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HomeMy WebLinkAbout10032ORDINANCE NO. 10032 AN EMERGENCY ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN A SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND POSADA, INC., A COLORADO NONPROFIT CORPORATION, FOR POSADA TO PURCHASE 65–71 CASTLE ROYAL DRIVE, PUEBLO, CO FOR USE AS MULTI-FAMILY HOUSING UNITS WHICH WILL PROVIDE (1) QUARANTINE ACCOMMODATIONS FOR HOMELESS AND OTHER AT-RISK INDIVIDUALS WHO HAVE TESTED POSITIVE FOR COVID-19 AND (2) SERVE AS RAPID REHOUSING, TEMPORARY AND TRANSITIONAL AND PERMANENT HOUSING FOR INDIVIDUALS AND FAMILIES WHO ARE EXPERIENCING HOMELESSNESS OR OTHER NEGATIVE IMPACTS DUE TO COVID-19, AS AUTHORIZED BY SECTION 603(c)(1)(A) OF THE AMERICAN RESCUE PLAN ACT AND INTERIM FINAL RULE 31 CFR 35.6 (b)(7) AND (12)(ii) AND AUTHORIZING PAYMENT OF FUNDS IN THE AMOUNT OF $395,000 FROM PROJECT NO. CI2113 - AMERICAN RESCUE PLAN ACT, FOR PURPOSES THEREOF RECITALS The following recitals are incorporated in and made a part of this Ordinance. WHEREAS, on March 11, 2021, President Biden signed the U.S. Senate-amended H.R. 1319 (P.L. 117-2) known as the American Rescue Plan Act (hereinafter “ARPA”); and WHEREAS, on May 10, 2021, the U.S. Treasury issued the Interim Final Rule to implement ARPA in Title 31, Part 35 of the Code of Federal Regulations (“CFR”); and WHEREAS, under ARPA Section 603 (c)(1)(A) and the Interim Final Rule 31 CFR 35.6(b)(7) recipients may use Coronavirus Local Fiscal Recovery (“CLFR”) Funds to award grants to nonprofit organizations that are responding to the negative economic impacts of the COVID-19 public health emergency; and WHEREAS, under ARPA Section 603 (c)(1)(A) and the Interim Final Rule 31 CFR 35.6(b)(12)(ii) recipients may provide CLFR Funds to programs or services that address homelessness or other negative economic impacts resulting from the COVID-19 pandemic, including furnishing quarantine accommodations for homeless individuals who have tested positive for COVID-19; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO that: SECTION 1. The City Council hereby enters the following findings of fact: (a) Since 1987, Posada, Inc., a Colorado nonprofit corporation (“Posada”) has been recognized as a leader among Pueblo's human service non-profits and has demonstrated its ability to provide shelter, housing and supportive services to people experiencing homelessness and individuals at-risk of homelessness, specifically individuals, youth, families with children, veterans and seniors in the Pueblo community. Throughout the COVID-19 pandemic, Posada was the only agency that had the capacity to provide quarantine accommodations for individuals experiencing homelessness who tested positive for the virus. (b) The Subrecipient Agreement approved hereby provides that Posada shall purchase a multi-family housing complex located at 65-71 Castle Royal Drive, Pueblo, CO 81005. The general specifications for the multi-family facility are: a 4-plex, that features 1-3 bedrooms, 1-2 bathrooms, and units that are approximately 550-900 square feet. Each unit may be outfitted with basic furnishings and tenants may receive an initial supply of personal hygiene products, food and household goods. Units may be used as congregate quarantine accommodations for individuals who have tested positive for COVID-19 and later serve as rapid rehousing, temporary and transitional and permanent housing for individuals and families who are experiencing homelessness or other negative economic impacts due to COVID-19. SECTION 2. The Subrecipient Agreement (“Agreement”) between and the City of Pueblo, a Colorado municipal corporation and the Posada, Inc., a Colorado nonprofit corporation, dated October 25, 2021, attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 3. The Mayor is hereby authorized to execute said Agreement for and on behalf of the City and the City Clerk is authorized to affix the seal of the City thereto and attest same. SECTION 4. Funds in the amount of Three Hundred Ninety-Five Thousand Dollars ($395,000.00) are hereby authorized to be paid from Project No. CI-2113 – American Rescue Plan Act, for purposes of funding the Project described in the attached Subrecipient Agreement. SECTION 5. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance and the attached Agreement to implement the policies and procedures described herein. SECTION 6. Savings Clause: The COVID-19 pandemic has previously been declared an emergency disaster by the Mayor, the Governor of Colorado and the President of the United States. Recently, the number of COVID-19 infections, hospitalizations and deaths has been on the rise in Pueblo County, due primarily the “Delta” variant of the disease migrating to Pueblo County. The immediate enactment of this Ordinance is necessary in order to preserve and protect the health, safety and welfare of the residents of the City. Pursuant to Sec. 3-20 of the City Charter, this Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on October 25, 2021 . Final adoption of Ordinance by City Council on October 25, 2021 . President of City Council Action by the Mayor: ☒ Approved on October 26, 2021 . □ Disapproved on based on the following objections: _ Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # T-1 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: October 25, 2021 TO: President Lawrence W. Atencio and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: AN EMERGENCY ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN A SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND POSADA, INC., A COLORADO NONPROFIT CORPORATION, FOR POSADA TO PURCHASE 65– 71 CASTLE ROYAL DRIVE, PUEBLO, CO FOR USE AS MULTI-FAMILY HOUSING UNITS WHICH WILL PROVIDE (1) QUARANTINE ACCOMMODATIONS FOR HOMELESS AND OTHER AT-RISK INDIVIDUALS WHO HAVE TESTED POSITIVE FOR COVID-19 AND (2) SERVE AS RAPID REHOUSING, TEMPORARY AND TRANSITIONAL AND PERMANENT HOUSING FOR INDIVIDUALS AND FAMILIES WHO ARE EXPERIENCING HOMELESSNESS OR OTHER NEGATIVE IMPACTS DUE TO COVID-19, AS AUTHORIZED BY SECTION 603(c)(1)(A) OF THE AMERICAN RESCUE PLAN ACT AND INTERIM FINAL RULE 31 CFR 35.6 (b)(7) AND (12)(ii) AND AUTHORIZING PAYMENT OF FUNDS IN THE AMOUNT OF $395,000 FROM PROJECT NO. CI2113 - AMERICAN RESCUE PLAN ACT, FOR PURPOSES THEREOF SUMMARY: This Emergency Ordinance approves and authorizes the Mayor to sign a Subrecipient Agreement with Posada, Inc., a Colorado nonprofit corporation, for Posada to purchase