Community Development Block Grant CDBG 201 Training Program

Community Development Block Grant CDBG 201 Training Program Day 1 Building Better Communities One Project at a Time

Day One Agenda 8: 30 9: 00 9: 15 9: 30 10: 00 10: 15 10: 30 11: 15 12: 00 1: 20 1: 30 2: 15 2: 30 3: 00 3: 15 3: 30 3: 35 4: 00 Registration Welcome, Introductions & Overview Review of CDBG 101 Community Visit Grant Writer Decision Making Time Break Income Survey Exercise #1 – Complete An Income Survey Lunch Planning Grant Application Review Step 1: Communicate with CL Step 2: Procurement Break Exercise #2 – Competitive Negotiation Procurement Process Step 3: Negotiate and Prepare Draft Contract for Services Step 4: Citizen Participation Step 5: Completion of Planning Grant Application Review Planning Grant Application Form Class Dismissal 2

Introductions Shannon Mc. Leod Priority Project Resources, Inc. 531 Sycamore Trace Greensburg, IN 47240 Phone: (812) 663 -7385 Mobile: (317) 695 -4434 Email: Shannon@pprgrant. com Certified: Since 1992 3

CDBG 201 Training Overview Provide a basic overview of the federal regulatory requirements affiliated with the development of CDBG project from conception to the application stage (Project Development). This course will focus on both Planning and Construction Grant CDBG applications. 4

A Review of CDBG 101 Program Overview 5

“What We Learned in 101” Stands For: Community Development Block Grant (CDBG) Type of Funds: Federal Funds Come From: US Housing & Urban Development (HUD) Given To: State Governments & Entitlement Communities • Indiana Office of Community & Rural Affairs (OCRA) • Entitlements = Areas with Population of 50, 000 or More Used For: Community-Related Projects that Better the Quality Life of and Help Stabilize or Improve the Community’s Economic Condition Overall 6

“What We Learned in 101” Applicants: Non-Entitlement Cities Incorporated Towns Non-Entitlement Counties Sub-Recipients: Not for Profits or Sub Units of Municipality that CANNOT Apply on Their Own Behalf 7

“What We Learned in 101” Grant Fundability = Eligible Activity + National Objective 8

Eligible Activities What types of projects will OCRA fund as per Section 105(a) of the HCDA (Housing Community Development Act)? Eligible Activities Public Improvements (Wastewater, Drinking Water, Storm, etc. ) Public Facilities (Day Care, Fire Stations, Community Centers, etc. ) Acquisition of Real Property Clearance or Demolition of Blighted Properties Removal of Existing Architectural Barriers for ADA Compliance Relocation Assistance Due to Displacement Planning Activities Historic Preservation (Limited to Exterior & Code Violations) Environmental Reviews 9

Ineligible Activities What types of projects will OCRA NOT fund as per Section 105(a) of the HCDA (Housing Community Development Act)? Ineligible Activities Buildings for the Conduct of Government (except removal of architectural barriers) Political Activities General Governmental Expenses Operating & Maintenance Expenses New Housing Lobbying Efforts Furnishings and Personal Property Maintenance / Rehabilitation Land Acquisition that is not directly tied to a national objective 10

Combination of Eligible & Ineligible Activities Your project may include eligible and ineligible activities, but basic program requirements must be followed. 1. Environmental Review Procedures 2. Establishment of the CDBG only area is clear 3. CDBG request is limited to only the costs of the eligible activity 4. Costs must be separated and accounted for 5. Fees for use of the facilities must be affordable for LMI persons 11

“What We Learned in 101” Three (3) National Objectives per 24 CFR 570. 489 1. Benefit to Low and Moderate Income Persons (70% of CDBG funds) 2. Prevention or Elimination of Slum and Blighted Conditions 3. Urgent Need Administrators Need to Know 12

“What We Learned in 101” Benefit to Low & Moderate Income Persons Elimination or Prevention of a Slum / Blight Area Wide Area Basis Limited Clientele Spot Basis Urgent Need Housing Job Creation / Retention Know the 3 National Objectives and their Sub-Categories 13

