Block Grant - Coronavirus Agreement with Mellinger Enterprises Inc DBA Sky Nails & Spa of South Beach DocuSign Envelope ID:4E2482F9-1D9D-4A22-8A17-6FF0DDA26533 Zazo -3 v
COMMUNITY DEVELOPMENT BLOCK GRANT-CORONAVIRUS AGREEMENT
FOR THE CITY OF MIAMI BEACH SMALL BUSINESS COVID-19 RELIEF PROGRAM
(FISCAL YEAR 2020)
BETWEEN
THE CITY OF MIAMI BEACH
AND
MELLINGER ENTERPRISES INC DBA SKY NAILS &SPA OF SOUTH BEACH
This Agreement made and entered into this 1/15/2121 fl/15/2021 I ,2021,by and between
the CITY OF MIAMI BEACH, FLORIDA, a Florida municipal corporation having its principal office at 1700
Convention Center Drive, Miami Beach, Florida, 33139, (hereinafter referred to as "City"), and
MELLINGER ENTERPRISES INC DBA SKY NAILS & SPA OF SOUTH BEACH, a Florida for profit
corporation, having its principal place of business at 1611 Alton Road, Miami Beach, FL, 33139
(hereinafter referred to as "Grantee").
WHEREAS,on May 13, 2020,the City Commission approved Resolution No.2020-31256,
approving the allocation of $200,000 for small business assistance through Community Development
Block Grant-Coronavirus‘(CDBG-CV)funding; and
WHEREAS, on June 5, 2020, the City Commission directed the Economic Development
Department to utilize the CDBG-CV funds allocated to the Small Business Assistance Program (the
"Program") for qualified Miami Beach small businesses, using two lottery systems, one for businesses
that follow the MB Standard, and another for businesses that do not meet those standards, in order to
select qualified grant recipients for an award of up to TEN THOUSAND DOLLARS ($10,000.00);and
WHEREAS, Grantee applied for the Program and has been selected in the lottery as an
eligible business;and
WHEREAS,the City desires to provide a grant to Grantee under the terms of the Program.
NOW,THEREFORE, in consideration of the mutual benefits contained herein,the City and
Grantee agree as follows:
Section 1. Agreement Documents: Agreement documents shall consist of this Agreement and the
following four(4) exhibits, all of which are attached and incorporated in this Agreement:
• Exhibit A-Scope of Services
• Exhibit B- Documentation
• Exhibit C- Financial Management for CDBG-CV funded activities
• Exhibit D-Quarterly Report Form
Section 2. Statement of Work: The Grantee agrees to implement the Program in accordance with
Exhibits A and B, which Program is summarized as follows:
Small Business COVID-19 Relief and Low-Income Employment:
Pursuant to the CARES Act, the CDBG-CV funding is intended to"avoid job loss caused
by business closures related to social distancing by providing short-term assistance for
qualified business expenses" (as defined in Exhibit"A") to eligible small businesses who
agree to employ and/or retain at least one (1) qualified low- and moderate-income
employee (as defined in Exhibit "A") for a period of one (1) year from the date the City
verifies employment for the qualified employee (the "Compliance Period"). If Grantee
complies with the terms of the Program during the Compliance Period, the Grant Funds
shall be forgiven by the City, pursuant to a written notification to Grantee. If Grantee is not
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Grantee snail be: required to repay to duo City alt of the Funds received under tem
Agreement
Section 3. Agreement Amount: The City agrees to make available Community Development Block
Grant-Coronavirus (CDBG-CV) funds, in an amount not to exceed TEN THOUSAND
DOLLARS (10,000.00) for use by the Grantee during the Term of tee Agreement to be
spent on any business operalionai costs such as payroll utilities. rents. or mortgage
interest(for business accounts in existence as of February 1 2020), etc and/or COViC-
related expenditures Grant money may only be used for those expenses which nave
occurred after being selected in the Program tottery(hereinafter, the aforestated amount
including. without limitation, any additional amounts included thereto as a result of a
subsequent amendments,to the Agreement snail be referred to as the"Funds")
Section 4. Alterations: Any change to the Program shall require the prior written approval of the City
Manager, which approval,if given at all, shall be at his/her sole reasonable tuegment and
discretion
Section 5. Reporting Requirements and Method of Payment: In compliance with 24 CFR 570 503
(h)(2), Exhibit B contains a checklist of backup documentation to be used en fulfitlmont of
the quarterly reporting requirement. The Grantee will provide the City with a complete
Quarterly Report every three months The quarterly report will be due on the 10'" day
following every quarter period. to the event that the 10th of the month lands on a Saturday.
Sunday or holiday,the report must be submitted the following business day The report will
detail how Funds are expended and for which type of bnsrness expenses The Quarterly
Report must also specify whether the Grantee is complying with the Employee Retention
Requirement, including acknowledgement that the employee qualifies as a low-income
employee Quarterly reports will be submitted via any of the following methods
• Standard mall
• Email
Quarterly reports will not be considered acceptable unless the following:s met.
▪ Forms are completely and accurately completed includrtg draw number and
submittal nate
• Necessary back-up materials are included (as staled in Exhibit "B"
Documentation.)
• Reports bear the signature of the person preparing the report and the Grantee's
authorized signatory
Reports and/or requested documentation not received by the due date shall be considered
delinquent and may be cause for default and termination of this Agreement, pursuant to
Section 10 hereof Other reporting requirements may be requirco by City in the event
legislative amendments are enacted or as the City Manager may reasonably deem
necessary The Grantee shall be informed, in writing,if any changes become necessary
Section 6. Additional Conditions and Compensation: The parties acknowledge that the Funds
originate from CDBG-CV grant funds front I•IUD, and must be implemented in full
compliance with all of HUD's rules and regulations In the event of curtailment or non-
production of said Federal funds, the financial sources necessary to continue to pay the
Grantee all or any portions of the Funds will not be available In that event, the City may
terminate this Agreement, which termination shall be effective as of the date that it s
determined by the City Manager, to his/her sole discretion and judgment, that the Funds
are no longer available In the event of such termination, the Grantee agrees that it will
not look to. nor seek to hold the City, nor any individual member of the City Commission
and/or City Administration, personally liable for the performance of Ibis Agreement, and
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the City shall be released from any further liability to Grantee tinder the terms of this
Agreement.
