BEMIDJI CITY COUNCIL CITY OF BEMIDJI

NOTICE OF REGULAR MEETING PURSUANT TO MINNESOTA STATUTES SECTIONS 13D.04 AND 13D.021

NOTICE OF REGULAR COUNCIL MEETING BY TELEPHONE OR OTHER ELECTRONIC MEANS

NOTICE IS HEREBY GIVEN that the City Council of the City of Bemidji will hold its Council Meeting on Monday, May 18, 2020 at 6:00 p.m. at Bemidji City Hall. In accordance with the requirements of Minn. Stat. Sections 13D.04 and 13D.021, Mayor Rita C. Albrecht, has determined that an in person meeting is not practical or prudent because of a health pandemic and Peace Time State of Emergency, declared under Chapter 12 of the Minnesota Statutes. Because of the health pandemic and Peace Time State of Emergency, it has been determined that attendance at the regular meeting location by members of the public is not feasible. Because of the health pandemic and Peace Time State of Emergency, it has been determined that the physical presence at the regular meeting location by at least one member of the body, chief legal counsel or chief administrative officer is not feasible. Therefore, some or all of the City Council members may be participating by telephone or other electronic means. To join by video conference, go to Cisco Webex website, click on join in the upper right corner and enter information below (access will open at 5:30 p.m.): Meeting number (access code): 624 518 236

Meeting password: Bemidji56601 (23643545 from phones & video systems) Click Join Meeting

To join by phone, dial: +1-408-418-9388. Follow the prompts and use the following access codes (access will open at 5:30 p.m.):

Meeting number (access code): 624 518 236 Meeting password: Bemidji56601 (23643545# from phone & video systems)

Bemidji—Regional Center Amenities with Small Town Character

BEMIDJI CITY COUNCIL AGENDA

Monday, May 18, 2020

Council Chambers City Hall – 317 4th Street NW 6:00 P.M.

ROLL CALL

PLEDGE OF ALLEGIANCE TO THE FLAG

AMENDMENTS TO AGENDA

MINUTES 1) Council Meeting: May 4, 2020

CONSENT AGENDA Items in the Consent Agenda are approved with one motion without discussion/debate. The Mayor will ask if any Council member wishes to remove an item. If no items are to be removed, the Mayor will then ask for a motion to approve the Consent Agenda.

2) Claims Submitted by Finance Officer in the amount of $576,693.50

3) Claims Submitted by VenuWorks for the Sanford Center in the amount of $12,230.26

4) Approve 2020 General Business License(s)

5) Declare Surplus Equipment – 1998 R-Way Semi Trailer

6) Approve Appointment to Public Arts Commission (Miller)

7) Resolution Approving Minnesota Gambling Premises Permit for Lawful Gambling to Bemidji

Youth Hockey Association Located at The Garden Grill and Pub

8) Waive Various City Permit Fees for Habitat for Humanity – 1719 2nd Street SE ($1,459.00)

CITIZENS WITH BUSINESS BEFORE THIS COUNCIL – NOT ON AGENDA Public Comment – Anyone seeking to address the council on an item not on the agenda, please provide your written

comments to the City Clerk by 3:00 p.m. on Monday, May 18. Comments can be submitted by email at

cityclerk@ci.bemidji.mn.us. Please give your name, address and state your concern/comment. COMMENTS WILL BE

TAKEN UNDER ADVISEMENT BY THE COUNCIL.

NEW BUSINESS 9) Consider Grant Contract Between State of MN and City of Bemidji (SCDP Grant) 10) Consider Contract for Services Between HRDC and City of Bemidji (SCDP Grant) UPCOMING MEETINGS

Monday, May 25 CLOSED MEMORIAL DAY HOLIDAY

Monday, June 1 6:00 p.m. Council Meeting

ADJOURN

CITY COUNCIL PROCEEDINGS BEMIDJI, MINNESOTA Regular Meeting – May 4, 2020

Pursuant to due call and notice, a regular meeting of the City Council of the City of Bemidji, Beltrami County, Minnesota, was held on Monday, May 4, 2020 at 6:00 p.m. in the Council Chambers of City Hall, Mayor Albrecht presiding via video and telephone conference. Upon roll call, the following Councilmembers were declared present: Albrecht, Meehlhause, Johnson, Rivera, Erickson. Absent: Thompson Staff Present: City Manager Nate Mathews, Finance Director Ron Eischens, City Attorney Alan

Felix, City Engineer Craig Gray, City Clerk Michelle Miller AMENDMENTS TO AGENDA Mayor Albrecht called for any amendments to the agenda. Motion by Johnson, seconded by Meehlhause, to approve the agenda as presented. Motion carried by unanimous vote. MINUTES The following minutes were presented for approval: Council Meeting: April 20, 2020 Board of Review: April 27, 2020

Work Session: April 27, 2020 Motion by Meehlhause, seconded by Johnson, to approve the minutes as presented. Motion carried by the following roll call vote: Yeas: Rivera, Erickson, Meehlhause, Albrecht, Johnson. Absent: Thompson CONSENT AGENDA Albrecht called for any items to be pulled from the consent agenda. Johnson requested that the bill list for the Sanford Center be pulled for further discussion. Erickson requested that the RLF loan request by Lake Bemidji Bed & Breakfast be pulled for a separate vote. The following Consent Agenda items were presented for approval. Motion by Johnson, seconded by Erickson, to approve the Consent Agenda items as follows:

1. Claims Submitted by Finance Officer in the amount of $465,238.55 2. RESOLUTION NO. 6296: Bemidji City Council to Not Waive the Monetary Limits on Tort

Liability Established by M.S. 466.04 and Appointing Insurance Agent of Record 3. Approve Purchase of Tanker Trailer for Wastewater Treatment Facility 4. Approve Emergency COVID-19 RLF Loan to Cherry Berry ($25,000)

Motion carried by the following roll call vote: Yeas: Erickson, Albrecht, Johnson, Rivera, Meehlhause. Absent: Thompson CITIZENS NOT ON AGENDA No appearance.

City Council Proceedings – May 4, 2020 Page 2 of 3

REPORTS COVID-19 update from Sanford Health - Sanford Health Representatives, Susan Jarvis, Dr. David Wilcox, Kelly Hagen and Kayla Winkler reported on the current situation in the area. They reported no community spread. They also reported no hospital related cases as well as no cases in congregate care facilities. Sanford Health Bemidji feels they are prepared for an influx of COVID-19 patients. They report an anticipated surge of cases to occur in the Bemidji area in late May, with cases peaking in August. Health officials now are concerned with patients delaying preventive care services. Focus is now turning to how to open and conduct business safely. Wearing of facial masks is being encouraged. Sanford officials are asking local elected officials to consider local enforcement rules if cases surge after reopening the state. NEW BUSINESS Summary of the City Manager’s Performance Review At the April 27, 2020 work session, the Council reviewed the performance of the City Manager and provided feedback on his performance and 2020 goals presented. Council discussed the challenges ahead with regard to the COVID-19 pandemic and response and the effects on the community as well as the critical water treatment needs facing the City. The council expressed their unanimous support for the city manager. Consider Award of Quote for 2020 Alley Paving Gray stated that the 2020 Capital Improvement Plan includes $30,000 for paving of various alleys within the City. Those funds are combined with storm water maintenance funds to pay for the project. The alleys are selected each year by the street superintendent. It is anticipated that all gravel alleys in the city will be paved by 2022. The alleys being proposed are generally located south of 1st Street East, east of Pershing Avenue SE and west of Lake Avenue SE in the Nymore area. Additional alleys located west of Irvine Avenue SW and east of Park Avenue SW are also indicated. The following quotes were received: Bemidji Bituminous, Inc. $70,000.00 Northern Paving, Inc. $72,000.00 In order to significantly lessen the project costs, all of the removals and grading work for these areas will be done by city crews with city equipment prior to having the contractor do the bituminous paving. Funding will consist of $30,000 (CIP) and $40,000 from storm water maintenance. Motion by Erickson, seconded by Meehlhause, awarding the alley paving quote to Bemidji Bituminous, Inc., in the amount of $70,000. Motion carried by the following roll call vote: Yeas: Meehlhause, Johnson, Rivera, Erickson, Albrecht. Absent: Thompson. Claims Submitted by VenuWorks for the Sanford Center in the amount of $23,289.85