the “4-plex” located at 65-71 Castle Royal Drive, Pueblo, CO 81005 to be used initially as quarantine accommodations for individuals who have tested positive for COVID-19 and later serve as rapid rehousing, transitional and temporary and permanent housing for individuals and families who are experiencing homelessness or other negative economic impacts due to COVID-19 (“Project”). This expenditure of funds is authorized by Section 603(c)(1)(A) of the American Rescue Plan Act (“ARPA”) and Interim Final Rule 31 CFR 35.6 (b)(7) and (12)(ii). Funds for the Project, in the amount of $395,000, will be paid out of Project No. CI-2113, the American Rescue Plan Act. PREVIOUS COUNCIL ACTION: By Ordinance No. 9931, approved on May 17, 2021, the City Council established Project No. CI- 2113 and budgeted and appropriated up to $36.7 million in funds which were expected to be distributed to the City from ARPA, for covered costs and eligible expenses to be incurred during the period which began on March 3, 2021 and ends on December 31, 2024 (to be expended by December 31, 2026). BACKGROUND: Posada provides housing and supportive services that empower homeless individuals and families in Pueblo County to become self-supporting members of the community. This Project will expand Posada's emergency and affordable housing multi-family rental inventory to initially provide quarantine accommodations for individuals who have tested positive for COVID-19 and later serve as rapid rehousing, temporary and transitional and permanent housing for individuals and families who are experiencing homelessness or other negative economic impacts due to COVID-19. Posada's services include referrals, and education and employment assistance, with the goal of empowering those experiencing homelessness and those at risk of becoming homeless due to COVID-19, to achieve their full independence and potential. FINANCIAL IMPLICATIONS: Posada will receive ARPA funds (from Project No.CI2113) in the amount of $395,000.00. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: City Council could decide not to support or fund Posada’s Project. RECOMMENDATION: Approval of the Ordinance Attachments: Proposed Ordinance Proposed Subrecipient Agreement SUBRECIPIENT AGREEMENT THIS SUBRECIPIENT AGREEMENT ("Agreement") is made and entered into this 25th day of October 2021, by and between the City of Pueblo, a Colorado municipal corporation, hereinafter referred to as the "City" and Posada, Inc., a Colorado nonprofit corporation, hereinafter referred to as the "Subrecipient." City and Subrecipient are sometimes each referred to as a "Party" and collectively "Parties." RECITALS The following recitals are incorporated in and made a part of this Agreement. WHEREAS, on March 11, 2021, President Biden signed the U.S. Senate-amended H.R. 1319 (P.L. 117-2) known as the American Rescue Plan Act (hereinafter"ARPA"); and WHEREAS, on May 10, 2021,the U.S. Treasury issued the Interim Final Rule to implement ARPA in Title 31, Part 35 of the Code of Federal Regulations ("CFR"); and WHEREAS, under ARPA Section 603 (c)(1)(A) and (3) and the Interim Final Rule 31 CFR 35.6(b)(7) recipients may use Coronavirus Local Fiscal Recovery ("CLFR") Funds to award grants to nonprofit organizations that are responding to the negative economic impacts of the COVID-19 public health emergency; and WHEREAS, under ARPA Section 603 (c)(1)(A) and the Interim Final Rule 31 CFR 35.6(b)(7) and (12)(ii) recipients may use CLFR Funds to provide quarantine accommodations for homeless individuals who have tested positive for COVID-19 and to provide rapid rehousing, transitional and temporary and permanent housing for individuals and families who are experiencing homelessness or other negative economic impacts due to COVID-19 and WHEREAS, by Ordinance No. 9931, approved on May 17, 2021, the City Council established Project No. CI-2113 and budgeted and appropriated up to $36.7 million in funds which were expected to be distributed to the City from ARPA for covered costs and eligible expenses to be incurred during the period which began on March 3, 2021 until December 31, 2024 (to be expended by December 31, 2026); and WHEREAS, Subrecipient has requested that the City use CLRF Funds to enable Subrecipient to purchase the "4-plex" located at 65-71 Castle Royal Drive, Pueblo, CO 81005 to be used initially as quarantine accommodations for homeless individuals who have tested positive for COVID-19 and later serve as rapid rehousing, transitional and temporary and permanent housing for individuals and families who are experiencing homelessness or other negative economic impacts due to COVID-19 (hereinafter "Project"); and WHEREAS, since 1987, Subrecipient has been recognized as a leader among Pueblo's human service non-profits and has demonstrated its ability to provide shelter, housing and supportive services to people experiencing homelessness and individuals at-risk of homelessness, specifically individuals, youth, families with children, veterans and seniors in the Pueblo community. Throughout the COVID-19 pandemic, Subrecipient successfully demonstrated the ability and capacity to provide non-congregate quarantine accommodations for individuals experiencing homelessness who tested positive for the virus; and 1 WHEREAS, the City desires to disburse funds from Project No. CI-2113 to the Subrecipient to administer the Project and perform certain services in connection therewith as set forth in this Agreement and in the Scope of Services attached hereto; and WHEREAS, Subrecipient has represented to the City that is duly qualified, eligible and willing to undertake the Project and provide the services identified herein and in the Scope of Services attached hereto. NOW, THEREFORE, in consideration of the foregoing recitals and the terms and conditions set forth herein, the Parties hereto mutually agree as follows: 1. SCOPE OF SERVICES; RESPONSIBILITIES OF SUBRECIPIENT (a) Subrecipient agrees to satisfactorily perform and complete all services and items of work, and furnish all labor and materials encompassed within or reasonably necessary to accomplish the tasks and functions described in the Scope of Services attached hereto as Exhibit "A" and incorporated herein by reference, in full compliance with all provisions of this Agreement. (b) Subrecipient warrants and represents that it: (i) has the requisite authority and capacity to perform all terms and conditions on Subrecipient's part to be performed hereunder; (ii) that it is duly organized as a non-profit organization under state law and is in good standing with the Secretary of State of Colorado; (iii) that it is a nonprofit organization exempt from Federal income taxation under Section 501(c)(3) of the Internal Revenue Code; (iv) that it is fully aware of and understands its duty to perform all functions and services in accordance with the regulatory requirements of 31 CFR Part 35 and those identified in Exhibit "C" hereto; and (iv) that it is accepting federal financial assistance hereunder subject to certain mandatory repayment provisions. 