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HomeMy WebLinkAbout61441 AGREEMENT FOR THE ADMINISTRATION OF THE BREMERTON CARES SMALL BUSINESS RELIEF GRANT PROGRAM THIS AGREEMENT is entered into on this _____ day of August, 2020, by and between the City of Bremerton, a Washington municipal corporation (“City”) and the Kitsap Economic Development Alliance (“KEDA”), a Washington nonprofit corporation, for the administration of the Bremerton CARES Small Business Relief Grant Program. RECITALS A. On March 27, 2020, the United States Congress adopted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) which, among other things, amended Section 601(a) of the Social Security Act and established the Coronavirus Relief Fund into which Congress appropriated $150 billion to make payments for specified uses to States and certain local governments. B. The Coronavirus Relief Fund is available to reimburse government recipients for necessary expenditures incurred due to the COVID-19 public health emergency that were not accounted for in the government recipient’s most-recently appropriated budget and that were incurred during the period between March 1, 2020 and December 30, 2020. C. Guidance issued by the U.S. Treasury Department indicates that necessary expenditures incurred due to the COVID-19 public health emergency include costs incurred to support local businesses that suffered losses due to COVID-19 business interruptions, or incurred costs for personal protective equipment or other materials, supplies and equipment needed to safely operate following a COVID-19-related closure. D. The State of Washington determined to distribute a certain portion of its share of the CARES Act funds to Washington cities, including the City of Bremerton, with such funds being administered through the Washington State Department of Commerce. E. The City has entered into an Interagency Agreement with the Washington State Department of Commerce, which governs the City’s receipt of the CARES Act funds allocated to the City, through the City’s request for reimbursement of eligible expenditures (the “Interagency Agreement”). Under the Interagency Agreement, the City’s reimbursable expenditures must be incurred during the period between March 1, 2020 and October 31, 2020 in order for the State of Washington to closeout its contracts in time to meet the United States Treasury’s December 30, 2020 end date. F. To address the COVID-19 public health crisis, on March 23, 2020, Governor Inslee issued Proclamation 20-25, “Stay Home -- Stay Healthy,” which prohibited all people in Washington State from leaving their homes with certain exceptions, and generally prohibi ted all nonessential businesses from conducting business. On May 31, 2020, after extending Proclamation 20-25 several times, Governor Inslee issued Proclamation 20-25.4, which recreates a transition from “Stay Home DocuSign Envelope ID: 0CAF5F08-B508-4598-A202-638E4763DD67 6th 2 -- Stay Healthy” to Safe Start – Stay Healthy” on a County by County basis, and in accordance with a four phase re-opening plan. G. Currently, Kitsap County is in Phase 2 of the re-opening plan. Many businesses in Bremerton have not yet re-opened, or are only open in a limited capacity. Without financial assistance, many businesses will not have the resources to re-open in the future, or if they have attempted to re-open, may have to cease operating. Disruptions to workers and businesses are serious, as small businesses are the backbone of our economy, and provide the foundation of employment, services for the community, and revenue for cities and other public agencies to continue to provide essential services for the public welfare and benefit. H. The City recognizes that one of its essential functions is to secure the health and welfare of the community. Resources are necessary to help small businesses survive this unexpected economic downturn caused by the unprecedented COVID-19 crises. Therefore, the City established Bremerton CARES, a Small Business Relief Grant Program (“Program”), the focus of which is to provide short-term economic stability via monetary grants to qualifying businesses located within City limits. I. The Kitsap Economic Development Alliance (“KEDA”) is a Washington nonprofit corporation with a mission to serve as a resource for businesses located in the City of Bremerton, and to promote economic opportunities in Kitsap County. In furtherance of that mission, KEDA is uniquely knowledgeable of the currently existing small businesses in Bremerton, and accordingly uniquely equipped to administer the Program for the businesses of Bremerton on behalf of the City. J. The City has limited resources, including limited available personnel, to administer the Program, and desires to partner with KEDA as a qualified service provider capable of serving as grant administrator selected due to its unique qualifications for the performance of this service during this declared state of emergency. NOW, THEREFORE, the Parties mutually agree as follows: AGREEMENT 1. City’s Duties. The City shall provide the funding for the Bremerton CARES Program, and shall make grant payments to selected grant recipients. The City shall pay to KEDA for its actual costs in administering the Program in an amount not to exceed $5,000. Upon receipt of an invoice from KEDA the City agrees to pay this amount within thirty (30) days. 2. KEDA’s Duties. KEDA shall administer the Program as follows: A. The City shall provide and KEDA shall review the executed Interagency Agreement between the City of Bremerton and the Washington Department of Commerce for CARES Funding, including any amendments thereto, and shall ensure compliance with the requirements of that Interagency Agreement in effectuation of this Agreement. DocuSign Envelope ID: 0CAF5F08-B508-4598-A202-638E4763DD67 3 B. KEDA shall utilize the eligibility parameters for the Program attached as Exhibit A for the selection of grant recipients. Upon selection of said grant recipients, KEDA shall provide to the City the selected application and all supporting documentation for the City’s audit. The City has ultimate decision-making authority as to the final grant recipients, and reserves the right to reject any application. The City shall inform KEDA of the final grant recipient(s) and allocated funding, and may do so on a rolling basis. C. KEDA shall notify the final grant recipients upon selection by the City, and shall supply the awarded applications to the City on a bi-monthly basis. D. KEDA shall administer the Program, utilizing the parameters set out in this Agreement, shall administer the Program in a manner which assures fair, equal and non- discriminatory treatment of all persons, including maintaining open hiring and employment practices, and compliance with all requirements of applicable federal, state or local laws or regulations related to hiring and employment practices and providing services to all persons, without discrimination as to any person’s race, color, religion, sex, sexual orientation, disabled veteran condition, physical or mental handicap or national origin. E. KEDA shall perform due diligence to ensure all grant recipients are eligible to receive grant funding under the terms of this Agreement, and KEDA shall document said due diligence via a report to the City. The report shall identify the measures taken by KEDA in detail, and the City reserves the right to request additional information and/or documentation to support each award. F. KEDA, in conjunction with the City, shall ensure all grant recipients use Program Award Funds only to pay or reimburse Recipient for Eligible Expenses incurred during the time period set forth in this agreement. Eligible Expenses are limited to expenditures for costs of business interruption caused by closures and limited re-openings due to COVID, and must be specifically for COVID-related impacts. G. KEDA shall ensure all grant recipients shall sign a declaration asserting they meet all criteria and shall not use Program Award Funds to cover payroll or other employee-related or business-associated costs for which the grant recipient has received other federal, state or regional funds, including without limitation funds made available under the Payroll Protection Program (“PPP”) or unemployment insurance compensation. H. KEDA shall ensure all Eligible Expenses by grant recipients are incurred between March 1, 2020 and October 31, 2020. Any expenses incurred before or after this period are not Eligible Expenses for Program Award Funds. KEDA agrees that all proposed grant recipients shall be submitted to the City for review on or before September 30, 2020, and that all documentation required under this Agreement shall be submitted to the City no later than October 1, 2020. I. In administering the Program, KEDA shall comply with and obey all applicable federal, state and local laws, regulations, and ordinances. Should KEDA’s administration of the Program be inconsistent with applicable laws, provisions of this Agreement, or otherwise DocuSign Envelope ID: 0CAF5F08-B508-4598-A202-638E4763DD67 4 inappropriate, the City shall have the right to the return of any portion of the Funds that are later determined to have been spent in violation of applicable laws. In the alternative, the City may recapture such funds from payments due under this Agreement. The City shall not exercise this right until it has given written notice of noncompliance with applicable laws or this Agreement to KEDA, and allowed KEDA a period of ten (10) days from the date of notice for KEDA to cure the noncompliance. The right of recapture provided in this section is in addition to and not in lieu of any right which Washington law provides for breach of contract. 3. Maintenance of Records. KEDA shall maintain accurate written records, including accounting records such as invoices, sales receipts, and proof of payment, books, documents, data and other evidence that reflects its costs of administering the Program, as well as all of grant recipients direct and indirect expenditures of Program Award Funds. These records must be sufficient to demonstrate that the funds have been used in accordance with Section 601(d) of the Social Security Act. The City may at any time review the documentation to determine KEDA’s conformance with the requirements of the Program, and the KEDA shall make available to the City, upon request, all of the KEDA’s records and documents with respect to all matters covered by this Agreement. A. The City may require the KEDA to provide additional documentation if the existing documentation is deemed incomplete. B. KEDA shall retain all records related to this Agreement for a period of six (6) years following the expiration or termination of this Agreement, whichever occurs later. These records, including materials generated under the contract, shall be subject at all reasonable times to inspection and review by the City, and to an audit by the Washington State Department of Commerce, personnel duly authorized by Commerce, the Office of the State Auditor, and federal and state officials so authorized by law, regulation or agreement. C. If any litigation, claim or audit is started before the expiration of the six (6) year period provided in Section 3(b) above, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. D. The terms of this provision shall survive the expiration or termination of this Agreement. 4. Term. This Agreement shall commence upon mutual execution, and terminate upon completion of all duties proscribed herein, or on December 31, 2020, whichever occurs first. 