Johnson questioned the need to pay a management fee as well as the food and beverage commission listed on the bill list. Vickaryous-Hubbard stated that the food and beverage commission was for March events held before the shut-down took effect. With regards to the management fee, Johnson suggests asking if VenuWorks would be willing to consider eliminating or reducing the monthly management fee paid from the City while the building is closed. Albrecht suggested discussing with VenuWorks what service they are providing us and what their staff is doing. Mathews will follow up with Vickaryous-Hubbard and executives with VenuWorks.

City Council Proceedings – May 4, 2020 Page 3 of 3

Motion by Meehlhause, seconded by Rivera, approving the claims submitted by VenuWorks for the Sanford Center in the Amount of $23,289.85. Motion carried with the following vote: Yeas: Albrecht, Erickson, Meehlhause, Rivera. Nays: Johnson. Absent: Thompson. Emergency COVID-19 RLF Loan to Lake Bemidji Bed & Breakfast

Erickson stated that she reviewed two loan requests as a part of the Revolving Loan Review Committee for Emergency COVID-19 relief in the amount of $25,000. She supported one of them, but could not support the request from Lake Bemidji Bed & Breakfast due to the risk of repayment of the loan. Motion by Meehlhause, seconded by Johnson, approving the Emergency COVID-19 RLF Loan to Lake Bemidji Bed & Breakfast in the amount of $25,000. Motion carried by the following roll call vote: Yeas: Johnson, Rivera, Albrecht, Meehlhause. Nayes: Erickson. Absent: Thompson. UPCOMING COUNCIL MEETINGS

Monday, May 18 6:00 p.m. Council Meeting

Monday, May 25 CLOSED MEMORIAL DAY HOLIDAY

Tuesday, May 26 5:30 p.m. Work Session (2021 Budget FMP)

ADJOURN There being no further business, motion by Meehlhause, seconded by Rivera, to adjourn the meeting. Motion carried. Meeting adjourned at 7:39 p.m. Respectfully submitted,

Michelle R. Miller City Clerk

Check /Wire Vendor Amount

29814 Polar Tank Trailer $2,800.00

29815 Verizon $140.04

29819 - 29903 See Attached List 573,753.46

$576,693.50

TOTAL $576,693.50

Bill List Summary

May 18th, 2020

User:

Printed: 05/13/2020 - 9:13AM

denisea

Blanket Voucher Approval Document

Accounts Payable

Warrant Request Date:

DAC Fund:

5/19/2020

Batch: 00419.05.2020

COUNCIL BILL LIST

Line Claimant Voucher No. Amount

1 A Stitch in TIme 000029819 80.00

2 Absolute Fire Protection 000029820 3,625.00

3 ALDI 000029821 6,719.00

4 Alerus Retirement and Benefits 000000000 70.00

5 American Planning Assoc 000029822 95.00

6 Ameripride 000000000 623.63

7 Artisan Beer Company 000029823 1,381.50

8 Banta,Bruce 000029824 120.01

9 Battery Wholesale Inc-Bemidji 000029825 137.44

10 Beltrami County Auditor/Treasurer 000029826 250.00

11 Beltrami County Dare Advisory 000029827 374.86

12 Beltrami County Recorder 000029828 138.00

13 Beltrami Electric Coop 000029829 923.95

14 Bemidji Coca-Cola Bottling Co, Inc 000029830 777.38

15 Bemidji Coop Ass'n, Inc. 000029831 417.83

16 Bemidji Paper Sales, Inc. 000000000 1,709.40

17 Bemidji Regional Airport 000029832 1,500.00

18 Bernick's 000000000 40,600.27

19 Beverage Wholesalers 000029833 490.80

20 Blue Ox Marathon 000029834 150.00

21 Bluefin Payment Systems 000000000 1,957.83

22 Breakthru Beverage Minnesota Wine & Spirits, LLC 000029835 16,525.49

23 C & J Entertainment LLC 000029836 1,896.75

24 City of Bemidji 000000000 85,667.50

25 CNA Surety 000029837 100.00

26 Commercial Refrigeration, Inc. 000029838 350.00

27 Core & Main 000029839 433.12

28 Crazy About Cleaning 000000000 1,250.00

29 Crysteel Truck Equip., Inc 000029840 1,913.68

30 Culligan 000029841 40.25

31 D & D Beverage, LLC 000000000 2,687.14

32 Dakota Supply Group, Inc. 000000000 419.26

33 Diamond Mowers LLC 000029842 17,040.00

34 D-S Beverages 000029843 43,897.26

35 Earl F. Andersen, Inc. 000029844 3,872.89

36 Electric Pump, Inc 000000000 4,200.00

37 ESC Systems 000029845 294.00

38 Flaherty & Hood, P. A. 000029846 12,500.00

39 Forum Communications Company 000000000 797.34

40 Further - City of Bemidji 000000000 277.30

41 Gaasvig,Karen 000029847 225.00

42 Gopher State One-Call 000000000 168.55

43 Grafix Shoppe 000029848 1,668.58

44 Hesch Construction, LLC 000029849 4,691.74

$263,057.75Page Total:

AP-Blanket Voucher Approval Document (05/13/2020 - 9:13 AM) Page 1

Line Claimant Voucher No. Amount

45 Hess,Chris 000029850 200.00

46 Hietala,Julie 000029851 224.98

47 HR Green, Inc. 000029852 990.00

48 Ink Spot Press 000029853 218.52

49 Innovative Office Solutions, LLC 000029854 7.36

50 Ironhide Equipment, Inc. 000000000 204.46

51 J.D. Hansen & Sons, Inc. 000029855 11,690.00

52 Jim Hirt Trucking, Inc 000029856 1,708.92

53 Johnson Bros., Inc. 000029857 34,740.83

54 Karvakko, P.A. 000000000 1,288.00

55 Kennedy & Graven Charter 000029858 2,449.50

56 L & M Supply, Inc. 000029859 319.93

57 Larry's Machine Shop 000029860 1,434.36

58 Laurie's Blinds and Design 000029861 3,408.00

59 Lawson Products, Inc. 000029862 363.05

60 League of MN Insurance Trust 000029863 1,283.87

61 Locators & Supplies, Inc. 000000000 490.45

62 Lynn Lembcke Consulting 000029864 1,500.00

63 Macqueen Equipment, Inc. 000000000 7,507.45

64 Marco, Inc. 000000000 425.98

65 McKinnon Co., Inc. 000029866 23,028.77

66 Mckinnon,Brian 000029865 300.00

67 McMaster-Carr Supply Co. 000000000 76.37

68 Menards-Bemidji 000000000 428.78

69 MJs All Seasons 000029867 450.00

70 MN Rural Water Assn 000029868 300.00

71 MN Valley Testing Lab, Inc. 000000000 109.00

72 MoeCo Fire & Safety 000029869 60.70

73 NAPA Auto Parts 000000000 1,148.49

74 Naylor Heating & Refrigeration, LLC 000000000 263.88

75 Nei Bottling, Inc. 000029870 279.34

76 Neopost-ACH 000000000 50.00

77 Northwoods Ice, Inc. 000029871 388.20

78 NW Tire, Incorporated 000029872 555.40

79 Ojanen,James 000029873 386.60

80 Otter Tail Power Company 000029874 11.40

81 Paul Bunyan Communications 000029875 2,751.84

82 Paustis & Sons 000029876 1,689.40

83 Phillips Wine & Spirits 000029877 29,995.70

84 Portable Welding 000029878 200.00

85 Port-O-Wild Security, Inc. 000000000 1,211.25

86 Postmaster 000029879 1,675.32

87 Priority Payment Systems 000000000 65.87

88 Quadient Leasing 000029880 179.22

89 Rehn Code Consulting Services. LLC 000029881 3,670.00

90 RMB Environmental Laboratories, Inc. 000029882 442.00

91 Roger's Two Way Radio, Inc. 000029883 1,713.73

92 Sadeks Repair & Welding, Inc. 000029884 513.21

93 SafetyFirst Playground Maintenance 000029885 2,891.00

94 Sanford Health Occupational Med. 000029886 830.00

95 Snap-on Industrial 000029887 180.36

96 Snopl,Shon 000000000 10.72

97 Southern Glazer's of MN 000029888 35,557.34

98 Southside Tow & Rec, Inc 000029889 2,021.64

99 Sparky's Construction, Inc. 000029890 56,780.07

100 Springbrook Software LLC 000000000 14,943.00

101 Staples Advantage 000029891 482.56

$256,096.82Page Total:

AP-Blanket Voucher Approval Document (05/13/2020 - 9:13 AM) Page 2

Line Claimant Voucher No. Amount

102 Superior Outdoors LLC 000029892 1,594.33

103 T & K Outdoors, Inc. 000029893 113.19

104 TC Lighting Supplies & Recycling, Inc 000029894 74.06

105 TDS Metrocom-MN 000000000 1,042.70

106 Thomson Reuters-West 000029895 293.05

107 True Brands 000029896 102.60

108 Turn,Scott 000029897 225.00

109 UPS Store 000029898 11.17

110 US Bank Merchant Billing 000000000 8,700.13

111 USA Bluebook 000029899 350.01

112 Valvoline Instant Oil Change 000029900 36.78

113 Vinocopia, Inc. 000000000 1,907.69

114 Waste Management of WI-MN 000029901 10,721.33

115 Wells Fargo-ACH 000000000 26,618.85

116 Wine Merchants 000029902 1,896.00

117 Winebow 000029903 912.00

$54,598.89Page Total:

Grand Total: $573,753.46

$54,598.89Page Total:

AP-Blanket Voucher Approval Document (05/13/2020 - 9:13 AM) Page 3

Reference Invoice Amount

8.00

Cooler Rental 8.00

161.27

Monthly Cylinder Rental 161.27

377.30

Ruby's Pantry Bags 108.71

Ruby's Pantry Bags 268.59

361.72

Postage Meter Lease 361.72

-177.31

Reimburse Credit Card Fees* 147.69

IAVM Super Regional Refund -325.00

246.38

Trash Services 246.38

11,252.90

BridgePay Credit Card Fees 19.95

NovaTime Timeclock 69.40

Paul Bunyan Communications Telephone/Internet 2,765.82

OtterTail Power Company Electricity 8,397.73

12,230.26

*Credit Card Charges

Administration 147.69

Total 147.69

Reviewed by Sanford Center Finance Subcommittee on 5/13/20

Sanford Center Unpaid Bills Detail

Bemidji Coca-Cola Company

Bemidji Welders Supply, Inc.

Manual Checks & Debits

Quadient Leasing USA, Inc.

Network Services Company

VenuWorks, Inc.

Waste Management of WI-MN

Total

GENERAL BUSINESS LICENSES - 2020

Type of License Business Name Business Location Fee Paid

Cigarette/Tobacco ProductsMONFORT EXPRESS #7804 2211 PAUL BUNYAN DR NW $85.00

Gas Station (per pump)MONFORT EXPRESS #7804 2211 PAUL BUNYAN DR NW $100.00

4 single pumps

Tree ServiceWOODCHUCK'S TREE SERVICE & LOGGI WITHIN BEMIDJI CITY LIMITS $65.00

Tuesday, May 12, 2020 Page 1 of 1

COUNCIL AGENDA ITEM

Meeting Date: May 18, 2020 Action Requested: Appointment to Public Arts Commission Prepared By: Michelle R. Miller, City Clerk Reviewed By: Nate Mathews, City Manager

Kristi Miller, 239 Amos Way NW, has applied to the vacancy on the Public Arts Commission. The members of the Public Arts Commission have no objection to this appointment.

Recommendation: Appoint Kristi Miller to the Public Arts Commission (term ends 1/31/2022).

RESOLUTION NO.

APPROVING MINNESOTA GAMBLING PREMISES PERMIT

FOR LAWFUL GAMBLING TO BEMIDJI YOUTH HOCKEY

ASSOCIATION LOCATED AT THE GARDEN GRILL AND PUB

WHEREAS, Bemidji Youth Hockey Association, has submitted an application to the City of Bemidji requesting approval of a Minnesota Gambling Premises Permit application located at The Garden Grill and Pub, 111 Central Avenue SE, Bemidji; and

WHEREAS, it has been demonstrated that the organization is collecting gambling monies for lawful purposes; and

WHEREAS, the City Council has expressed no opposition which would prohibit such activity at the premises noted above.

NOW THEREFORE, BE IT RESOLVED, that the City of Bemidji approves the Gambling Premises Permit application for Bemidji Youth Hockey Association, located at The Garden Grill and Pub, 111 Central Avenue SE. The City Clerk is hereby authorized to sign and attach a copy of this resolution to the application to be submitted to the Gambling Control Board. The foregoing resolution was offered by Councilmember who moved its adoption, and on due second by Councilmember was passed by the following vote: Ayes: Nays: Absent: Passed: ATTEST: APPROVED: Michelle R. Miller, City Clerk Rita C. Albrecht, Mayor

City Manager’s Office

TO: Honorable Mayor Albrecht and City Council

FROM: Nate Mathews, City Manager

DATE: May 13, 2020

RE: Consider Small Cities Grant Program Contract with State of MN

Consider Contract for Services with Headwaters Regional Development Commission

The City of Bemidji has been working since last summer with the HRDC on a Small Cities

Development Program (SCDP) application. We are pleased to report that our application was

successful and Bemidji was awarded a $388,125.00 by the MN Department of Employment and

Economic Development. A copy of the award memo and contract with the State is attached.

Bemidji’s successful application will be used for the rehabilitation of single family owner-

occupied housing in an area just west of downtown. As you recall last year we contacted the

residents in this area to gauge interest and held outreach meetings and also a public hearing in

February.

The City had a contract with the HRDC to assist with our planning and grant application. I

recommend now to enter into a contract with the HRDC for the implementation and management

of the grant, including environmental review. The scope of work is spelled out in the work plan

attached to the contract. The cost of the services will not exceed $50,625 and the funds will be

paid through the grant. Together with the HRDC over the years, we have collaborated well

together and successfully completed many SCDP grant programs.

Recommendation

Approve SCDP Grant Contract No. CDAP-19-0045-O-FY20 with the State of Minnesota

Department of Employment and Economic Development

Approve SCDP contract for services with Headwaters Regional Development

Commission

City of Bemidji City Manager

Minnesota Department of Employment and Economic Development Business & Community Development Division

1st National Bank Building, 332 Minnesota Street, Suite E200, Saint Paul, Minnesota 55101-1351

Phone 651-259-7114 or 800-657-3858

mn.gov/deed

May 11, 2020

The Honorable Rita Albrect Mayor, City of Bemidji 1911 Norton Ave NW Bemidji, MN 56601

Dear Mayor Albrect:

I am pleased to inform you that your application for a 2020 Minnesota Small Cities Development Program Grant (SCDP) has been approved for funding in the amount of $388,125.00 from the Department of Housing and Urban Development (HUD). Grant Agreements will be issued once DEED receives its award from HUD.

DEED staff will provide implementation training in mid June. It is very important that those responsible for the grant administration and reporting attend this training session.

Matti Gurney is the DEED representative assigned to your grant. For additional information, please contact Matti at Matti.Gurney@state.mn.us or (651) 259-7455.

Congratulations on this grant award to help enhance your community development efforts.

Regards,

Steve Grove

Commissioner

cc: State Senator Justin D. Eichorn

State Representative John Persell

Levi Haar, Lending and Accounting Specialist, Headwaters Regional Development Commission

1

STATE OF MINNESOTA DUNS NO. 804832640

GRANT CONTRACT NO. CDAP-19-0045-O-FY20

This grant contract is between the State of Minnesota, acting through the Department of Employment and Economic Development, Business and Community Development Division, (STATE) and the City of Bemidji, 317 4th ST NW, Bemidji, MN 56601, Federal Tax ID # 41-6004972 ("GRANTEE").

Recitals

1. Under Minn. Stat. 116J.401 the State is empowered to enter into this grant.

2. The State is in need of units of local government to administer projects in accordance with the Small CitiesDevelopment Program (SCDP), Minnesota Rules chapter 4300.

3. The funds are intended to provide grant funds for eligible SCDP activities.

4. The Grantee represents that it is duly qualified and agrees to perform all activities and duties described in this grantcontract to the satisfaction of the State.

Grant Contract 1 Terms of Grant Contract

1.1 Effective date: May 11, 2020, or the date the State obtains all required signatures under Minn. Stat.§16B.98, Subd. 5, whichever is later. Per Minn. Stat.§16B.98, Subd. 7, no payments will be made to the Grantee until this grant contract is fully executed. Per 24 CFR 570.489 the Grantee may receive reimbursement for approved expenses that occurred prior to the execution of this grant contract.

1.2 Expiration date: September 30, 2023, or until all obligations have been satisfactorily fulfilled, whichever occurs first.

1.3 Survival of Terms. The following clauses survive the expiration or cancellation of this grant contract: 8. Liability; 9. Audits; 10. Government Data Practices and Intellectual Property; 12. Publicity and Endorsement; 13. GoverningLaw, Jurisdiction, and Venue; 15. Data Disclosure; 18. Assessments; and 30. Program Income.

2 Grantee’s Duties 2.1 Duties, Deliverables, and Completion Dates. The Grantee, who is not a state employee, will: Comply with

required grants management policies and procedures set forth.

The Grantee has made application to the State for the purpose of administering a SCDP project in the manner described in Grantee’s “APPLICATION,” which is incorporated into this agreement by reference.

The Grantee, who is not a state employee, is awarded funds to provide financial assistance to address the need for decent, safe, affordable housing, economic development and public facility needs, and provide a suitable living environment by expanding economic opportunities, principally benefiting low to moderate income households. The activities may include: Housing Rehabilitation – (This includes owner-occupied and single family, duplex and multi-family rental units), Commercial Rehabilitation, and Public Facility Improvements: (i.e., construction or improvements to water and wastewater systems, etc.)

Specific grantee activity will be detailed and set forth in Clause 4.1(a)

2.2 Provisions for Contracts and Sub-grants. (a) Contract Provisions. The Grantee must include in any contract and sub-grant, in addition to provisions that

2

define a sound and complete agreement, such provisions that require contractors and sub-grantees to comply with applicable state and federal laws. Along with such provisions, the Grantee must require that contractors performing work covered by this grant be in compliance with all applicable.

(b) Ineligible Use of Grant Funds. (Not applicable to SCDP) The dollars awarded under this grant agreementare grant funds and shall only be used by Grantee or awarded by Grantee to third parties as grant funds and cannottake the form of a loan under any circumstance. Grantee shall not use, treat, or convert the grant funds into aninterest bearing loan, a non-interest bearing loan, a deferred loan, a forgivable deferred loan or any other type ofloan. Further, Grantee shall include in any contract or sub-grant awarding the grant funds to a third party all theprovisions and requirements of this grant agreement, including the requirement that these dollars are grant fundsonly and cannot be used, treated or converted into any type of loan.

(c) Job Listing Agreements. Minn. Stat. § 116L.66, subd.1, requires a business or private enterprise to list anyvacant or new positions with the state workforce center if it receives $200,000 or more a year in grants from theState. If applicable, the business or private enterprise shall list any job vacancy in its personnel complement withMinnesotaWorks.net at www.minnesotaworks.net as soon as it occurs.

(d) Payment of Contractors and Subcontractors. The Grantee must ensure that all contractors andsubcontractors performing work covered by this grant are paid for their work that is satisfactorily completed.

3 Time The grantee must comply with all of the time requirements described in this grant contract. In the performance of this grant, time is of the essence.

4 Compensation and Payment 4.1 Consideration. The State will pay for all services performed by the Grantee under this grant contract as follows:

(a) Compensation

Fed. Obj.

Activity Code Activity Title

Unit Goal

Number of households

/persons served

Number of LMI

households/persons served

SCDP Funds

Other Funds Total

LMH 14A Res. Owner Rehab.

15 15 15 $337,500.00 $112,500.00 $450,000.00

21A Administration $50,625.00 $50,625.00 Totals $388,125.00 $112,500.00 $500,625.00

(b) Travel Expense (does not apply to SCDP)Reimbursement for travel and subsistence expenses actually and necessarily incurred by the Grantee as a result ofthis grant contract will not exceed $0.00; provided that the Grantee will be reimbursed for travel and subsistenceexpenses in the same manner and in no greater amount than provided in the current "Commissioner’s Plan”promulgated by the Commissioner of Minnesota Management and Budget (MMB). The Grantee will not bereimbursed for travel and subsistence expenses incurred outside Minnesota unless it has received the State’s priorwritten approval for out of state travel. Minnesota will be considered the home state for determining whethertravel is out of state.

(c) Total Obligation. The total obligation of the State for all compensation and reimbursements to the Granteeunder this grant contract will not exceed $388,125.00.

3

(i) Pre-award Costs. Grantee may incur administrative costs prior to the fully executed grant agreement.This would include work on the environmental clearance, producing rehabilitation policies andprocedures, and costs associated with attending SCDP implementation training

(ii) Eligible Costs. Eligible costs include the costs identified in the Section 4(a) of this Contract that areincurred during the contract period and are also eligible for the CDBG program.

4.2 Payment (a) Invoices. The State will promptly pay the Grantee after the Grantee presents an itemized invoice for theservices actually performed, and the State's Authorized Representative accepts the invoiced services. Invoicesmust be submitted timely and according to the following schedule:

Payment requests will be processed on a bi-weekly calendar basis with the calendar being provided by the State. The total amount of grant funds requested must be two thousand dollars ($2,000) or more in each payment request. The final payment request, and payment requests made in the two week periods prior to June 30 and September 30 of each year, may be under $2,000.

The State has authority to withhold payment of administrative funds if adequate progress on contractual goals is not being met.

(b) Federal Funds. Payments under this grant contract will be made from federal funds obtained by the Statethrough CFDA number 14.228, Title 1 of the Housing and Urban Development Act of 1974. Federal Awardnumber B-20-DC-27-0001. The Grantee is responsible for compliance with all federal requirements imposed onthese funds and accepts full financial responsibility for any requirements imposed by the Grantee’s failure tocomply with federal requirements.

Funds made available pursuant to this agreement shall be used only for expenses incurred in performing and accomplishing such purposes and activities during the grant period described above. Notwithstanding all other provisions of this agreement, it is understood that any reduction or termination of Housing and Urban Development funds provided to the State may result in a reduction to the Grantee.

Where provisions of the Grantee's Application are inconsistent with other provisions of this agreement, the other provisions of this agreement shall take precedence over the provisions of the Application.

(c) Unexpended Funds. The Grantee must promptly return to the State any unexpended funds that have not beenaccounted for annually in a financial report to the State due at grant closeout.

4.3 Contracting and Bidding Requirements. Per Minn. Stat.§471.345, grantees that are municipalities as defined in Subd. 1 must do the following if contracting funds from this grant contract agreement for any supplies, materials, equipment or the rental thereof, or the construction, alteration, repair or maintenance of real or personal property.

(a) If the amount of the contract is estimated to exceed $100,000, a formal notice and bidding process must beconducted in which sealed bids shall be solicited by public notice. Municipalities may, as a best value alternative,award a contract for construction, alteration, repair, or maintenance work to the vendor or contractor offering thebest value under a request for proposals as described in Minn. Stat.§16C.28, Subd. 1, paragraph (a), clause (2)

(b) If the amount of the contract is estimated to exceed $25,000 but not $100,000, the contract may be madeeither upon sealed bids or by direct negotiation, by obtaining two or more quotations for the purchase or salewhen possible, and without advertising for bids or otherwise complying with the requirements of competitivebidding. All quotations obtained shall be kept on file for a period of at least one year after receipt thereof.Municipalities may, as a best value alternative, award a contract for construction, alteration, repair, ormaintenance work to the vendor or contractor offering the best value under a request for proposals as described inMinn. Stat.§16C.28, Subd. 1, paragraph (a), clause (2) and paragraph (c).

(c) If the amount of the contract is estimated to be $25,000 or less, the contract may be made either upon

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quotation or in the open market, in the discretion of the governing body. If the contract is made upon quotation it shall be based, so far as practicable, on at least two quotations which shall be kept on file for a period of at least one year after their receipt. Alternatively, municipalities may award a contract for construction, alteration, repair, or maintenance work to the vendor or contractor offering the best value under a request for proposals as described in Minn. Stat.§16C.28, Subd. 1, paragraph (a), clause (2)

(d) Support documentation of the bidding process utilized to contract services must be included in the grantee’s financial records, including support documentation justifying a single/sole source bid, if applicable.

(e) For projects that include construction work of $25,000 or more, prevailing wage rules apply per; Minn. Stat. §§177.41 through 177.44 consequently, the bid request must state the project is subject to prevailing wage. These rules require that the wages of laborers and workers should be comparable to wages paid for similar work in the community as a whole. A prevailing wage form should accompany these bid submittals.

5 Conditions of Payment

All services provided by the Grantee under this grant contract must be performed to the State’s satisfaction, as determined at the sole discretion of the State’s Authorized Representative and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Grantee will not receive payment for work found by the State to be unsatisfactory or performed in violation of federal, state, or local law.

6 Authorized Representative The State's Authorized Representative is Matti Gurney, Grants Specialist, 1st National Bank Building, Suite E200, 332

Minnesota Street, St. Paul, MN 55101-1351, (651) 259-7455, Matti.Gurney@state.mn.us, or his/her successor, and has the responsibility to monitor the Grantee’s performance and the authority to accept the services provided under this grant contract. If the services are satisfactory, the State’s Authorized Representative will certify acceptance on each invoice submitted for payment.

The Grantee’s Authorized Representative is The Honorable Rita Albrect, Mayor of City of Bemidji,1911 Norton Ave NW, Bemidji, MN 56601, (218) 751-0197, rita.albrecht@ci.bemidji.mn.us, or his/her successor. If the Grantee’s Authorized Representative changes at any time during this grant contract, the Grantee must immediately notify the State.

7 Assignment, Amendments, Waiver, and Grant Contract Complete 7.1 Assignment. The Grantee shall neither assign nor transfer any rights or obligations under this grant contract

without the prior written consent of the State, approved by the same parties who executed and approved this grant contract, or their successors in office.

7.2 Amendments. Any amendments to this grant contract must be in writing and will not be effective until it has been

executed and approved by the same parties who executed and approved the original grant contact, or their successors in office.

7.3 Waiver. If the State fails to enforce any provision of this grant contract, that failure does not waive the provision

or the State’s right to enforce it.

7.4 Grant Contract Complete. This grant contract contains all negotiations and agreements between the State and the Grantee. No other understanding regarding this grant contract, whether written or oral, may be used to bind either party.

8 Liability The Grantee must indemnify, save, and hold the State, its agents, and employees harmless from any claims or causes

of action, including attorney’s fees incurred by the State, arising from the performance of this grant contract by the Grantee or the Grantee’s agents or employees. This clause will not be construed to bar any legal remedies the Grantee may have for the State's failure to fulfill its obligations under this grant contract.

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9 State Audits

Under Minn. Stat. § 16B.98, Subd.8, the Grantee’s books, records, documents, and accounting procedures and practices of the Grantee or other party relevant to this grant agreement or transaction are subject to examination by the State and/or the State Auditor or Legislative Auditor, and the General Accounting Office of the U.S. Department of Housing and Urban Development as appropriate, for a minimum of six years from the end of this grant agreement, receipt and approval of all final reports, or the required period of time to satisfy all state and program retention requirements, whichever is later.

Accounting methods must be in accordance with generally accepted accounting principles. The Grantee shall comply with the requirements of the Single Audit Act Amendments of 1996 (P.L. 104-156). When

a Grantee expends over $750,000 in federal funds during their fiscal year, an A-133 audit is required to be submitted for that year.

10 Government Data Practices and Intellectual Property

10.1 Government Data Practices. The Grantee and State must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by the State under this grant contract, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Grantee under this grant contract. The civil remedies of Minn. Stat. §13.08 apply to the release of the data referred to in this clause by either the Grantee or the State. If the Grantee receives a request to release the data referred to in this Clause, the Grantee must immediately notify the State. The State will give the Grantee instructions concerning the release of the data to the requesting party before the data is released. The Grantee’s response to the request shall comply with applicable law.

10.2 Intellectual Property Rights.

a) The STATE owns all rights, title, and interest in all of the intellectual property rights, including copyrights, patents, trade secrets, trademarks, and service marks in the works and documents created and paid for under this Contract. The “works” means all inventions, improvements, discoveries (whether or not patentable), databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes, and disks conceived, reduced to practice, created or originated by the GRANTEE, its employees, agents, and subcontractors, either individually or jointly with others in the performance of this Contract. “Works” includes documents. The “documents” are the originals of any databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes, disks, or other materials, whether in tangible or electronic forms, prepared by the GRANTEE, its employees, agents, or subcontractors, in the performance of this Contract. The documents will be the exclusive property of the STATE and all such documents must be immediately returned to the STATE by the GRANTEE upon completion or cancellation of this Contract. To the extent possible, those works eligible for copyright protection under the United STATEs Copyright Act will be deemed to be “works made for hire.” The GRANTEE assigns all right, title, and interest it may have in the works and the documents to the STATE. The GRANTEE must, at the request of the STATE, execute all papers and perform all other acts necessary to transfer or record the STATE’s ownership interest in the works and documents.

b) Whenever any invention, improvement, or discovery (whether or not patentable) is made or conceived for the first time or actually or constructively reduced to practice by the GRANTEE including its employees and subcontractors, in the performance of this Contract, the GRANTEE will immediately give the STATE’s Authorized Representative written notice thereof, and must promptly furnish the STATE’s Authorized Representative with complete information and/or disclosure thereon.

c) The GRANTEE must perform all acts, and take all steps necessary to ensure that all intellectual property rights in the works and documents are the sole property of the STATE, and that neither GRANTEE nor its employees, agents, or subcontractors retain any interest in and to the works and documents. The GRANTEE represents and warrants that the works and documents do not and will not infringe upon any intellectual property rights of other persons or entities. Notwithstanding Clause 8, the GRANTEE will indemnify; defend, to the extent permitted by the Attorney General; and hold harmless the STATE, at the GRANTEE’s expense, from any action or claim brought against the STATE to the extent that it is based on a claim that all or part of the works or documents infringe upon the intellectual property rights of others. The GRANTEE will be responsible for payment of any and all such claims, demands, obligations, liabilities, costs, and damages, including but not limited to, attorney fees. If such a claim or

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action arises, or in the GRANTEE’s or the STATE’s opinion is likely to arise, the GRANTEE must, at the STATE’s discretion, either procure for the STATE the right or license to use the intellectual property rights at issue or replace or modify the allegedly infringing works or documents as necessary and appropriate to obviate the infringement claim. This remedy of the STATE will be in addition to and not exclusive of other remedies provided by law.

11 Workers’ Compensation The Grantee certifies that it is in compliance with Minn. Stat. §176.181, Subd. 2, pertaining to workers’ compensation insurance coverage. The Grantee’s employees and agents will not be considered State employees. Any claims that may arise under the Minnesota Workers’ Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the State’s obligation or responsibility.

12 Publicity and Endorsement 12.1 Publicity. Any publicity regarding the subject matter of this grant contract must identify the State as the sponsoring agency and must not be released without prior written approval from the State’s Authorized Representative. For purposes of this provision, publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Grantee individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this grant contract. All projects primarily funded by state grant appropriation must publicly credit the State of Minnesota, including on the grantee’s website when practicable.

12.2 Endorsement. The Grantee must not claim that the State endorses its products or services.

13 Governing Law, Jurisdiction, and Venue Minnesota law, without regard to its choice-of-law provisions, governs this grant contract. Venue for all legal proceedings out of this grant contract, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota.

14 Termination 14.1 Termination by the State. The State may immediately terminate this grant contract with or without cause, upon 30 days’ written notice to the Grantee. Upon termination, the Grantee will be entitled to payment, determined on a pro rata basis, for activities satisfactorily performed.

14.2 Termination for Cause. The State may immediately terminate this grant contract if the State finds that there has been a failure to comply with the provisions of this grant contract, that reasonable progress has not been made or that the purposes for which the funds were granted have not been or will not be fulfilled. The State may take action to protect the interests of the State of Minnesota, including the refusal to disburse additional funds and requiring the return of all or part of the funds already disbursed.

14.3 Termination for Insufficient Funding. The State may immediately terminate this grant contract if:

(a) Funding for Grant No. CDAP-19-0045-O-FY20 is withdrawn by Department of Employment andEconomic Development.

(b) It does not obtain funding from the Minnesota Legislature [State Grant Funds Only](c) Or, if funding cannot be continued at a level sufficient to allow for the payment of the services covered

here. Termination must be by written or fax notice to the Grantee. The State is not obligated to pay for anyservices that are provided after notice and effective date of termination. However, the Grantee will beentitled to payment, determined on a pro rata basis, for services satisfactorily performed to the extent thatfunds are available. The State will not be assessed any penalty if the contract is terminated because of thedecision of the Minnesota Legislature, or other funding source, not to appropriate funds. The State mustprovide the Grantee notice of the lack of funding within a reasonable time of the State’s receiving thatnotice.

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14.4 In the event of cancellation. In the event of any cancellation under this provision, the GRANTEE shall cooperate fully with the STATE and help facilitate any transition for the provision of services by a different vendor. Failure to cooperate with or withholding any information or records requested by the STATE or a different vendor that impairs in any way the transition of the provision of services shall constitute a material breach of this grant contract, subjecting GRANTEE to liability for all damages incurred by the STATE resulting from such breach.

15 Data Disclosure Under Minn. Stat. § 270C.65, Subd. 3, and other applicable law, the Grantee consents to disclosure of its social security number, federal employer tax identification number, and/or Minnesota tax identification number, already provided to the State, to federal and state tax agencies and state personnel involved in the payment of state obligations. These identification numbers may be used in the enforcement of federal and state tax laws which could result in action requiring the Grantee to file state tax returns and pay delinquent state tax liabilities, if any.

16 Conflicts of Interest-Application Submittal The State will take steps to prevent individual and organizational conflicts of interest in reference to Grantees per Minn.Stat.§16B.98 and Department of Administration, Office of Grants Management, Policy Number 08-01 Conflict of Interest Policy for State Grant-Making. When a conflict of interest concerning State grant-making is suspected, disclosed, or discovered, transparency shall be the guiding principle in addressing it.

In cases where a perceived, potential, or actual individual or organizational conflict of interest is suspected, disclosed, or discovered by the GRANTEE throughout the life of the grant agreement, they must immediately notify the STATE for appropriate action steps to be taken, as defined above.

The GRANTEE must complete a Conflict of Interest Disclosure agreement and attach it to their proposal.

17 Uniform Relocation Assistance and Real Property Acquisition Policies Act Permanent easements of land required for any public facilities improvement made using SCDP funds, or in conjunction with SCDP activities, must be acquired in conformance with the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (49 CFR 24). Budget modification, if necessary to achieve compliance, must be approved in writing by the State.

Unless otherwise approved in writing by State, use of SCDP funds to purchase real property is limited to the value established by appraisal(s) conducted in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. Reuse of real property that is acquired with SCDP funds must be approved by the State.

18 Assessments Grantee will not assess the SCDP funds share of any public facilities project.

19 Debarment and Suspension Certification (If applicable) The Grantee agrees to follow the President's Executive Order 12549 and the implementing regulation "Non-procurement Debarment and Suspension: Notice and Final Rule and Interim Final Rule," found at 53 FR 19189, May 26, 1988, as amended at 60 FR 33041, June 26, 1995, including Appendix B, "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transactions;" unless excluded by law or regulation. Evidence that contractors are not debarred will be maintained over the life of the grant.

Eligible Contractors: All Grantees are required to verify that all contractors, subcontractors and sub-recipients are not listed on the Federal publication that lists debarred, suspended and ineligible contractors. Evidence of this determination must be readily available to the State throughout the life of the project.

20 Conflict of Interest Screening The Grantee must comply with the Conflict of Interest provisions of Minn. Stat. § 471.87 – 471.88 and Subpart K of 24 CFR, Part 570.611 of the Code of Federal Regulations. Grantee will screen for conflicts of interest in any activity

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that involves individual assistance and exceptions for participation for individual assistance must be approved by DEED.

21 Federal Environmental Standards Unless the State indicates otherwise and prior to release of funds, the Grantee is required to conduct an environmental review on project activities to comply with the National Environmental Policy Act of 1969 (NEPA), as amended. Disbursement of funds from the State will not occur until State has issued an environmental clearance to the Grantee.

Grantee must maintain environmental review documentation and records and make them available to the public.

22 Drug-free Workplace/Drug-Free Workplace Awareness Program The Grantee agrees to provide a drug free workplace by notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited in the Grantee's workplace and specifying actions that will be taken against employees for violation of such prohibition. The Grantee must have an Awareness Program, or establish a drug free workplace awareness program to inform employees about the dangers of drug abuse, the availability of drug counseling and penalties for violations of the drug free workplace policy. Prior to release of funds, Grantee will provide evidence of a drug-free workplace to the State. If applicable, all secondary communities involved with this project will adhere to this condition.

23 Prohibition of Excessive Force Policy The Grantee agrees to adopt and enforce a policy to prohibit the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations (P.L. 101-144, Section 519). Prior to release of funds, Grantee will provide evidence of a Prohibition of Excessive Force Policy to the State. If applicable, all secondary communities involved with this project will adhere to this condition.

24 Residential Anti-displacement and Relocation Assistance Plan The Grantee agrees to adopt, make public and follow a "residential anti-displacement and relocation assistance plan" in accordance with Section 104(d) of the Housing and Community Development Act of 1974, as amended. This plan must include steps to minimize displacement of residents caused by project activities. Prior to release of funds, Grantee will provide evidence of a Residential Anti-displacement and Relocation Assistance Plan to the State. If applicable, all secondary communities involved with this project will adhere to this condition.

25 Fair Housing Grantee agrees to abide by and promote all Fair Housing Regulations during the grant period, including conducting at least one unique activity to affirmatively further fair housing each year that the grant remains open. Activities must be reported via the State’s Annual Report each year.

26 Policies and Procedures Where applicable and prior to release of funds, Grantee must approve and maintain policies and procedures which are consistent with the Application and consistent with current SCDP guidance and policy. All policies and procedures must adhere to federal and/or state requirements.

27 Federal Labor Standards When applicable, Grantee must comply with all federal Davis Bacon and Related Act requirements (DBRA). Grantee must follow DEED’s “12 Step Instructions” that are available on the SCDP portion of the DEED website in order to comply with DBRA. Grantee must submit the DEED “Notice of Contract Award” to DEED staff within 14 days of each contract award where DBRA applies and before using grant funds to pay contractors or subcontractors. For projects involving a public facility or rental rehabilitation of eight or more units, copies of the first payroll for each contractor and/or subcontractor working on the project will be provided to DEED staff for review before any cash disbursements for the activity are issued by the State.

28 Use of Out of State Contractors The Grantee must comply with Minnesota Statutes, Section 290.9705 by either:

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A. Depositing with the State, eight percent of every payment made to non-Minnesota construction contractors, wherethe contract exceeds $50,000; or

B. Receiving an exemption from this requirement from the Minnesota Department of Revenue.

29 Reporting Grantee shall submit reports annually during the grant period to the State by October 15, or the date designated by the State. All other reports must be in accordance with the reporting requirements set forth in Minnesota Rule 4300.3200. Grantee shall use the reporting forms provided by the State.

30 Program Income Program Income is defined as any income equal to or exceeding $35,000 in a federal fiscal year (October 1-September 30) received by the Grantee from repayments on deferred or installment loans made from SCDP grants. Any incomereceived from these SCDP loans that total less than $35,000 in a federal fiscal year, is not Program Income, but mustbe reused for an SCDP approved purpose. Total Program Income expenditures for the year must be reported on theexpenditures section of the annual report. Program Income must all be used before SCDP will provide a paymentrequest form, if applicable.

Grantee agrees to have a “SCDP Income Reuse Plan” on file that states how Program Income and other funds generated from the grant will be reused. This plan should prescribe that funds will be reused for an approved SCDP purpose and be consistent with the Grantee’s Application. If the funds received by the Grantee cannot be utilized by the Grantee within a reasonable amount of time, the State may ask for the funds.

Annual Post Closeout Program Income Reporting: Following grant closeout, the Grantee must report Program Income to the state by October 15 of each year. Reporting must include Program Income: Funds received during the federal fiscal year, Expended during the federal fiscal year, and the funds Balance at the end of the federal fiscal year.

This reporting will be completed online using the “Post Closeout Online Reporting” and if applicable the “Post Closeout Program Income Expenditure Reporting Form” located on the DEED/SCDP website. These forms can be found on this webpage: http://mn.gov/deed/government/financial-assistance/community-funding/.

Grantees should track Program Income ($35,000 or more received in a fiscal year) and other income from SCDP loans (under $35,000 in a year) with separate accounts. These funds do not include Minnesota Investment Funds.

Refer to SCDP A-Z Guide for additional information.

31 Procurement The Grantee must maintain documentation that shows that professional services were procured in accordance with 2 CFR Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Services obtained from an HRA, RDC, or nonprofit organization do not have to be procured by competitive negotiation, but contracts for these services must only be on a cost reimbursement basis, accounted for in accordance with "The Common Rule."

All construction contracts will require competitive bidding, unless waived by the State.

32 Equal Employment & Section 3 Grantee must include Executive Order 11246 (Standard Federal Equal Employment Opportunity Construction Contract Specifications) as well as the Section 3 Clause §135.38, notice regarding economic opportunities for low and very low income persons in all Grantee bidding and contract documents for which the construction costs exceed $100,000. All Grantees must have a Section 3 and Women or Minority-Owned Business plan documenting how they will promote the use of Section 3 and women or minority-owned contractors and collect the SCDP Section 3 and

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Women or Minority-Owned Business Certification form(s) from all contractors used on the project.

33 Public Hearing The Grantee will hold a second public hearing (first was held for submission of Application) that includes a citizen participation opportunity midway through the implementation period to solicit public feedback on grant progress and results. The public hearing must be publicly advertised and minutes from the hearing and evidence that the hearing was publicly advertised will be provided to the State, if requested. Documentation that the second public hearing was held will be made on the final report to DEED.

34 Record Retention The Grantee will maintain all grant related records and files for six years after grant closeout. If applicable, the Grantee will maintain files for all individual, SCDP deferred or installment loans until they have expired.

35 Bid Specifications For projects that involve construction of public facilities, new housing construction, conversion for new housing, or rehabilitation of 8 housing units or more under 1 site: Grantee will provide State with bid specifications (not maps or architectural drawings) for review and approval.

36 Rental Development Agreement When applicable and prior to release of funds, the Grantee will provide the State with a development agreement between the Grantee and developer and, if applicable, the management company who will manage the building(s). The agreement(s) will include provisions to ensure that rents and utility costs charged for housing units meet current DEED standards and incomes of tenants are within the current HUD section 8 limits. If applicable, the agreement would also ensure against the economic displacement (rents and utilities raised to above 30% of a household’s gross, monthly income) of any current housing tenants.

37 National Objectives All activities outlined in the Grantee Application and table contained in 4.1 shall meet a National Objective as outlined by the CDBG program. In the event that any facility used for multi-family rental housing no longer meets the Benefit to Low and Moderate Income People National Objective, the SCDP construction funds used to construct or renovate the facility will be returned to the State within a reasonable time frame. This provision will expire five years after the closeout date associated with the final Grant Adjustment Notice, unless a different time period is contained in the Application.

38 Lead Based Paint For activities that involve the renovation of housing, the Grantee will follow the DEED lead policy.

39 Monitoring

The State shall monitor grantee performance as outlined in its Action Plan to HUD. The Grantee will make all books, records, documents, and accounting procedures and practices accessible for any monitoring. Monitoring will be based on forms provided by the State. The monitor may be in person or a request for information at any time during the grant and any time after grant closeout as needed.

