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COMMUNITY DEVELOPMENT BLOCK GRANT-CORONAVIRUS AGREEMENT
FOR THE CITY OF MIAMI BEACH EMERGENCY SMALL BUSINESS
REIMBURSEMENT GRANT PROGRAM (FISCAL YEAR 2021)
BETWEEN
THE CITY OF MIAMI BEACH
AND
ROCA BEAUTY LOUNGE, INC
This Agreement made and entered into this 5 day of DECEMBER 2022, 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") ROCA BEAUTY LOUNGE, INC, a Florida corporation having its principal
place of business at 1219 715tSt, Miami Beach, FL, 33141 (hereinafter referred to as"Grantee")
WHEREAS, on May 13, 2020, the City Commission approved Resolution No.
2020-31256, approving an initial allocation of Community Development Block Grant -
Coronavirus (CDBG-CV)funding to create the City's Small Business Assistance Program with
the principal goal of the program being to support and promote business longevity by retaining
or creating jobs; and
WHEREAS, on October 28, 2020, the City Commission adopted Resolution No.
2020-31471, approving the allocation of $900,000.00 for small business assistance through
receipt of additional CDBG-CV funding made available by the U.S. Department of Housing and
Urban Development (HUD); and
WHEREAS, the City Commission directed the Administration to utilize up to
$600,000.00 of the CDBG-CV funds for small business assistance grants in order to assist
qualified Miami Beach small businesses with an award of up to TWENTY THOUSAND
DOLLARS($20,000.00); and
WHEREAS, the Administration developed the Emergency Small Business
Reimbursement Grant Program(the"Program")to provide relief to eligible microenterprises and
small businesses; and
WHEREAS, Grantee applied for the Program and has been deemed an eligible
business, pending compliance with Program requirements and the receipt by the City of all
required documentation; 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—Required Employee and Expense Documentation
• Exhibit C- Financial Management for CDBG-CV funded activities
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• 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 physical 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 able to document compliance
with the terms of the Program during the Compliance Period, Grantee shall be
required to repay to the City all of the Funds received under this 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 Twenty
Thousand Dollars (20,000.00) for use by the Grantee during the Term of the
Agreement to be spent on any business operational costs such as payroll, utilities,
rents, or mortgage interest (for business accounts in existence as of October 1,
2020), etc. and/or eligible COVID-related expenditures. Grant money may only be
used to reimburse those eligible expenses which have occurred after October 1,
2020 (hereinafter, the aforestated amount including, without limitation, any
additional amounts included thereto as a result of a subsequent amendment(s)to
the Agreement, shall 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 judgment and discretion.
Section 5. Reporting Requirements and Method of Payment: In compliance with 24 CFR
570.503(b)(2), Exhibit B contains a checklist of backup documentation to be used
in fulfillment 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'h day following every quarter period. In 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 business expenses.The Quarterly Report must also specify whether
the Grantee is complying with the Job Creation/Employee Retention or
Microenterprise Requirement, including acknowledgement that the employee
qualifies as a low-income employee. Quarterly reports will be submitted via any of
the following methods:
• Standard mail
• Email
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Quarterly reports will not be considered acceptable unless the following is met:
• Forms are completely and accurately completed including draw number
• and submittal date
• Necessary back-up materials are included (as stated 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
required 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 from HUD 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 is determined by the City
Manager, in 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 this Agreement,
and the City shall be released from any further liability to Grantee under the terms
of this Agreement.
Section 7. Compliance with Local, State and Federal Regulations -The Grantee agrees
to comply with all applicable Federal regulations as they may apply to Program
administration as described in 24 CFR 570 and 2 CFR 200 and carry out each
activity in compliance with the laws and regulations as described in 24 CFR 570
Subpart K—Other Program Requirements, as same may be amended from time
to time. Additionally, the Grantee will comply with all State and local (City and
County)laws and ordinances hereto applicable. It shall be the Grantee's sole and
absolute responsibility to continually familiarize itself with any and all such
applicable Federal, State, County, and City regulations, laws, and/or ordinances.