2. RESPONSIBILITIES OF THE CITY The City shall designate a representative of the City who will be authorized to make all necessary decisions required of the City on behalf of the City in connection with the performance of this Agreement and the disbursement of funds in connection with the Project. In the absence of such a designation, the City Mayor shall be deemed as City's authorized representative. 3. SUBRECIPIENT'S COMPENSATION AND METHOD OF PAYMENT (a) The City will pay to Subrecipient an amount up to that specified in subparagraph (c) of this paragraph as full compensation for all services and work to be performed or undertaken by Subrecipient under this Agreement. Payment of funds to Subrecipient is subject to all of the following requirements, which shall be conditions precedent to payment: (i) that Subrecipient has expended funds for eligible approved expenditures, (ii) that Subrecipient is not in default of any material provision of this Agreement nor applicable law or regulation, (iii) that Subrecipient has timely submitted requests for payment or reimbursement detailing the eligible payment or reimbursement items in a format approved by City, (iv) that Subrecipient has certified with each payment or reimbursement request compliance with the requirements identified in Exhibit "C" and that all expenditures for which reimbursement is sought were made for and in 2 furtherance of the approved Project and are an eligible use of federal assistance under ARPA and federal regulations. (b) Payment hereunder is also subject to and may only be disbursed in accordance with applicable Federal regulations including but not limited to those at 31 CFR Part 35, as presently promulgated and as same may be revised from time to time in the future, all other terms of this Agreement, and any special provisions in the Scope of Services. All payments received by Subrecipient hereunder are subject to repayment by Subrecipient as provided in 31 CFR Part 35. (c) The aggregate of all payments made hereunder shall not exceed Three Hundred Ninety- Five Thousand Dollars (U.S. $395,000.00). Said funds shall be available to be paid to Subrecipient from November 1, 2021 until March 31, 2022. (d) The Parties agree that$395,000.00 shall be the maximum purchase price for the"4-plex" located at 65-71 Castle Royal Drive, Pueblo, CO 81005 and that said funds shall be paid in a lump sum at the closing of Subrecipient's purchase of the property. (e) Upon expiration of the term of this Agreement or upon any prior termination, Subrecipient shall transfer to City any funds provided hereunder which are on hand at the time of expiration or termination. 4. TERM OF PROJECT AND AGREEMENT (a) The term of the Project shall be from November 1, 2021 to December 31, 2026 unless this Agreement is sooner terminated as herein provided. (b) The term of this Agreement shall be from October 25, 2021 to December 31, 2026 unless sooner terminated as herein provided. 5. TERMINATION OF AGREEMENT (a) For Cause: This Agreement may be terminated by City for cause, including any nonperformance by the Subrecipient, upon ten (10) days written notice to Subrecipient including a statement of the reasons therefore, and after an opportunity for a hearing has been afforded. If a hearing is requested, it shall be held before the City's Mayor whose decision shall be final. The determination of the City as to the cause of termination and the appropriateness thereof shall be final and binding upon both City and Subrecipient. Cause for termination shall include any material failure by Subrecipient to comply with any term of this Agreement. (b) For Convenience: This Agreement may be terminated by City for convenience upon ten (10) days written notice to Subrecipient, which decision shall not be subject to appeal. (c) Post Expiration and Termination Procedures: Upon expiration or in the event of a prior termination, all remaining and unspent grant funds, shall immediately become the sole and separate property of the City and the Subrecipient shall perform all acts and execute all instruments necessary to transfer and assign such funds to the City. All finished or unfinished documents, data, studies, reports, and work product prepared by the 3 Subrecipient under this Agreement or with grant funds shall, at the option of the City, become City's property. 6. ASSIGNABILITY This Agreement shall not be assigned or transferred by the Subrecipient without the prior written consent of the City. Any assignment or attempted assignment made in violation of this provision shall, at City's election, be deemed void and of no effect whatsoever. 7. CONFLICT OF INTEREST The Subrecipient certifies and warrants that neither it nor any members of its Board of Directors, officers or employees has or will derive any personal or financial interest or benefit from the activity or activities assisted pursuant to this Agreement, nor has an interest in any contract, subcontract or agreement with respect thereunto, nor the proceeds thereunder, either for themselves or for those with whom they have family or business ties, during their tenure and for one year thereafter. Subrecipient shall avoid all conflicts of interest which are prohibited by applicable federal regulations including but not limited to those set forth in 31 CFR Part 35 as presently promulgated and as same may be revised from time to time in the future. 