include microenterprise assistance and public services defined in the following pages. To be CDBG eligible, the service must meet the following five criteria: 1. Be on HUD's list of public services, or be a substantially similar service and not on the list of ineligible public services. 2. Be identified as a new service or an increased/improved level of service. 3. Be directly linked to delivery of a specific service to a client. 4. Meet a CDBG national objective. 5. Target residents of CDBG non -entitlement areas (outside of CDBG entitlement cities) as listed on the CDBG website. The state CDBG program cannot fund activities that benefit residents in CDBG entitlement cities, since these cities receive CDBG funds directly from HUD. INELIGIBLE ACTIVITIES In general, any activity not described above is not eligible. Specifically, Public Services Grants cannot fund: 1. Activities and administrative costs eligible under another CDBG fund, such as: Planning and community organization activities, not directly linked to the delivery of an eligible public service to a client. CDBG cannot fund general outreach activities or partnership building activities, unless you can count and report on the clients receiving a direct service from those activities. Housing rehabilitation, including weatherization Facility acquisition, construction or renovation 2. Administrative costs for the general management of the organization or county 3. Lobbying and political activities 4. Direct payments to individuals for their food, clothing, utilities or other income payments. (Income payments or emergency vouchers paid to a third party for no more than three consecutive months may be eligible.) 5. New housing construction costs, including administration of new housing development programs ELIGIBLE SERVICE PROVIDERS To expedite funding and delivery of targeted services, priority eligible service providers include: • Community action programs currently approved through a CDBG Public Services Grant contract • County public health and emergency response programs • Regional microenterprise assistance programs, including associate development organizations (ADOs) ELIGIBLE TIMING OF FUNDS CDBG funded services must begin as soon as possible and not later than 90 days from the CDBG amendment execution date. CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 24 of 29 www.commerce.wa.gov/cdb�z March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET Eligible CDBG Economic, Housing and Public Health Services MICROENTERPRISE ASSISTANCE HUD HUD defines a microenterprise as a commercial enterprise having five or less CODE employees, including the owner(s). To be eligible for COVID-19 response funding, the business must have a physical location and be able to document loss of revenue due to 18C COVID-19 impacts. Or the funding can expand a microenterprise that provides COVID- 19 response services such as medical, food delivery, cleaning and other services to support home health and quarantine. CDBG funds can support a local microenterprises assistance program by funding: 1. Provisions of credit (including grants) for the establishment, stabilization, and expansion of microenterprises. Initial amounts generally not to exceed $25,000. Grant money may be used only for the operating expenses of the awarded business. The operating expenses are defined as the day-to-day trading operations of the business such as covering payroll and rent. 2. General and technical assistance, advice and business support services to owners of microenterprises and persons developing microenterprises. 3. Operation of the fund including staffing for pre- and post -loan technical assistance, loan servicing activities and loan collection activities. The county either directly administers a local microenterprise assistance program or, in most cases, passes the funds to a local or regional economic/community development organization. This organization uses the funds to provide technical assistance, package loans/grants, and manage loan portfolio payments for qualifying microenterprises. The CDBG-funded technical and financial assistance must be structured to benefit only LMI households; or in limited circumstances when an emergency has been declared, assistance may qualify as meeting an urgent need. PUBLIC SERVICES DEFINITIONS AND CODES CDBG funds may be used to provide public services (including labor, supplies, materials, and other costs directly tied to service delivery). Below are definitions and codes for CDBG eligible public services. This excerpt from HUD's database manual provides the most common types of CDBG funded services (in numeric, not alpha order), and not all possible service types are listed. Services most likely to be targeted in response to COVID-19 impacts are highlighted. HUD Type of Services and Definition CODE 05A Senior Services Services for the elderly. 05A may be used for an activity that serves both the elderly and the handicapped, provided it is not intended primarily to serve persons with handicaps. If it is, use 05B instead. 05B Handicap Services Services for the handicapped, regardless of age. 05C Legal Services Services providing legal aid to low- and moderate -income (LMI) persons. If the only legal service provided is for the settlement of tenant/landlord disputes, use 05K. 05D Youth Services CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 25 of 29 www.commerce.wa.gov/cdb�z March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET Services for young people age 13 to 19 that include, for example, recreational services limited to teenagers and teen counseling programs. Also use 05D for counseling programs that target teens but include counseling for the family as well. For services for children age 12 and under, use 05L; for services for abused and neglected children, use 05N. 05E Transportation Services General transportation services. Transportation services for a specific client group should use the matrix code for that client group. For example, use 05A for transportation services for the elderly. 05F Substance Abuse Services Substance abuse recovery programs and substance abuse prevention/education activities. If the services are provided for a specific client group, the matrix code for that client group may be used instead. For example, substance abuse services that target teenagers may be coded either 05D or 05F. 05G Services for Battered and Abused Spouses Services for battered and abused spouses and their families. For services limited to abused and neglected children, use 05N. 05H Employment Training Assistance for increased self-sufficiency, including literacy, independent living skills, and job training. For activities providing training for permanent jobs with specific businesses, use 18A. 051 Crime Awareness/Prevention Promotion of crime awareness and prevention, including crime prevention education programs and paying for security guards. 