Section 8. Assignment/Subcontract: No part of this Agreement may be assigned or
subcontracted 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 shall commence retroactively on October 1, 2020 and shall
terminate at such time as the City determines that Grantee has provided sufficient
documentation to establish compliance with all requirements for use of the Funds
following disbursement of Funds to the Grantee (the Term).
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Section 10. Termination of Agreement:
10.1 Termination for Convenience: This Agreement may be terminated by the
City,for convenience and without cause, through the City Manager, upon 30 days
prior written notice to Grantee. In the event of such termination for convenience,
the City shall retain any Funds which were not disbursed to Grantee before the
effective date of termination. Grantee shall be 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 report shall be due within 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(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 be
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 all 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, the City
may also terminate this Agreement for cause. "Cause" shall include, but not be
limited to,the following:
a. Failure to comply and/or perform, in accordance with the terms of this
Agreement, or any Federal, 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.
e. Any evidence of fraud, mismanagement, and/or waste, as determined by the
City's monitoring and applicable HUD rules and regulations.
The City shall notify the Grantee in writing when the Grantee has been placed
in default. Such notification shall include: (i)actions taken by or to be taken by the
City, such as withholding of payments; (ii)actions to be taken by the Grantee as a
condition precedent to curing the default, if applicable; 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 (d). In the event the Grantee fails to cure
a default under Subsections 10.2(a),(b),and(d)within the aforestated cure period,
this Agreement shall be considered terminated for cause,without requiring further
notice to Grantee.
Notwithstanding the foregoing, with respect to Subsection 10.2 (c) and (e),
the termination for cause, as described in this section, shall be effective upon
receipt of the termination notice,without the opportunity to cure said default.
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Additionally, if Grantee has committed similar defaults under Subsections
10.2(a), (b), and (d), on two or more occasions during the term of the Agreement,
the termination 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 disbursed to Grantee, as deemed required by the City, in its
sole and reasonable discretion. Said monies shall 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 said
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 after termination 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 of 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 Term.
10.4 Interest and Collection Costs: Any payment made by Grantee after seven
(7)days from the due date shall accrue interest at the rate of twelve percent(12%)
per annum ("Default Interest"). 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, 1964-1965 Comp., p. 339), as
amended by Executive Order 11375, "Amending Executive Order 11246 Relating
to Equal Employment Opportunity,"and implementing regulations at 41 CFR Part
60, "Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor."
Unless otherwise required by applicable laws, in connection with performance of
the Services,the Grantee shall 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.
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Additionally, Grantee shall comply with City of Miami Beach Human Rights
Ordinance as codified in Chapter 62 of the City Code, as may be amended from
time to time, prohibiting discrimination in employment (including independent
contractors), housing, public accommodations, public services, and in connection
with its membership or policies because of actual or perceived race, color,national
origin, religion, sex, intersexuality, gender identity, sexual orientation, marital and
familial status, age, disability, ancestry, height, weight, hair, texture and/or
hairstyle, domestic partner status, labor organization membership, familial
situation, or political affiliation.
Section 12. Program Income: The use of program income by the Grantee shall comply with
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
under 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 this 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 any Funds on hand 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 deem 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 CDBG-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 570.600, et seq. as now in effect and as may be amended from time to
time. In this regard, the Grantee agrees that duly authorized 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:
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1) "Payment" is modified for lump sum drawdown for financing of property
rehabilitation activities, in accordance with 570.513.
2) "Program Income" is governed by 570.504
3) "Real Property" does not apply, except as provided 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 activities shall be
transferred to the recipient for the CDBG-CV program or shall be retained
after compensating the recipient.
5) Section 200.333"Retention requirements for records"applies except that:
For Grantees:
i. The retention period for individual CDBG-CV activities shall be the
longer of five (5) years after the expiration or termination of the
Grantee agreement under § 570.503, or five (5) years after the
submission of the annual performance and evaluation report, as
prescribed in § 91.520 of this title, in which the specific activity is
reported on for the final time;
ii. Records for individual activities subject to the reversion of assets
provisions at § 570,503(b)(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 individual activities for which there are outstanding loan
balances, other receivables, or contingent liabilities must be
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 all required work of the Federal award have been
completed by the Grantee. The following actions 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 financial, 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 allowable
reimbursable costs under this Agreement prior to being closeout.