8. SUBRECIPIENT RECORDS Subrecipient shall maintain records as to all services provided, reimbursable expenses incurred in performing the Scope of Services and complete accounting records. Accounting records shall be kept on a generally recognized accounting basis and as requested by the City's auditor. The Subrecipient agrees to comply with all applicable uniform administrative requirements described or referenced in 31 CFR 35. The Compliance Provisions attached as Exhibit"B" hereto are made a part of this Agreement and Subrecipient agrees to perform and comply with same. The City, Comptroller General of the United States, the Inspector General of the U.S. Treasury and any of their authorized representatives, shall have the right to inspect and copy, during reasonable business hours, all books, documents, papers and records of the Subrecipient which relate to this Agreement for making an audit or examination. Upon completion of the work and end of the term of this Agreement, the City may require copies of all Subrecipient's financial records relating to this Agreement to be turned over to City. 9. MONITORING AND EVALUATION The City shall have the right to monitor and evaluate the progress and performance of the Subrecipient to assure that the terms of this Agreement are being satisfactorily fulfilled in accordance with City's and other applicable monitoring and evaluation criteria and standards. On the ninth (9th) day of the month following the end of the quarter in which ARPA funds in the amount of$395,000.00 are paid for the benefit of the Subrecipient, the Subrecipient shall furnish to the City a quarterly program and financial report of its activities in such form and manner as may be requested by the City. Subrecipient shall fully cooperate with City in relation to such monitoring and evaluation. 10. SUBRECIPIENT FILES AND INFORMATION REPORTS The Subrecipient shall maintain files containing information which shall clearly document all activities performed in conjunction with this Agreement, including, but not limited to, financial transactions, 4 conformance with assurances and activity reports. These records shall be retained by the Subrecipient for a period of three years after the completion of the Project. 11. INDEPENDENCE OF SUBRECIPIENT Nothing herein contained nor the relationship of Subrecipient to City, which relationship is expressly declared to be that of an independent contractor, shall make or be construed to make Subrecipient or any of Subrecipient's agents or employees the agents or employees of the City. Subrecipient shall be solely and entirely responsible for its acts and the acts of its agents, employees and subcontractors. 12. LIABILITY As to the City, Subrecipient agrees to assume the risk of all personal injury, including death and bodily injury, and damage to and destruction of property, including loss of use therefrom, caused by or sustained, in whole or in part, in conjunction with or arising out of the performance or nonperformance of this Agreement by Subrecipient or by the conditions created thereby. Subrecipient further agrees to indemnify and save harmless the City, its officers, agents and employees, from and against all claims, liabilities, costs, expenses, penalties and attorney fees arising from such injuries to persons or damages to property or based upon or arising out of the performance or nonperformance of this Agreement by Subrecipient or out of any violation by Subrecipient of any statue, ordinance, rule or regulation. 13. CERTIFICATIONS The Subrecipient agrees to execute and abide by the certifications contained in Exhibit "C" hereto, and Subrecipient's application for ARPA funds, both of which are hereby made a part of this Agreement. In the event of any conflict between the terms of this Agreement and Subrecipient's Application, this Agreement shall control. 14. REVERSION OF ASSETS (a) Upon expiration of the term of this Agreement, or upon any prior termination, Subrecipient shall transfer to City any funds provided hereunder which are on hand at the time of expiration or termination. (b) In the event City incurs any costs or expenses in enforcing the requirements of this paragraph 14 or in bringing any action to recover the property or amount of any repayment obligation, City shall be entitled to recover its costs and expenses, including reasonable attorney's fees. 15. PERA LIABILITY The Subrecipient shall reimburse the City for the full amount of any employer contribution required to be paid by the City of Pueblo to the Public Employees' Retirement Association ("PERA") for salary or other compensation paid to a PERA retiree performing contracted services for the City under this Agreement. The Subrecipient shall fill out the questionnaire attached as Exhibit D and submit the completed form to City's Finance Office as part of the signed Agreement. 5 16. ENTIRE AGREEMENT; AMENDMENTS The provisions set forth in this Agreement, and all Exhibits and attachments to this Agreement, constitute the entire and complete agreement of the parties hereto and supersede all prior written and oral agreements, understandings or representations related thereto. No amendment or modification of this Agreement, and no waiver of any provisions of this Agreement shall be binding unless made in writing and executed by the duly authorized officers of both the Subrecipient and City. 17. SIGNATURES The persons signing this Agreement on behalf of Subrecipient represent and warrant that such persons and Subrecipient have the requisite power and authority to enter, execute and deliver this Agreement and that this Agreement is a valid and legally binding obligation of Subrecipient enforceable against Subrecipient in accordance with its terms. IN WITNESS, WHEREOF, the Subrecipient and the City have executed this Agreement as of the date first above written and under the laws of the State of Colorado. ATTEST: CITY OF PUEBLO A COLORADO MUNICIPAL CORPORATION B • G�7 Y City Cie Nicholas A Gradisar, ayor [SEAL] Subrecipient: POSADA, INC. A COLORADO NONPROFIT CORPORATION ATTEST: By By Signature Signature Name Name rJCvMGG Title Title 12010+_ �IN' ✓r 6 EXHIBIT A SCOPE OF SERVICES A. Principal Tasks The Subrecipient will be responsible for administering the Project for all unhoused residents in Pueblo County, Colorado, but with a particular focus on at-risk individuals coming from disproportionately impacted communities. The Subrecipient will administer all tasks encompassed in the aforesaid Project in compliance with all applicable federal, state and local rules and regulations governing the Project, in a manner satisfactory to the City. The components of the Subrecipient's work plan under this Agreement shall be as follows: 1. Subrecipient shall purchase the "4-plex" located at 65-71 Castle Royal Drive, Pueblo, CO 81005 ("Property")for no more than its appraised value of$395,000.00, with ARPA funds transferred by the City at closing. Subrecipient shall deliver all closing documents to the City Attorney for his review and approval prior to closing and the City Attorney shall be invited to the closing of the purchase transaction to assure compliance with this Subrecipient Agreement. 