05J Fair Housing Activities (subject to Public Services subrecipient) Fair housing services (3.g., counseling on housing discrimination) that meet a national objective. 05K Tenant/Landlord Counseling Counseling to help prevent or settle disputes between tenants and landlords. 05L Child Care Services Services that will benefit children (generally under age 13), including parenting skills classes. For services exclusively for abused and neglected children, use 05N. CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 26 of 29 www.cominerce.wa.gov/cdbg March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET 05M Health Services Services addressing the physical health needs of residents of the community. For mental health services, use 050. 05N Services for Abused and Neglected Children Daycare and other services exclusively for abused and neglected children. 050 Mental Health Services Services addressing the mental health needs of residents of the community. 05P Screening for Lead Poisoning Activities undertaken primarily to provide screening for lead poisoning. For lead poisoning testing/abatement activities, use Housing Rehabilitation 141. 05Q Subsistence Payments One-time or short-term (no more than three month) emergency payments on behalf of individuals or families, generally for the purpose of preventing homelessness. Examples include utility payments to prevent cutoff of service and rent/mortgage payments to prevent eviction. 05R Homeownership Assistance (not direct) Homeowner down -payment assistance provided as a public service. If housing counseling is provided to those applying for down -payment assistance, the counseling is considered part of the 05R activity. Assistance provided under 05R is subject to the public service subrecipient and only low/mod households may be assisted. For more extensive types of homeownership assistance provided under authority of the National Affordable Housing Act, use code 13. 05U Housing Counseling Housing counseling for renters, homeowners, and/or potential new homebuyers that is provided as an independent public service (i.e., not as part of another eligible housing activity). 051.11a Energy Conservation Counseling Energy conversation counseling and testing for renters, homeowners, and/or potential new homebuyers that is provided as an independent public service (i.e., not as part of another eligible housing activity). 05Z Other Public Services Examples are client referrals to social services, neighborhood cleanup, graffiti removal, and food distribution (community kitchen, food bank, and food pantry services). HUD IDIS Manual, Appendix A: CDBG Matrix Codes (excerpt) CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 27 of 29 www.cominerce.wa.gov/cdbg March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET ELIGIBLE HOUSING RELATED SERVICES CDBG can fund a wide range of public services for low- and moderate -income persons. This table summarizes HUD's guidance and the state's policy on CDBG eligible public services for housing -related issues. To be eligible, the CDBG public services activity must deliver a direct service to a client (column A). In general, activity and administrative costs eligible under another CDBG activity category (column C) or for an ineligible CDBG activity (such as new housinq construction) are not eliqible as a CDBG public service. A B C Housing Issue CDBG eligible public service CDBG ineligible public service Activities eligible under another CDBG category and CDBG fund, but NOT a CDBG eligible public service Housing counseling Housing rehabilitation CDBG Housing Rehabilitation: Labor, Energy conservation administration not related to an materials, and supplies required for the Housing counseling and testing eligible counseling, education or rehabilitation of property (including energy Rehabilitation . Screening for lead poisoning testing service efficiency improvements) (including Client education and training CDBG Housing Rehabilitation Administration weatherization) If provided as an independent and Services: All delivery costs (including public service and not part of staff, other direct costs, and professional a CDBG funded housing service costs) directly related to carrying out rehabilitation activity housing rehabilitation activities, including outreach, rehabilitation counseling, applicant screening, energy auditing, preparing work specs, loan processing, inspections, and services related to assisting program participants Fair housing services and counseling on housing Tenant/Landlord discrimination Counseling to prevent or settle disputes between tenants and landlords CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 28 of 29 www.commerce.wa.gov/cdb¢ March 27, 2020 ATTACHMENT A: SCOPE OF WORK AND BUDGET A B C Housing Issue CDBG eligible public service CDBG ineligible public service Activities eligible under another CDBG category and CDBG fund, but NOT a CDBG eligible public service • One-time or short-term (no a Ongoing grants or non - more than three month) emergency payments (more Prevent Loss of emergency payments on than 3 consecutive months) Housing behalf of individuals or e Direct payments families, to prevent loss of housing, including utility payments and rent/mortgage payments • Legal services Development, project CDBG Public/Community Facility: Homelessness Direct delivery of services for management, and administrative Acquisition, construction or rehabilitation of and Transitional homeless persons costs of shelters and transitional temporary shelters and transitional housing, Housing housing activities including project management Housing counseling for renters, Development, project CDBG Acquisition or CDBG Public Facility: homeowners, and potential new management and administrative Acquisition and public off -site infrastructure in Permanent homebuyers provided as an costs for new housing activities support of housing development Housing independent public service Housing counseling provided as CDBG Homeownership Assistance: an independent public service and Provision of direct assistance to facilitate and Homeownership not part of a CDBG funded expand homeownership, including subsidized downpayment assistance activity interest rates and mortgage principal amounts, down payment assistance and closing costs Client planning services Planning to develop new services CDBG Planning -Only: Housing plans, Program planning activities and community partnerships feasibility studies, strategies and action Planning tied to the direct delivery of a without the direct delivery of a program planning client service client service CDBG Economic Opportunity Grant — COVID-19 Response Proposed Use of Funds 29 of 29 www.commerce.wa.gov/cdb¢ March 27, 2020