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d. Grantee must promptly refund any balances of unobligated cash that
City paid 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 with the terms and conditions of the Agreement, City must
make a settlement for any upward or downward 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 §§200.310 Insurance coverage through 200.316 Property Trust
Relationship and 200.329 Reporting on Real Property.
g. City should complete all closeout actions for Federal awards no later
than one year after receipt and acceptance of all required final reports.
Section 17. Examination of Records: The Grantee shall maintain sufficient records in
accordance with 24 CFR 570.502, 570.503(b)(2) and 570.506 to determine
compliance 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 following:
a. Books, records and documents in accordance with generally accepted
accounting principles, procedures and practices, which sufficiently and
properly reflect all revenues and expenditures of funds provided directly or
indirectly by this 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 claimed under the provisions
of this Agreement;
b. Time sheets for employees related to the Employee Retention
Requirement; and
c. How the Statutory National Objective(s)as defined in 24 CFR 570.208 and
the eligibility requirement(s)under which funding has been received, have
been met. These also include special requirements such as necessary and
appropriate determinations as defined in 24 CFR 570.209, income
certifications, and written Agreements with Grantees, where applicable.
The Grantee is responsible for maintaining and storing all 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 Agreement,
with the following exception: if any litigation, claim or audit is started before the
expiration date of the five (5) year period, the records will 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 kept.
Section 18. Audits and Inspections:
18.1 At any time during normal business hours, and as often as the City
(and/or its representatives) may deem necessary, the Grantee shall make
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available all records, 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 an audit report, the City
reserves the right to recover any disallowed costs identified in an audit after
such 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, the 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 project or program may include a report
concerning whether the project is on time, within budget and in
conformance with the contract documents and applicable law. The
Inspector General shall have the power to audit, investigate, monitor,
oversee, inspect and review operations, activities, performance and
procurement process including but not limited to project design, bid
specifications, (bid/proposal) submittals, activities of the Grantee, its
officers, agents and employees, lobbyists, City staff and elected officials to
ensure compliance with the contract documents and to detect fraud and
corruption. Pursuant to Section 2-378 of the City Code, the City 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 the Inspector General for
inspection and copying.The Inspector General is empowered to retain the
services of independent private sector auditors to audit, investigate,
monitor, oversee, inspect and review operations, activities, performance
and procurement process including but not limited to project design, bid
specifications, (bid/proposal) submittals, activities of the Grantee its
officers, agents and employees, lobbyists, City staff and elected officials to
ensure compliance with the contract documents and to detect fraud and
corruption.
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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 sole 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 project-related
correspondence, memoranda, instructions, financial documents,
construction documents, (bid/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 acquisition (bid
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:
i. If this Agreement is completely or partially terminated, the Grantee
shall make available records relating to the work terminated until
three(3)years after any resulting final termination settlement; and
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ii. The Grantee shall make available 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 finally
resolved.
f. The provisions in this section shall apply to the Grantee, its officers,agents,
employees, subcontractors and suppliers. The Grantee shall incorporate
the provisions in this section in all subcontracts and all other agreements
executed by the Grantee in connection with the performance of this
Agreement.
g. Nothing in this section shall impair any independent right to the City to
conduct audits or investigative activities. The provisions of this section are
neither intended nor shall they be construed to impose any liability on the
City by the Grantee or third parties.
Section 19.Indemnification/Requirements:The Grantee shall indemnify and hold harmless
the City,its officers,employees and agents,from any and all claims, 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
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name of the City,and shall pay all costs(including attorney's fees)and judgements
which may issue thereon. This Indemnification shall survive the termination and/or
expiration of this Agreement.
