HomeMy WebLinkAboutCedar Valley Techworks, Inc.-Grant Agreement-08.06.2007 8-L- 67
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AGREEMENT BETWEEN THE CITY OF WATERLOO
THROUGH THE
COMMUNITY DEVELOPMENT BOARD
AND
CEDAR VALLEY TECHWORKS, INC.
REHABILITATION
FOR THE USE OF
PROGRAM YEAR 2006
ECONOMIC DEVELOPMENT INITIATIVE FUNDS
THIS AGREEMENT, entered into this 1st day of July,2007,by and between the City of Waterloo
through the Community Development Board of Waterloo("City"), and Cedar Valley TechWorks,Inc.
("SUBRECIPIENT");
WHEREAS,the City is the RECIPIENT of Economic Development Initiative(EDI)funds granted by
the U.S. Department of Housing and Urban Development(HUD)Appropriation Act of 2006 (Public Law 109-
115); and
WHEREAS,the City wishes to utilize Economic Development Initiative(EDI)funds to assist the
SUBRECIPIENT in Rehabilitation of the Cedar Valley TechWorks facility(Building R)to house offices,a
laboratory and training space.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
PART I
1. PURPOSE AND SCOPE OF SERVICES:
The SUBRECIPIENT shall rehabilitate the Cedar Valley TechWorks facility(Building R)to house offices, a
laboratory and training space meeting the national objective of Economic Development, slum and blight.
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B. Development of architectural designs for the project shall be the responsibility of the SUBRECIPIENT,
subject to written concurrence by the City.
C. Upon request,the City shall provide technical assistance regarding bidding procedures and awarding of
subcontracts under this Agreement. The SUBRECIPIENT shall be responsible for all bidding
procedures and subcontractual arrangements. All procedures shall be carried out in accordance with all
federal, state and local standards, and shall be monitored by the City. SUBRECIPIENT shall submit
draft bid documents to the City for review and approval prior to requesting bids.
D. The Project shall be completed in compliance with all applicable state and local building codes; and
upon completion, shall be operated in compliance with all applicable state and local codes and
ordinances. The SUBRECIPIENT agrees the funds shall be used solely for the purpose of providing a
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rehabilitated facility as detailed in rail 1.1.f-.of this Agreement.
E. Within 30 days of this Agreement a mortgage will be recorded in the appropriate office of the Black
Hawk County Recorder for THREE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS
($350,000.00)for 15 years.
F. A 15-year forgivable mortgage will be placed on the property. If the property remains the Cedar Valley
TechWorks,Inc. facility for 15 years,the mortgage will be released and forgiven. However, if the
property is sold or not used for the stated purpose any time during the 15 years,the funds will be repaid
in full.
2. TIME OF PERFORMANCE:
The SUBRECIPIENT shall perform according to the following schedule:
A. Program Flement Deadline
1. Execute Contract for Project July 1,2007
2. Acquisition of Property(if applicable) N/A
3. Design and Engineering Tune 1 7007
4. Advertise for Construction Bids (if applicable) August 15, 2007
5. Selection of Contractor(if applicable) October 1, 7007
6. Preconstruction Conference(if applicable) October 8, 2007
7. Project Start Date November 1, 7007
8. Project Completion Date June 30, 2008
9. Monitoring Period 15 Years
This schedule is subject to change by mutual agreement of both parties in writing.
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3. PROPOSED PROJECT BUDGET:
Amount
Total Project Costs $6,684,013 00
Total SUBRECIPIENT Grant $ 350,000.00
MIDGET Breakdown
Expenditures Amount
HVAC,Plumbing, Electrical in Building $2,842,346.00
Convert Central Freight Elevator to passenger $ 442,750.00
Sprinkler System 4 floors $ 333,960.00
4 Floor"White Box" $1 627 457 00
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NABIL Tenant Improvements $1,150,000.00
Other Building Improvements $ 287,500.00
Total Uses $6,684,013.00
Sources of Funds:
Private Matching Dollars $1,734,013.00
State Grants $3,000,000.00
City of Waterloo—EDI Grant $ 350,000.00
City of Waterloo—EDA Grant $1,600,000.00
Total Sources $6,684,013.00
4. COMPENSATION AND METHOD OF PAYMENT:
The City shall pay and the SUBRECIPIENT agrees to accept in full no more than THREE HUNDRED
FIFTY THOUSAND AND NO/100 ($350,000.00) (hereinafter "Grant")for performance under this
Agreement, as follows:
A. Requests for funds shall only be approved on a reimbursement basis. Payment will be requested for
eligible obligations that have been incurred by the SUBRECIPIENT in carrying out the activity for which
the funds have been approved in accordance with the project budget.