2. Subrecipient agrees that the Property shall be used initially as quarantine accommodations for individuals who have tested positive for COVID-19. During this initial period of use, congregate housing shall be permitted provided that carried out in full compliance with the applicable guidelines and regulations of the Colorado and Pueblo Departments of Public Health and the Environment. 3. After the need for quarantine housing has abated, Subrecipient shall use the Property for rapid rehousing, transitional and temporary and permanent housing for individuals and families who are experiencing homelessness or other negative economic impacts due to COVID-19. 4. For those individuals residing in the Property, Subrecipient shall provide basic need supports, referrals, and education and employment assistance, with the goal of empowering those experiencing homelessness and those at risk of becoming homeless, to achieve their full independence and potential. Supportive services shall include individualized and collaborative case management that may include: information and referrals (to behavioral, physical, dental health; social services) benefits acquisition and personal care items. 5. With the same legal effect as a covenant running with the land, Subrecipient agrees that it will not sell, lease or otherwise transfer the Property except to nonprofit organization pursuing similar purposes as Subrecipient which is exempt from Federal income taxation under Section 501(c)(3) of the Internal Revenue Code or to a government, or governmental subdivision, agency or instrumentality. Subrecipient shall not sell or transfer Property to an individual or entity other than described above without repayment of Program funds to the City of Pueblo. City shall have the option of requiring the Subrecipient to execute a first priority Deed of Trust at closing, incorporating the restrictions set forth in this Paragraph 6 and the other provisions of this Subrecipient Agreement. 6. Subrecipient shall maintain the units and property in accordance the Housing Quality Standards and the International Property Maintenance Code, as adopted and by future revision, if any. Changes in the scope of services, budget, or method of compensation contained in this Agreement, unless otherwise noted, may only be made through a written amendment to this Agreement, executed by 7 the Subrecipient and the City. B. Performance Monitoring: The City will monitor the performance of the Subrecipient according to the Principal Tasks and Budget set forth herein. Substandard performance shall mean non-compliance with this Agreement. If actions to correct such substandard performance are not taken by the Subrecipient within a reasonable period of time after being so notified by the City, contract suspension or termination procedures may be initiated, in the sole discretion of the City. C. Record Retention The Subrecipient shall retain all records pertaining to the property for a period of 5-years after disposal of the property. Ata minimum, no records shall be destroyed prior to 12/31/2031 corresponding to a five- year period after completion of the CLFR Program. The Subrecipient shall maintain documentation on all clients served and clients denied for a period of five years from the date of application. Subrecipient shall establish written program policies and procedures, that at a minimum, document the client's housing and income status at application. 8 EXHIBIT B COMPLIANCE PROVISIONS INCORPORATED IN THE SUBRECIPIENT AGREEMENT 1. An accounting system,meeting the requirements of 2CFR200, using the accrual basis of generally accepted accounting principles which accurately reflects all costs chargeable (paid and unpaid)to the Project is mandatory. A receipts and disbursements ledger must be maintained. A general ledger with an income and expense account for each budgeted line item is necessary. Paid invoices revealing check number, date paid and item is necessary. Similarly, cash receipts for the payment of wages is mandatory. Paid invoices revealing check number, date paid and evidence of goods or services received are to be filed per the expense account they were charged. The City must review and approve your account system and internal controls prior to the release of funds. 2. There is no flexibility on budgets. Line items may be changed only by the City's written concurrence of a budget amendment. 3. A log listing all long-distance telephone calls must be maintained (showing date, city and agency called, person making call and person called). 4. Eligible expenses are those considered reasonable and necessary costs for the efficient operation of the Project as determined by the City. All costs must be budgeted items. Request for advance or reimbursements of expenses must be accompanied by: 1. Original invoice marked with funding source 2. Detailed listing of each expense showing: a) recipient b) brief description of purchase c) amount with method of computation detailed Cost Summary must be submitted monthly to reflect entries through the closing date for the books(indicate Closing Date on Cost Summary). 5. All employees handling funds are required to be insured by a fidelity bond. 6. The City shall not be obligated to any third party contractors of the Subrecipient. The subrecipient is further cautioned against obligating funds beyond the contract date of the agreement between the City and the Subrecipient. 7. The Subrecipient will furnish the City such statements, records, data and information, and permit such interviews with personnel as the City may request to effectively monitor and evaluate the project. 8. City auditors will periodically make interim audits and may, upon completion of the Project, make a final audit. 9. All records must be retained by the Subrecipient for a period of three years following the last day of the Agreement. (Cost summary reports must reflect actual general ledger balances.) 