Section 20.Conflict of Interest:The Grantee covenants that no person under its employ who
presently exercises any functions or responsibilities in 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 the performance of this Agreement, no person having such
conflicting interest shall be employed. The Grantee covenants that it will comply
with all 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 binding 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, if in State court,and the U.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: All notices required under this Agreement shall be sent to the parties at
the following address:
City: Economic Development Director
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
With copy to: City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
Grantee: Rosalia Jones
Roca Beauty Lounge Inc
1219 71st St
Miami Beach, FL, 33141
In the event that the Grantee changes the above-referenced business officer
during the term of the Agreement, such change must be notified in writing to the
City within 15 days of such change.
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Section 23. Limitation of Liability:The City desires to enter into this Agreement only if 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 the City of this Agreement,so that its liability
for any such breach never exceeds the sum of $5,000.00. Grantee hereby
expresses its willingness to enter into this Agreement with Grantee's recovery from
the City for any damage action for breach of contract to be limited to a maximum
amount of$5,000.00.
Accordingly, Grantee hereby agrees that the City shall not be liable to Grantee for
damages in an amount in excess of$5,000.00, for any action 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 any way intended to be a waiver of the
limitation placed upon City's liability as set forth in Florida Statutes,Section 768.28.
Section 24.Florida Public Records Law:
a. Grantee shall comply with Florida Public Records law under Chapter 119,
Florida Statutes, as may be amended from time to time.
b. The term "public records" shall have the meaning set forth in Section
119.011(12),which means all documents, papers, letters, maps, books,tapes,
photographs, films, sound recordings, data processing software, or other
material, regardless of the physical form, characteristics, or means of
transmission, made or received pursuant to law or ordinance or in connection
with the transaction of official business 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 119.0701(1)(a), the Grantee
shall:
1) Keep and maintain public records required by the City to perform the
service;
2) Upon request 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 a reasonable time at a cost that does not exceed the cost
provided in Chapter 119, Florida Statutes or as otherwise provided by law;
3) Ensure that public records that are exempt or confidential and exempt from
public records disclosure requirements are not disclosed, except as
authorized by law, for the duration of the contract term and following
completion of the Agreement if the Grantee does not transfer the records
to the City;
4) Upon completion of the Agreement,transfer, at no cost to the City,all public
records in possession of the Grantee or keep and maintain public records
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 public records that are exempt or confidential and
exempt from public records disclosure requirements. If the Grantee keeps
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and maintains public records upon completion of the Agreement, the
Grantee shall meet all applicable requirements for retaining public records.
All records stored electronically must be provided to the City, upon request
from the City's custodian of public records, in a format that is compatible
with the information technology systems of the City.
d. 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
the requested records, the City shall 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) Grantee's failure to comply with the City's request for records shall
constitute a breach of this Agreement, and the City, at its sole discretion,
may:(i)unilaterally terminate the Agreement;(ii)avail itself of the remedies
set forth under the Agreement; and/or (iii) avail itself of any available
remedies at law or in equity.
3) A Grantee who fails to provide the public records to the City within a
reasonable 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 production of public
records relating to the City's contract for services, the court shall 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
ii. At least 8 business days before filing the action, the plaintiff provided
written notice of the public records request, including a statement that
the Grantee has 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 records and to the Grantee at the Grantee's address
listed on its contract 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 8 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@MIAMIBEACHFLGOV
PHONE: 305-673-7411
Section 25. This Agreement shall be binding upon all parties hereto and their respective heirs,
executors, administrators, successors and assigns.
[SIGNATURES TO FOLLOW]
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IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed
by their duly authorized officials on the day and date first above indicated.
