HomeMy WebLinkAbout145-91 RESOLUTION•
RESOLUTION NO. 145-91
A RESOLUTION ACCEPTING AND APPROVING GRANT
AGREEMENT FROM AIDC #EIF8866 IN THE AMOUNT OF
UP TO $410,000 FOR THE PURPOSE OF CONSTRUCTING
SITE IMPROVEMENTS AND A ROAD NECESSARY TO
SUPPORT THE LOCATION OF K -D TOOLS IN TO THE
FAYETTEVILLE INDUSTRIAL PARK.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the Mayor and City Clerk are hereby
authorized and directed to accept and approve the grant agreement
from the AIDC #EIF8866 in the amount of up to $410,000 for the
purpose of constructing site improvements and a road necessary to
support the location of K -D Tools in the Fayetteville Industrial
Park. A copy of the grant agreement authorized for execution
hereby is attached hereto marked Exhibit "A" and made a part
hereof. -
PASSED AND APPROVED this 6th day of .August , 1991.
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APPROVED:
By: are-014/7nAL-4,--\
Mayor
•
ADJUSTMENT f
BUDGET'YEAR 6EPT:3I4-
1991 DIV : 914
- .PROGr:.
CITY Or FAYETTEVILLE, ARKANSAS tti
IN -YEAR BUDGET ADJUSTMENT
DATE REQUESTED
8/6/91
PROJECT.'. OR ITEM REQUESTED:
Contract services to- perform improvements
and'ext'ension of Commerce Drive.
at KD ToolE
JUSTIFICATION= OF THIS INCREASE
This adjustment is required to comply with the cro
provisions -of the AIDC grant awarded for improvements
at_ KD Tools and extension of Commerce Drive.
PROJECT' OR• ITEM WIXOMADJUSTED':
State Grant:Revenue
JUSTIFICATION OF THIS DEICORKASK ADJUSTMENT:
This adjustment is requiredto recognize the grant
monies awarded from AIDC to be utilized for enhancements
by
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INCREASE se
ACCOUNT3TITLE
State Grants
ACCOUNT NUMBER
514-914-5-315.00
AMOUNT
$410,000.00
vareasesis
ACCOUNT TITLE
State. Grants
ACCOUNT NUMBER
514-914-4302.00
KD Tools and extension of Commerce
DATE
REQUESTED
BUDGET' COORDINATOR:
'\
DEPARTD![EI3T DIRECTOR:
ADMINS[E/RVICES DIR:
AN4
004,
CITY MANAGER:
C$ -OS -q i
Drive.
to
AMOUNT
$410,000.00
BUDGET OFFICE USE ONLY
DATE OF APPROVAL
Entered
Posted
t -SA( Type: A
By
B C D
Date
9
Total program adjustments to date:
Grantor:
•
ECONOMIC INFRASTRUCTURE FUND GRANT PROGRAM
GRANT AGREEMENT
PART I
•
Signatory Page
Grantee #: EIF 8866
MDC
Arkansas Industrial Name : City of Fayetteville
Development Commission Address : 113 West Mountain
Fayetteville, AR 72701
#1 Capitol Mall,
Room 4B 210
Little Rock, AR 72201
501-682-1211
County : Washington
Telephone: (501)-575-8304
This Grant Agreement, is entered into by the Arkansas Industrial
Development Commission, Grantor, and the City of Fayetteville,
Grantee, for the purpose of providing funds to Grantee to undertake
public works projects which support private sector job creation
opportunities pursuant to Act 442 of 1991 and/or Act 1205 of 1991
and their successors. The Grantee agrees to initiate and complete
a public works project in accordance with the terms of this Grant
Agreement.
2. The Grantee further warrants it will conduct and administer the
grant in accordance with this Agreement and all applicable State
laws and regulations.