5. Termination. If KEDA fails to fulfil its obligations under this Agreement, the City may terminate this Agreement upon written notice to KEDA specifying the reason for termination and the date of termination, and may seek to recover any Program Award Funds paid to KEDA or in KEDA’s possession at the time of termination. 6. No Employee Relationship. KEDA understands and acknowledges that neither KEDA nor any officer, employee or agent of KEDA shall be considered to be an employee of the City, nor entitled to any benefits accorded City employees, by virtue of the services provided under DocuSign Envelope ID: 0CAF5F08-B508-4598-A202-638E4763DD67 5 this Agreement. The City shall not be responsible for assuming the duties of an employer with respect to the KEDA or any employee of KEDA. 7. Indemnification. KEDA shall indemnify and hold the City harmless against any claim or liability of any nature in connection with or arising in any manner out of this Agreement. KEDA shall ensure that any recipient of any Program Award Funds shall agree to defend and indemnify the City to the extent and on the same terms and conditions as KEDA. 8. Complete Agreement. This Agreement sets forth the complete expression of the agreement between the Parties, and any oral representations or understandings not incorporated herein are excluded. 9. Waiver. Any waiver by KEDA or the City of the breach of any provision of this Agreement by the other party will not operate, or be construed, as a waiver of any subsequent breach by either party or prevent either party from thereafter enforcing any such provisions. 10. Modification. This Agreement may only be amended by written agreement signed by both Parties. 11. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void, insofar as it is in conflict with said laws, and the remainder of the Agreement shall remain in full force and effect. 12. Notices. Notices to the City of Bremerton shall be sent to the following address: City of Bremerton Attn: Michael Riley 345 6th Street, Suite 100 Bremerton, WA 98337 Notices to KEDA shall be sent to the following address: ____________________ ____________________ ____________________ ____________________ 13. Assignment of Contract. KEDA shall not assign this Agreement or any of the duties assigned to it hereunder without the prior written consent of the City. 14. Venue. This Agreement shall be governed by the law of the State of Washington and venue for any lawsuit arising out of this Agreement shall be in Kitsap County. 15. Interagency Agreement Amendments. Notwithstanding Section 10 above, the Parties acknowledge that Washington State may require or request changes to the Interagency Agreement or its requirements or provisions. Any changes or alterations to the Interagency DocuSign Envelope ID: 0CAF5F08-B508-4598-A202-638E4763DD67 Kitsap Economic and Development Alliance Cavalon Place II 2021 NW Myhre Road, Ste 100 Silverdale, WA 98383 6 Agreement terms and conditions that are applicable or relevant to this Agreement shall be incorporated into this Agreement by amendment of this Agreement, upon notice by the City to KEDA. 16. Public Disclosure. All documents and records comprising the Agreement, and all other documents and records provided to the City by KEDA, are deemed public records under the Washington Public Records Act, Ch. 42.56 RCW, and may be subject to disclosure by the City. The City may be required, upon request, to disclose the Agreement, and the documents and records submitted to the City by KEDA, unless an exemption under the Public Records Act applies. 17. Disclaimer of Liability. Washington State Department of Commerce and the State of Washington are not liable for claims or damages arising from the KEDA’s performance of this Agreement. IN WITNESS WHEREOF, the City and the KEDA have executed this Agreement as of the date first above written. CITY OF BREMERTON , WASHINGTO N By:_______________________ Grey Wheeler, Mayor Date:______________________ Kitsap Economic Development Alliance By:________________________________ Typed/Printed Name:__________________ Its:_________________________________ Date:_______________________________ APPROVED AS TO FORM: By:_______________________ Roger Lubovich, City Attorney Date: ________________________ DocuSign Envelope ID: 0CAF5F08-B508-4598-A202-638E4763DD67 8/6/2020 8/7/2020 Secretary John Powers 8/12/2020 7 Exhibit A Bremerton Cares Small Business Rent Relief Program How do I know if my small business qualifies? • Must have a Bremerton business license • Have a physical location in the City of Bremerton on or before March 1, 2020 • Have no more than 15 full-time equivalent employees. • Engage in a type of business eligible to receive funding by the US Small Business Administration • Ability to demonstrate loss of revenue due to COVID-19 (Priority given to businesses that were required to close due to the Governor’s order) • Your business has reopened prior to the date of the application • If you answer yes to all of the above your business may qualify What can I use the grant for? • Reimbursement of business leasehold rents. Up to 6 months of rent from April thru September 2020 up to $5,000 What things are not allowed? • Wages, bonuses or draws by you as the owner. (These expenses were eligible under the PPP loans) • Operating expenses other than rent • Businesses that received previous funding under the Paycheck Protection Program, Working Washington Small Business or other local grants MAY NOT claim the same expense twice • Not eligible for months that landlord provided rent relief • Mortgage payments on owner occupied buildings • Landlord must not have any ownership in business • No homebased businesses Documentation • Application • Evidence of Lease • Declaration from landlord • Documentation related to real estate holding company may be required • Bremerton Business License DocuSign Envelope ID: 0CAF5F08-B508-4598-A202-638E4763DD67