ROCA BEAUTY LOUNGE, INC
a Florida corporation
ATTEST:
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Secretary Signature
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eP2. Icy JoNe- s L a Jones
Print Name Print Name and Title
/ill rs
Date //
CITY OF MIAMI BEACH, FLORIDA
a Florida municipal corporation
ATTEST:
DocuSigned by: r^1
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Signature = •nature
Rafael E. G ranado, City Clerk Alina Hudak, City Manager
12/5/2022 I 4:30 PM EST
Date
AR PROVED AS TO
FORM.S-LANGUAGE
O'NR EXECUTION
4L )-
CyAtzorney fditr Daze
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EXHIBIT"A"
"SCOPE OF SERVICES"
Statement of Work: Miami Beach Small Business COVID-19 Relief Program
In compliance with 24 CFR 570.503(b)(1), Grantee agrees to provide the following:
Grantee Name: Roca Beauty Lounge Inc
Federal Award
Identification:
DUNS Number: 113273708
Federal Award: FY 2020 CDBG-CV Funds
Subaward Period of Retroactive to October 1, 2020 — 12 months following
Performance: commencement of Compliance Period
Budget: $20,000.00
Total Amount of
Federal Funds $20,000.00
Obligated:
Federal Awarding U.S. Department of Housing and Urban Development(HUD)
Agency:
Pass-through Entity: City of Miami Beach—Department of Economic Development
Reports Due: Prior to the 10th of every month starting the month after contract
execution:
• Progress
• Accomplishments
• Financial
Limited Clientele: At least one employee must qualify as low— to moderate— income
clientele as proven by the income qualifications.
Service Location: Miami Beach
Program: Miami Beach Small Business COVID-19 Relief Program activities,
including employment of one(1)low-income Miami Beach employee
Deliverables: • Quarterly reporting
Benchmarks: • Employment and/or retention of at least one (1) qualified
employee or microenterprise owner
Quarterly Disbursement Request. Grantee may request reimbursement of "qualified business
expenses", as defined herein, in an amount of up to the Grant Amount of$20,000, by submitting
detailed expense records and the required documentation listed in Exhibit "B". Grantee may
submit multiple receipts for reimbursements, up to the Grant Amount. As referred to herein,
"qualified business expenses"shall mean any operational costs such as payroll, utilities, rents, or
mortgage interest(for business accounts in existence as of at least October 1, 2020), etc. and/or
COV1D-19 related expenditures. The City will issue payment to Grantee within thirty (30) days
from the date the City receives, in complete form, 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,during the 12-month
Compliance Period, under either one of two eligibility categories:
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Category A Criteria: Microenterprise.The Microenterprise must be located within the City
of Miami Beach. The Microenterprise business must have five (5) employees or less (a
"Microenterprise"is defined as a commercial enterprise that has five or fewer employees,
one or more of whom owns the enterprise). The household of the owner of the
Microenterprise business earns at or below 80% AMI and the owner does not need to be
paid as an employee or be included in the payroll register. As long as the Microenterprise
business is validly registered and based in the City of Miami Beach, the business qualifies
for Miami Beach residency and the business owner is not required to reside in the City of
Miami Beach. Before applying under Category A (Microenterprise), the business owner
MUST verify that the business owner meets the income requirement.
Category B Criteria: Small Business—Job Creation/Retention. The Small Business
must be located within the City of Miami Beach. The Small Business must have ten (10)
employees or less(a"Small Business" is defined as a commercial enterprise that has ten
or fewer employees.) To participate, the Small Business must have the ability to
retain/create one full time job, fora minimum of twelve(12)months, for an employee that
resides in a Miami Beach household earning no more than 80% area median income
(AM I).The retained or created fulltime job may be a combination of multiple part-time jobs.
Before applying under Category B - Job Creation/Retention, the business owner MUST
verify that it has an employee, or is reasonably able to hire an employee within 90 days
from receipt of funding, whose household meets this income requirement.
*Please see Program Terms below for explanation of 80%AMI.
Due Date for Employee Documentation. As indicated above, for Category A (Microenterprises),
evidence that the Grantee owner qualifies as a Microenterprise must be provided at the time of
application and for a"Compliance Period"of twelve(12)months commencing at award of Funds.
For Category B(Small Businesses), if Grantee already employs a qualified employee at the time
of application, award, and expense reimbursement, Grantee must submit required employee
documentation with the application and Quarterly disbursement request. Otherwise, for Small
Businesses qualifying under Category B (Small Businesses) without an existing qualified
employee,within ninety(90)days following receipt of reimbursement funds, Grantee must create
a job for a qualified employee and submit the required employee documentation.