ARKANSAS INDUSTRIAL
DEVE MENT CO iu ISSION
BY:
ignatiTre
Dave Harrington
Name
Executive Director
Title
Date
CITY OF FAYETTEVILLE
Grant
BY
Signature
Fred S. Vorsanger
Name
Mayor
Title
Date
PART II - GRANT AGREEMENT GENERAL TERMS AND CONDITIONS
In consideration of the general terms and conditions hereinafter
contained, the Grantor and the Grantee agree as follows:
•
1. COMPENSATION AND METHOD OF PAYMENT. The Grantor will utilize a
grant request for payment procedure and will authorize the
Grantee to draw up to $410,000 against a Grant Award through
the State Treasury, consistent with all fiscal requirements
stipulated herein. The Grantee may request and receive
authorized grant funds by submitting appropriate forms and
documentation, subject to approval by the Grantor, for payments
of allowable expenses incurred by the Grantee whileundertaking
approved project activities in accordance with this Grant
Agreement. These expenses must be identified by line item
categories which correspond to the line item categories on this
Grant Agreement's Scope of Work -Budget. Requisitions will be
mailed to the Grantor, and the Grantor will review and approve
the requisitions before issuing Payment to the Grantee.
2. LEGAL AUTHORITY. By signing the Grant Agreement Document's
Signatory Sheet, the Grantee certifies that it possesses legal
authority to accept grant funds and to execute the project
described in this Grant Agreement. This act of signing will
also certify that the Grantee will comply with all parts of
this Agreement.
3 WAIVERS. No conditions or provisions. of this Grant Agreement
may be waived unless approved by the Grantor, in writing.
4. ASSIGNABILITY. The Grantee will not assign any interest in
this Grant Agreement and will not transfer any interest in the
same (whether by assignment or novation).
5 SPECIAL CONDITIONS. The Grantee will comply with all special
conditions and attachments incorporated herein to this grant
award. Compliance approval and clearance of special conditions
will be given by the Grantor in writing after receipt and
review of evidence of compliance from the Grantee. Official
notification of a special condition and the Grantor's approval
and/or clearance of special conditions must be retained by the
Grantee in its files.
6 FINANCIAL MANAGEMENT AND ACCOUNTING. The Grantee will
establish and maintain a financial management and accounting
system which conforms to generally accepted accounting.
principles and complies with all applicable State requirements.
ALLOWABLE COSTS. All costs necessary to carry out the eligible
activities in the project must be consistent with and not
exceed the limitations imposed by special conditions, scope of
work and budget.
AMENDMENTS AND. MODIFICATIONS. The Grantor will consider
project amendments if they are necessitated by actions beyond
the control of a Grantee. The Grantee may request or the
Grantor may require an amendment or modification of the Grant
Agreement. However, such amendment or modification will not
take effect until approved, in writing, by the Grantor. The
Grantee must request prior approval for all amendments or
modifications. Amendments will not be approved which would
materially alter the circumstances under which the grant was
originally funded.
•
9. RECORD KEEPING. The Grantee agrees to keep such records as -the
Grantor may require. All such records, and other records
pertinent to the grant and work undertaken as part of the
project, will be retained by the Grantee for a period of three
years after the final audit of the program.
10 ACCESS TO RECORDS. The Grantor and duly authorized officials
of the State will have full access and the right to examine any
pertinent documents, papers, records, and books of the Grantee
and of persons or organizations with which the Grantee may
contract, which involve transactions related to this Grant
Agreement. The Grantee's contract with other persons or
organizations must specifically provide for the Grantor's
access to documents as provided herein.
11 REPORTS. The Grantee, at such times and in such forms as the
Grantor may require, will furnish the Grantor with such
periodic reports as it may request pertaining to the activities
undertaken pursuant to this Grant Agreement, the costs and
obligations incurred in connection therewith, and any other
matters covered by this Grant Agreement.
12 OBLIGATIONS REGARDING THIRD PARTY RELATIONSHIPS. The Grantee
will remain fully obligated under the provisions of the Grant
Agreement notwithstanding its designation of any third party or
parties for the undertaking of all or any part of the project
described herein. Any subcontractor which is not the Grantee
will comply with all lawful requirements of the Grantee
necessary to ensure that the project is carried out in
accordance with the provisions of this Grant Agreement.
The Grantee shall secure all such services in accordance with
applicable State law and the provisions of this Grant
Agreement, and shall notify the Grantor, in writing, of the
method utilized to secure services, the name and address of the
service provider(s), the scope of work anticipated and the
terms of compensation.