Benefit to Low and Moderate Income Persons Four (4) Attainment Methods 1. Area Benefit 2. Benefit to Limited Clientele 3. Housing (IHCDA) 4. Job Creation / Retention (Program Has Been Suspended In Indiana) 14

Area Benefit • The area must be at least 51% LMI per the Census Data or Income Survey • Project activities must benefit ALL residents in the project area • Project area must be primarily residential • Example projects include: water treatment plant, community center, etc. 15

Benefit to Limited Clientele • Specific group of individuals to be served – not area wide • Document that at least 51% or more of the clientele families are LMI • Income Eligibility Requirements Limit activity to LMI persons (day care, public services, etc. ) • Location and nature of activity primarily serves LMI persons (community / youth center for public housing complex) • Example projects include: senior centers, daycare centers, etc. 16

Eight Presumed Limited Clientele 1. Abused Children 2. Battered Spouses 3. Elderly (62 and older) 4. Severely Disabled Adults 5. Homeless Persons 6. Illiterate Adults 7. Persons Living with AIDS 8. Migrant Farm Workers 17

Prevention or Elimination of Slums or Blight Area/Spot must be officially delineated by the local government and must meet a definition of slum, blighted, deteriorated or deteriorating area under state or local law. 18

Prevention or Elimination of Slums or Blight Two (2) Attainment Methods 1. Area Basis: clearly eliminating objectively determinable signs of slums or blight in a defined area. 2. Spot Basis: strictly limited to eliminating specific instances of blight outside such an area and is a single property. 19

Area Basis At least 25% of properties in area experience two (2) or more of the following conditions: • Physical deterioration of building or improvements • Abandonment of properties • Chronic high turnover or vacancy rates in commercial or industrial buildings • Significant declines in property values or abnormally low property values • Known or suspected environmental contamination • Area public improvements are deteriorated 20

Area Basis Required Documentation for Area Basis Slum/Blighted: • Define the boundaries of the delineated area • Identify all building and public improvement conditions demonstrating blight • Describe activity addressing the condition that led to blight in area • Review and re-determine every 10 years that area is qualified Example Activities designed to address slum blight on an Area Basis include: • Renovation and reuse of abandoned historic buildings • Commercial revitalization through façade improvements 21

“What We Learned in 101” OCRA CDBG Program Planning Grants Figure Out What Needs to Be Done Construction Grants Implement the Improvements to Solve the Problem 22

OCRA CDBG Program Maximum Grant Amount Planning Up to $50, 000 Wastewater Drinking Water (WDW) Up to $700, 000 Stormwater Improvements Program (SIP) Up to $600, 000 Public Facilities Program (PFP) Up to $500, 000 Blight Clearance Program (BCP) Up to $500, 000 Main Street Revitalization Program (MSRP) Up to $600, 000 23

Project Development Let’s Get This Project Started! 24

WELCOME TO AKRON Population 1, 059 25

Town Council Rachel President Jim Water Utility Staff Clerk Treasurer Melissa Sam Louie Travis 26

AKRON NEEDS HELP !!!! FOR N E E L B I S S O IDEM P CEMENT CITIZENS ARE MAD !!! SEWER BACK-U P IN HO MES TO FIX NO MONEY GUYS AR E WORK SYSTEM IS OLD / UNDERSIZED IT !!! ING OVE RTIME 27

Grant Writer Meeting 28

LISTEN LEARN INVESTIGATE 29

Grant Writer Decision Process 30

Eligible Activities Public Improvements (Wastewater, Drinking Water, Storm, etc. ) Public Facilities (Day Care, Fire Stations, Community Centers, etc. ) Acquisition of Real Property Clearance or Demolition of Blighted Properties Removal of Existing Architectural Barriers for ADA Compliance Relocation Assistance Due to Displacement Planning Activities Historic Preservation (Limited to Exterior & Code Violations) Environmental Reviews Is This Project Considered Eligible? ______________ 31

National Objective Benefit to Low & Moderate Income Persons Elimination or Prevention of a Slum / Blight Area Wide Area Basis Limited Clientele Spot Basis Urgent Need Housing Job Creation / Retention What National Objective Should It Meet? _____________________ 32

Planning Grant Available Funding • Environmental Assessment Studies will be limited to $15, 000. • Infrastructure Studies are limited as follows: $35, 000 for a study on a single utility, $45, 000 for a study on two utilities, and $50, 000 for a master utility study (water, wastewater, and storm water). • Dam or Levee System Evaluations will be limited to $50, 000. • Comprehensive plans are limited to $40, 000. • Downtown revitalization plans are limited as follows: Populations over 2, 000 are limited to $40, 000, and Populations under 2, 000 are limited to $30, 000 • Economic development plans are limited to $40, 000. • Public facilities plans (including libraries, community centers, parks, etc. ) will be limited to $20, 000. • Historic preservation plans will be limited to $20, 000. All Projects Will Require a Minimum of a 10% Local Match What’s the Level of Grant Funding & Local Match? _________ 33

Are There Any Obstacles? In order to apply for a CDBG grant via OCRA, the Grantee must make sure they have an Eligible Activity that meets a National Objective. In addition, the following criteria must be met: • Resolve any unresolved monitoring/audit findings; • Submit any overdue grant reports or close-out documents; • Must not have… • For cities and towns: two (2) open CDBG Grants at the time of application; • For counties: three (3) open CDBG Grants at the time of application; • An open CDBG Grant that has not received Release of Funds; • If a community has an open CDBG Grant, the community must have an executed construction contract and be under construction, or a consultant under contract for planning grants before the community may apply for an additional CDBG Grant. What’s the Community’s Situation? ______________ 34

15 Minute Break After the day’s class, the teacher asks the student the formula for water. Teacher: Faith, what is the chemical formula for water? Faith: H I J K L M N O. Teacher: (frowning) What are you talking about? Faith: Yesterday, you said it’s H to O. 35

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Prior To Income Survey • • Prior to conducting an income survey, applicants must receive approval from OCRA Obtain Current LMI Data from HUD mapping application found in CPD-19 -02: Low- and Moderate- Income Summary Data Updates: 37

Prior To Income Survey • • Along with current LMI data, submit the service area of your project (defined later), and a justification letter from the CEO on applicant letterhead; The justification letter should have specific economic or demographic reasons that latest HUD estimate data is inaccurate. 38

Purpose Of Income Survey • Determine if the Project Activity can meet the Low to Moderate Income CDBG National Objective • Obtain demographic information from survey area residents. 39

Goal of Income Survey At least 51% of the residents benefiting from the CDBG program must live in households earning 80% or less than the area's Median Family Income as determined by HUD. The Median Family Income Thresholds Change Every Year (Check OCRA’s Website for Most Current Numbers Prior to Starting Any Income Survey!!!) 40

Accuracy of Income Survey HUD will generally accept the state and local determination of the service area unless the nature of the activity or its location raises serious doubt about the area claimed by the state and its grant recipients. 41

Boundaries of Income Survey Keys to meet LMI area national objective: • Service area decided based on the activity beneficiaries • Critical that the service area be the entire area served by the activity (see 24 CFR 570. 483(b)(1)(i)) • Need not be coterminous with census tracts or other officially recognized boundaries 42

Boundaries of Income Survey Service Area Boundary Examples Include: • Storm drainage project serves residents in part of community; • Fire station project serves community and rural unincorporated area of 2 or more counties; or • Rural water district serves community and portion of the rural area. 43

Defining the UNIVERSAL Population • Need an accurate method to identify all households in survey area • City indexes and telephone books and 911 maps are helpful • Not everyone has a telephone • Tax rolls can mislead • www. reversephonedirectory. com • Utility customer listings UNIVERSAL POPULATION 44

Income Survey Methods Two Methods of Surveys 1. Census (100% Survey of Service Area) 2. Sampling (Random Sample of Service Area) 45

Census Method Census method for survey of population for small communities and rural areas okay if: • Local unit of government illustrates how calculated • LMI persons calculated from entire population local unit of government • Service area population not calculated based on the respondents to the survey. – In the event some do not wish to respond, those households must be counted as ABOVE the specified income limit 46

Census Method 100% Participation 51% of the population surveyed must be LMI residents; which means 51% of the UNIVERSAL LIST respondents within the ENTIRE community must be LMI. In the event some do not wish to respond, those households must be counted as ABOVE the specified income limit. 47

Random Sampling Method Sampling of the Universal Population Means 51% of the MASTER LIST respondents of the Community Sampling must be LMI. Universal List = Every Household in Population Master List = Random Sampling of Households to Be Surveyed. 48

Random Sampling Method Selecting the Sample from the Universal Listing • Need to define survey population (service area) • Determine upfront how many households need to be interviewed. • You can’t add to the sample later down the road in hopes of achieving the 51%. • Use Random Sample Calculator to determine how many household need to be interviewed (Master Listing). • The sample size calculator can be found at: https: //www. surveymonkey. com/mp/sample-sizecalculator/ • The OCRA Houses and Population Sample Size Tool will help you determine the population size and number of households to survey: https: //www. in. gov/ocra/2617. htm 49

Random Sampling Method 50

Houses and Population Tool 51

Random Sampling Method • All households in survey area must have an equal chance of selection • Each household on the Universal List should be given a number • Use a random number selector program, such as random. org to generate a random number listing in order to create your Master Survey List • Make allowances for “unreachables” and non-respondents 52

Income Survey Steps 1. 2. 3. 4. 5. Select the Survey Type Develop a Questionnaire Conduct the Survey Determine / Analyze Results Document Your Results 53

Step 1: Select Survey Type A. B. C. Mail Survey Door to Door Survey Telephone Note: • Once the random sample is identified, any type of contact procedure is acceptable and if one procedure is unsuccessful, you can use another procedure. 54

Mailed Survey • Basic method for collecting data • Survey form should be mailed with self-addressed stamped envelope • Usually has lowest response rate 55

Door to Door Survey • Interviewer visits households directly • Survey form completed on-site • Interviewers need maximum training • Follow-up visits usually needed • Highest response rate 56

Telephone Survey • Questions asked via telephone • Need to assure proper responder answers questions • Need to develop method to contact those without phone or with unlisted number • Moderate to high response rate 57

Regardless of Survey Type Surveyor must: • Document Each Attempt to Contact Respondent (Date / Time); and • Make a Minimum of Two (2) Attempts to Contact Respondent Before Selecting a Replacement Respondent 58

Step 2: Develop a Questionnaire • Determine content, wording, format and order of questions (WATCH OUT FOR PREJUDICIAL WORDING) • For CDBG, the survey must contain income and demographic information • All respondents must be asked the same questions • Exact responses must be recorded as they are presented 59

Step 3: Conduct the Survey • Give advance notice of survey – BE SURE IT IS NOT PREJUDICIAL • Do not bias the results • Interviewer must follow process • Survey etiquette must be followed • Turn surveys over to tabulator • Each survey needs to be reviewed and edited for completeness and accuracy 60

Step 3: Conduct the Survey • Remember: People are leery of surveys; especially regarding income information! • Keep documentation regarding income simple • Good PR is key • Interviewers must be tactful 61

Step 3: Conducting the Survey • You should do your best to maintain confidentiality. Emphasize to respondents that their answers will be kept confidential. • The respondent’s name, address, and telephone number should appear only on the cover sheet of the questionnaire. • After the survey is completed, the cover sheet may be numbered and separated from the actual interview sheet. If the cover sheets and the questionnaires are both numbered, they can be matched if necessary. • It is important to know that “confidential” and “anonymous” are not the same thing. 62

Step 4: Determine/Analyze the Results • Add numbers for all data • Tabulate the responses and calculate estimated LMI % • Compare family sizes and percentages of LMI and Non-LMI responder families • Compare to existing Census data – If using an income survey, will have already received approval from OCRA prior to starting by including a letter from the CEO explaining why the Income Survey was used instead of Census – Explanation must be related to economic conditions in the community • Analyze non-respondents 63

Step 4: Determine/Analyze the Results • Look for bias – Nonresponse bias – Racial bias – Social desirability bias Utilization of an Approved Statistician Is No Longer Required 64

Step 5: Document the Results Include in the Documentation: • Description of the service area and how it was determined • Population list (Universal List) and a description of how it was determined • Copy of completed sample size calculator screen print • Description of the process that was used to draw the sample from the population • Copy of the MASTER list of families that form the initial sample 65

Step 5: Documenting the Results • Copy of the list of families actually sampled. • May be different from the initial sample (Master List B), if a family had to replaced • Description of why families were replaced and the replacement-procedure adopted • Actual survey responses • Survey forms, telephone list with above/below, etc. • Comparison of survey results with the most recent LMISD • Income Survey Justification Letter • LMI Worksheet 66

Lifespan of Income Survey • Surveys are valid for up to 5 years from first contact – Surveys may be used more than once only for the same exact service area • What if there are significant changes? – Additional certification letter is needed 67

Exercise #1 Completion Of An Income Survey 68

Lunch 69

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____________________________________________________________ Planning Grant Application Steps 1. Communicate with Community Liaison (CL) – Month 1 2. Procurement of Professional Services – Month 2/3 3. Negotiate & Prepare Draft Contract for Services – Month 3 4. Conduct Public Hearing / Citizen Participation – Month 4 5. Complete / Submit Planning Grant Application – Month 4 *A site visit may be required after submission if Grant Administrator skipped Step 1, which delays the process Planning Grant Applications Take Approximately 4 – 6 Months to Complete OCRA Accepts Applications on a Monthly Basis 71

Step 1: Communicate with CL Reach out to your OCRA Community Liaison to discuss the overall scope of the project and explain the planning grant process to all applicable parties. Your CL will be able to assist with the development of the application and provide advice on the planning process. If this step is skipped, then a site visit will need to be conducted following the submission of the application. This delays the application review process. A map of CL districts can be found at https: //www. in. gov/ocra/2330. htm 72

Step 2: Procurement (WHAT) Procurement is a process in which goods and services are solicited and obtained. The process should establish uniform standards that are fair, concise and encourage full and open competition. A Grantee should always utilize this established process when soliciting goods or services, however when Federal funds are paying for all (or a portion) of the goods/services, documented procurement procedures MUST be established and followed. The developed standards should comply with the requirements set forth in 2 CFR 200. 318 – 200. 323. 73

2 CFR 200. 318 – 200. 323 Defined When a STATE is procuring property and services under a grant, it will follow the same policies and procedures it uses for procurement from its non-Federal funds The STATE will ensure that every purchase order or other contract includes any clauses required by Federal statutes and executive orders and their implementing regulations. Other grantees and sub-grantees will use their own procurement procedures which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in 2 CFR 200. 318 – 200. 323. 74

CDBG Recipients Must: • Develop policies and procedures for procurement that comply with both 2 CFR 200 and any stricter state or local standards • Maintain a written code of standards of conduct governing the performance of employees engaged in the award and administration of contracts • Avoid any POSSIBLE Conflict of Interest • It’s better to disclose even the most remote chance of a conflict than not to disclose and have to defend a perceived conflict. 75

What To Procure Planning Grant Item Engineering Grant Administration Total CDBG Funds Local Match Total $45, 000 $0 $5, 000 $45, 000 $50, 000 Construction Grant Item CDBG Funds Local Match Total Construction $500, 000 $1, 000 Engineering $50, 000 $100, 000 Inspection $0 $150, 000 $40, 000 $0 $3, 000 $590, 000 $703, 000 $1, 293, 000 Grant Administration Environmental Total 76

Step 2: Procurement (WHEN) Planning Grants The Procurement Process for Professional Services Begins After the Applicant has Communicated with the Appropriate CL Construction Grants Professional Service Procurement Can Take Place Before or After the CDBG Construction Grant is Awarded Contractor (Sealed Bid Procurement) Is Initialized Within Six (6) Months of the CDBG Grant Being Awarded 77

Step 2: Procurement (TYPES) Four (4) Methods/Types of Procurement: Noncompetitive or Sole Source Provider Method Small Purchases Method Competitive Negotiation Method Competitive Sealed Bid Method 78

Competitive Negotiation Method This method of procurement, commonly referred to as “Request for Proposal” or “Request for Statement of Qualification”, is utilized to procure professional services, such as engineering, grant administration, financial advisors, and attorneys. Two (2) Types of Competitive Negotiation Solicitations: 1. Request for Proposals (RFP): Used to procure Grant Administrators, Rate Consultants, Legal Counsel, etc. 2. Request for Qualifications (RFQ or QBS): Used to procure Architects and Engineers 79

Competitive Negotiation Method What is the difference between an RFP and an RFQ? ? ? Price !!! The cost to provide a service is a factor of consideration in a RFP. Price is not a factor of consideration in a RFQ. The Grantee must select the architect / engineer based upon their qualifications and then negotiate a fair price. If terms cannot be settled, then the Grantee can negotiate/settle with their second choice. 80

Competitive Negotiation Method 10 STEP PROCESS OF COMPETITIVE NEGOTIATION 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Select your interview / scoring team Develop the RFP / RFQ Advertise RFP / RFQ in Local Newspaper Solicit via Certified Mail (return receipt) at least five (5) Service Providers Make sure at least two (2) of the Service Providers solicited are state certified MBE/WBE firms Log proposals as they are returned (date / time) Meet to Shortlist those submitting RFP / RFQ Send Letters to Notify Each of Shortlisting Outcome Prepare for Interview / Selection / Notification / Contract Negotiation 81

Competitive Negotiation Method Step 1: Selection of Scoring / Evaluation Team • Select 3 to 5 Individuals • Limit the number of individuals on the team for more productive interviews • An odd number of individuals is better for scoring purposes • Pick people that will directly be working with the vendor • County Commissioners and Town Council Members HAVE to be involved • Consider asking the Utility Superintendent, Clerk-Treasurer or, individuals that will be directly involved with the project • Pick people that truly understand the project scope and are not scared to ask questions • You as the Grant Administrator CANNOT be on the scoring committee • Your job is to help create the RFP/RFQ, distribute information and facilitate the process for the Grantee 82

Competitive Negotiation Method Step 2: Development of the RFP / RFQ Utilize Procurement Form 1 – Sample Request for Proposal/Qualifications • Describe Scope (Be Informative / But Concise) • Develop a Time Schedule that Meets Your Needs But Can Feasibly Be Met • Go Through Your Evaluation Criteria with Your Scoring Committee to Find out What Is Important to Them and Rank Accordingly 83

Competitive Negotiation Method Step 3: Development of the RFP / RFQ Advertisement Utilize Procurement Form 2 – Sample Request for Proposal / Qualification Publication • Describe Scope (Be Informative / But Concise) • Make sure your timeframe matches that in the RFP/RFQ and meets newspaper deadlines and publication dates • Make sure you allow for proper advertising time 15/30 days; due date depending on service sought: • RFPs require a minimum of 15 days from date of publication • RFQs require a minimum of 30 days from date of publication • Make sure your scoring criteria points are consistent with the points stated in the RFP / RFQ 84

Competitive Negotiation Method Step 4: Solicit At Least 5 Firms By Certified Mail / Return Receipt • Solicit Firms that You or Grantee Have Previously Worked With That Have a Proven Track Record • Make sure at least two (2) Firms solicited are State Certified MBE/WBE’s 85

Competitive Negotiation Method Step 5: Solicitation of at least 2 MBE/WBE’s Log on to the Indiana Department of Administration’s Website to Obtain Listing of State Certified MBE/WBE Firms www. in. gov/idoa/mwbe Snap Shot IDOA Web Page Certified Listing – for HUD Verification Purpose 86

Competitive Negotiation Method Step 6: Log Date / Time of Received Proposals/Qualifications RFPs & RFQs must be logged in and stamped with the date and time received prior to being opened at a public meeting. ANY RFP / RFQ NOT RECEIVED BY THE DATE AND TIME AND AT THE LOCATION STATED IN THE LEGAL ADVERTISEMENT MUST BE RETURNED, UNOPENED TO THE SUBMITTER 87

Competitive Negotiation Method Step 7: Meet to Shortlist Proposal / Qualifications Utilize Procurement Form 3 – Evaluation of Proposal / Qualifications • Evaluation team reviews all proposals and selects the proposals that closely meet the criteria required by the solicitation • Only criteria listed in the solicitation may be used to evaluate proposals • Evaluation team must select two (2) or more of the responders for interview, according to final score tabulation • If only one response was received – call Grant Services for direction • All scoring evaluations should be signed by the team member and maintained for review by Grant Services prior to grant award (Planning Grant) and/or prior to Release of Funds (Construction Grant). 88

Competitive Negotiation Method Step 8: Notify Responding Firms of Shortlisting Outcome Procurement Form 4 – Sample Letter to Arrange Interview with Shortlisted Firms or Procurement Form 5 – Sample Letter to Firms Not Shortlisted Make Sure Letters are Maintained in File for Review By Grant Services 89

Competitive Negotiation Method Step 9: Prepare for Interview • Prepare Your Questions Prior to the Interview and Make Sure They Coincide With the Evaluation Criteria Set Forth in the RFP / RFQ • Pick Someone to Facilitate the Meeting that will: • Ask the same questions to all candidates in a logical order and with consideration of time • Allow for Summary / Closing Statements 90

Competitive Negotiation Method Step 10: Interview / Selection / Contract Negotiation Utilize Procurement Form 6 – Interview Evaluation Scoring • Each member of the Evaluation Committee must complete an “Interview Evaluation and Score Sheet” for EACH VENDOR being interviewed • Must use the same scoring and weights criteria for all firms interviewed • Score each proposal fairly and without bias • The completed score sheets must be signed by each member of the Evaluation Committee and maintained in the project file • Select the vendor whose proposal is determined to be the most advantageous to the project based upon the scoring criteria • Subject to contract negotiations for architects/engineers • All successful AND unsuccessful vendors must be notified in writing of the final selection and proof of notification must be maintained in the project file • Utilize Procurement Form 7 & 8 All documentation must be submitted to Grant Services at the time of application during the Planning Grant stage and / or Request for Release of Funds on a Construction Grant. 91

15 Minute Break Artificial intelligence is no match for natural stupidity. 92

Exercise #2 Procurement of Engineering Consultants for Planning Grant 93

Step 3: Negotiate & Prepare Draft Contract for Services A contract is an agreement between two or more parties who intend to create one or more legal obligations between them. Elements of a Contract: 1. Offer A “competent person” offers a promise to another party 2. Acceptance The other party (also a “competent person”) accepts or counteroffers 3. Consideration Something of value is exchanged (can be monetary, though not always) Proof of these elements must be done in writing for CDBG-funded projects. A breach of contract can be remedied through “damages” in the form of: • Monetary compensation • Court-ordered action or inaction through a legal “injunction” Source: https: //www. law. cornell. edu/wex/contract 94

Contract Development When Can Contracts Be Executed Grantees may sign engineering, architecture, and grant administration contracts prior to receiving Environmental Release However, it is in the Grantee’s best interest to wait until such time as the grant agreement and environmental release of funds letter is received ◦ The Grantee incurs these costs AT THEIR OWN RISK with no guarantee that federal funds will be made available to reimburse those costs ◦ No drawdowns may occur until Environmental Release and Release of Funds is received 95

Contract Development To affirm that no Conflict of Interest exists, complete Contract Form 1 - Disclosure Report • Must be updated throughout the project as additional contracts are awarded and maintained in project files • Final Disclosure Report is required at monitoring When a potential Conflict of Interest arises, complete Contract Form 1. 5 - Request for Conflict of Interest Exception �Rule of Thumb: It’s better to disclose even the most remote chance of a conflict than not to disclose and have to defend a perceived conflict. 96

Contract Development Two (2) Types of Contracts are Permitted Under CDBG Regulations • Firm, Fixed Price Contract (also called Lump -Sum Contract) • Requires that the contractor deliver the product or service for the agreed upon price • Cost Reimbursement Contract • May be awarded for professional services when the level and cost of work to complete a specific task is unknown • MUST include a “Not To Exceed” limit 97

Contract Development Professional Services contracts MAY NOT include: • Language that allows for extra services at additional costs • Reimbursable costs that do not state a “Not To Exceed” limit OCRA is unable to issue Release of Funds for the project if total contract amounts exceed total funds available amounts! Check before submitting the Release of Funds packet!!!! 98

Contract Development Required Contract Attachments for Professional Service Agreements • Federal Third Party Provisions (OCRA Website Other Resources) • Certificate of Liability Insurance / Errors & Omission (if applicable) 99

Contract Development Can Contracts Be Amended? Yes! If the need should arise and was an unforeseeable circumstance. However, documentation and justification is required. Professional Service Agreements An Amendment to Contract (written explanation of change in scope and cost) must be signed by professional & Grantee if change results in additional costs. Grantee should be prepared to cover that expense with local funds. 100

Step 4: Public Hearing / Citizen Participation Prior to the submittal of the Planning Grant Application to OCRA, the grant applicant (community) must conduct a public hearing. Public hearing notices must be published at least 10 full days prior to the meeting date (so make sure the hearing occurs on the 11 th day or after). The notice needs to be posted in public facilities such as the Town Hall, Post Office, Grocery, etc. Check OCRA’s website to determine if your public hearing notice needs to be published in Spanish as well as English Ø Four Factor Analysis / Language Access Plan 101

Public Hearing / Citizen Participation Meeting Date Akron Times Union is a Weekly Paper It Publishes On Wednesdays To Be Published the Paper Needs Articles the Thursday Prior to Publishing 102

Public Hearing / Citizen Participation PUBLIC NOTICE FOR FIRST PUBLIC HEARING On or about (date), (Applicant) intends to apply to the Indiana Office of Community Rural Affairs for a grant from the State Community Development Block Grant (CDBG) Planning program. This program is funded by Title I of the federal Housing and Community Development Act of 1974, as amended. These funds are to be used for a community development planning project that will include the following activities: (summary of proposed project). The total amount of CDBG funds to be requested is $(amount of request). The amount of CDBG funds proposed to be used for activities that will benefit low - and moderate-income persons is $(amount of CDBG Planning funds requested x percentage of low- to moderate-income residents*). The Applicant also proposes to expend an estimated $(amount of local match) in non-CDBG funds on the project. These non-CDBG funds will be derived from the following sources: (source and amount). 103

Public Hearing / Citizen Participation (Applicant) will hold a public hearing on (date), at (time), in (place) to provide interested parties an opportunity to express their views on the proposed federally funded CDBG project. Persons with disabilities or non-English speaking persons who wish to attend the public hearing and need assistance should contact (name, address, phone #) not later than (date). Every effort will be made to make reasonable accommodations for these persons. Make Sure to Check the Newspaper on the Day the Notice is To Be Published 104

Public Hearing / Citizen Participation Information related to this project will be available for review prior to the public hearing as of (date) at the office the (Applicant) located at (address) between the hours of (office hours). Interested citizens are invited to provide comments regarding these issues either at the public hearing or by prior written statement. Written comments should be submitted to (name and address) no later than (date) in order to ensure placement of such comments in the official record of the public hearing proceedings. A plan to minimize displacement and provide assistance to those displaced has been prepared by (Applicant) and is also available to the public. This project will result in (no displacement of any persons or businesses – or – displacement of the following persons and businesses [name and address]). For additional information concerning the proposed project, please contact (person – telephone – office hours and days) or write to (person – address). You will Need Proof of Publication, Minutes, Sign-In Sheet, Minute Authorization 105

Step 5: Complete / Submit Application Complete Planning Grant Application Exercise # 3 The application containing digital signatures and supportive documentation can be uploaded as a PDF to the online submission form found on the OCRA website. Upon submittal, one can expect a two (2) month turn-around for grant award notification. 106

Have A Pleasant & Safe Evening !! See You Tomorrow !! 107