9 EXHIBIT C CERTIFICATIONS Subrecipient hereby certifies that the grant will be conducted and administered in compliance with: (1) Title VII of the Civil Rights Act of 1964 (Pub. L. 88-352; 42 U.S.C. 2000d, et seq.) and implementing regulations issued at 24 CFR Part 1; (2) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-284; 42 U.S.C. 3601, et seq.), as amended; and that the grantee will administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing; (3) Executive Order 11246, as amended by Executive Orders 11375 and 12086, and implementing regulations issued at 41 CFR Chapter 60; (4) Executive Order 11063, as amended by Executive Orders 12259, and implementing regulations at 24 CFR Part 107; (5) Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and implementing regulations when published for effect; (6) The Age Discrimination in Employment Act of 1975 (Pub. L. 94-135), as amended, and implementing regulations when published for effect; (7) The relocation requirements of Title 11 and the acquisition requirements of Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the HUD implementing regulations set forth in 49 CFR Part 24; (8) Executive Order 11988 relating to the evaluation of flood hazards and Executive Order 11288 relating to the prevention, control and abatement of water pollution; (9) The flood insurance purchase requirements of Section 102(a)of the Flood Disaster Protection Act of 1973 (Pub. L. 93-234); (10) The applicable regulations, policies,guidelines and requirements of 2CFR200 as they relate to the acceptance and use of federal funds under this federally-assisted program; (1 1) The Clean Air Act (42 U.S.C. 7401 et.seq.) as amended; particularly section 176 (c) and (d) [42 U.S.C. 7506 (c)and(d)]; (12) The Safe Drinking Water Act of 1974 (42 U.S.C. 201, 300 (f) et.seq., and 21 U.S.C. 349) as amended; particularly section 1424(e) (42 U.S.C. 300(h)-303 (e)); (13) The Endangered Species Act of 1973 (16 U.S.C. 1531 et. Seq.) as amended; including but not limited to section 7(16 U.S.C. 1536)thereof; (14) The Reservoir Salvage Act of 1960 916 U.S.C. 469 et.seq.);particularly section 3 (16 U.S.C.469a- 1); as amended by the Archeological and Historical Preservation Act of 1974; 10 (15) Flood Disaster Protection Act of 1973 (42 U.S.C. 4001 et.seq.) as amended; particularly sections 102(a)and 202(a) [42 U.S.C. 4012a(a)and 4106(a)]; (16) Executive order 11990, Protection of Wetlands, May 24, 1977(42 FR 26961 et. Seq.); particularly sections 2 and 5; (17) Lead-Based Paint Poisoning Prevention requirements of 25 CFR Part 35 issued pursuant to the Lead-Based Paint Poisoning Prevention Act(42 U.S.C. 4821 et.seq.); (18) The National Historic Preservation Act of 1966 (16 U.S.C. 470 et seq.) as amended; particularly section 106 (16 U.S.C. 4700; and (19) Executive Order 11593, Protection and Enhancement of the Cultural Environment, May 13, 1971 (36 FR 8921 et seq.); particularly section 2(c). (20) Construction work financed in whole or in part with federal funds is subject to the prevailing wage requirements of the Davis-Bacon Act(29 CFR, Parts 3 and 5),the Copeland Act(29 CFR Part 3), and the Contract Work Hours and Safety Standards Act (Public Law 91-54, 83 Stat. 96). When a project meets this applicability requirement, the labor standards provision of the HUD 4010 and the Davis-Bacon Wage Decision issued for the project will be incorporated into this contract document and shall be incorporated into all construction contracts and subcontracts of any tier thereunder. (21) No ARPA funds may be expended for lobbying purposes and payments from other sources for lobbying must be disclosed(24 CFR Part 87). (a) No federally appropriated funds have been or will be paid, by or on behalf of subrecipient, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan,or cooperative agreement. (b) If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (22) Where asbestos is present in property undergoing rehabilitation, Federal requirements apply regarding worker exposure, abatement procedures and disposal. (CPD-90-44 EPA/OSHA). 11 EXHIBIT D COLORADO PUBLIC EMPLOYEES RETIREMENT ASSOCIATION SUPPLEMENTAL QUESTIONNAIRE TO BE ANSWERED BY ANY BUSINESS PERFORMING SERVICES FOR THE CITY OF PUEBLO Pursuant to section 24-51-1101(2),C.R.S..salary or other compensation from the employment,engagement,retention or other use of a person receiving retirement benefits(Retiree)through the Colorado Public Employees Retirement Association(PERA) in an individual capacity or of any entity owned or operated by a PERA Retiree or an affiliated party by the City of Pueblo to perform any service as an employee.contract employee.consultant,independent contractor,or through other arrangements,is subject to employer contributions to PERA by the City of Pueblo. Therefore,as a condition of contracting for services with the City of Pueblo.this document must be completed,signed and returned to the City of Pueblo: a) Are you,or do you employ or engage in any capacity,including an independent contractor,a PERA Retiree who will perform any services for the City of Pueblo? Yes_ No _x b) If you answered"yes"to(a)above,please answer the following question: Are you an individual,sole proprtetor or partnership,or a business or company owned or operated by a PERA Retiree or an affiliated party"' Yes No If you answered"yes"please state which of the above entities best descnbcs your business: c) If you answered"yes"to both(a)and(b),please provide the name,address and social security number of each such PERA Retiree. Name Name Address Address Social Security Number Social Security Number (If more than two,please attach a supplemental list) Failure to accurately complete,sign and return this document to the City of Pueblo may result in your being denied the pnvilege or doing business with the City of Pueblo. If you answered"yes"to both(a)and(b),you agree to reimburse the City of Pueblo for any employer contribution required to be paid by the City of Pueblo to PERA for salary or other compensation paid to you as a PE RA Retiree or paid to any employee or independent contractor of yours who is a PERA Retiree performing services for the City of Pueblo. You further authorise the City of Pueblo to deduct and withhold all such contributions from any moneys due or payable to you by the City of Pueblo under any current or future contract or other arrangement for services between you and the City of Pueblo. Signed--Dooembeyr--fi .20.2.1 .• By. '�-,-,-- Name: Kim Bowman fide: Executive Director For purposes of responding to question(b)above,an"affiliated party"includes(I)any person who is the named beneficiary or co-beneficiary on the PERA account of the VERA Retiree,(2)any person who is a relative of the Pk RA Retiree by blood or adoption to and including parents,siblings,half-siblings,children,and grandchildren.(3)any person who is a relative of the PERA Retiree by rnarriage to and including spouse, spouse's parents, stepparents, stepchildren, stepsiblings. and spouse's siblings:and (4)any person or entity with whom the PERA Retiree has an agreement to share or otherwise profit from the performance of services for the City of Pueblo by the PERA Retiree other than the PERA Retiree's regular salary or compensation. 13 Scanned with CamScanner E-RECORDED ID: _ 5/07J County ip DEED OF TRUST Date: .11— q 'o)/Time:( : 01 ; (Restated) THIS INDENTURE, is made this/ day of f-etttrapt720.22 between the Posada, Inc., a Colorado nonprofit corporation, whose address is 827 E. 4th Street, Pueblo, CO 81001 (hereinafter referred to as "Grantor"), and the Public Trustee of the County of Pueblo, State of Colorado (hereinafter referred to as "Public Trustee") for the benefit of the City of Pueblo, a Colorado municipal corporation whose address is 1 City Hall Place, Pueblo, CO 81003 ("City of Pueblo" or"City" or"beneficiary")This instrument is being executed and recorded to confirm and restate, reiterate and repeat that certain Deed of Trust from the Grantor to the Grantee, each as identified below, dated November 1, 2021, which was recorded November 4, 2021, in the records of the Pueblo County Clerk and Recorder at Reception No. 2251071. WITNESSETH, THAT, WHEREAS, Grantor and the City of Pueblo are parties to that certain Subrecipient Agreement dated October 25, 2021, a true, complete and correct copy of which is attached hereto as Exhibit A (the "Agreement"), whereby Grantor agreed to comply with certain real property obligations and other requirements enumerated in the Agreement in consideration of the transfer of funds to Grantor by the City of Pueblo for the purchase of the real property ("Property") encumbered hereby; and WHEREAS, the Grantor is desirous of securing all its obligations under the Agreement, including but not limited to the use of said real property for limited purposes (the "Obligations") as follows: 1. That the Property shall be used initially as quarantine accommodations for individuals who have tested positive for COVID-19. 2. After the need for quarantine housing has abated, the use of the Property shall be limited to transitional and temporary and permanent housing for individuals and families who are experiencing homelessness or other negative economic impacts due to COVID-19. 3. Grantor will not sell, lease or otherwise transfer the Property except to a nonprofit organization pursuing similar purposes as Grantor, which is exempt from Federal income taxation under Section 501(c)(3) of the Internal Revenue Code or to a government, or governmental subdivision, agency or instrumentality. Grantor shall not sell or transfer the Property to an individual or entity other than described above without the repayment of funds in the amount of Three Hundred Ninety-Five Thousand Dollars ($395,000) to the City of Pueblo. NOW THEREFORE, the Grantor, in consideration of the premises and for the purpose aforesaid, does hereby grant, bargain, sell and convey unto the said Public Trustee in trust until the full performance of the Obligations ("Full Performance"), the following described property, situate in the County of Pueblo, State of Colorado, to wit: Lot 31, Block 12, Regency Park, 8th Filing more commonly known by street and number as: 65-71 Castle Royal Drive, Pueblo, CO 81005 also known as Pueblo County Assessor Parcel No. 1509115003 TO HAVE AND TO HOLD the same, together with all and singular the privileges and appurtenances thereunto belonging, in trust nevertheless, that: a) in case of default by Grantor of the Obligations under the Agreement, or b) in case default shall be made or violation or breach of any of the terms conditions, covenants or agreements herein contained, the beneficiary hereunder or the legal holder of the Agreement secured hereby may declare a violation of any of the covenants herein contained and may elect to advertise said property for sale, and demand such sale by filing a notice of election and demand for sale with the Public Trustee. Upon receipt of such notice of election and demand for sale, the Public Trustee shall cause such notice to be recorded in the recorder's office of the county in which said property is situated. The Public Trustee shall then give public notice of the time and place of sale by advertisement to be published for four weeks (once each week for five successive weeks) in some newspaper of general circulation at that time published in the county or counties in which said property is located. A copy of such notice shall be mailed to all persons entitled to receive notice as provided by law. It shall and may then be lawful for the Public Trustee to sell said property for the highest and best price the property will bring in cash and to dispose of the said property (en masse or in separate parcels, as the said Public Trustee may think best), together with all the right, title and interest of the Grantor therein, at public auction at any place as may be specified by statute and designated in the notice of sale. The Public Trustee shall make and give to the purchaser of such property at such sale, a certificate of purchase as required by law. Unless the property is redeemed,the public trustee shall execute and record a confirmation deed to the holder of the certificate of purchase after the date of sale and expiration of all redemption periods and the receipt of all statutory fees and costs. The Public Trustee shall, out of the proceeds of such sale and after first paying and retaining all fees, charges and costs of making said sale, pay to the beneficiary hereunder or to any assignee of the beneficiary's rights under the Agreement any amounts due pursuant to the Obligations under the Agreement, and all moneys advanced by such beneficiary for insurance, taxes and assessments, with interest thereon at eight per cent per annum, rendering the overplus, if any, unto those persons entitled thereto as a matter of law. Said sale as evidenced by the confirmation deed executed and recorded by the Public Trustee shall operate as a perpetual bar, both in law and equity, against the Grantor and all other persons claiming the said Property, or any part