13. CONFLICT OF INTEREST. No officer or employee of the Grantor,
no member, officer, or employee of the Grantee or its designees
or agents, no member of the governing body of the jurisdiction
in which the project is undertaken or located and no other
official of such locality or localities who exercises any
functions or responsibilities with respect totthe project
during his tenure, will have any personal or pecuniary gain or
interest, direct or indirect, in any contract or subcontract,
or the proceeds thereof, for work to be performed in connection
with the project assisted under this agreement. The Grantee
will incorporate, or cause to incorporate, in all such
contracts or subcontracts a provision prohibiting such interest
pursuant to the purpose of this provision. The Grantor
reserves the right to waive certain provisions of this clause
in the event of a•situation, once justified as unavoidable by
the Grantee, and approved by the Grantor which necessitates
such a waiver.
14. POLITICAL ACTIVITY. No portion of the funds provided hereunder
will be used for any partisan political activity or to further
the election or defeat of any candidate for public office or
influence the approval or defeat of any ballot issue.
15. NOTICES. The Grantee will comply with all public notices or
notices to individuals required by. applicable State laws.
16. PROHIBITION AGAINST PAYMENTS OF BONUS OR COMMISSION. The
assistance provided under this Grant Agreement will not be used
in payment of any bonus or commission for the purpose of
obtaining approval of the application for such assistance or
any other approval or concurrence under this Grant Agreement.
17. TERMINATION BY MUTUAL AGREEMENT. This Grant Agreement may be
terminated, in whole or in part, prior to the completion of
project activities when the Grantor determines that
continuation is not feasible or would not produce beneficial
results commensurate with the further expenditure of funds.
The Grantee will not incur new obligations for the terminated
portion after the effective date, and will cancel as many
outstanding obligations as possible. The Grantor will make
funds available to the Grantee topay for allowable expenses
incurred before the effective date of termination.
18. TERMINATION FOR CAUSE. If the Grantee fails to comply with the
terms of the Grant Agreement, or fails to use the grant for
only those purposes set forth herein, the Grantor may:
(a) Suspend Grant Payments - After notice to the Grantee,
suspend the grant and withhold any further payment or
prohibit the Grantee from incurring additional obligations
of grant funds, pending corrective action by the Grantee
or a decision to terminate by the Grantor.
(b) Terminate in toto - Terminate the grant in whole, or in
part at any time before the final grant payment is made.
The Grantor will promptly notify the Grantee in writing of
its determination to terminate, the reason for such
termination, and the effective date of the termination.
Payments made to the Grantee or recoveries by the Grantor
will be in accordance with the legal rights and
liabilities of the parties.
19. RECOVERY OF FUNDS. In theevent
the terms of the Grant Agreement
may institute actions to recover
funds paid to the Grantee.
of a default or violation of
by the Grantee, the Grantor
all or part of the proper
20. DISPUTES. Except as otherwise provided in this agreement, any
dispute concerning a question of fact arising under this
agreement which is not disposed of by provision of the Grant
Agreement, will be decided by the Grantor which will reduce its
decision to writing and mail or otherwise furnish a copy
thereof to the Grantee. The decision of the Grantor will be
final and conclusive. This does not preclude the consideration
of questions of law in connection with decisions provided for
in the preceding paragraph; provided that nothing in this Grant
Agreement will be construed as making final the decision of any
administrative official, representative, or board on a question
of law.
21. INDEMNIFICATION. The Grantee will defend, protect, and save
harmless the Grantor from and against all claims, suits, and
actions arising from any act or omission of the Grantee, or any
employee or agents of either in the performance of this Grant
Agreement.
22. SEVERABILITY. 'If any provision under this Grant Agreement or
its, application to any person or circumstances is held invalid
by any: court of competent jurisdiction, this invalidity does
not affect other provisions of the Grant Agreement which can be ,
given effect without the invalid provision.
23. PERFORMANCE. The Grantor's failure to insist upon the strict
performance of any provision of this contract or to exercise
any right based upon breach thereof or the acceptance of any
performance during such breach, will not constitute a waiver of
any'rights under this Grant Agreement.