Compliance Period. In order to satisfy the Program Requirement of job. creation/retention, the
twelve (12) month Compliance Period begins only upon the City's verification of employment of
the qualified employee:
o For a business retaining an existing qualified position, i.e. either the Microenterprise
business owner or a Small Business with an existing:qualified employee that will be
retained, the qualified position must be retained for a period of twelve (12) months
following initial receipt of reimbursement Funds(the Compliance Period).
o If a Small Business must create a qualified employee position in order to satisfy the
Program Requirement, the Small Business must create or fill the new employee
position within ninety(90)days from receipt of initial reimbursement Funds.The newly
created position must be in place for twelve (12) months following creation (the
Compliance Period).
For both Category A (Microenterprise) and Category B (Small Businesses), a "qualified
employee", as referenced herein, shall mean a fulltime employee that is a U.S. citizen or legal
resident and whose household earns at or under 80% AMI. In addition:
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o For Microenterprises, the qualified employee must be the business owner. For
Microenterprises only, the qualified employee (business owner) is NOT required to
reside in the City of Miami Beach.
o For Small Businesses, a qualified employee is considered a full-time employee if
retained at 40 hours per week, or any combination of part-time positions combining for
40 hours per week.
o For Small Businesses, 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 limits are based on Median Family Income estimates and
Fair Market Rent area definitions for the Miami-Dade County metropolitan area. Low income is
defined as earning 80% of the median family income for Miami-Dade County. The 2020 income
limits applicable for the household of the employee of the applicant business are:
Househol 1- 2- 3- 4- 5- 6- 7- 8-
d Size Perso Perso Perso Perso Perso Perso Perso Perso
n n n n n n n n
Low-
Income $51,20 $58,50 $65,80 $73,10 $78,95 $84,80 $90,65 $96,50
(80%) 0 0 0 0 0 0 0 0
AM I
At the conclusion of the 12-month Compliance Period, the business must verify compliance by
submitting payroll documentation. If Grantee is unable to prove compliance, then Grantee shall
repay the Funds to the City, immediately, upon receiving a demand for payment. Grantee will not
be required to repay the Funds to the City, if the Grantee, throughout the Compliance Period
retains or creates one (1) full-time 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
attached 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 duplicative Funds.
Applicable Rules and Regulations:
1. Environmental Review:
In compliance 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
58.35(b)(4) that states that the Program is a categorically excluded activity that would not
alter any conditions that would require a review or compliance determination under the
Federal laws and authorities cited in § 58.5.
2. Compliance with National Objective
At least 51% of the City's Program Grantees must be low-to moderate-income individuals,
therefore, each Grantee is responsible for employing and/or retaining at least one (1) low-
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income qualified employee during the Qualification Period or the microenterprise owner
must be a low-to moderate-income individual.
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 activities 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 low-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
https://www.hudexchange.info/incomecalculator/ to determine Household eligibility. This
form contains all the required certifications and warnings. It should be noted that the City
does not allow the use of a self-certification approach to income documentation.
Low-Income Household Limits
HUD Low-Income (80% of Median Income)for FY2020
Househol 1- 2- 3- 4- 5- 6- 7- 8-
d Size Perso Perso Perso Perso Perso Perso Perso Perso
n n n n n n n n
Low-
Income $51,20 $58,50 $65,80 $73,10 $78,95 $84,80 $90,65 $96,50
(80%) 0 0 0 0 0 0 0 0
AM I
3. Evaluation
In its continuing effort to ensure contract compliance and performance, the City will evaluate
the Grantee in its fulfillment of the terms of this Agreement including, but not limited to, the
following measures:
• Agreement compliance
• Accuracy and timeliness of Quarterly Reports
• Adherence to Program timelines and Technical Assistance and Grantee
Instructions
e Fulfillment of prescribed outcomes
4. Monitoring & Performance Reviews
In compliance with 2 CFR 200.331(d)and (e),the City reserves the right to inspect, monitor
and/or audit the Grantee, at least once a year, to ensure contractual compliance. City will
notify Grantee a minimum of three(3)business days prior to a monitoring visit.
