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Home My WebLink AboutContract 17322003-0081 ANOKA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AGREEMENT between THE COUNTY OF ANOKA, A POLITICAL SUBDIVISION OF THE STATE OF MINNESOTA, BY AND THROUGH THE ANOKA COUNTY HOUSING & REDEVELOPMENT AUTHORITY, A PUBLIC BODY CORPORATE AND POLITIC AND City of Columbia Heights This Agreement is entered into this 1st day of July, 2003, between the County of Anoka, a political subdivision of the State of Minnesota, by and through the Anoka County Housing and Redevelopment Authority, a public body corporate and politic (hereinafter referred to as the "HRA"), and the City of Columbia Heights (hereinafter referred to as the "Agency"): RECITALS Ao The County of Anoka (hereinafter "County") is an urban county applicant for block grant funds under the Housing and Community Development Act of 1974 (the Act), Pub. L. 93-383 as amended, and will receive block grant funds for the purpose of carrying out eligible community development and housing activities under the Act and under regulations promulgated by the Department of Housing and Urban Development (HUD) at 24 CFR p. 570; Bo An Urban County Consortium has been established by a Joint Cooperation Agreement between the County and municipal corporations within the County, the terms of which specify allocation of block grant funds to those participating jurisdictions for use in accordance with the County Housing Assistance and Community Development Plans accepted by participating jurisdictions and reviewed by HUD; Co The County has entered into a joint powers agreement with the HRA to administer the Community Development Block Grant Program and delegated to the HRA the rights, duties and obligations to disperse, monitor and administer funds under the Community Development Block Grant program, in a manner consistent with teTM and condition imposed on the County by agreement, County resolution, HUD regulations, and the Community Development Block Grant Plan; The HRA desires to have certain services performed by the Agency as described within this agreement, and as authorized by County resolutions for the purpose of implementing eligible activities under the Act and HUD regulations; It is appropriate and mutually desirable that the Agency be designated by the HRA to undertake the aforementioned eligible activities, so long as the requirements of the Act, HUD Regulations, state law and local law are adhered to, as provided for herein; The purpose of this Agreement is to provide for cooperation between the HRA and the Agency, as the parties in this agreement, in implementing such eligible activities in the manner described above; The parties are authorized and empowered to enter into this Agreement by the Laws of the State of Minnesota. The attached exhibits as listed below are hereby incorporated in this agreement and made a part hereof: PART I. PART II. PART III. Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G Exhibit H GENEP, a~L CONI)rrlONS FEDER.Pd~ AND LOCAL PROGR~kM R~QUIRIEMElX¥1'S EVALUATION AND R_ECORD ICdEEPING Project Description and Budget Objectives of CDBG Funds Anoka County Board Resolution No. 85-23 Anoka County Board Resolution No. 85-42 Anoka County Board Resolution No. 86-70 Certification Equal Employment Opportunity Certification Federal Labor Standards Provisions In consideration of payments, covenants, and agreements hereinafter mentioned, to be made and performed by the parties hereto, the parties mutually covenant and agree as provided for in this agreement. COUNTY: By: Steve Nov~i~vision Manager Governmental Services Date: APPROVED AS TO FORM: AGENCY: ~signature) Name: Walter R. Fehst Title: Date: (print) City Manager By: A~/I~V~[05<~' ~[6t~qt~t~) Assistant County A o~..~0aey Date: By: Name: Title: Date: (signature) (print) Hereinafter, references to the "County" shall be deemed to be references to the Anoka County Housing and Redevelopment Authority. -2- PART I. 1. GENERAL CONDITIONS SCOPE OF AGREEMENT The Agreement between the parties shall consist of the signature page, the general conditions; the federal, state and local program requirements; the evaluation and record keeping requirements, each and every project exhibit incorporated into the Agreement; all matters and laws incorporated by reference herein; and any written amendments made according to the general conditions. This Agreement supersedes any and all former agreements applicable to projects attached as exhibits to this Agreement. 2. SCOPE OF SERVICES The Agency shall perform and carry out in a satisfactory and proper manner the services set forth in the Exhibit(s) attached hereto. In the case of multiple projects, each project shall correspond to a separate exhibit. This Agreement may be amended from time to time, in accordance with the general conditions, for the purpose of adding new projects, amending the scope of work, or for any other lawful purpose. 3. COMMENCEMENT AND TERMINATION OF PROJECTS Upon release of project-related funds by HUD pursuant to federal regulations, the County shall furnish the Agency with written notice to proceed. No work on the project shall occur prior to the notice to proceed without written approval from the County. Termination dates for individual projects shall be specified in the appropriate exhibits and be in compliance with County Board Resolution #85-23, attached as Exhibit C. Costs incurred after the termination date will not be reimbursed. The termination date may be changed through amendment of this Agreement. 4. ADMINISTRATION The Agency shall appoint a liaison person who shall be responsible for overall administration of block grant funded project(s) and coordination with the County Housing and Community Development Program. The Agency shall also designate one or more representatives who shall be authorized to sign the monthly Voucher and Reporting Form. The names of the liaison persons and representatives shall be specified in the Exhibits. For all agencies which are presently parties to Joint Cooperation Agreements with the County covering planning, distribution of funds, and program execution under the Act, the Agency remains subject to the provisions of such agreement. 5. COMPENSATION AND METHOD OF PAYMENT The County shall reimburse the Agency for the services specified in the Exhibits in an amount specified on Exhibit A. Reimbursement shall be based on a Community Development Voucher and Reporting Form submitted with supporting documents and signed by the Agency's authorized representative. Bo The Agency shall submit a properly executed Voucher and Reporting Form no later than fifteen (i5) working days after the close of each billing period. The County will make payment to the Agency not more than twenty-one (21) working days after said invoice is received and approved by Anoka County. The County will issue a statement of correction voucher in the event that the voucher request is erroneous. Payment does not constitute absolute approval. -3- 6. OPERATING BUDGET The Agency shall apply the funds received from the County under this Agreement in accordance with the requirements of the Exhibit(s) attached hereto. 7. FUNDING ALTERNATIVES AND FUTURE SUPPORT The Agency shall report all program income generated under this Agreement for the purposes specified herein or generated through the project(s) funded under this Agreement. All program income shall be forwarded to Anoka County, except as provided in Exhibit D. The County will maintain a record of program income received by individual projects for future use by the subgrantee for eligible CDBG activities. B. The County makes no commitment to future support and assumes no obligation for future support of the activities contracted for herein, except as expressly set forth in this Agreement. Co Should anticipated sources of revenue not become available to the County for use in the Community Development Block Program, the County shall immediately notify the Agency in writing and the County will be released from all contracted liability for that portion of the Agreement covered by funds not received by the County. 8. AMENDMENTS Either party may request modifications in the scope of services, terms, or conditions of this Agreement. Proposed modifications which are mutually agreed upon shall be incorporated by written amendment to this Agreement. A written amendment may affect a project or projects authorized by this Agreement or may be of general application. 9. ASSIGNMENT AND SUBCONTRACTING The Agency shall not assign any portion of this Agreement without the written consent of the County, and it is further agreed that said consent must be sought by the Agency not less than fifteen (15) days prior to the date of any proposed assignment. Any work or services assigned or subcontracted hereunder shall be subject to each provision of this Agreement and proper bidding procedures contained thereim-The Agency agrees that it is as fully responsible to the County for the acts and omissions of its subcontractors and of their employees and agents, as it is for the acts and omissions of its own employees and agents. 10. HOLD HARMLESS AND INDEMNII*ICATION A. The Agency further agrees that it is financially responsible (liable) for any audit exception which occurs due to its negligence or failure to comply with the terms of the Agreement. The Agency agrees to protect and save the County, its elected and appointed officials, agents, and employees while acting within the scope of their duties as such, harmless from and against all claims, demands, and causes of action of any kind or character, including the cost of defense thereof, arising in favor of the Agency's employees or third parties on account of personal injuries, death or damage to property arising out of services performed or omissions of services or in any way resulting from the acts or omissions of the Agency and/or its agents, employees, subcontractors or representatives under this Agreement. -4- 11. INSURANCE For all agencies which are no._it municipal corporations organized under the laws of the State of Minnesota, the following insurance requirements shall apply: A. Public Liability Insurance The Agency shall obtain and maintain continuously public liability insurance necessary to protect the public on the subject premises naming the County of Anoka and the Anoka County Housing and Redevelopment Authority as additional insured to the extent of One Million and no/100 Dollars ($1,000,000.00) General Liability Insurance including bodily injury and property damage with umbrella excess liability of One Million and no/100 Dollars ($1,000,000.00) and provide proof of Worker's Compensation Insurance pursuant to the Statutes of the State of Minnesota. B. Building Risk Insurance The Agency shall cause to be maintained, during the period that contract work is in progress, All Risk Builder's Insurance, (including fire, vandalism, malicious mischief and extended coverage) in an amount not less than the value of destructible contract work in place. C. Proof of Insurance The Agency shall provide certificates of insurance required under this section, or, upon request of the County, duplicates of the policies as evidence of the insurance protection afforded. Such insurance policies shall not be reduced or canceled without thirty (30) days prior written notice to the County. 12. CONFLICT OF INTEREST Interest of Officers, Employees, or Agents - No employee, agent, consultant, officer, or elected or appointed official of the Agency who exercises any functions or responsibilities with respect to Block Grant Program activities assisted under this Program or who are in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. Bo Interest of Subcontractor and Their Employees - The Agency agrees that it will incorporate into every subcontract required to be in writing and made pursuant to this Agreement the following provisions: The Contractor covenants that no person who presently exercises any functions or responsibilities in connection with the Block Grant Program, has any personal financial interest, direct or indirect, in this Contract. The Contractor further covenants that he presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of his services hereunder. The Contractor further covenants that in the performance of this Contract no person having any conflicting interest shall be employed. Any interest on the part of the Contractor or his employees must be disclosed to the Agency and the County. -5- 13. DATA PRIVACY All data collected, created, received, maintained, or disseminated, or used for any purposes in the course of the Provider's performance of this Agreement is governed by the Minnesota Government ' Data Practices Act, Minnesota Statutes 2003, Section 13.01 et seq. or any other applicable State statutes and any State roles adopted to implement the Act, as well as State statutes and Federal regulations on data privacy. The Provider agrees to abide by these statutes, rules, and regulations and as they may be amended. 14. TERMINATION A. This Agreement is subject to termination upon thirty (30) days written notice by the County should: (1) the Agency mismanage or make improper or unlawful use of Agreement funds; (2) the Agency fail to comply with the terms and conditions expressed herein or the applicable regulations and directives of the Federal Government, State, or County; (3) the Agency fail to provide work or services expressed by this Agreement; or (4) the Agency fail to submit reports or submit incomplete or inaccurate reports in any material respect. Bo This Agreement may be terminated by the County immediately upon the receipt by the County of notice of the loss of federal funding for the Community Development Block Grant Program or any project of the Agency. C. This Agreement is subject to termination upon thirty (30) days written notice by the Agency should: (1) the County fail in its commitment under this Agreement to provide funding for services rendered, as herein provided; or (2) Block Grant funds become no longer available from the Federal Government or through the County. Do Otherwise this Agreement shall terminate on the latest termination date specified on the Exhibit(s) attached hereto and shall be subject to extension only by mutual agreement and amendment in accordance with the General Conditions of this Agreement except the County may terminate the agreement if funds are not expended as required by Exhibit C. E. Upon termination of this Agreement any unexpended balance of Agreement funds shall remain in the County Block Grant fund. F. In the event that termination occurs under paragraph A (1) of this section, the Agency shall return to the County all funds which were expended in violation of the terms of this Agreement. -6- 15. REVERSION OF ASSETS Upon the expiration or term/nation of this agreement, the Agency shall transfer to the County any CDBG funds on hand or in the accounts receivable attributable to the use of CDBG funds. In addition, at the expiration or termination of this agreement, any real property under the Agency's control that was acquired or improved in whole or in part with CDBG funds in excess of $25,000.00 shall be disposed of in a manner which results in the agency being reimbursed in the amount of the current fair market value of the property less any portion thereof attributable to the expenditures of non-CDBG funds for acquisition of, or improvement to, the real property. Such reimbursement shall not be required if the conditions of 24 CFR 570.503Co)(8)(i) are met and satisfied. 16. DISPOSITION OF PROGRAM INCOME Upon the expiration or termination of this agreement, any unexpended program income or program income which has not been spent on the project, shall be returned by the Agency to the County. PART II. 1. FEDERAL AND LOCAL PROGRAM REQUIREMENTS GENERAL REQUIREMENTS The Agency shall comply with the Housing and Community Development Act of 1974, Public Law 93-383 as amended, and Implementing Regulations at 24 CFR p. 570. 2. PROCUREMENT STANDARDS In awarding contracts pursuant to this Agreement, the Agency shall comply with all applicable requirements of local and state law for awarding contracts, including but not limited to procedures for competitive bidding, contractor's bonds, and retained percentages. In addition, the Agency shall comply with the requirements of the U.S. Office of Management and Budget Circular A-102 or A-110 as appropriate, relating to bonding, insurance and procurement standards; and with Executive Order 11246 regarding nondiscrimination bid conditions for projects over Ten Thousand and no/100 Dollars ($10,000.00). Where federal standards differ from local or state standards, the stricter standards shall apply. The federal standard of Ten Thousand and no/100 Dollars ($10,000.00) for competitive bidding shall apply only if the applicable state or local standard for competitive bidding is less strict than Ten Thousand and no/100 Dollars ($10,000.00). ENVIRONMENTAL REVIEW A. National Environmental Policy Act ~ The County retains environmental review responsibility for purposes of fulfilling requirements of the National Environmental Policy Act as implemented by HUD Environmental Review Procedures (24 CFR pt. 58). The County may require the Agency to furnish data, information and assistance for the County's review and assessment in determining whether an Environmental Impact Statement must be prepared. State Environmental Policy Act - Agencies which are branches of government under Minnesota Law retain responsibility for fulfilling the requirements of the State Law regarding environmental policy and conservation, and regulations and ordinances adopted thereunder. If the agency is not a branch of government under Minnesota Law, the County may require the agency to furnish data, information and assistance as necessary to enable the County to comply with the State Environmental Policy Act. Co Satisfaction of Environmental Requirements - Project execution under this Agreement by either the County or the Agency shall not proceed until satisfaction of all applicable requirements of the National and State Environmental Policy Acts. A written notice to proceed will not be issued by the County until all such requirements have been met. -7- 4. NON-DISCRIMINATION A. 'General The Agency shall comply with all federal, state and local laws prohibiting discrimination on the basis of age, sex, Sexual orientation, marital status, race, creed, color, national origin or the presence of any sensory, mental or physical handicap or any other basis now or hereafter prohibited by Law. These requirements are specified in Section 109 of the Housing and Community Development Act of 1974; Civil Rights Act of 1964, Title VI; Civil Rights Act of 1964, Title VII; Executive Order 11063; Executive Order 11246; and Section 3 of the Housing and Urban Development Act of 1968. Specifically, the Agency is prohibited from taking any discriminatory actions defined in the HUD Regulations at 24 CFR 570.602 Section 109 and shall take such affirmative and corrective actions as are required by the Regulations at CFR 570.602. These requirements are summarized in the following paragraphs: B. Program Benefit The Agency shall not discriminate against any resident of the project service area by denying benefit from or participation in any block grant funded activity on the basis of race, color, sex, sexual orientation, or national origin. (Civil Rights Act of 1964, Title VI; Civil Rights Act of 1964, Title VII; Section 109, Housing and Community Development Act of 1974). C. Fair Housing The Agency shall take necessary and appropriate actions to prevent discrimination in federally assisted housing and lending practices related to loans insured or guaranteed by the federal government. (Civil Rights Act of 1964, Title VII; Executive Order 11063) D. Employment (1) In all solicitations under this Agreement, the Agency shall state that all qualified applicants will be considered for employment. The words "equal opportunity employer" in advertisements shall constitute compliance with this section. (2) The Agency shall not discriminate against an employee or applicant for employment in connection with this Agreement because of age, marital status, sexual orientation, race, creed, color, national origin, or the presence of any sensory, mental or physical handicap, except when there is a bona fide occupational limitation. Such action shall include, but not be limited to the following: Employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training. (Executive Order 11246 as amended) (3) To the greatest extent feasible, the Agency shall provide training and employment opportunities for lower income residents within the area served by block grant assisted projects (Section 3, Housing and Community Development Act of 1968, as amended), E. Contractors and Suppliers (1) No contractor, subcontractor, union or vendor engaged in any activity under this Agreement shall discriminate in the sale of materials, equipment or labor on the basis of age, sex, sexual orientation, marital status, race, creed, color, national origin, or the presence of any sensory, mental, or physical handicap. Such practices include upgrading, demotion, recruiting, transfer, layoff, termination, pay rate, and advertisement for employment. (Executive Order 11246 as amended.) -8- (2) All firms and organizations described above shall be required to submit to the Agency certificates of compliance demonstrating that they have, in fact, complied with the foregoing provisions; provided, that certificates of compliance shall not be required from firms and organizations on contracts and/or yearly sales of less than $10,000. (3) To the greatest extent feasible, the Agency shall purchase supplies and services for activities under this agreement from vendors and contractors whose businesses are located in the area served by block grant funded activities or owned in substantial part by project area residents. (Section 3, Housing and Community Development Act of 1968, as amended.) F. Notice (1) The Agency shall include the provisions of the appropriate preceding subsections A, B, C, D, and E of this section in every contract or purchase order for goods and services under this Agreement and shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding a notice advising the said labor union or worker's representative of the commitments made in these subsections. (2) In advertising for employees, goods or services for activities under this Agreement, the agency shall utilize minority publications in addition to publications of general circulation. 5. LABOR STANDARDS The Agency shall require that project construction contractors and subcontractors pay their laborers and mechanics at wage rates in accordance with the Davis-Bacon Act, as amended (40 USC sections 327-333); provided that this section shall not apply to rehabilitation of residential property designed for residential use by fewer than eight families. A copy of the current Davis-Bacon wage rate and HUD form 4010 and 92010 (copies of which are attached hereto) must be included in all construction bid specs and contracts over Two Thousand and no/100 Dollars ($2,000.00). 6. PROPERTY MANAGEMENT The Agency agrees that any nonexpendable personal property, purchased wholly or in part with agreement funds at a cost of Five Hundred and no/100 Dollars ($500.00) or more per item, is upon its purchase or receipt the property of the County and/or federal government. Final ownership and disposition of such property shall be determined under the provisions of the U.S. Office of Management and Budget Circular No. A-102 or A-110 as appropriate. B. The Agency shall be responsible for all such property, including its care and maintenance. C. The Agency shall admit the County's property management officer to the Agency's Premises for the purpose of marking such property, as appropriate, with county property tags. D. The Agency shall meet the following procedural requirements for all such property: (1) Property records shall be maintained accurately and provide for: a description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of block grant funds used in the purchase of property; and location, use, and condition of the property. -9- (2) A physical inventory of property shall be taken and the results reconciled with the property records at least once every two (2) years to verify the existence, current utilization, and continued need for the property. (3) A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. (4) Adequate maintenance procedures shall be implemented to keep the property in good condition. 7. ACQUISITION AND RELOCATION Any acquisition of real property for any activity assisted under this Agreement shall comply with Tide In ofthe Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (hereinafter referred to as the Uniform Act) (42 USC section 4601) and the Regulations at 24 CFR pt. 42. Bo Any displacement of persons, business, nonprofit organizations or farms as the result of acquisition of real property assisted under this Agreement shall comply with Title II of the Uniform Act as amended by the Uniform Relocation Act as amended Title IV of the Surface Transportation and Uniform Relocation Assistance Act as amended (Pub. L 100-17, 101 Stat. 246-256) and the Regulations at 49 CFR pt. 24. The Agency shall comply with the Regulations pertaining to costs of relocation and written policies, as specified by 24 CFR section 570.606 (a) & In any activity assisted under this agreement which results in demolition or conversion to another use of low/moderate income housing, the agency will follow the requirements set forth in the revised section 104(d) of the Housing and Community Development Act of 1974, as amended, and implementing regulations. 8. HISTORIC PRESERVATION The Agency shall meet the historic preservation requirements of Public Law 89-665 and the Archeological and Historic Preservation Act of 1974 (Pub. L. 93-291) and Executive Order 11593, including the procedures prescribed by the Advisory Council on Historic Preservation in the Regulations at 36 CFR pt. 800. Activities affecting property listed in or found to be eligible for inclusion in the National Register of Historic Places will be subject to requirements set forth in HUD Environmental Review Procedures at 24 CFR pt. 58. 9. ARCHITECTURAL BARRIERS Any facility constructed pursuant to this Agreement shall comply with design requirements of the Architectural Barriers Act of 1968 (42 USC section 4151 et. seq. & 24 CFR 40, et. seq.). 10. NONPARTICIPATION IN POLITICAL ACTIVITIES The Agency shall comply with the provisions of the Hatch Act (5 USC Chapter 15). 11. CONDITIONS FOR RELIGIOUS ORGANIZATIONS The Agency agrees that funds provided under this contract will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the Federal regulations specified in 24 CFR 570.2000). -10- 12. NATIONAL FLOOD INSURANCE The Agency may not receive Community Development Block Grant funding for acquisition or construction for use in any area that has been identified as having special flood hazards and is not participating in the National Flood Insurance Program, as provided by Section 3(a) of the Flood Disaster Protection Act of 1973 (Pub. L. 93- 234) and the Regulations thereunder (24 CFR Ch. 58.6, subchap. B). The Agency shall comply with the Regulations at 24 CFR section 570.605. 13. AIR AND WATER POLLUTION The Agency shall comply with the provisions of the Clean Air Act, as amended (42 USC section 1857 et seq.) and the Federal Water Pollution Control Act, as amended (33 USC sections 1251 et seq.) and the regulations issued thereunder (40 CFR pt. 15). 14. LEAD-BASED PAINT POISONING The Agency shall comply with the HUD Lead-Based Paint Regulations (24 CFR pt. 35) issued pursuant to the Lead-Based Paint Poisoning Prevention Act (42 USC sections 4831 et seq.) requiring (1) prohibition of the use of lead-based paint (whenever funds under this Agreement are used directly or indirectly for construction, rehabilitation,'or modernization of residential structures); (2) elimination of immediate lead-based paint hazards in residential structures; and (3) notification of the hazards of lead-based paint poisoning to purchasers and tenants of residential structures constructed prior to 1978. All work performed on lead-containing surfaces must conform to lead-safe practices and be completed by workers who are either supervised by an EPA-certified abatement supervisor or be performed by workers trained in lead-safe work practices. If abatement options are specified in the work write-up, the contractor must hire an EPA-certified and state-licensed abatement contractor and submit proof of their current state license and insurances. 15. NON-DISCRIMINATION BASED ON DISABILITY When and where applicable, the agency shall comply with Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794) and Title II of the Americans with Disabilities Act as amended, Public Law 101-336 (1990), to ensure that no otherwise qualified individual with a disability in the United States shall, solely by reason of his or her handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving financial assistance under this agreement. 16. NON-SUBSTITUTION FOR LOCAL FUNDING The Block Grant Funding made available under this Agreement shall not be utilized by the Agency to reduce substantially the amount of local financial support for community development activities below the level of such support prior to the availability of funds under this Agreement. 17. PUBLIC OWNERSHIP For Agencies which are not municipal corporations organized under the laws of the State of Minnesota, it may become necessary to grant the County a property interest where the subject project calls for the acquisition, construction, reconstruction, rehabilitation, or installation of publicly-owned facilities and improvements. The Agency shall comply with current County policy regarding transfer of a property interest sufficient to meet the public ownership requirement. -ll - 18. PUBLIC INFORMATION In all news releases and other public notices related to projects funded under this Agreement, the Agency shall include information identifying the source of funds as the Anoka County Community Development Block Grant Program. Bo For all construction projects the Agency shall erect a sign to County specifications at the construction site, identifying the source of funds, except that this requirement may be waived for construction projects of Ten Thousand and no/100 ($10,000.00) Dollars or less. 19. APPLICABLE UNIFORM ADMINISTRATIVE REQUIREMENTS An Agency which is the governmental entity (including public agencies) shall comply with the requirements and standards of OMB Circular No. A-87, "Principles for Determining Costs Applicable to Grants and Contracts with State, Local and Federally recognized Indian Tribal Governments," OMB Circular A-133, "Audits of State and Local Governments and with the following sections of 24 CFR Part 85 "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments": 85.3, "Definitions"; 85.6, "Additions and Exceptions"; 85.12 "Special grant or subgrant conditions for 'high-risk' grantees"; 85.20 "Standards for financial management systems," except paragraph (a); 85.21 "Payment," except as modified by' 570.513; 85.22 "Allowable costs"; (1) Section (2) Section (3) Section (4) Section (5) Section (6) Section (7) Section 85.26 (8) Section 85.32. proceeds shall (9) Section 85.33 (10) Section 85.34 (11) Section 85.35 (12) Section 85.36 (13) Section 85.37 (14) "Non-federal audits"; "Equipment," except in all cases in which the equipment is sold, the be program income; "Supplies"; "Copyrights"; "Subawards to debarred and suspended parties"; "Procurement,,' except paragraph (a); "Subgrants "; Section 85.40 "Monitoring and reporting program performance," except paragraphs (b) through (d) and paragraph (f); Section 85.41, "Financial reporting," except paragraphs (a), (b), and (e); (15) (16) Section 85.42, (17) Section 85.43, (18) Section 85.44, (19) Section 85.51, (20) Section 85.52, "Retention and access requirements for records"; "Enforcement"; "Termination for convenience"; "Later disallowances and adjustments" and "Collection of amounts due." An Agency if it is not a governmental entity, shall comply with the requirements and standards of OMB Circular No. A-122, "Cost Principles for Non Profit Organizations" or OMB Circular No, A-21, ."Cost Principles for Educational Institutions," as applicable, and with the following Attachments to OMB Circular No. A-110. PART III. 1. EVALUATION AND RECORD KEEPING EVALUATION The Agency agrees to participate with the County in any evaluation project or performance report, as designed by the County or the appropriate Federal agency, and to make available all information required by any such evaluation process. -12- 2. AUDITS AND INSPECTIONS The Agency shall obtain an independent audit for any calendar year during which the agency received at least $300,000 of Federal funds. Such audit shall be made by qualified individuals who are sufficiendy independent of those who authorize the expenditure of Federal funds. The audit report shall state that the audit was performed in accordance with the generally accepted governmental audit standards for financial and compliance audits of the U. S. General Accounting Office Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, and the provisions of OMB A-110. When applicable, the Agency shall also comply with the audit requirements of revised OMB Circular A-133 dated June 24, 1997. The records and documents with respect to all matters covered by this contract shall be subject at all times to inspection, review or audit by the County, Federal or State officials so authorized by law during the performance of this contract and during the period of retention specified in this Part III. RECORDS As required by HUD Regulations, 24 CFR pt. 570, the Agency shall compile and maintain the following records: Ao Financial Management - Such records shall identify adequately the source and application of funds for activities within this Agreement, in accordance with the provisions of the U.S. Office of Management and Budget Circular A-102 or A-110 as appropriate. These records shall contain information pertaining to grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays, and income. Citizen Participation - Narrative and other documentation describing the process used to inform citizens concerning the amount of funds available, the ranges of project activities undertaken, and opportunities to participate in funded block grant projects. Relocation - Indication of the overall status of the relocation workload and a separate relocation record for each person, business, organization, and farm operation displaced or in the relocation workload. Property_ Acquisition - Agency files must contain (a) invitation to owner to accompany appraiser during inspection, (b) at least one property appraisal, (c) statement of basis for determination of just compensation, (d) written offer of just compensation, (e) all documents involving conveyance, (f) settlement cost reporting statement, and (g) notice to surrender possession of premises. Eo Equal Opportunity - The Agency shall maintain racial, ethnic, and gender data showing the extent to which these categories of persons have participated in, or benefited from, the activities carried out under this Agreement. The Agency shall also maintain data which records its affirmative action in equal opportunity employment, and its good-faith efforts to identify, train, and/or hire lower- income residents of the project area and to utilize business concerns which are located in or owned in substantial part by persons residing in the area of the project. Fo Labor Standards - Records shall be maintained regarding compliance of all contractors performing construction work under this Agreement with the labor standards made applicable by 24 CFR 570.603. G. Determinations of Condition of Slum and Blight The agency will submit: (1) an attorney's opinion that an area designated as slum or blighted for the purpose of qualifying a CDBG activity meets the State or local definition of same; (2) the boundary of the area so designated; (3) a list of the conditions the CDBG-funded activity is intended to address. In the event that a single property is designated as blighted, the community must submit a certified building inspector's report o.n the conditions leading to that determination. H. Economic Development The agency will maintain copies of financial statements that indicate the historical and projected income of a company approved for CDBG assistance. Those records will include three years of profit and loss statements, balance statements and projected income statements. The agency will also keep records indicating the amount and terms of assistance provided together with an explanation of how the assistance provided meets the "necessary and appropriate" requirements communicated in the June 2, 1987 Stokvis memorandum. I. Such other records as may be required by the County and/or HUD. 4. RETENTION OF RECORDS Required records shall be retained for a period of three (3) years after termination of this Agreement, except as follows: (1) Records that are the subject of audit findings shall be retained for three (3) years after such findings have been resolved. (2) Records for nonexpendable property shall be retained for three (3) years after its final disposition. Nonexpendable property is defined in the U.S. Office of Management and Budget Circular No. A-102 or A-110 as appropriate. ~ REPORTS The Agency shall submit such reports as required by the County on a monthly and annual basis and also prior to project execution. -14- Exhibit A Project Description and Budget Amount of CDBG funds provided by Anoka County for the program year beginning 2003 to City of Columbia Heights for the project listed below. A description of the project and the target population to be served as provided by the agency as indicated in the submitted application for CDBG funding on file in the Community Development Department by the above-named organization is summarized below. Project # Agency/City & Project Description Amount Funded ~26 City o? Col~mbia Heights: ~0t~ Ave. Improvement Project 159,961.25 The City of Columbia Heights is proposing to acquire the commercial property at 322 40th Avenue NE for the purpose of removing slum and blight and to further economic development activities in this area. The current non- conforming structure which is occupied by a building maintenance company, will be acquired and the property cleared and demolished. This acquisition will allow for the city to remove a blighted structure from an ovemtilized site, and combine it with four adjacent city-owned parcels. The objectives to create a new marketable, functional, and accessible redevelopment site of one-acre in size at 40~ and University Avenue. TOTAL: $159,961.25 Liaison per Section 4A: Tim Johnson Authorized to sign vouchers & reports per Section 4A: Tim Johnson Printe/~ame ~gnature / ..Pr_ojects to be completed by: December 31, 2004 IPer Anoka County Board Resolution #85-23 EXHIBIT B Urban Anoka County CDBG 2003 Final Statement of Community Development Objectives of Funds Pursuant to Community Development Block Grant regulations, Anoka County has made available to the public the following statement of final use of 2003 Anoka County CDBG funds. Citizens, non-profit groups, and other interested persons are invited to comment upon this statement and upon Anoka County's performance of the CDBG program by contacting Anoka County Community Development Department, Government Center, 2100 Third Avenue, Anoka, Minnesota 55303, telephone number 763- 323-5709, Attention: Karen Skepper. SPECIFIC OJBECTIVES FOR 2003 ANOKA COUNTY CDBG PROGRAM The following objectives have been established for assisting communities and citizen groups in the formulation of specific program activities. Support decent, safe housing for residents in Anoka County through: (1) rehabilitation of existing structures; (2) eligible assistance for construction of new lower income housing; (3) acquisition of housing suitable to meet lower income needs. Assist program efforts to redevelop blighted areas through: acquisition and clearance, upgrading public facilities and utilities, encouraging new development, seeking local financial commitment to the effort. Develop and upgrade public facilities and utilities which serve primarily lower income persons or which are an integral part of redevelopment efforts in blighted areas. Support economic development in Anoka County to provide new jobs, primarily for lower income persons. 5. Promote the removal of architectural barriers. 6. Provide funding for public service activities which serve primarily lower income persons. 7. Planning and administration to support the above. The above objectives were developed in cooperation with the communities in Anoka County and are based on need as illustrated by statistics drawn from 1990 census data and comments from community residents. Overall, they are a continuation of past CDBG programs, with many communities sustaining efforts begun in those years. Exhibit. C BOARD OF COUNTY COMMISSIONERS Anoka County, Minnesota ' DATE February 21, 1985 RESOLUTION NO. OFFERED BY COMMISSIONER Lan~feid 85-23 TIMELY EXPENDITUP~ OF C.D.B.G. FUNDS WHEREAS, Anoko Co~,nty is an Entitlement County and therefore receives annual Community Development Block Grant (COBB) allocations from the U.S. Department of Housing and Urban Development; and, WI-IEREAS, the Anoka County Board of Commissioners makes these CDGC funds · available to municipalities in Aneka County for ellg~le projects; and, WHEREAS, Anoka County, as the grantee, is responsible for the timely expenditure of CDtBG funds; and, WHEREAS, Anoka County's performance is measured in part by such 'timely performance; and, WHEREAS, Anoka County may be subject to HUD fiscal sanctions for failure to expend CDGG funds within o reasonable period of time: NOW, THEREFORE, BE IT RESOLVED that the .Anoka County Board of Commissioners adopts the following Policy Regarding Schedule for Expenditure of Community Development Block (]rant Funds by Anaka County Subgrantees: POLICY REGARDING SCHEDULE FOR EXPENDITURE OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS BY ANOKA COUNTY SUI~C~F~ANTEES Community Development Block Grant Funds will be reserved for eligible budgeted subgrantee activities for up to 18 months after notice of availability of such funds far expenditure. If a community fails to expend CCGG project funds within that time limit, the Anoka County Board of Commissioners will withdraw the allocatlon for that project. In order that communities may have adequate notice of the impending withdrawal, County CE)~C staff will notify those communities which have not committed CDGG project funds within 12 months after the start of the applicable ClD~C; program ),ear of that condition. Such notice will enable those communities to re-evaluate projects and to program the funds if necessary. Those communities which are in violation of the 18 month rule at the time of adoption of this policy will be given six months from the date of the County Board Resolution referencing this policy, to expend their CDBC; project funds. A' the end of the six month period, the funds will be subject to withdrawal. The Anoka County Board may on an individual case basis, elect to waive the 18 month rule if the Board should determine that the project delay is caused by forces outside the control of the community and that project completion is feasible within a reasonable amount of time. Funds which revert to Anoka County shall be reallocated at the discretion of the ' County Board to either other projects submitted by communities or to County-wide activities. Any communil~ based groups or other subgrontees of communities must be notified of this policy when they are considered for CD~G funding. DISSOLUTION E85-23 (Continued) YES District//I - Haas X H~as District tt2 - Burmah X Burman District//3 - Langfeld X Langfeld District //~ - Kordiak X Kordiok District//S - Cenaiko X Cenaiko District 1t(~ - McCarron X McCarron District ;/7 - Erhart X Erhart NO State of Minnesota ) SS County of Anaka ) I, John "Jay" McLinden, County Administrator, Anaka County, Minnesota, hereby certify that I have compared the foregoing copy of the resolution of the County Board of said Co~.nty with the original record thereof on file in the Administration Office, Anoka County, Minnesota, as stated in the minutes of the praceedings of said Board at a meeting duly held on February 21, 191~S, and that the same is a true and correct cop), of said original record and of the whole thereof~ and that said resolution was duly pa~sed by said Board at said meeting. Witness my hand and seal this 21 st day of February, I 'COUNT~r ADMINISTRATOF{ . [, Exhibit D BOARD OF COUNTY COMMISSIONERS Anoka County, Minnesota DATE April 23, 1985 RESOLUTION NO OFFERED BY COMMISSIOb~R Langfeld 85-a2 COUNTY BOARD POLICY- COMMUNITY DE. VELOPMENT BLOCK C~ANT PROGRAM INCOME. AMENDING F~SOLUTIONS 81-107 AND 82-53 WHEREAS, Title I of the Housing and Community Development Act of 1~74 as amended provides for a program of Community Development Block Grants; and, WHEREAS, the Anoka County Board of Commissioners has been designated as an "Urban County" by the Federal Housing and Urban Development Department and. consequently is eligible to participate in the National Community Development Block. Grant Program; and, · WHEREAS, the Anoka County Board of Commissioners preparation of a plan'under the COmmunity Development Block concert with the municipalities of Anoka County; and, has directed the Grant Program in WHEREAS, as a portion of said plan, municipalities as the sub-grantee of Community Development Block Grant funds may utilize said funds in various program forms to benefit Iow and moderate income persons, to aid in the prevention or. elimination of slums or blight or to meet other community development needs hcving a particular urgency because of threat to health and safety; and, WHEREAS, "program income" means gross income earned by the sub-grantee from the grant supported activity such as: proceeds fram the sale of real or personal property, interest earned on escrow accounts, revolving rehabilitation accounts or lump sum rehabilitation accounts, income from service fees, sale of commodities, usage or rental fees, loan proceeds from rehabilitation or economic development loans, and interest earned on revolving loans and proceeds from special assessments levied to recover the cost of constructing a public'works or facility to the extent thai such cost was initially paid with the Community Development Block Grant funds; and, WHEREAS, in accordar~:e with Federal regulations, anoko County as the Community Development Block Grant recipient must receive all program income. The County then may use said funds for any eligible Community Development Block Grant activity and the County must expend revenues generated by program income before further drawdown requests will be authorized; and, WHEREAS, payments of interest and princlpol due on economic.development loans to private industry, which are made to a revolving loan account which was approved os a C.D.G.B. grant to a State-certified local development corporation are not considered by HUD to be "program income": ' NOW, THEREFORE, BE IT RESOLVED that the Anoka County Board of Commissioners does hereby establish as a matter of policy that: I) All income from CDBG-funded activities which meets the above definition of program income, shall be promptly forwarded to Anoka County. 2) Each LDC which has a CDE~G revolving loon account for economic development will retain loan repayments within the account for continued use for economic development and that the County or the city will execute an agreement with lhe /DC which will include: a) Prohibition of conflict of interest as provided in HUD Regulation Z~,CFR Part $?0.611. b) Compliance with Title VI of the Civil Rights Act of I c) Requirement for the LDC to submit quarterly reports to the Anoka County- Community Development Director regarding the use and results of expenditure of funds fram the revolving loan account for so long as Anoka County remains an entitlement county. d) Any other provisions required by State or Federal' law or regulation. RESOLUTION E85-42 (Continued) Page Z 3) : Anoka County will establish as al~ May I, 198S, a revolving loan account for deposit of all economic development lo~n payments received by Anoka County. BE[ IT FURTHER RESOLVED that, all program inCome received by Anoka County from activities funded in total or p~rt from a municipality's CDB(; project will increase that community's budget for eligible CDBC activities and shall therefore be available to the community for'future expenditure pursuant to the Joint Cooperation Agreement in effect at the time of expenditure. District #1 - Haas X District //2 - Burmah X District//3 - Langfeld X District #/4 - Kordiak X District ~$ - Cenaiko X District //6 - McCarron X District//7 - Erhort X Hao~ I~urman Langfeld Kordiak Cenaik0 McCarron Erhart NO State of Minnesota ) SS County of Anoka ) I, John "Jay" McLinden, County Administrator, Anoka County, Minnesota, hereby certi'fy that I have compared the foregoing cop), of the resolution of the County Board of said County w/Ih the original record thereol~ on file in the Administration Office, Anoka County~ Minnesota, as stated in the minutes of the proceedings of said Board at a meeting duly held on April 23, I ~85, and that the same is a true and correct copy of said original record and of the whole thereof, and that said resolution was duly passed by said Board at said meeting. Witness my hand and seal this Z3rd day of April, 1~85. · - Exhibi~ E BOARD OF COUNTY COMMISSIONERS Anoka County, Minnesota August I DATE RESOLUTION NO.. Haas Sleffen 0FFEKED BY COMMISSIONER 86-70 COUNTY BOARD POLICY - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM INCOME AMEI\q:)IN(: RIESOLUTION 85-/12 WHEREAS, Ti, tie I of the Housing and Community Development Act of 197~, as amended provides for a program of Community Development Block Grants~ and, WHEREAS, lhe Anoka County Board of Commissioners has been designated as an "Urban County" by the Federal Housing and Urban Development Department and Consequently is eligible to participate in the National Community Development Block Grant Program; and, WHER~:'A$, the Anoka County Board of Commissioners has directed the preparation of a plan under the Community Development Block Crant Program in concert with the municipalities of Anoka County; and, WHF'REAS, as a portion of said plan, municipalities as the sub-grantee of Community Development Block (]rant funds may utilize said funds in various program forms to benefit low and moderate income persons, to aid in the prevention or elimination of slums or blight or to meet other community development needs, hqving a particular urgency because of threat to health and safety; and, WHEREAS, "program income" means income earned by the sub-grantee from the grant supported activity such as: proceeds from the sale of real or personal property, interest earned on escrow accounts, revolving rehabilitation accounts or lump sum rehabilitation accounts, income from service fees, sale of commodities, usage or rental fees, loan proceeds from. rehabilitation or economic development loans, and interest earned on revolving loans and proceeds [rom special assessments levied to recover the cost of constructing a public works or facility t6 the extent that such cost was initially paid wilh the Community Development Block Grant funds; and, WHEREAS, in accordance with Federal regulations, Anoka County as the Community Development Block Grant recipient must receive all program income, to be used for any eligible Community Development Block (]rant activity and the County must expend revenues generated by program income before further drawdown requests will be authorized: NOW, THEREF01:~, BI: IT RESOLVED thai the Anoka County Board of Commissioners does hereby establish as a mat tar of policy that: I) All CDBG program income meeting the above definition, except payments to a County-approved LOC revo!ving loan account, shall be promptly forwarded to Anoka County. 2) Each LDC which has a CDBG revolving loan account for economic developmenl will retain loan repayments within the account for continued use for economic development subject to all CDBG regulations, and that the County or the city will execute an agreemenl wiIh the LDC which will include: a) · Prohibition of conflict or.interest as provided in HUD Regulation 2~CFR Part S70.~1 I. b) .Compliance with Title VI of the Civil Rights Act of 196it. c) Requirement for the LDC to submit quarterly reports to the Anoka County Community Development Director regarding the use and results of expenditure of funds [rom the revolving lOan account for so long as Anoka County remains an entitlement county. d) Any other provisions 'required by State or Federal law or regulation. 3) Anoka County has ~stabllshed as ~f May I, 1985~ a revolving loan account for deposit of all economic development loan payments received by Anoka County. BE IT ~'UIRTHER IRESOLVED that, all program income received by Anoka County from activities funded in total or part from a municipality"s CDBG project will increase that community's budget for eligible CDBG activities and shall therefore be available to the community for fulure expenditure pursuant to the'Joint Cooperation Agreement in effect at the time of expenditure. RESOLUTION ~/8~-70 Page 2 YES X District # I - Haas Steffen · District #2 -Burmah X District #3 - Langfetd Absent District lib - Kordiak X District ES - Cenaiko X District #~ - McCarron X District//7 - Erhart X Haas Steffen E~urman Langfeld Kordiok Cencdko McCarron Erhart NO State of Minnesota ) SS County of Anoko ) I, John "Jay" McLinden, County Administrator, AnOka County, Minnesota, hereby certify that I have compared the foregoing copy of the-resolution of the County Board of said County with the original record thereof on file in the Administration Office, Anoka County', Minnesota, as stated in the minutes of the proceedings o'f said Board at a meeting duly held on August 12, 1986, and that the same is a true and correct cop), of said original record and of the whole thereof, and that .said resolution was duly passed by' said Boo, rd at said meeting. Witness my hand and seal this 12th day of August, .J~HN ,J,a/t',,/vJE. LINDE~I . COUNTY ADMINISTRATOF{ EXHIBIT F CERTIFICATION The Undersigned, on behalf of the Agency, certifies, to the best of his or her knowledge and beliefi that: (1) No federally appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement. (2) If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1332, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less that $10,000 and not more than $100,000 for each such failure. AGENCY: By: By: Its: Its: Date: Date: Equal Employment Opportunity Certification Excerpt From 41 CFR §60-1.4(b) Exhibit G U.S, Department of Housing and Urban Development Office of Housing Federal Housing Commissioner Depar~r~eni 'o~ V~eterans Affairs The applicant hereby agrees that it will incorporate or cause to be incorporated into any contract for construction work, or modifi- cation thereof, as defined in the regulations of the Secretary of Labor at 41 CFR Chapter 60, which is paid for in whole or in part with funds obtained from the Federal Government or borrowed on the credit of the Federal Government pursuant to a grant, contract, loan insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insur- ance, or guarantee, the following equal opportunity clause: During the performance of this contract, the contractor agrees as follows: (I) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicant~ are employed, and that em- ployees are treated during employment without regard to their race, color, religion, sex, or national origin, such action shall include, but not be limited to the following: Employ- ment, upgrading, demotion, or transfer; recruitment or re- cruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. (2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive considerations for em- ployment without regard to race, color, religion, sex, or national origin. (3) The contractor will send to each labor union or representative of workers with which it has a collective bargaining agree- ment or other contract or'understanding, a qgtice to be provided advising the said labor union or workers' represen- tatives of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regu- lations and relevant orders of the Secretary of Labor. (5) The contractor will furnish all information and reports re- quired by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to its book,s, records, and accounts by the administering agency and the Secretary · of Labor for purposes of investigation to ascertain compli- ance with such rules, regulations, and orders. (6) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be can- celed, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Govern- ment contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law: (7) The contractor will include the portion of the sentence imme- diately preceding paragraph (1) and the provisions of para- graphs (1) through (7) in every subcontract or purchase order unless exempted by tulles, regulations, or orders of the Sec- retary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcon- tract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, That in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency the contractor may request the United States to enter into such litigation to protect the interests of the United States. The applicant further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Prnvided, That if the applicant so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract. The applicant agrees that it will assist and cooperate ~ctively with· the-administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish, the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will 'otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance. The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and Federally-assisted construction contracts pursuant to the Executive order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed Firm Name ancl A~clress By Title form HUD-92010 (1/82) VA form 26-421 upon contractors and subcontractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel, terafinate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assis- tance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings. Excerpt from HUD Regulations 200.410Definition of term "applicant". (a) In multifamily housing transactions where controls over the mortgagor are exercised by the Commissioner either through the ownership of corporate stock or under the provisions of a regulatory agreement, the term "applicant" as used in this subpart shall mean the mortgagor. (b) In transactions other than those specified in paragraph(a) of this section, the term "applicant" as used in this subpart shall mean the builder, dealer or contractor performing the con- struction, repair or rehabilitation work for the mortgagor or other borrower. 200.420Equal Opportunity Clause to be included in contract~ and subcontracts. (a) The following eqnal opportunity clause shall be included in each contract and subcontract which is not exempt: During the performance of this contract, the contractor agrees as follows: (I) The contractor will not discriminate against any em- ployee or applicant for employment because of race, creed, color, or national origin. The contractor will take affirmative action to ensured that applicants are employed, and that employees are treated during employment without regard to their race, creed, color, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including ap- prenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employ- ment, notices to be provided setting forth the provisions of the nondiscrimination clause. (2)The contractor will in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard race, creed, color, or national or/gin. (3) The contractor will send to each labor union or repre- sentative of workers with which he has a collective bargain- ing agreement or other contract or understanding, a notice, to be provided, advising the said labor union or workers' repre- sentative of the contractor's commitments under this section, and shall post copies of the notices in conspicuous places available to employees and applicants for employment. (4) The contractor will comply with all provisions of Ex- ecutive Order 10925 of March 6 1961, as amended, and of the regulations, and relevant orders of the President's Commit- tee on Equal Employment Opportunity created thereby. (5) The contractor will famish all information and reports required by Executive Order 10925 of March 6, 1961, as amended, and by the regulations, and orders of the said Committee, or pursuant thereto, and will permit access to his books, records, and accounts by HUD and the Committee for Purposes of investigation to ascertain compliance with such regulations, and orders. (6) In the event of the contractor's non-compliance with the nondiscrimination clause of this contract or with any of the said regulations, or orders, this contract may be can- celled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Govern- ment contracts or Federally-assisted construction contracts in accordance with procedures authorized in Executive Order 10925 of March 6, 1961, as amende, and such other sanctions may be imposed and remedies invoke s provided in the said Executive Order or by regulations, or order of the President' s Committee on Equal Employment Opportunity, or as other- wise provided by law. (7) The contractor will include the provisions of Para- graphs(I) through (7) in every subcontract or purchase order unless exempted by regulations, or orders of the President's Committee on Equal Employment Opportunity issued pursu- ant to Section 303 of Executive Order 10925 of March 6, 1961, as amended, so that such provisions will be binding upon each subcontractor or vender. The contractor will take such action with respect to any subcontract or purchase orders as HUD may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided,. however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vender as a result of such direction by HUD, the contractor may request the United States to enter into such litigation to protect the interests of the United States. (b) Except in subcontracts for the performance of construction work at the site of construction, the clause is not required to be inserted in subcontracts below the second tier. Subcontracts may incorporate by referenced to the equal opportunity clause. 200.425Modification in and exemptions from thc regulations in this subpart. (a) The following· transactions and contracts are exempt from the regulations in this subpart: (1) Loans, mort.gages, contracts and subcontracts not ex- ceeding $10,000. (2) Contract and subcontracts not exceeding $100,000 for standard commercial supplies or raw material; (3)Contracts and subcontracts under which work is to be or has been performed outside the United States and where no recruit- ment of workers within the United States in involved. To the extent that work pursuant to such contracts is done within the Untied States, the equal opportunity clause shall be applicable; (4) Contracts for the sale of Government property where no appreciable amount of work is involved; and (5) Contracts and subcontracts for an indefinite quantity which are not to extend for ore than one year if the purchaser determines that the amounts to be ordered under any such contract or subcontract are not reasonably expected to exceed $1,00,000 in the case of contracts or subcontracts for standard commercial supplies and raw materials, or $10,000 in the case of all other contracts and subcontracts. form HUD-92010 (1/82) VA form 26-421 Federal Labor Standards Provisions Exhibit H U.S. Department of Housing and Urban Development Applicabili[y The Project or Program to which the coast, ruction work covered by this contract pcm~ins is being assisted by the United Stat~ of America and thc foil?wing Federal Labor Standa~ Provhions a~ included in this Coatrac~ pursuant to thc proviaions applicablc to such Fedcral afsistancc. A. L (i) l~linimum Wages. All laborers and mechanics employed or working upon the sim of the work (or under thc Unitcd States Hous- ing Act of 1937 or under thc Housing Act or' 1949 in thc conatruction or development of thc project), will be paid unconditionally and not less oftcn than once a week. and without sub~cqucnt dcduction or bate on any account (except such payroll deductions as are pcrrnitted by regulations issued by the Secretary of Labor under die Copeland Act (29 CFR Part 3), thc full amoun[ of wages and bona fide fringe bcncfi~ (or cash cquivalcnrs thereof@ duc at time of payment cum= puled at rates not less than those contained in thc wage determination of thc Secretary of Labor which is attached hereto and made a part hereof, rcg~dlesa of any contractual relationship which may bc al- leged to exist between thc contractor and such laborers and mcchan- /cs. Contributions made or costs reasonably anticipated for bona Hdc fringe benefits under Section I(b)(2) of the Davis-Bacon Act on be, half of laborers or mechanics are considered wages paid to such la- borers or mcchanic~, subject to thc provisions of 29 CFR-5.5(a)(1)(iv); also, regular contributions made or costa incurred for more than a weekly period (but not Ices often than quarterly) under plans, funds, or programs, which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid thc appropriate wage rate and fringe benefits on thc wage determination for thc classification of work actually performed, without regazd to skil1, except a~ provided in 29 CFR Part $.5(a)(4). Laborers or mechanics performing work in more than one classification may bc compensated at thc rate specified for each classification for thc time actually worked therein: Provided, That thc Cmplo;,er's payroll record~ accurately sc[ forth thc time spent in each clasaification in which work is performed. Thc wage determi- nation (including any additional clasaification and wage fa[ca con- formed under 29 CFR Part 5~(a)(1)(H) and thc Davis-Bacon poster C~H-I~21) shall bc pos[cd at all times by thc contractor and its sub- cunt,'actors at the site of the work in a prominent and acc~sible, place where it can be easily seen by [he workers. (ii) (a) Any class of laborers or mechanic~ which is not listed in the wage determination and which is to bc employed under thc contract shall be clasaificd in conformance with thc wage determination. HUD shall approve an additional ~lassification and wage rate and fringe benefits therefore only when the following criteria have bccn met: (1) Thc work to bc performed by thc ciasa/Hca[ion mqucsted i~ not pcrforme, d by a classification in the wage dctcrminalion; and (2) The classification is utilized in thc area by thc construction dustry; and (~) Thc proposed wage rate, including any bona fide fringe bcncfi,% bears a reasonable relationshi~ to thc wage rams