24. ENFORCEMENT. If the Grantor determines that.a Grantee's
performance fails to meet the terms and conditions of its Grant
Agreement, several courses of action may be pursued in order to
resolve the problem. The Grantor may take any of the following
actions, severally or in combination:
(a) Request additional information from the Grantee to verify
the nature of inadequate performance;
(b) Conduct a site visit to examine pertinent records and
recommend remedial cause of action;
(c) Issue a letter of warning, advising the Grantee of the
deficiency, recommendations for corrections, date by which
performance must be corrected and notice that more serious
sanctions may be imposed if the situation continues or is
repeated;
(d) Suspend funding of questioned activities until remedies
are effected;
(e) Require reimbursement of funds improperly spent; or
(f) Refer the matter to the Attorney General of Arkansas with
a recommendation that a civil action be instituted.
•
25. AUDIT. The Grantee will be responsible for the conduct of a
financial and compliance audit within a reasonable period after
completion of project activities.. Such audit may be performed
by a. certified public accountant whose services are secured
through open, competitive bidding process or during the course
of an audit conducted by staff of the Legislative Joint Audit
Committee. The Grantor reserves the right to recover any
unspent or questioned balance of grant funds, if any, from the
Grantee after final audit.
26. CLOSE-OUT. The Grantor will advise the Grantee to initiate
close-out procedures when the Grantor determines, in
consultation with the Grantee, that there are no impediments to
close-out and that the following criteria have been met or soon
will be met:
(a) All costs to be paid with grant funds have been incurred
with the exception of any unsettled third party claims
against the Grantee. Costs are incurred when goods -and
services are received and/or contract work is performed;
(b) The last required progress report has been submitted. The
Grantee's failure to submit or update will not preclude
the Grantor from effecting close-out if it is deemed to be
in the State's interest. Any excess grant amount which
may be in the Grantee's possession will be returned in the
event of the Grantee's failure to furnish or update the
report; and
(c) Other responsibilities of the Grantee under this Grant
Agreement and any close-out agreement, and applicable laws
and regulations appear to have been carried out
satisfactorily or there is no further State interest in
keeping the grant open for the purpose of securing
performance.
27. The Grantee agrees, as a condition of receiving grant
assistance, to abide by and adhere to any policy directives,.
rules, regulations or other requirements which may be issued
from time to time by the Grantor, and which in the opinion of
the Grantor are necessary to efficient or legal execution of
the project.
PART III SCOPE OF WORK SPECIAL CONDITIONS, BUDGET, AND PROJECT
SCHEDULE
SECTION A - SCOPE OF WORK
Grantee: City of Fayetteville
Control #: EIF 8866
Amendment # N/A
Amendment Date N/A
.The project described more fully herein, consists of a grant to the
Grantee for the purpose of constructing site improvements and a road
necessary to support the location of K -D Tools, Inc. (the "Company") to
the Fayetteville Industrial Park. The location of all improvements are
shown on the project map, which is attached hereto and incorporated
herein by reference.
The Company plans to create at least five hundred (500) new jobs in
support of its location, provided the above mentioned improvements can
be provided by the Grantee.
Construction
The project consists of the following items:
1. Construction of. approximately .75 miles of roadway on new location
that will extend Commerce Drive from its present intersection with
Armstrong Avenue westward to Highway 156. The estimated cost of
this construction is $720,000. The Grantor will pay up to $144,000
of this cost. The remaining balance will be the responsibility of
the Grantee and the Arkansas Highway and Transportation Department
(AHTD).
2 Construction of a parking lot with truck turn around and two (2)_
exterior docks. The estimated cost of this item is $124,500. The
Grantor will pay all the cost up to the estimated amount. Any cost
overruns will be the responsibility of the Grantee and/or the
Company.
3 Exterior concrete waste oil spill retention work at an estimated
cost of $65,000. Grantor will pay for all costs up to the
estimated amount.
4 Surface water redirection work at a cost of approximately $72,000.
Grantor will pay for $60,500 of the cost of this construction item.
All additional costs will be the responsibility of the Grantee
and/or the Company.
Design Services
AHTD is responsible for all engineering required to construct the road
improvements. The grantor will pay up to 20% of engineering costs or
$16,000 whichever is less. All other costs are the responsibility of
the AHTD.