Section 7. Compliance with Local,State and Federal Regulations-The Grantee agrees 10 comply
with all applicable Federal regulations as they may apply to Program aoministration as
described in 24 CFR 570 and 2 CFR 200 and Cary out each activity in compliance with.
Inc laws and regulations as described in 2e CFR 570 Subpart K - Other Program
Requirements, as same may be amended from time to time Adnitienally• the Grantee wet
comply with all State and local(City and County)laws and ordinances hereto applicable.
It shall be the Grantee's sole and absolute responsibirty to continually familiarize itself with
any and all such appiicable Federal State. County, and City regulations, laws, anchor
ordinances.
Section 8. AssignmentlSubcontract: No part of this Agreement may be assigned or suncontracted
without the prior written consent of the City Manager, which consent. if given at all shall
be at the City's sole discretion and Judgement.
Section 9. Term: This Agreement shalt commence retroactively on Juts/ 1. 2020 and shall terminate
at Such time as the City determines that Grantee has provided sufficient documentation:o
establish compliance with all requirements for use of inc Funds following disbursement Of
Funds to Inc Grantee(the Term).
Section 10, Termination of Agreement:
10.1 Termination for Convenience: This Agreement may be terminated by the City. for
convenience and without cause, through me City Manager. upon 3;l days prior written
notice to Grantee In the event of such termination for convenience, the City snail retain
any Funds which were not disbursed to Grantee before the effective date of termination
Grantee shaft oe solely responsible for immediately returning any unused or unapproved
Funds as of the date of termination, and shall also be solely responsible for submitting a
final report,as provided in Section 5 hereof,(detailing all Program objectives.activities and
expenditures up to the effective date of the termination) Said final reoort shall be due
witnin five(5)working days following the effective date of termination. Upon timely receipt
of Grantee's final report,the City at its sole discretion, shall determine the amount f.if any)
of any additional portion of the Funds to be returned to the City as a result of any
unapproved or unused Funds, or incomplete,Program items. and shall provide Grantee
with written notice of any monies due. Said additional monies shall oe due and payable
immediately upon receipt of such notice by Grantee Notwithstanding the preceding,the
City reserves any and all legal rights and remedies it may have with regard to recapture of
ail or any portion of the Funds or any assets acquired or improved in whole or in part with
said Funds
10.2 Termination for Cause: Notwithstanding Subsection 10.1 above. tate City may also
terminate this Agreement for cause. "Cause" shall include. but not be limited to. ire
following:
a Failure to comply and/or perform,in accordance with the terms of this Agreement,or
any Feeerai, State,County or City law, or regulation
b Submitting reports to the City which are late. incorrect,or Incomplete in any material
respect.
c implementation of this Agreement, for any reason, is rendered impossible or
Infeasible
d Failure to respond in writing to any concerns raised by the City, including
substantiating documents when required/requested by the City
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e Any evidence of fraud, mismanagement. andior waste, as determined by inn.
monitoring and applicable HUD rules and regulations.
The City shall notify the Grantee in 'writing when the Grantee has beers placed in
default. Such notification shall include (I)actions taken by or to oe taken by the City.such
as withholding of payments;or)actions to be taken by the Grantee as a concrt+nn precedent
to curing the default,if epp+cable and(iii)a reasonable cure period.which shall be no less
than thirty(30)days from notification date with respect to Subsections 10.2(a),(b).and Io)
• In the event the Grantee fails to cure a default under Subsections 10.2(a), (5), and (d)
within the aforestated cure period. this Agreement shag be considered terminated ter
cause,without requiring further notice to Grantee
Notwithstanding the foregoing, with respect to Subsection 10 2 (c) and (e) the
termination for caeso, as described in this section, shall be effective upon receipt of the
termination notice.without the opportunity to cure said default
Addit!orsIly, if Grantee has committed similar defaults under Subsections 10 2(a).
(h) and lid). on two or more occasions during the terns of the Agreement, the terms na:ion
for cause. as described in this section, shall be effective as of the date the second notice
is sent to Grantee by the City, without the opportunity to cure said default.
Grantee shall be solely responsible for repayment to the City of all or any portion of
the Funds disoursed to Grantee,as deemed required by the City,in its sole and reasonable
discretion Said monies shalt be immediately due and payable by Grantee-
Notwithstanding the preceding, the City reserves any and all legal rights and remedies it
may have with regard to recapture of all or any portion of the Funds or any assets acquired
or improved in whole or in part with sa;d Funds.
10.3 Termination for Lack of Funds: In the event of curtailment of, or regulatory
constraints placed on the Funds by HUD.this Agreement will terminate,effective as of the
time that it is determined by the City Manager that such Funds are no longer available.
Costs of the Grantee incurred alter terminatibr. are not allowable unless expressly
authorized in writing by the City Manager (whether in the notice of termination or
subsequent thereto), and. in that case. may only be allowable if. in the sole discretion o'•
the City Manager
a The, costs resulted from obligations which were properly incurred before the
effective date of termination, were not in anticipation of it and are noncancelable,
and
b. The costs would be allowable if the Agreement expired normally at the end of its
lean
10.4 Interest and Collection Costs. Any payment made by Grantee after seven(7)days
from the due date shaft accrue interest at the rate of twelve percent (12%) per annum
("Default tnterest") In addition to the Default Interest Grantee shall pay the City all costs
and reasonable attorney's fees incurred by the City in connection with the enforcement of
this Agreement.
Section 11. Equal Employment Opportunities/No Discrimination: In compliance with 2 CFR 200,
Appendix II: Except as otherwise provided under 41 CFR Part 60. all contracts that meet
the definition of 'federally assisted construction contract- in 41 CFR Part 60-1.3 must
include the equal opportunity clause provided under 41 CFR 60-1 4(b), in accordance with
Executive Order 11246, "Equal Employment Opportunity' (30 FR 12319. 12935, 3 CFR
Part, 1964-1905 Comp, p. 339), as amended by Executive Order 11375, "Amending
Executive Order 11246 Relating to Equal Employment Opportunity," and implementing
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regulations at 41 CFR Part 60, 'Office of Federal Contract Compliance Programs, equal
Emproymeru Opportunity Department of Labor'
Unless otherwise required by applicable laws, in connection with performance of the
Services the Grantee shalt not exclude from participation in, deny the benefits of. or
subject to discrimination anyone on the grounds of race, color, national origin, sex. age,
disability,religion.income or family status
Additionally, Grantee shall comply with the City of Miami Beach Human t?ighis Ordinance,
Codified in Chapter 62 of the City Code as may be amended from time to time, prohibiting
discrimination in the employment,housing,public accommodations,or public services. on
the basis of actual or perceived race, color, national organ, religion, sex. intersexuality.
sexual orientation gender identity,familial and marital status age.ancestry,height,weight
domestic partner status. tabor organization membership. familial situation, political
affiliation, or disability
Section 12. Program Income: The use of program income by the Grantee shall comply witn the
requirements set forth at 24 CFR 570 504. By way of further limitations. the Grantee may
use Such income during the contract period for activities permitted unoer this contract
Section 13. Religious Organization or Owned Property: (Intentionally Omitted)
Section 14. Reversion of Assets: In the event of a termination of this Agreement,or upon expiration
of the Agreement, and in addition to any and all other remedies available to the City
(whether under Ibis Agreement, or at law or in equity), the Grantee shall immediately
transfer to the City any Funds on hand at the time of termination (or expiration)and any
accounts receivable attributable to the use of CDBG-CV Funds. The City's receipt of arty
Funds on stand at the time of termination, shall not waive the City's right (nor excuse
Grantee's obligation) to recoup all or any portion of the Funds, as the City may deer~
necessary
Additionally, in the event that Grantee fails to comply with the requirements of the
Program, as more particularly described in Exhibits "A" and "B", Grantee shall be
required to repay the City all of the Funds paid to Grantee, such sums shall be due
and payable immediately,upon demand.
Section 15. Conformity to HUD regulations: The Grantee agrees to abide by guidelines Set forth by
HUD for the administration and implementation of the CD8G-CV Program, including
applicable Uniform Administrative Requirements set forth in 24 CFR 570.502,as amended
by 2 CFR 200 and applicable Federal laws and regulations in 24 CFR 570 000.et seq.as
now in effect and as may be amended from time to time.in this regard, the Grantee agrees
that duly author zed representatives Of HUD shall have access to any books.documents
papers and records of the Grantee that are directly pertinent to this Agreement for the
purpose of making audits. examinations,excerpts and transcriptions.
a. Subpart A-"Acronyms and Definitions"
b Subpart B-General Provisions
c. Subpart C-"Pre-Federal Award Requirements and Contents of Federal Awards"
d Subpart D - 'Post-Federal Award Requirements", except for 200.305, 200 306,
200.307, 200.308. 200.311 as detailed below.
1) "Payment' is modified for lump sum drawdown for financing of property
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rehabilitation activities,in accordance with 570.513.
2) "Program Income"is governed by 579 504
3) "Reai Property"does riot apply•except as erovided in 570.200(j). Real property is
governed by§570.505
4) "Equipment"CDBG-CV Grantees shall follow Section 200.313, except that when
the equipment is sold. the proceeds shall be program income Equipment not
needed by the Grantee for CDBG-CV activates shall be Iransferred to the recipient
for the CDBG-CV program or sharl be retained after compensating the recipient
5) Section 200.333"Retention requirements for recorc5• applies except that
For Grantees
i. The retention period for individual CDBG-CV aetiveres shalt be the longer
of five (5) years after lite expiration or termination of the Grantee
agreement under§ 570.503, or five (5) years after the suemissinn or the
annual performance and evaluation report, as prescribed in § 91 520 of
this title. n which the specific activity is reported on for the final time.
ri. Records for individual activities subject to the reversion of assets
provisions at § 570.503tb)(7) or change of .use provisions at § 570 505
must be maintained for as long as those provisions continue to apply to
the activity: and
iii, Records for indivrduai activities for which there are outstanding roar.
balances,otner receivables.or Contingent liabilities must he retained until
such receivables or liabilities have been satisfied
Section 16. Section 200 343`Closeout"
City will close-out the Federal award when it determines that all applicable administrative
actions and alt required work of the Federal award nave been completed py the Grantee
The following actiors must take place to complete this process at the end of the Term.
a. The Grantee must submit, no later than 90 calendar days after the end date of
the Term, all financier, accomplishment, performance, and other reports as
required by the terms and conditions of this Agreement City may approve
extensions when requested by the Grantee
b. Unless City authorizes an extension, Grantee must liquidate all obligations
incurred under this Agreement no later than 90 calendar days after the end date
of the Term as specified in the terms and conditions of this Agreement.
c. City must make prompt payments to the Grantee for aliowabte reimbursable
costs under this Agreement prior to being closeout.
d Grantee must promptly refund any balances of unobtigated cash that City pare
in advance or paid and that are not authorized to be retained by the Grantee for
use in other projects.See OMB Circular.A-129 and see§200.345 Collection of
amounts due, for requirements regarding unreturned amounts that become
delinquent debts
e. Consistent wlt'r the terms and conditions of the Agreement, City must make a
settlement for any upward br dbwnward adjustments to the Federal share of
costs after closeout reports are received.
f. Grantee must account for any real and personal property acquired with Federal
funds or received from the Federal Government in accordance with 0200 310
Insurance coverage through 200 316 Property Trust Relationship and 200.329
B
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Reporting on Real Property.
g City should cornotete all closeout actions for Federal awards no rater Than one
year after receipt and acceptance of all required final reports.
Section 17. Examination of Records: the Grantee snail marreairi sufficient records rr.accordance
with 24 CFR 570 502, 570.503(b){2) and 570 506 to determine compilance with the
requirements of this Agreement. the CDBG-CV Program,and all other applicable laws
and regulations This documentation shall include, but not be limited to.the folio'wing•
a Books,records and documents in accordance with generally accepted accounting
orincioles, procedures and practices. which sufficiently and properly reflect ati
revenues and expenditures of funds provided directly or indirectly by t`is
Agreement, including matching funds and Program Income. These records shall
be maintained to the extent of such detail as will properly reflect all net costs,direct
and indirect labor, materials, equipment, supplies and services, and other costs
and expenses of whatever nature for which reimbursement is c:auned unser the
provisions of this Agreement:
b. Time sheets for employees related to the Employee Retention Requirement: anc
c How the Statutory National Objective(s) as defined in 24 CFR 570.208 and trie
eligibility requrrement(s)under winch funding has been received, nave been met
These also include special requirements such as necessary and appropriate
determinations as defined in 24 CFR 570 209, income certifications, and wntteri
Agreements with Grantees, where applicable
The Grantee is responsible for maintaining and storing alt records pertinent to this
Agreement in an orderly fashion in a readily accessible, permanent and secured
location for a period of five (5) years after expiration of this Agreoreenl, with the
following exception if any litigation,claim or audit is started before the expiration dale
of the rove (5)year period, the records wilt be maintained until all litigation, claims or
audit findings involving these records are resolved.The City shall be informed in writing
after closeout of this Agreement,of the address where the records are to be kepi
Section 18, Audits and Inspections:
18.1 At any time during normal business hours,and as often as the City(artdlor
its representatives)may deem necessary the Grantee shall make available all recoros,
documentation, and any other data relating to all matters covered by the Agreement,
for review, inspection or audit
if this Agreement is closed•out prior to the receipt of art audit report, the City reserves
the right to recover any disallowed costs identified in an audit after s.icn closeout.
18.2 Inspector General Audit Rights.
a Pursuant to Section 2-256 of the Code of the City of Miami Beach, the City has
established the Office of the Inspector General which may, on a random basis,
perform reviews, audits, inspections and investigations on all City contracts.
throughout the duration of said contracts. This random audit is separate and
distinct from any other audit performed by or on behalf of the City
b The Office of the Inspector General is authorized to investigate City affairs and
empowered to review past, present and proposed City programs, accounts.
records, contracts and transactions. In addition, Lie Inspector General has the
power to subpoena witnesses, administer oaths, require the production of
witnesses and monitor City projects and programs. Monitoring of an existing City
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project or proctrare may include a report concerning whether the project:S On 1:me,
widen budget and in conformance with the contract documents and applicaote law.
The Inspector General shall have the power to audit,investigate.monitor.oversee,
inspect and review operations, activities. performance and procure+neni process
including but not limited to project design, bid specifications, (bid proposal)
submittals,activities of the Grantee, its officers.agents and employees,lObbysts,
City staff and elected officials tc ensure compliance with The contract documents
anc to detect fraud one corruption Pursuant to Section 2-378 of the City Code
the C,ty is allocating a percentage of its overall annual contract expenditures to
fund the activities and operations of the Office of Inspector General.
c. Upon ten (10) days written notice to the Grantee, the Grantee shall make all
requested records and documents available to ire Inspector General for inspection
and copying. The Insaector General is empowered to retain the services of
independent private sector auditors to acme,investigate,monitor oversee,inspect
and review operations activities, performance and procurement process including
but riot limited to project design, bid speci9cations, (bid/proposal) submittals,
activities of the Grantee its officers. agents and employees, roObyists. City staff
and elected officials to ensure compliance with the contract documents and to
detect fraud and corruption.
d The Inspector General Shall have the right to inspect and copy all documents and
records in the Grantee's possession, custody or control which in the Inspector
General's soie judgment, pertain to performance of the contract, including, but not
limited to original estimate files,change order estimate files,worksheets.proposals
and agreements from and with successful subcontractors and suppliers.all prolect-
related correspondence, memoranda, ir'Structions, financial documents
construction documents, (hid/proposal) and contract documents, back-change
documents, all documents and records which involve cash. trade or volume
discounts, insurance proceeds. rebates, or dividends received, payroll and
personnel records and supporting documentation for the aforesaid documents and
records.
e. The Grantee shall make available at its office at all reasonable times the records,
materials, and other evidence regarding the acquisrtioe (Old preparation) and
performance of this Agreement, for examination,audit,or reproduction,until three
(3)years after final payment under this Agreement or for any longer period required
by statute or by other clauses of this Agreement. In addition
If this Agreement is completely or partially terminated, tee Grantee shall
make available records relating to the work terminated until tnree(3)years
after any resulting final termination settlement;and
ii. The Grantee shall make availeate records relating to appeals or to
litigation or the settlement of claims arising under or relating to this
Agreement until such appeals. litigation,or claims are trnaliy resolved.
f, The provisions in this section shall apply to the Grantee, its officers, agents.
employees, subcontractors and suppliers The Grantee shall incorporate the
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orovisions in this section in all subcontracts anc ail other agreements executea try
the Grantee in connection with the performance.of this Agreement
g. Nothing in this section shall impair any ,'/dependent right to the City to conduct
audits or investigative activities.The provisions of iNs section are neither•ntendeo
nor snail they oe construed to impose any liability on tee City by the Grantee or
third parties.
Section 19. Indemnification/Requirements:The Grantee shall indemnify and ho:d harmless the City.
its officers, employees and agents. from any and all clads, liability, losses and causes of
action which may arise out of an act.omission,negligence or misconduct on the part of the
Grantee. or any of its agents officers.servants.employees contractors patrons. guests,
clients, licensees, invitees, or any persons acting under the direction. control or
supervision of Grantee,pursuant to this Agreement and/or the Program The Grantee shall
pay all claims and losses of any nature whatsoever in connection therewith and shall
defend all suits in the name of the City, and shall pay all costs(inducing attorney's fees)
ano judgements ..vhfch may issue thereon. rf'rs Indemnification shall survive the
termination and/or expiration of this Agreement
Section 20. Conflict of Interest: The Grantee covenants that no person unoer its enoloy who
presently exercises any functions or responsibilities ir, connection with Community
Development Block Grant-Coronavirus (CDBG••CV) funded activities has any personal
financial interests,direct or indirect,in this Agreement, The Grantee covenants that in Inc
performance of this Agreement, no person having such conflicting interest shall he
employed. The Grantee covenants that it will comply with ali provisions of 24 CFR 570 611
"Conflict of Interest', and State. County and City of Miami Beach statutes, regulations.
ordinances or resolutions governing conflicts of interest. The Grantee shall disclose in
writing, to the City any possible conflicting interest or apparent impropriety that is covered
by the above provisions This disclosure shall occur immediately upon.knowledge of such
possible Conflict. The City will then render an opinion, which shall be oinding on both
parties
Section 21. Venue: This Agreement shall be governed by,and construed in accordance with,the laws
of the State of Florida,both substantive and remedial.without regard to principles of conflict
of laws. The exclusive venue for any litigation arising out of this Agreement shall be
Miami-Dade County,Florida, in State court,and the 1).S District Court, Southern District
of Florida, if in Federal court BY ENTERING INTO THIS AGREEMENT, CITY AND
GRANTEE EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL
BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS
AGREEMENT
Section 22. Notices: AO notices required under this Agreement shall be sent to the parties at :he
following address
City: Economic Development Oi'ector
City of Miami Beach
1700 Cnnventon Center Drive
Miami Beach, FL 33'39
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With copy to: City Manager
City of Miami Beach
1100 Convention Center Drive
Miami Beach,FL 33;39
Grantee: Steven Mellinger
Mellinger Enterprises Inc DBA Sky&Nails Spa
1611 Altar Road
Miami Beach. Florida. 331.39
In the event that the Grantee cnanges the above retereneed business officer during lhr:
term of the Agreeiner.t such change must be r,ah4;ed in writing to the City:vithin 15 clays
of such change.
Section 23. Limitation of Liability: The City desires to enter into this Agreement only:f in so doing the
City can place a limit on City's liability for any cause of action for money damages due to
an alleged breach by tyre City of this Agreement so that its liability for any such bread:
never exceeds the sum of$5,000 Grantee hereby expresses its wiitrrtggess to enter trio
this Agreement with Grantee's recovery from the City for any damage action for breach of
contract to he limited to a maximum amount of$5,000
Accordingly,Grantee hereby agrees that the City shall not be liable to Grantee for damages
in an amount in exi:ess of$5,001),for any actior or claim for breach of contract arising out
of the performance or nonperformance of any obligations imposed upon the City by this
Agreement. Nothing contained in this subparagraph or elsewhere in this Agreement is in
arty way intended to be a waiver of the linntaticn planed upon City's liability as set forth in
Florida Statutes, Section 768.28.
Section 24. Florida Public Records Law:
a. Grantee shalt comply with Florida Public Records law under Chapter 119, Florida
Statutes,as may he amended from time to lime
b The term "public records' shall have the meaning set forth in Section 119.011(12),
which means ail documents,papers, letters, maps, books, tapes, photographs, fiiros
sound recordings data processing software, or other material, regardless of the
physical form,characteristics,or means of transmission.mace or received pursuant to
law or ordinance or;n connection with the transaction of official bsiness of the City
c Pursuant to Section 119.0701 of the Florida Statutes, if the Grantee meets the
definition of"Contractor"as defined in Section 419 11701(1)(a). the Grantee shall
1) Keep and maintain-public records required by the City to perform the service
2) Upon reouest from the City's custodian of public records, provide the City with a
copy of the requested records or allow the records to be inspected or copied within
reasonable time at a cast that does not exceed the cost provided in Chapter 1 19,
Florida Statutes or as otherwise pro.'iued Jy law
3) Ensure Mat public records that are exempt or confidential and exempt from oubiic
records disclosure requirements are not disclosed, except as authorized by law,
for the duration of the contract term and following completion of the Agreement;f
DocuSign Envelope ID:4E2482F9-1 D9D-4A22-8A17-6FF0DDA26533
the Gran•.ee does not transfer the records to the City
4) Upon con:ptetter of the Agreement, transfer at no cost to the City all puolic
records in possession of the Grantee or Keep ano maintain pubic'ecords required
by the City to perform the service If the Grantee transfers all public records to the
City upon completion of the Agreement. the Grantee shall destroy any duplicate
pubiic records that are exempt or confidential and exempt from public records
disclosure requirements. If the Grantee keeps and maintains pubic records upon
completion o:the Agreement, the Grantee shall meet all applicable regairoments
for retaining pubiic records Alt records stored electronically must be provided to
Ine City,upon request from the City's custodian of public records. it a format tnat
is compatible cairn the information technology systems of the City
n. Request for Records Noncompliance
1) A request to inspect or copy public records relating to the City's contract for
Services must be made directly to the City If the City does not possess :he
requested records, the City sh5li immediately notify the Grantee of the request,
and the Grantee must provide the records to the City or allow the records to be
inspected or copied within a reasonable time
2) Grantees 'allure to comply with the City s request for recores snail constitute a
breach of this Agreement. and the City, at its seie discretion, may. (i) uniiateraity
terminate the Agreement: fn) avail itself of the remedies set forth under the
Agreement.and/or Olt avail itself o:any available remedies at law or in equity
3) A Grantee who fails to provide the public records to the City within a rcasonaale
time may be subject to penalties under s. 119.10
e. Civil Action ,
1) If a civil action is filed against a Grantee to compel productnon of eubiic records
relating to the City's contract for services,the court shalt assess and award against
the Grantee the reasonable costs of enforcement.including reasonable attorneys'
fees, if.
I. The court determines that the Grantee unlawfully refused to comply with the
•
public records request within a reasonable time: and
it At least 8 business days before tiling the action, the olaint0 provided written
notice of the public records request, including a statement that the Grantee
ries not complied with the request,to the City and to the Grantee
2) A notice complies with subparagraph (1)(ii) if it is sent to the City's custodian of
public recores and to the Grantee at the Gra.ntee's address listed or As contra
:t
with the City or to the Grantee's registered agent. Such notices must be sent by
common carrier delivery service or by registered, Global Express Guaranteed, or
certified mail, with postage or shipping paid by the sender and with evidence of
•
delivery,which may be in an electronic format.
3) A Grantee who complies with a public records request within&business days after
the notice Is sent is not liable for the reasonable costs of enforcement.
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f. IF THE GRANTEE HAS QUESTIONS REGARDING THE
APPLICATION OF CHAPTER 119, FLORIDA STATUTES,
TO THE GRANTEE'S DUTY TO PROVIDE PUBLIC
RECORDS RELATING TO THIS AGREEMENT, CONTACT
THE CUSTODIAN OF PUBLIC RECORDS AT:
CITY OF MIAMI BEACH
ATTENTION: RAFAEL E. GRANADO, CITY CLERK
1700 CONVENTION CENTER DRIVE
MIAMI BEACH, FLORIDA 33139
E-MAIL: RAFAELGRANADO@MIAMIBEACHFL.GOV
PHONE: 305-673-7411
Section 25 This Agreen;enl shall be bincinq upon all parties hereto and !her respective heirs,
executors.administrators successors and assigns.
[SIGNATURES TO FOLLOW)
•
DocuSign Envelope ID:4E2482F9-1 D9D-4A22-8A17-6FF0DDA26533
•
IN WITNESS WHEREOF,t-ics earths rrrreto nave caused this Ag•eerne:+t to oe e,ut uted oy their
truly aithorized off,cials or,the day and date first anove md:cated '
a°t#4'r'Zeti., ANDREINA V!LORIO
CommisslonrGG29f682 MELLINGER ENTERPRISES INC dlb:a SKY S
Expve9 Oerzmber 4,2022 NAILS SPA OF SOUTH BEACH
�`Q•��ne' O..4W rhN(A7=1\11ary 5ar4:et
a Florida for profit corporation
ATTEST lr / /
Secretary r. attire
Pro(Na ne P•int Name and Title J
)CIn
Date
CITY OF MIAMI BEACH,FLORIDA •
a Florida munic,pal corporation
ATTEST
CDocuSigned by:
gafta arelJA40
74A05U13ADDC4B5..._ .._ -
Sigrature Signature
Rafael E.Grana o.C!ty_cierk ,-- Dan Gelber Mayor ---
Print Name Print Name
1/15/2021 1 3:29 PM EST
Date -_ --------- —..
Df101l� U
Of�ti1 Jr;f` UAE
CLITION
+ly Aaernev r401
1
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DocuSign Envelope ID:4E2482F9-1 D9D-4A22-8A17-6FF0DDA26533
•
EXHIBIT"A"
"SCOPE OF SERVICES"
Statement of Work: Miami Beach Small Business COVID-19 Relief Program
In compliance with 24 CFR 570.503(l)(1), Grantee agrees toprovide the following.
Grantee Name: MELLINGER ENTERPRISES INC OBA SKY S NAILS SPA
Federal Award
Identification:
DUNS Number: ; 1,b5 P, s
Federal Award: 1 FY 2020 CDBG-CV Funds
Subaward Period of Retroactive to August 2020-September 30, 2021
Performance: t
Budget: _--___i•$10,000.00 -- ---- ------�
' Total Amount of
Federal Funds 810.000 00
Obligated:.
Federal Awarding U.S.Department of Housing and Uroan Development(HUD)
Agency:
Pass-through Entity: City of Miami Beach -Department of Economic Development
Reports Due: f Prior to the 10P'of every month starting the month after contract execution.
• Progress
• Accomplishments
• Financial
Limited Clientele: -i At least one employee must oualify as low- to moaerate-income clientele
_ es_proven by the income eualitcations.
Service Location: Miami Beach --
Program Miami Beach Small Business COvID•19 Relief Program activities.including
_� employment of one Calm-income Miami Beach ernployee_
Deliverables: • Quarterly reporting
Benchmarks: 1 • Emeloyment and or retention of at least one(1)qualified employee
The Grantee is a Miami Beach-based small business of no more than five(5)employees.
Quarterly Disbursement Request, G,antee may request reimbursement of"qualified business expenses",
as defined herein, in an amount of up to the Grant Amount of S10,000: by submitting detailed expense
records ane± the required e.ocumentation listed in Exhibit 'i3' Grantee may submit multiple receipts for
reimbursements,up to the Grant Amount. As referred to herein,'quaiifled business expenses"shall mean
any operational costs such as payrotl, utilities, rents, or mortgage interest (for business accounts in
existence as of at least February 1, 2020), etc. and/or COVID-1 g related expenditures Only those
expenses which have occurred after Grantee was selected in the lottery are eligible for reimbursement.The
City will issue payment to Grantee within thirty(30) days from the date the City receives the required
documentation to verify that the expenses requested are eligible for reimbursement under the Program.
Employee Status and Retention Requirement. As consideration for receipt of the Grant Amount, Grantee
agrees, to hire and/or retain a qualified employee. as defined herein, continuously. eurng the 12-month
Compliance Period.If Grantee already employs a qualified employee at the time of expense reimbursement.
Grantee must submit required employee documentation with the Quarterly disbursement request
Otherwise, within three (3) months following reimbursement, Grantee must create a lob for a qualified
employee and submit the required employee documentation. The 12-month Compliance Period beg,ns
only upon the City's verification of employment of the qualified employee. A Qualified employee, as
referenced herein shall mean a fulutime employee who'osides in Miami Beach and whose household earns
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at or under 60%AMI A qualified employee!s considered a hal-tune employee if retained at 40 hours per
week, or any combination of part-time positions combining for 40 hours per week The employee must be
a U.S.citizen or legal resident, and the employee must also reside in the City of Miami Beach
Low Income Employee.HUD's income tim is are based on Median Family Income estimates and Fair Market
Rent area definitions for the Miami-Dade County metropoirtan area Low eicome is defined as earning 80%
of the median family income for Miami-Dade County. The 2020 income limas applicable Fe- the household
of the employee of the applicant business are:
Household
Size 1-Parson 2-Person ' 3•Porson 4•Person 5-Person 5-Person 7-Person B•Porson
1r:co.'ne j $51,200 $58,500 $65.900 $73,100 578.950 $84.800 S00$50 596,500
(dC°,tins,! f I
At the conclusion of the 12-month Qualification Period, the business must verify compliance by submitting
payroll documentation, If Grantee is unable to prove compliance then Grantee shalt repay the Funds to
the City. immediately. upon receiving a demand for payment. Grantee wilt not be require: to repay ;he
Funds to the City, if me Grantee, throughout the Compliance Period retains or creates one (1) full-tine
employee that resides in a low-income City of Miami Beach household
Duplication of Benefits. to comply with HUD regulations, the City shall require the Grantee to complete a
Duplication of Benefits form, a copy of which is incorporated herein by reference and attacned hereto as
Exhibit A-1,as a method of assessing whether the use of CDBG-CV funds will duplicate financial assistance
that is already received or is likely to be received for COViD-19 related losses By accepting these CDBG-
CV Funds,Grantee agrees to repay any portion of the Funds-determined by the City to be dupiicat ve Funds
Applicable Rules and Regulations
1. Environmental Review:
In compt<ance with 24 CFR 570.604 Environmental Standards, the City is responsible for undertaking
Environmental Reviews in accordance with the requirements imposed on 'recipients-In 24 CFR 58
The Program is an Economic development activity. and therefore; it falls under Categorically
Excluded Activity not subject to 24 CFR 58.5 Pursuant to 24 CFR 58 350){4) that stales that the
Program is a categorically excluded activity tnet would not alter any conditions that would reciter') a
review or compliance determination under the Federal laws and authorities Oleic it §58.5.
2. Compliance with National Obiective
At least 51%of the City's Program Grantees must be low-to moderate-income indrviduais,therefore.
each Grantee is responsible for employing and/or retaining at least one (1) law-income qualified
employee during the Quelif+cation Period
income Verification
Grantee will follow the guidelines provided by 24 CFR Part 5 609 Annual Income to ensure eligibility
of Program participants, maintain evidence that activit•es assisted with CDBG-CV funds comply with
the primary ,National Objective, "Benefit to Low- and Moderate- Income Persons" and provide
services or activities that benefit at least 51% low- and moderate-income persons A tow- or
moderate-income household is defined as a household having an income equal to or less than the
limits cited below based on the unit size.
The City recommends using the CDP Income Eligibility Calculator provided at
httpseevww.hudexchange.info/incomecafculaiort 10 determine Household eligibility. This form
contains all the required certifications and warnings It shou•d be noted that the City does not allow
the use of a self-certification approach to income documenta ken
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Low Income Hooseholti Limits
HUD Low-Income(80%of Medan Income)for f Y2020
'nousenala 1-Person 2-Person 3-Person 4-Person S-Person 6-Person 7-Person 8-Person
Sae
yieob-e• $51,200 558.500 $65,300 $$$73.100 $78,950 $84 800 ; $90,650 $9,6.500
3. Evaluation
In its continuing effort to ensure contract compliance and performance, the City will evaluate the
Grantee in its fuifU Invent of the terms o{ this Agreement :nctucing, but not limited to, the fotiowing
measures
• Agreement compliance
▪ Accuracy and timeliness of Quarterly Reports
• Adherence to Program 1 melines anc Technical Assistance anti Grantee Instructions
. Fulfillment of prescribed outcomes
4. Monitorigy&Performance Reviews
In.compliance with 2 CFR 200 331(d)and(e), the City reserves the right to inspect, monitor anaror
audit,the Grantee, at least once a year, to ensure contractual compliance City writ notify Grantee a
minimum of three(3)business days prior to a monitoring visit
•
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DocuSign Envelope ID:4E2482F9-1 D9D-4A22-8A17-6FF0DDA26533
•
EXHIBIT"B"
"Documentation"
The Grentee agrees to prov•de the following documents as part of its reporting requirements
To document Employee Retention Requirement:
• Income Verification forms must include:
• Marne
• Date of birth
• Employee's Miami Beach address
• Cemograph,c information as required in the CDBG-CV income Verification Form
• Verify information on family size and income so that it is evident that the household's fam iy
income does not exceed the low and moderate income limit
• Annual incomes the gross amount of income anticipated by all ad,:its in a farntry di.nnc�
the 12 months following the effective date of the determination
To calculate annual income, the Grantee'may choose among definitions of income,
listed below:`towever the same income definition must 5e used for all Grantees.
r` Annual income as defined under the Section 8 Housing Ass!slance Payments
Program(24 CFR 5.8019).
Adjusted gross income as defined for purposes of reporting under IRS Form
1040(lona form)for Federal individual income tax purposes
• To determine if program applicants are income-eligible,Grantees have several options
a) Obtain evidence that the household/person assisted qualified under another
program having income oualifcattor criteria at least as restrictive as!hat used to
the det:nii,ons o1 I,MI household/person_ such as public housing ani welfare
prQgrtms; or
VI Obtain evidence that the assisted person is homeless.or
c) Obtain a verifiable certification from the assisted persor that his/her family
income coos not exceed the applicable income limit according to the definition
of income under 24 CFR 570.3.
Estimate the annual income of a family or househoid by projecting the
prevailing rate of income of each person at the time assistance is provided for
the Individual,family,or household(as apoticabte). Estimated annual income
shall include income from all family or household members,as applicable
1. Obtain verification of employment for each household member over the
age of 18 ay obtaining one of the following, as appropriate:
a Proof of entitlement payments, and/or
o Three (3) most current nay-stubs for those vino are emptoyee.
andior
c. Verification of Self-Employment Tax Deposits fp, those who are
self-employed
2 Obtain verification of financial assets for each household mernber over the
age of 18 obtaining,as applicable,the following documents:
a The last 30 days of saving account statements,
b The last 30 days of checking account statements:and
c. The last 30 days of mutual funds accounts
3 In the event that a household member over the age of 18 does not nave
employment or financial assets, he/she must complete and notarize ire
proper affidavits and submit with the aoplicatior,package.
• Any additional documents as requested by the Cty
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DocuSign Envelope ID:4E2482F9-1 D9D-4A22-8A17-6FF0DDA26533
To document expenses incurred:
Suoporting documents to be submitted wdn the Quarterly Report are as follows:
• Salary related expenses:
• Electronic payroll ledgers with corresponding bark transactions(statement)
• Cancelled checKs
• Form 941 -Employer's Quarterly Federal Tax Return
• Unemployment payment
• Any additror.al documents as requested by the City •
• Fringe Benefits related expenses:
• Bank statements
• Worker's Compensation invoice, policy and cancelled check
• Any additional documents as requested by the City
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DocuSign Envelope ID:4E2482F9-1 D9D-4A22-8A17-6FF0DDA26533
EXHIBIT"C"
"Financial Management"
To comply with Federal regulations,each program must have a financial nianegenient system teal provides
accurate. current and complete desctosure of the financial status of the activity This means the financiai
system must be Capable of generating regular financial status -epOrts which indicate the dollar amount
allocated for each activity{including any budget revisions),amount obligated(,_e.for which contract exists),
and the amount expended for each activity The system must permit the comparison of actual expencit'res
and revenues agaair.st budgeted amounts. The City must be able to isolate and to trace every CDBG-CV
dollar received and prove where it went and for what it was used.
The City is responsible for reviewing and certifying the financial management of any operating agency.
which is not a City department or bureau, in order to determine whether or not it meets air of tee above
requirements. If the agency's system does not rnee:these requirements and modifications are not possible,
the City must administer the COBG-CV funds for the operating agency
Support for Expenditures
Sufficient support for expenses depends on the type of expenditure including the following items
• Salaries-Shou;c be supported by proper documentation m,personnel flies of hire date,position,duties,
compensation, end raises will` effective date. termination date, and similar type inrormatior.. Non-
exempt employees are required by law to complete a timesheet showing number of hours they worked
during the day All employees pain in whole or in part from CDBG-CV funds should prepare a time
sheet indicating tate nours worked on CDBG-CV pr eects for each pay period Based on these time
sheets and the hourly payroll costs for each employee, a voucher statement indicating the distribution
of payroll charges should be prepared and placed in the appropriate files.)
• Employee Benefits -Should be supported by personnel policies and Procedures manual, describing
the types of benefits,eligibility and other relevant information,)
• Professional Services-Should be supported by a complete and signee copy of the contract between
the Grantee and the independent contractor, describing at the minimum, period of service. type of
service and method for payments, in addition to the invoice from the p^vete contractor.
• Purchases - At a minimum, purchases should be supported by a purchase order packing list and
vendor invoice Credit card statements, travel itineraries. vendor statements and similar items do not
represent support for an expense.
Records
Accounting records must be supported by source documentation Invoices. bilis of lad.ng, purchase
vouchers, payrolls and the like must be secured and retained for five (5)years in order to show for what
purpose funds were speht.Payments should not be made without invoices and vouchers physically in hand
A;l vouchersfinvo:ces should be on vendor's letterhead. Financial records are tc be retained for a period of
five(5)years, with access guaranteed to the City,to HUD or Treasury officials or their representative.
Audits
Grantee shall adhere to the following audit requirements
Audits for Federal Awards under$750,000 in a fiscal year,
If the Grantee expends less than$750,000 in the fiscal year in Federal awards it is exempted from Federal
audit requirements for that year and consequently the audit cost is not a reimbursable expense. The City,
however, may request the Grantee to have a limited scope audit for monitoring purposes These limited
scope audits will be paid for and arranged by the City and address only ore or more of the following types
of compliance requeoments: activities allowed or disallowed; allowable costsicost principles; eligibility,
matching, level of effort,earmarking;and,reporting.
All reports presented to the City shall, where applicable,include sufficient information to provide a proper
perspective for fudging the prevalence and consequences of the find.ngs such as whether an audit finding
represents an isolated instance or a systemic problem Where appropriate, instances ,denlified shall he
related to the universe and the number of cases examined and quantified in terms of dollar value
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DocuSign Envelope ID:4E2482F9-1 D9D-4A22-8A17-6FF0DDA26533
EXHIBIT"D"
"Quarterly Report Forms"
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