B. Based on the approved budget,partial payments shall be made upon presentation of(i)purchase
agreements and invoices, and/or(ii)other source documents. Payments will be made for eligible
expenses actually incurred by the SUBRECIPIENT, and not to exceed actual as requirements.
C. All payments under this Agreement are subject to receipt by the City of sufficient federal funds for the EDI
program. EDI funds shall be drawn from the U.S. Treasury by the City through the Line of Credit Control
System(LOCCS). The City shall retain exclusive direct access rights to the LOCCS system. All access to
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the LOCCS system will be by duly authorized persons designated by the City as approved by HUD. Any
termination,reduction or delay of receipt of EDI funds to the City shall,at the option of the City,result in
the termination,reduction or delay of EDI funds to the SUBRECIPIENT.
5. TERMS AND CONDITIONS:
A. The City shall have no responsibility or liability for the maintenance,operation or program funding for
the SUBRECIPIENT.
B. During the period of this Agreement,effective as of the start of the Project,the SUBRECIPIENT shall,
at its own expense,procure and maintain all-risk property damage and liability insurance. Property
damage coverage shall not be less than the current market value of the property. Liability coverage
which shall include contractual insurance as well as comprehensive form insurance,and which shall
provide coverage of not less than$250,000 bodily injury per person, $500,000 bodily injury per
occurrence,and$100,000 property damage. Proof of insurance shall be shown to the City by furnishing
a copy of the certificate of insurance issued by an insurance company licensed to do business in the State
of Iowa. The certificate of insurance shall include a statement guaranteeing that the insurance company
shall notify the Community Development Coordinator of any lapse of said policy. The SUBRECIP-
IENT shall provide Workers' Compensation Insurance coverage for all employees involved in the
performance of this Agreement.
C. Until at least completion of the project the SUBRECIPIENT or successors or assigns shall, in a manner
satisfactory to the City, fulfill its stated purpose as outlined in Part I.1.A of this Agreement.
D. In the event the SUBRECIPIENT defaults in the performance or observance of any covenant, agreement
or obligation set forth in this Agreement, and if such default remains uncured for a period of thirty(30)
days after notice thereof shall have been given by the City to the SUBRECIPIENT(or for a period of
sixty(60)days after such notice if such default is curable but requires acts to be done or conditions to be
remedied which,by their nature, cannot be done or remedied within such 30-day period and thereafter
diligently and continuously prosecutes the same to completion within such 60-day period),than the City
may declare that the SUBRECIPIENT is in default hereunder and may take any one or more of the
following steps, at its options:
1) by mandamus or other suit, action or proceeding at law or in equity,require the SUBRECIPIENT
perform its obligations and covenants hereunder, or enjoin any acts or things which may be
unlawful or violation of the rights of the City hereunder,or obtain damages caused by the City
by any such default;
2) have access to and inspect, examine and make copies of all books and records of the
SUBRECIPIENT which pertain to the Project;
3) declare a default with the EDI Agreement and make no further disbursements and demand
immediate repayment from the SUBRECIPIENT of any funds previously disbursed under the EDI
Agreement; and
4) take whatever other action of law or in equity may appear necessary or desirable to enforce the
obligations, covenants and restrictions of the SUBRECIPIENT hereunder including the recovery of
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funds. No delay in enforcing the provisions hereof as to any breach or violation shall impair,
damage or waive the right of the City to enforce the same or to obtain relief against or recover for
the continuation or repetition of such breach or violation or any similar breach or violation thereof
at any later time or times.