For all other construction items, the Grantee and/or the Company is
responsible for all engineering services costs.
Acquisition
All necessary rights-of-way and easements have been or will be secured
by the Grantee and will not be reimbursed with grant funds.
r •
•
•
SECTION B - SPECIAL CONDITIONS
Grantee: City of Fayetteville
Control #: EIF 8866
1. The Grantee must submit a draw down schedule, within thirty (30)
days of executing this agreement, listing expected dates and
amounts for drawing down funds. Grantor will not honor requests
for funds which exceed the amounts scheduled. Revisions to this
schedule may be submitted at least thirty (30) days in advance of
the next anticipated revised draw down.
2. The Grantee shall insure that all requests for payment are
accompanied by pay estimates which have been approved by the
contractor, engineer and Grantee.
3. The Grantee must conduct an audit of the EIF grant funds at project
completion and submit a copy of the audit to Grantor for review.
SECTION C - BUDGET
Grantee: City of Fayetteville Amendment #: N/A
Control #: EIF 8866 Amendment
DATE: N/A
Category:
Housing Economic Development.X Community Facility Planning
Activity: Multi -Activity
COST CLASSIFICATION
Sub -Costs
EIF
Design Services_ $ 16,000
Construction 394,000
TOTALS
Source(s) of Funds Cost
Classification
AHTD City Total
$ 64,000
576,000
$ 80,000
11,500 981,500
$410,000 $64o,000 $11,500 $1,061,500
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OUTSIDE
STORAGE
AREA
BUILDING AREA IJTIUZATION
Office 12242 sq. ft
Manufaciudng Bldg. 64,000 sq. R.
Galvanizing Bldg. 17,000 sq. ff.
TOTAL. 93,242 sq. ff.
September 3, 1991
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'Cfr,.
The Honorable Fred S. Vorsanger
Mayor, City of Fayetteville
113 West Mountain
Fayetteville, AR 72701
RE: Grant Control #EIF 8866 -K -D Tools, Inc.
Dear Mayor Vorsanger:
Enclosed is your copy ofthetexecuted•Grant"Agreementrfor the
above referenced projebt.' Please'place this agreement in
your files. r ,, , t t t.
If you have any questions, durng`the'lproject, please do not
hesitate to contact me • at 682=7697. -' `-
Sincerely,
David Nevala
Project Developer.
Enclosure
rec44ved
100-0-(-41 $4$4.
Arkansas Industrial Development Commission
One State Capitol Mall / Little Rock, Arkansas USA 72201
(501) 682-1121 / Telex: 215886 AIDC LRK
FAX (501) 682-7341
•
ADJUSTMENT #
BUDGET YEAR DEPT:514
1991 DIV :914
FROG:
CITY OF FAYETTEVILLE, ARKANSAS:
IN -YEAR. BUDGET ADJUSTMENT
DATE REQUESTED
8/6/91
PROJECT OR ITEM REQUESTED:
Contract services to perform improvements at KD Tools
and extension of Commerce Drive.
JUSTIFICATION OF THIS INCREASE
This adjustment is required to comply with the -re
provisions of the AIDC grant awarded for improvements
at KD Tools and extension of Commerce Drive.
PROJECTOR ITEM WIFDIKREDX ADJUSTED:
State Grant Revenue
INCREASE
ACCOUNT TITLE
State Grants
ACCOUNT NUMBER
514-914-5-315.00
AMOUNT
$410,000.00
INCREASE
ACCOUNT TITLE
State Grants
JUSTIFICATION OF THIS DECUREASEL ADJUSTMENT:
This adjustment is required to recognize the grant.
monies awarded from AIDC to be utilized for enhancements to
KD Tools and extension of Commerce Drive.
ACCOUNT NUMBER
514-914-4302.00
REQUESTED
BUDGET"COORDINATOR:
DATE
g -2-9f
i ° \TM CIS --0S-41
DEPAR T DIRECTOR:
ADMIN SERVICES DIR:
,vv,th,,,
CITY MANAGER:
AMOUNT
$410,000.00
BUDGET OFFICE USE ONLY
DATE OF APPROVAL
By
Entered
Posted
Date
Type: A B C D E
Total program adjustments to date: