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HomeMy WebLinkAbout5669 MEMORANDUM OF AGREEMENT BETWEEN CITY OF BREMERTON AND LORAX VENTURES II REGARDING COMMUNITY DEVELOPMENT BLOCK GRANT PRE-AWARD COSTS The City of Bremerton ("City") and Lorax Ventures II ("Lorax") enter into this Memorandum of Agreement to allow for Lorax to incur eligible pre-award costs to conduct a Phase II Environmental Review for the 1010 Burwell Project. WHEREAS, the Bremerton City Council has authorized the funding recommendation of an estimated amount of$210,698 to Lorax for their 1010 Burwell Project in the 201.7 Action Plan to the U.S. Department of Housing and Urban Development (HUD); WHEREAS, the City has not received its 2017 funding allocation from HUD, which generally doesn't occur until the 2nd or 3rd quarter of the calendar year, HOWEVER, according to 24 CFR 570.200(h)(1): Prior to the effective date of the grant agreement, a recipient may incur costs or may authorize a subrecipient to incur costs, and then,after the effective date of the grant agreement pay for those costs using CDBG funds; WHEREAS, Lorax conducted a request for bids according to 2 CFR 200.320(d) Procurement by competitive proposals, and has received a proposal from Professional Service Industries, Inc. (PSI)to conduct a Phase II Environmental Review at 1010 Burwell for$2,750; WHEREAS, Lorax has requested and the City agrees to authorize a pre-award of$2,750 to Lorax to conduct the Phase II Environmental Review for the 1010 Burwell project; WHEREAS, Lorax understands that their 2017 total Community Development Block Grant (CDBG) award from the City will be decreased by any amounts incurred for the Phase II Environmental Review up to a maximum of $2,750 and this is not a guarantee that Lorax will receive any CDBG funding, and if said funding is not received, Lorax will refund the City any amounts received from the City under this agreement; WHEREAS,the City attests that: (i) The activity for which the costs are being incurred is included in the 2017 Annual Action Plan to HUD; (ii) Citizens will not be affected by the pre-award costs as they will be deducted from Lorax's CDBG award amount; (iii) Costs are exempt from the Environmental Review Procedures under 24 CFR 58.34(a)(1)Exempt Activities: The City, acting as the Responsible Entity does not have to comply with the requirements of this part or undertake any environmental review,for the following exempt activities: (1) Environmental and other studies, resource identification and the development of plans and strategies. (iv) The activity for which payment is being made complies with the statutory and regulatory provisions in effect at the time the costs are paid for with CDBG funds; and Page 1 of 3 (v) Lorax will incur the costs,up to$2,750, and then request reimbursement to the City who will pay from the General Fund which will be reimbursed upon receipt of the 2017 CDBG entitlement award from HUD. WHEREAS, upon completion of the Phase II Environmental Review, as standard procedure, the City will conduct a full NEPA review (according to 24 CFR Part 58) before any additional on-site work takes place; and WHEREAS, Lorax attests that: (i) The total amount of pre-award costs will be the cost of the Phase II Environmental Review. If any additional costs are required an amendment to this agreement will be required; and (ii) Lorax will not conduct • any additional on-site work outside the Phase II Environmental Review until a Formal Notice to Proceed is provided by the City. NOW, THEREFORE,the parties agree as follows: 1. That Lorax may contract with Professional Service Industries,Inc. (PSI)to conduct a Phase II Environmental Review. 2. That PSI shall perform activities detailed in the. Scope of Services included in the Proposal for Soil Vapor Investigation submitted to Lorax Partners on January 26, 2017. 3. Lorax shall obtain and provide to the City proof that PSI has the following insurance: a. Minimum Limits of Insurance: i. Commercial General Liability: One million dollars ($1,000,000) combined single limit per occurrence for bodily injury and property damage, and two million dollars ($2,000,000)aggregate. ii. Comprehensive Automobile Liability Insurance: One million dollars ($1,000,000) combined single limit per accident for bodily injury/property damage. iii. Workers Compensation and Employer's Liability: Workers Compensation coverage as required by the State of Washington. iv. Professional Liability Insurance: One million dollars ($1,000,000) limit per occurrence/claim. [SIGNATURES ON NEXT PAGE] Page 2 of 3 IN WITNESS WHEREOF,the parties have duly executed this agreement as of the date listed below. CITY OF BREMERTON LORAX VENT RES H 1 C;3', = �/rr/ ' ` - /� Patty Le :flan Fyall Mayor o em rtonLorax V t esil 7 i/► Dated: 03 0 20 Dated: ii�y��,, ''VV�� Page 3 of 3