E. Except as provided herein,the terms of this Agreement shall be effective from the date of execution and
for fifteen(15)years,or until all required reports are filed, if later.
F. The SUBRECIPIENT agrees to comply with all applicable federal, state, and local laws and regulations
governing the funds provided under this contract. Said EDI regulations are published in 24 CFR Part
570.
G. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or
establishing the relationship of employer/employee between the parties. The SUBRECIPIENT shall at
all times remain an independent contractor with the respect to the services to be performed under this
Agreement. The city shall be exempt from payment of all Unemployment Compensation,FICA,
retirement, life and/or medical insurance and Workers' Compensation Insurance as the
SUBRECIPIENT is an independent contractor.
H. The SUBRECIPIENT shall not sell, assign or transfer any legal or equitable interest in the property at
any time prior to June 30, 2023 without written concurrence of the City; but in such event,the
SUBRECIPIENT shall pay to the City the total grant relating to the property sold or, if the
SUBRECIPIENT discontinues its program,the SUBRECIPIENT shall pay to the City the grant then
due.
I. In the event the SUBRECIPIENT discontinued its services and/or the project/program funded under this
Agreement prior to completion,all real and personal property(tangible and intangible) secured with the
EDI funds under this Agreement shall revert to the City. If the property has been disposed of,then the
City will be reimbursed in the amount of the current fair market value of the property less any portion
attributable to non-EDI funds.
J. All projects shall adhere to the project requirements found in Subpart E of 24 CFR Part 570, as
applicable,with the type of project assisted.
6. PROGRAM PROCEEDS:
At the end of the project, any program income will be returned to the City.
PART II
1. PERFORMANCE AND REPORTING:
A. The SUBRECIPIENT shall direct all notices,reports, insurance policies, and other communications
related to or required by this Agreement to the office of the Waterloo Community Development
Director, 620 Mulberry Street, Suite 202, Waterloo,IA 50703. Notice by both SUBRECIPIENT and
City shall be given by ordinary mail.
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B. Until the completion of the Project and expenditure of all EDI funds disbursed under this Agreement,the
SUBRECIPIENT shall submit monthly reports describing progress of the project activities by the
fifteenth day of each month.
C. Not later than August 1,2008,the SUBRECIPIENT shall provide the City with a certified statement of
the expenditure of funds disbursed under this Agreement.
D. Following completion of the Project,the SUBRECIPIENT shall submit annual reports(July 1 —June 30)
by the first day of August. The annual report shall, at a minimum, include the number of businesses
assisted,jobs created and a narrative of project highlights. Annual reports shall also include a summary
of the project goals,the method of data collection and the program outcome. Following completion, an
annual report on activities will be due each August 1st for 15 years.
E. Non-Federal entities that expend$500,000 or more o total Federal funds, shall have a single or program
specific audit report which meets the specifications set forth in OMB Circular A-133, "Audits of
Institutions of Higher Education and other Non-Profit Organizations,"and which disclosed the
expenditure of EDI funds allocated for this Project. Audit report shall be submitted 30 days after
completion.
F. Non-Federal entities that expend less than$500,000 a year in Federal Awards are exempt from Federal
audit requirements for that year,but records must be available for review or audit by appropriate officials
of the Federal agency,pass-through entity, and General Accounting Office.
2. OTHER REPORTS,AUDITS AND INSPECTIONS:
A. The SUBRECIPIENT shall promptly furnish the City or HUD with such statements,records, data and
information as the City or HUD may reasonably request pertaining to this Agreement.
B. During the term of this Agreement, any time during normal business hours,the SUBRECIPIENT shall
make available to the City, HUD and/or the Comptroller General of the United States,or their duly
authorized representatives, all of the SUBRECIPIENT's records in order to permit examination of any
audits, invoices,materials,payrolls,personnel records,conditions of employment, and other data relating
to all matters covered by this Agreement.
C. The SUBRECIPIENT shall retain financial records, supporting documents, statistical records,and all
other records pertaining to expenditures under this Agreement for a period of five(5)years from the date
of submission of the final report on August 1, 2023.