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•
EXHIBIT"B"
"Documentation"
The Grantee agrees to provide the following documents as part of its reporting requirements:
To document Employee Retention or Microenterprise Requirements:
Income Verification forms must include:
o Name
o Date of birth
o Employee's Miami Beach address
o Demographic information as required in the CDBG-CV Income Verification Form
o Verify information on family size and income so that it is evident that the
household's family income does not exceed the low and moderate income limit.
• Annual income is the gross amount of income anticipated by all adults in a
family during the 12 months following the effective date of the determination.
To calculate annual income, the Grantee may choose among definitions of
income, listed below; however,the same income definition must be used for all
Grantees.
o Annual income as defined under the Section 8 Housing Assistance
Payments Program (24 CFR 5.609);
o Adjusted gross income as defined for purposes of reporting under IRS
Form 1040(long 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 qualification criteria at least as restrictive
as that used in the definitions of LMI household/person, such as public
housing and welfare programs; or
b) Obtain evidence that the assisted person is homeless; or
c) Obtain a verifiable certification from the assisted person that his/her
family income does not exceed the applicable income limit according to
the definition of income under 24 CFR 570.3:
o Estimate the annual income of a family or household by projecting the
prevailing rate of income of each person at the time assistance is
provided for the individual, family, or household (as applicable).
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 by obtaining one of the following, as appropriate:
a. Proof of entitlement payments; and/or
b. Three (3) most current pay-stubs for those who are
employed; and/or
c. Verification of Self-Employment Tax Deposits for those who
are self-employed.
2. Obtain verification of financial assets for each household member
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
have employment or financial assets, he/she must complete and
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notarize the proper affidavits and submit with the application
package.
• Any additional documents as requested by the City, including:
o City of Miami Beach 2021 Business Tax Receipt, in paid status
o City of Miami Beach 2020 Business Tax Receipt, reflecting that the busines was
or became operational prior to October 1, 2019
To document expenses incurred:
Supporting documents to be submitted with the Quarterly Report are as follows:
• Salary related expenses:
o Electronic payroll ledgers with corresponding bank transactions (statement)
o Cancelled checks(copy of both sides)
o Form 941 —Employer's Quarterly Federal Tax Return
o Unemployment payment
o Any additional documents as requested by the City
• Fringe Benefits related expenses:
o Bank statements, invoices, and OR proof of payment with back-up
documentation acceptable to the City
o Worker's Compensation invoice, policy and cancelled check
o Any additional documents as requested by the City
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EXHIBIT"C"
"Financial Management"
To comply with Federal regulations, each program must have a financial management system
that provides accurate, current and complete disclosure of the financial status of the activity. This
means the financial system must be capable of generating regular financial status reports which
indicate the dollar amount allocated for each activity (including any budget revisions), amount
obligated (i.e.,for which contract exists), and the amount expended for each activity.The system
must permit the comparison of actual expenditures and revenues against 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
all of the above requirements. If the agency's system does not meet these requirements and
modifications are not possible, the City must administer the CDBG-CV funds for the operating
agency.
Support for Expenditures
Sufficient support for expenses depends on the type of expenditure, including the following items:
• Salaries - Should be supported by proper documentation in personnel files of hire date,
position, duties, compensation, and raises with effective date, termination date, and similar
type information. Non-exempt employees are required by law to complete a timesheet
showing number of hours they worked during the day. All employees paid in whole or in part
from CDBG-CV funds should prepare a time sheet indicating the hours worked on CDBG-CV
projects 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 signed 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 private
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, bills of lading,
purchase vouchers, payrolls and the like must be secured and retained for five (5)years in order
to show for what purpose funds were spent. Payments should not be made without invoices and
vouchers physically in hand. All vouchers/invoices should be on vendor's letterhead. Financial
records are to 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
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for monitoring purposes. These limited scope audits will be paid for and arranged by the City and
address only one or more of the following types of compliance requirements: activities allowed or
disallowed; allowable costs/cost 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 judging the prevalence and consequences of the findings, such as
whether an audit finding represents an isolated instance or a systemic problem. Where
appropriate, instances identified shall be related to the universe and the number of cases
examined and quantified in terms of dollar value.
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EXHIBIT"D"
"Quarterly Report Forms"
24