The grantee will monitor the activities of the sub-recipient according to 2 CFR §200.303 and 2 CFR §200.331 as necessary to ensure that the sub-award is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the Sub-award; and that sub-award performance goals are achieved. Pass-through entity monitoring of the sub-recipient must include:

(a) Reviewing financial and programmatic reports required by the pass-through entity.

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(b) Following-up and ensuring that the sub-recipient takes timely and appropriate action on all deficiencies pertainingto the Federal award provided to the sub-recipient from the pass through entity detected through audits, on-sitereviews, and other means.

(c) Issuing a management decision for audit findings pertaining to the Federal award provided to the sub-recipient 2CFR §200.332 from the pass-through entity as required by 2 CFR §200.521 Management decision.

The State and Grantee acknowledge their assent to this agreement and agree to be bound by its terms through their signatures entered below.

1. STATE ENCUMBRANCE VERIFICATION 3. STATE AGENCYIndividual certifies that funds have been encumbered as required by Minn. Stat. '' 16A.15 and 16C.05. By: _______________________________________________

Signed: _____________________________________________ Title: ______________________________________________

Date: _______________________________________________ Date: ______________________________________________

SWIFT Contract/PO No(s).____________________________

2. GRANTEE

The Grantee certifies that the appropriate person(s) have executed the grant contract on behalf of the Grantee as required by applicable articles, bylaws, resolutions, or ordinances.

By: ________________________________________________

Title: ______________________________________________

Date: _______________________________________________

By: ________________________________________________

Title: ______________________________________________

Date: _______________________________________________

Distribution: Agency Grantee State’s Authorized Representative

Rita C. Albrecht, Mayor

Nathan Mathews, City Manager

05/13/2020

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2019 Bemidji SCDP Grant Area

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CONTRACT FOR SERVICES

Between

HEADWATERS REGIONAL DEVELOPMENT COMMISSION (hereinafter HRDC)

And

Contracting Agency: City of Bemidji (hereinafter Contractee)

Contact Person: HRDC: Levi Haar

Contractee: Nate Mathews

Address: City Manager_____________________________

317 4th Street NW

Bemidji, MN 56601

Project: Small Cities Development Program Grant Administration Number: ______________

I. Description of Services/Products to be Provided

See attached Work Program.

II. Terms of Contract:

This Agreement will become effective on May 25, 2020, when executed in full by authorized

representatives of the Contractee and HRDC, and will remain in effect until December 31, 2022, or

until all obligations set forth in this Agreement have been satisfactorily fulfilled, whichever comes

first.

III. Compensation and Terms of Payment

A. Cost of Services: Cost not to exceed $50,625 to be billed on an actual cost basis

B. Terms of Payment: HRDC will bill the City of Bemidji on a monthly basis for actual costs

incurred, not to exceed $50,625. Expenditures will be limited to costs reimbursable from the

SCDP grant.

Form C-1 (HRDC as Contracted Party)

Form C-1: Page Two

IV. Other Provisions:

N/A

V. Certification:

In witness whereof the parties have hereunto set their hands and each warrants that he/she is empowered

and authorized to execute this AGREEMENT and accept Terms and Conditions A through H of this

AGREEMENT.

Authorized Contractee Representative Authorized HRDC Representative

City Manager Executive Director

Title Date Title Date

Form C-1: Page Three WORK PLAN

CITY OF Bemidji

Small Cities Development Program Grant Administration

The Headwaters Regional Development Commission (HRDC) will provide direct administrative

services to the City of Bemidji to implement the 2020 Small Cities Development Program activities in

compliance with the City’s Grant Agreement. HRDC staff will be designated as the Project Director,

will be the primary contact with Department of Employment and Economic Development (DEED) staff,

and will be responsible for the day-to-day management of the program, including the record keeping

system. This responsibility will include submitting annual reports, and maintaining subsidiary books

documenting expenditure of funds by activity.

HRDC staff will attend the Implementation Workshop hosted by the DEED, and will be responsible for

all general grant compliance areas. HRDC staff will ensure that all general requirements and special

conditions of the grant award are completed in a satisfactory manner.

HRDC staff will be designated as the Environmental Coordinator and will complete the required

Environmental Review. An Environmental Review Record will be compiled and filed. HRDC staff will

prepare all environmental documents necessary for publication by the City, including the Finding of No

Significant Impact and the Notice of Intent to Request Release of Funds. The City of Bemidji will be

responsible for publishing legal notices as required.

HRDC staff will be designated as the Fair Housing/Equal Employment Opportunity Officer (FH/EEO).

This designation indicates a willingness of HRDC to implement the City’s Fair Housing Plan and to

promote opportunities for minority and women owned business and Section 3 businesses in all contract

activity.

The City Finance Director will be designated as the Financial Officer, and will be responsible for the

overall financial management. The Finance Director will submit draw down requests, issue checks as

required, and maintain the general ledger for the program. HRDC staff will support the Finance

Director as requested.

The HRDC will complete the outlined activities on an actual cost basis not to exceed $50,625. 100% of

the administrative expenses will be paid through the grant funding.

Form C-1: Page Four TERMS AND CONDITIONS

A. QUALIFICATIONS. HRDC represents that it is qualified and willing to perform the services set forth

herein.

B. AMENDMENTS. Any alterations, variations, modifications or waivers of terms of this Agreement shall

be binding upon the Contractor and HRDC only upon being reduced to writing signed by a duly authorized

representative of the Contractor and of HRDC.

C. ASSIGNMENT. HRDC represents that it will utilize only its personnel in the performance of the services

set forth herein; and further agrees that it will neither assign, transfer, or subcontract any rights or

obligations under this Agreement without prior written consent of the Contractor.

D. DATA AND COPYRIGHT.

1. The Contractor agrees that it will make available all pertinent information, data, and records under its

control for HRDC to use in the performance of this Agreement, or to assist HRDC wherever possible to

obtain such records, data, and information.

2. All reports, data, information, and documentation, and material given to or prepared by HRDC pursuant

to this Agreement will be confidential and will not be released by HRDC during the Contract period

without prior authorization from the Contractor.

3. No reports, maps, data, commentaries, or other documentation produced in whole or in part under this

Agreement will be the subject of an application for copyright by or on behalf of HRDC or HRDC's

agents or employees.

E. COMPLIANCES. HRDC agrees to abide by and assures that no person in the United States shall on the

grounds of sex, age, race, or religion be excluded from participating in, be denied the benefits of, or be

otherwise subject to discrimination in connection with the operations of this Contract.

F. FINANCIAL RECORDS. HRDC agrees that it will establish and keep for a period of six (6) years

following the receipt of payment from the final invoice for services performed hereunder such financial

records as will fully disclose the amount and disposition of the funds received pursuant to this Contract.

G. TERMINATION.

1. If either party shall fail to fulfill its obligations hereunder, or shall violate any terms of this Contract, the

other party shall have the right to terminate this Contract by giving written notice to the defaulting party

at least sixty (60) days prior to termination. Such written notice shall specify the nature of the default.

2. In the event of the termination of this Contract prior to normal completion, all finished or unfinished

documents, data, studies, surveys, drawings, maps, photographs, and reports prepared by HRDC in

carrying out the work tasks hereunder shall become the property of the Contractor. HRDC shall be

entitled to receive from Contractor the reasonable value of such materials. In addition, Contractor shall

pay HRDC for the services actually and satisfactorily performed by HRDC hereunder up to the time of

termination, less any payments previously made to HRDC under this Contract.

H. INFORMATION. Contractor agrees that all information provided to HRDC will be true and correct to the

best of Contractor's knowledge. HRDC is not liable for its use or dissemination of false or erroneous

information, data or other materials provided by the Contractor.