3. ADMINISTRATIVE REQUIREMENTS:
A. Financial Management
The requirements of applicable sections of OMB Circular A-122 "Cost Principles for Non-Profit
Organizations," and OMB Circulars A-110, "Grants and Agreements with Institutions of Higher
Education,Hospitals and Other Non-Profit Organizations," and 1997 A-133, "Audits of States,
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Governments and Non-Profit Organizations," shall apply to the use of funds disbursed under the
Agreement to utilize adequate internal controls, and maintain necessary source documentation
costs incurred. The SUBRECIPIENT shall submit draft bid documents to the City for review and
approval prior to requesting bids.
B. Documentation and Record Keeping
1)Records to be maintained
The SUBRECIPIENT shall maintain all records that are pertinent to the activities to be funded under
this Agreement, including but not limited to:
a. Records providing a full description of each activity undertaken;
b. Records documenting compliance with the fair housing and equal opportunity
components of the EDI program; and
c. Financial records as required by OMB Circular A-122,and/or OMB Circular A-133
and/or OMB Circular A-110.
2)National Objectives and Eligibility
The SUBRECIPIENT agrees to maintain documentation demonstrating the activities carried out with
funds provided under this Agreement meet the Economic Development activity, slum/blight national
objective.
C. Procurement
1)Compliance
In the event of termination for cause as provided in Paragraph 11 or termination for convenience as
provided in Paragraph 12,a pro-rated portion of program assets(unexpended program income,
property,equipment,etc.)attributable to the City's EDI investment shall revert to the City upon
termination of this contract,as provided in Paragraphs 11 or 12 of this Agreement.
2)OMB Standards
The SUBRECIPIENT shall procure materials in accordance with the requirements of A-133,A-122,
Attachment 0 of OMB Circular A-110,Procurement Standards, and shall subsequently follow
Attachment N,Property Management Standards, covering utilization and disposal of property.
D. Amendments
The City or SUBRECIPIENT may amend this Agreement at any time provided that such amendments
are executed in writing and signed by a duly authorized representative of both organizations. Such
amendments shall not invalidate this Agreement,nor relieve or release the City or SUBRECIPIENT
from its obligations under this Agreement.
E. Certifications
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By execution of this Agreement,the SUBRECIPIENT certified that all contractors, subcontractors,
and/or eligible suppliers to be used on the project are eligible to participate in the federal EDI Program,
and that they are not on any debarred, suspended, or ineligible list.
4. NON-DISCRIMINATION AND AFFIRMATIVE MARKETING:
No person shall be excluded from or denied the benefits of the SUBRECIPIENT's service on the basis of
age,race, color,religion, creed,national origin, sex,marital status, disability, or sexual orientation. All
current and prospective project beneficiaries must, however,be person in need of the programs provided by
the SUBRECIPIENT.
5. SECTION 504 COMPLIANCE:
The SUBRECIPIENT confirms that no otherwise qualified individual with handicaps shall, solely by reason
of his/her handicap,be excused from participation in,be denied benefits of or be subjected to discrimination.
This does include,but is not limited to,housing, employment and the delivery of services and programs.
6. EQUAL EMPLOYMENT OPPORTUNITY:
The SUBRECIPIENT certifies that it is an "Equal Opportunity Employer" and that it will comply with
Chapter 216 (State Civil Rights) of the Iowa Code,and all applicable regulations of the U. S. Department
of Housing and Urban Development pertaining to equal opportunity and affirmative action employment.
Further,the SUBRECIPIENT shall ensure that all contracts for work under this Agreement contain
appropriate equal employment opportunity statements.
7. SECTION 3:
In conformance with the requirements of Section 3 of the Housing and Community Development Act of
1968,to the greatest extent feasible the SUBRECIPIENT must award contracts for work to be performed to
eligible business concerns located in or owned by residents of the target area to ensure that the employment
and other economic opportunities generated by Federal financial assistance for housing and community
development programs shall,to the greatest extent feasible, be directed toward low-and very-low income
persons,particularly those who are SUBRECIPIENTs of government assistance for housing(See 24
CFR 570.607(b)).
8. W/MBE:
The SUBRECIPIENT will use its best efforts to afford minority and women-owned business enterprises (at
least fifty-one(51)percent owned and controlled by minority group members or women)the maximum
practicable opportunity to participate in the performance of the Agreement.
9. ENVIRONMENTAL ASSESSMENT AND HISTORIC PRESERVATION:
The SUBRECIPIENT shall comply with all applicable environmental assessment and historic preservation
requirements of HUD and the State Historic Preservation Officer of Iowa.
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10. LEAD-BASED PAINT POISONING PREVENTION:
The SUBRECIPIENT shall comply with requirements of the federal regulations concerning the Lead-Based
Paint Poisoning Prevention Act and HUD regulations hereunder:
A. Department of Housing and Urban Development(24 CFR Part 35) Requirements for Notification,
Evaluation and Reduction of Lead-Based Paint Hazards in Federally Owned Residential Property and
Housing Receiving Federal Assistance, and
B. Environmental Protection Agency (40 CFR Part 745) Lead; Requirements for Hazard Education Before
Renovation of Target Housing.
11. TERMINATION OF AGREEMENT FOR CAUSE:
If the SUBRECIPIENT fails to fulfill its obligations under this Agreement in timely and proper manner,or if
the SUBRECIPIENT violates any of the terms, agreements or stipulations of this Agreement,the City shall
thereupon have the right to terminate this Agreement by giving written notice to the SUBRECIPIENT of such
termination, specifying the default or defaults, and stating that this Agreement shall be terminated 30 days
after giving of such notice unless such default or defaults are remedied within such cure period. In the event
of such termination,the SUBRECIPIENT shall promptly repay to the City the full grant/loan amount or that
portion of the amounts,which have been disbursed to the SUBRECIPIENT prior to such termination. In
accordance with 24 CFR 85.43 Agreement may be terminated if SUBRECIPIENT materially fails to comply
with any term of the Agreement.
12. TERMINATION OF AGREEMENT FOR CONVENIENCE:
This Agreement may be terminated in whole or in part upon the mutual agreement of the parties hereto,in
which case the City and the SUBRECIPIENT shall agree upon the termination conditions,including the
effective date,the disposition of contract amounts,and in the case of partial termination,the portion to be
terminated. However, if, in the case of partial termination,the City determines that the remaining portion of
the award will not accomplish the purposes for which the award was made, and the award is terminated in its
entirety,the SUBRECIPIENT shall promptly repay to the City the full grant/loan amount or that portion of
the amount which has been disbursed to the SUBRECIPIENT prior to such termination. Termination for
convenience may be exercised in accordance with 24 CFR 85.44.
13. INTEREST OF CERTAIN FEDERAL AND OTHER OFFICIALS:
A. No member or delegate to the Congress of the United States, and no resident Commissioner, shall be
admitted to any share or part of this Agreement, or to any benefit to arise herefrom.
B. No member of the governing body of the City,no officer,employee,official or agent of the City,or
other local public official who exercises any functions or responsibilities in connection with the review,
approval or carrying out of the Project to which this Agreement pertains, shall have any private interest,
direct or indirect, in this Agreement while in office and for one year after holding the position.
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C. No federal funds appropriated under this contract shall be paid,by or on behalf of the SUBRECIPIENT,
to any person for influencing or attempting to influence a member of Congress,an officer or employee
of Congress or any federal agency in connection with the awarding of any federal contract,the making
of any federal grant,the making of any federal loan,the entering into of any cooperative agreement, and
the extension,continuation,renewal, amendment or modification of any federal contract, grant, loan or
agreement.
14. INTEREST OF THE SUBRECIPIENT:
The SUBRECIPIENT covenants that it has no interest and shall not acquire any interest, direct or indirect,
which would conflict in any manner or degree with the performance of the services to be undertaken through
this Agreement. The SUBRECIPIENT further covenants that in the performance of this Agreement, no
person having such an interest shall be employed by the SUBRECIPIENT.
15. GRANTOR RECOGNITION:
All activities,facilities, and items utilized pursuant to this contract shall be prominently labeled as EDI
funded. In addition,the SUBRECIPIENT will include a reference to the support provided herein in all
publications made possible with funds made available under this contract.