thereof, by, from, through or under the Grantor. The City of Pueblo or its assignee may purchase said Property or any part thereof; and it shall not be obligatory upon the purchaser at any such sale to see to the application of the purchase money. The Grantor covenants with and warrants to the Public Trustee, that at the time of the ensealing of and delivery of these presents the Grantor is well seized of the said lands, tenements and property in fee simple, and has good right, full power and lawful authority to grant, bargain, sell and convey the same in the manner and form as aforesaid; hereby fully and absolutely waiving and releasing all rights and claims the Grantor may have in or to said lands, tenements, and property as a Homestead Exemption, or other exemption, under and by virtue of any act of the General Assembly of the State of Colorado or of the United States Congress, now existing or which may hereafter be passed in relation thereto, and that the 2 same are free and clear of all liens and encumbrances whatever as of the date hereof except easements, conditions, restrictions, covenants and reservations of record. The Grantor further warrants to the Public Trustee the quiet and peaceable possession of said property against all persons who may lawfully claim the whole or any part thereof, and that the Grantor shall and will forever defend the title to said property against such person or persons. Until Full Performance, the Grantor shall timely pay or cause all taxes and assessments levied on the property to be paid and will keep all improvements that may be on said lands insured against any casualty loss, including extended coverage, in a company or companies, meeting the net worth requirements of the beneficiary hereof in an amount which will yield to the holder of the Agreement, after reduction by co-insurance provisions of the policy, if any, not less than the then total fair market value of the real property encumbered hereby. Each policy shall contain a loss payable clause naming the beneficiary as mortgagee and shall further provide that the insurance may not be canceled upon less than ten days written notice to the beneficiary. Should the Grantor fail to insure and deliver a certificate evidencing the required coverage under the policies or to pay taxes or assessments as the same fall due, the beneficiary may make any such payments or procure any such insurance, and all monies so paid with interest thereon at the rate of eight per cent per annum shall be added to and become a part of the Agreement secured by this Deed of Trust and may be paid out of the proceeds of the sale of the property if not paid by the Grantor. In addition, and at its option, the beneficiary may declare the Agreement secured hereby and this Deed of Trust to be in default for failure to procure insurance or make any of the payments required by this paragraph. If all or any part of the property or an interest therein is sold or transferred by the Grantor without beneficiary's prior written consent, excluding the creation of a lien or encumbrance subordinate to this Deed of Trust, beneficiary may, at beneficiary's option, declare the Agreement secured by this Deed of Trust to be immediately in default. IN CASE OF ANY DEFAULT whereby the right of foreclosure occurs hereunder, the holder of said certificate of purchase shall at once become entitled to the possession, use and enjoyment of the property aforesaid, and to the rents, issues and profits thereof, from the accruing of such right and during the pendency of foreclosure proceedings and the period of redemption, if any. Such possession shall at once be delivered to the holder of said certificate of purchase on request. Upon refusal, delivery of such possession may be enforced by the holder of said certificate of purchase by any appropriate civil suit or proceeding. The holder of said certificate of purchase shall be entitled to a Receiver for said property, and of the rents, issues and profits thereof, after such default, including the time covered by foreclosure proceedings and the period of redemption, if any, and shall be entitled thereto as a matter of right without regard to the solvency or insolvency of the Grantor or of the then owner of said property and without regard to the value thereof. Such Receiver may be appointed by any court of competent jurisdiction upon ex parte application and without notice -- notice being hereby expressly waived -- and all rents, issues and profits, income and revenue therefrom shall be applied by such Receiver according to the law and the orders and directions of the court. IN THE CASE OF ANY DEFAULT in any of said Obligations, according to the tenor and effect of said Agreement or any part thereof, or of a breach or violation of any of the covenants or agreements herein by the Grantor, the whole of said Obligations hereby 3 secured and the interest thereon to the time of the sale may at once, at the option of the legal holder thereof, become due and payable, and the said property be sold in the manner and with the same effect as if said indebtedness had matured. If foreclosure be made by the Public Trustee, attorney's fees in a reasonable amount for services in the supervision of said foreclosure proceedings shall be allowed by the Public Trustee as a part of the cost of foreclosure; and if foreclosure be made through the courts, a reasonable attorney's fee shall be taxed by the court as a part of the cost of such foreclosure proceedings. IT IS FURTHER UNDERSTOOD AND AGREED that upon Full Performance, the City of Pueblo shall execute a release of this Deed of Trust, such release document to be prepared by Grantor with Grantor paying the expense thereof; all of the covenants and agreements herein contained shall extend to and be binding upon the heirs, personal representatives, successors and assigns of the respective parties hereto; and that the singular number shall include the plural and the plural the singular. Executed on the date first above written. GRANTOR: POSADA, INC. A Colorado Nonprofit Corporation B y Name: Kim Bowman Title: Executive Director STATE OF COLORADO ) ) ss. COUNTY OF PUEBLO ) The foregoing instrument was acknowledged before me on this / day of ,by Posada, Inc., by Kim Bowman its Executive Director. No vx..n ,ze. (Th11 Witness my official hand and seal. ROXiE DASE NOTARY PUBLIC My commission expires: 9 '`� -a . NOTARY ID COLORADO MY COMMISSION EXPi .SSE, !EMiEE-11 14,2024 4