16. ASSIGNABILITY:
The SUBRECIPIENT shall not assign or transfer any interest in this Agreement without the prior written
approval of the City. Any assignment made without such consent shall be void. This Agreement shall be
binding upon and shall inure to the benefit of the successors and assigns of the parties hereto.
17. HOLD HARMLESS PROVISION:
The SUBRECIPIENT shall indemnify,defend and hold harmless the City, its officers,employees and agents
from all liability, loss, cost,damage and expense(including reasonable attorney's fees and court costs)
resulting from or incurred by reason of any actions based upon the negligent acts or omissions of the
SUBRECIPIENT's employees or agents during the performance of this Agreement.
18. SEVERABILITY CLAUSE:
If any one or more of the provisions contained in this Agreement are held to be invalid, illegal,or
unenforceable,this Agreement shall be deemed severable and the remainder of the Agreement shall remain in
full force and effect.
19. LIMITATIONS OF CITY LIABILITY-DISCLAIMER OF RELATIONSHIP:
The City shall not be liable to the SUBRECIPIENT,or to any party,for completion of or failure to complete
any improvements,which are part of the Project. Nothing contained in this Agreement,nor any act or
omission of the City or the SUBRECIPIENT, shall be construed to create any special duty,relationship,third-
party beneficiary,respondent superior,limited or general partnership,joint venture, or any association by
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reason of the SUBRECIPIENT's involvement with the City.
20. FEDERAL LAWS:
By virtue of the federal funding provided for under this agreement,the SUBRECIPIENT and all other parties
shall be bound by and adhere to all applicable laws,rules,policies, orders,and directions.
21. RESPONSIBILITY FOR PROGRAM REGULATIONS:
The SUBRECIPIENT is responsible for all regulations contained in 24 CFR Part 570 as it may be amended
from time to time. The Community Development Board shall attempt to forward copies of the updated
regulations as they become available,however,the SUBRECIPIENT shall be ultimately responsible for
securing said updates.
22. UNIFORM ADMINISTRATIVE REQUIREMENTS:
The SUBRECIPIENT must comply with applicable uniform administrative requirements,as described in 24
CFR Part 570.502.
23. RELIGIOUS ORGANIZATIONS:
Religious organizations receiving EDI funds shall comply with 24 CFR 570.200.
24. ENFORCEMENT OF THE AGREEMENT:
This agreement shall be enforceable pursuant to the provisions of the mortgage and restrictive covenants
along with all legal and equitable remedies available to the parties pursuant to local, state and federal law.
SUBRECIPIENT shall furnish the mortgage and restrictive covenants to the participating jurisdiction, in a
form acceptable to the participating jurisdiction,prior to any funds being disbursed.
25. REVERSION OF ASSETS:
Upon expiration of the agreement, any real property that was acquired or improved in whole or in part with
EDI funds in excess of$25,000 shall meet the requirements set forth in 24 CFR 570.503(b)(7).
26. RELOCATION:
EDI projects involving rehabilitation, conversion, or demolition may be subject to the provisions of the
Uniform Relocation Act (URA). URA relocation requirements are triggered whenever displacement occurs
as a direct result of rehabilitation, demolition or acquisition for an EDI — assisted project. Section 104(d)
requirements may be triggered by "demolition" or "conversion" of units when EDI funds are used.
Acquisition only does not trigger Section 104(d).
27. HANDICAP ACCESSIBILITY
The SUBRECIPIENT shall comply with the Architectural Barriers Act and the Americans with Disabilities
Act as set forth in 24 CFR 570.614.
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A
IN WITNESS WHEREOF,the Parties hereto have executed this Agreement on this 1st day of July, 2007.
CITY OF WATERLOO CEDAR VALLEY TECHWORKS,INC.
715 Mulberry Street 10 West Fourth Street, Suite 310
Waterloo, Iowa 50703 Waterloo, wa 507
BY: BY:
Timothy J. eve D st,Presi ent and CEO
Mayor Greater Cedar Valley Alliance
ATTEST: ATTEST: 72
Ny Ec Cary Dar , General Manager
City Cler Cedar Valley TechWorks, Inc.
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