contained in thc wage determination. (b) If thc contractor and the laborers and mechanic~ to bc employed in thc classification (i'f known}, or their representative, and HUD or 'i'~ d¢,~ignec agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of thc action token shall be sent by HUD or it~ designee to thc Adminis- trator of thc Wage and Hour Division. Employment Standard~ Admin- is[ration. U.S. Department of Labor, W~hington. D.C. 20210. Thc Administrator, or an authorized rcprescntativc, will approve, modify, or disapprove every additional cl~sificadon action within 30 days of receipt and so advise HUD or its designee or will nodfy HUD or its dcsigncc within thc 30-day pcriod that additional time is (Approved by thc Office of Management and Budget undcr OMB con- trol number 1215-0140.) (c) In thc event thc contractor, thc laborers or mechanics to b~ em- ployed in the c[assificazion or their representatives, and HUD or designee do no[ agree o~ [he proposed cl~s/ficadon and wage rate (including the amoun£ designated for fringe benefits, where appropri- ate). HUD or irs designee shall refer thc questions, including thc vlcws of all in[crested parties and thc recommendation of'HUD or its ncc, to the Administrator for determination. Thc Administrator, or author/zed representative, will issue a determination within 30 days. of receipt and so advise HUD or its ctcsigncc or will notify HUD or its designee within thc .t0-day period that additional time is neccssapj. (Approved by the Office of Managcmcnt and Budget under OMB Con- ~'ol Number ]215-0140.) (d) The wage rate (including fringe benefits whom appropriate) termincd pursuant ko subparagraphs (1)(b) or (c) of this paragraph, shall be paid to all workers performing work in the classification der this contrac~ from thc firs[ day on which work is performed in the class/Hca[ion. (ii/) Whenever thc minimum wage rate prcscrihcd in the contract for a class of laborers or mechanics includes a fringe bcncfit which is not expr,'sscd a~ an hourly rate, thc contractor shall cithcr pa}, the benefit as stated in thc wage determination or shall pa}, another bona fide fringe benefit or an hourly cash equivalent thereof. (h,) If thc contractor docs out make payments to a trustee or other third person, thc contractor may consider as part of thc wages of any laborer or mechanic thc amount of any costs rc~onably anticipated in providing bona fide t'ringc benefits under a plan or program, Pro- vided, T~at thc Secretar7 of Labor has found, upon thc written re. quest of thc contractor, that thc applicable standards of thc Davis- Bacon Act have beef3 mc[. The Secretary of Labor may require thc contractor to sci aside in a separate account asscrs for thc mceting of obligations under the plan or program. (Approved by thc Office of Management and Budget under OMB Control Number 1215-0140.) 2. Withholding. HUD or its designee shall upon it~ own action or upon written request of an authorized representative of thc Depart- ment of Labor withhold or causc to bc withheld from thc contractor undcr this contract or any other Federal contract with thc same prime contrac[o~, or any other Federally-assisted contract subject [o Davis. Bacon prevailin§ wage rcquircmcnts, which is hcld by thc s-~mc primc contractor so much of thc accrued paymcnrs or advaacc~ a~ may be considered neccss.~ry to pay laborers and mcchan/~, including ap- prentices, trainees and helpers, cmpioycd by thc contractor or any subcontractor the full amount ut' wages required by thc contract In thc event of failure to pay any laborer or mechanic, including ~my appren- tice, trainee or helper, employed or working on thc sim of thc work (or under thc United.$tat~ Housing Act of 1937 or under thc Housing Act of 1949 in thc construction or development of the project), all or part of thc wages requircd by thc contract, HUD or it~ dcsigncc may, after written notice to thc contractor, sponsor, applicant, or owner, take such action a~ may hc necessary to cansc thc suspension of any further payment, advance, or guarantee of funds un£il such violations lorm HUD-4Ol 0 (2/64) Previous edition is obsolete Page 1 of 4 ret. Handl:xx~ 1344.~ have cea~cd. HUD or it~ designee may, after writtcn notice to the contractor, disbur~c ~uch amount~ withheld for ~d on accoun~ of ~c ccn~r~tor o~ subcontractor to ~hc m~ecfive ~mp]oyccs ~o whom ~c duc. ~c Comptroller Gcncr~ ~hal[ m~c s~ch disburscmcn~ thc ~c of direct Davi~-B~on Am cont~a~. 3. (~) Payrol~ and basic r~cords. Payrolls and b~ic recess relat- ing ~hcr~a shall bc m~nt~ncd by ~c con~ctor during ~c coursc of ~c wo~ prcsc~cd for a pc~ of three ye~ ~c~tcr for ~l labor- ~ ~d mcch~i~ wor~ng ~ ~c site of ~c wo~ (or under thc United S~tcs HousinS Ac~ of 1937. or under ~c Housin~ Ac~ of 1949, in ~e constmc~on or development of ~c p~jcc0. Such ~ccords shall ~n thc n~c. ~dms~. ~d soci~ security number of each such worker, his or h~ co~c~ cl~ifica~on, hourly ~tcs of wag~ p~d (includ[n~ ~s of ~n~bufions or cos~ ~dcipatcd for bona fidc f~ngc bcn- cfi~ or c~h cquiv~cnu thereof'of ~he typ~ described in Section l(b)(2)(B) of thc Davis-bacon Act), d~ly ~d wormy number of worked, dcduc2on~ made ~d actu~ wag~ p~d. Whenever ~e Scc- ~t~ o[ ~or h~ found under 29 ~ 5.5 (a)(l)(iv) th~ the of my labour or mcch~ic include ~he ~oun[ of my ~s~ ~on- ably ~cip~cd in p~viding bcncH~ under a plan or prog~m dc- ~Hb~ in Section l(b)(2)(B) of the Davis-Bacon Act. cbc sh~l m~nt~n recor~ which ~how that ~c commitment to provide such b~cfi~ is cnforc~Ic. ~ thc pl~ or prog~ is fin~ci~ly ~pon~iblc. ~d ~at ~c pl~ or program h~ been communicated writing ~o ~c [abom~ or mcch~ic$ affcclcd, ~d records which · c cosu ~cipatcd or ~c ~m~ cos~ ~cu~cd in providing ~uch bcn- cfiu. Con.actors employing apprcndcc~ or ~ncc~ under approved prog~m~ shall m~nt~n written evidence of ~c regi~adon of prentice,hip pro~s ~d ~Kificadon of trainee programs. ~c ist~don of ~c appren~ccs ~d t~ince~, and ~c ~tio~ and wage proscribed in thc applicable program~. (Approved by ~c Office of Managcmcn[ ~d Budget under O~ B Con~ol Numbcr~ 1215-0140 ~d 1215-~17.) (ii) (a) ~c Con--tot sh~l ~ubmit weekly for each week in which ~y con.ct work i~ p~formcd a copy of ~I payrolls to HUD or d~igncc if ~c agcn~ i~ a p~y to ~c con.act, but if thc agency no[ such a p~y, ~c cont~ctor ~ll submit ~c payroll~ [o thc appli* c~t sponsor, or owncr. ~ ~c ~c may be. for ~m~sion to HUD or it~ dc~ign~. ~c payrolls submitt~ shall sci out ~curatcly completely ~1 of thc information required to bc m~nt~ned under 29 C~ P~ 5.5(a)(3)(~). ~is [nfo~afion may bc ~ubmittcd in ~y fo~ desired. Op~on~ Form WH-3~7 i~ av~lab[c for thi~ purest may be purebred from ~c Superintendent of Documcn~ (Fedc~l Stock Numb~ 029~5~01~-1). U.S. Government PHnting Wuhington. DC. 2~02. ~c pdmc contractor is rcsponsiblc for thc submission of copies of pay~lls by ~I subcon~ctors. (Approv~ by · c Off ice of M~agcmcnt a~d Budgc~ under OMB Con~ol Numb~ ~) E~h payroll submitted ~h~l bc accomp~i~ by a "S~tcmcnt of Compli~cc," ~igncd by thc con.clot or subcon~ctor or hi~ or her agent who pays or supe~i~c~ ~c payment of ~c pc~on~ employed und~ .~c con.ct md sh~l ~fy thc following: (I) ~ ~c pay~a for ~c payroll p~od con~n~ ~c ~quir~ to bc m~n~ncd und~ 29 ~ P~ 5.5 (a)(3)(i) ~d such info~on i~ co~cc~ ~d (2) ~ ~h l~orcr or m~ic (including ~h helper, apprentice. ~d tr~n~) cmploy~ °n ~c con.ct during thc payroll p~od h~ bc~n P~d ~c full Wcckly wage~ c~cd. wi~out rebate, cithcr rcctly or indi~c~y. ~d ~ no d~ucfion~ have been made either ~rcc~y or indirec~y frum thc full w~es c~cd, oth~ ~ pcrmis. ~iblc deducfio~ u ~et fo~h in 29 ~ ~ 3; (3) That each laborer or mechanic has been paid not less th~n th'c applic:~ble wage rates and fringe benefits or c:~h equivalent~ for the classification of work performed, a~ specified in thc applicable w~ge det=rmination inco~orated into ~c contract. (c) Thc weekly ~ubmi~ion of a properly e~ccuted certificatio~ ~ct forth cn thc reverse side of Optional Porto WH-3~7 ~h~l ~ti~fy the requirement for ~ubmi~io~ of thc "Smtcmeat cf Comp[im~c" required by paragraph A.3.{H)(b} of thi~ ~cction. (d} Thc fa[~Hc~tion cf any of the above c~rtiHcation~ may ~ubj~t thc contractor or ~ubcontractor to c~vil or c~mina[ prosc~tion u~dcr Sccdon 100[ of ~tlc [8 and Section 2~1 of ~dc ]I of thc United St~c~ Code. (iH) ~c c~ntrac~or or ~ubcontractor ~ha[I make the ~rds required under paragraph A.3.(l) of ~i~ ~cction available for in~pcctioe, copy= [rig, or t~n~cription by a~thodzcd rcpresentativc~ of HUD ~r i~ d~- [ghee or the Dep~rtment of L~bor, ~d ~hal] permit ~ch rcp~cnta- tiv~ to interview employec~ duHng working hour~ contractor or ~ubcontractor fail~ to ~ubmit thc rcquircd m~e them ~v~lablc, HUD or i~ designee m~y, ~ftcr written notice to the con~ctor, sponsor, applicant ot owner, ~c ~uch action be ncc~a~ to c~u~e thc ~u~pcnsioc cf any fu~cr payment advance, or guarantee of fund~. Pu~hermore, failure to ~ubmit ~c required records ~pon r~que~t or to make ~uch record~ available maybe gr~und~ for debarment action pursuant to 29 CFR Pa~ ~.12. 4. Apprentic~ and Traine~. ([) Apprentices. Apprenticc~ will be pc~ittcd to work thc predetermined rate for thc work they pcrfo~cd whc~ they employed pursuant t~ ~d individually registered [na bona Hdc ap- prentic~sMp program regi~tcted with thc U.S. Dep~mcnt Employmcm ~d Training Administration. Bureau of Apprcndcc~Mp ~d Tr~inlng, or with a State Apprenticeship Age~ recognized the Bureau, o~ ~f a per, on ~ employed [n hi~ or her prcbaticn~ employment ~ ~ ~pprcntice in ~uch m apprenticc~hip program, who [~ not [nd[vidu~Ily registered i~ ~c prog~, but who h~ been ce~ficd by the Bureau of Apprcn~c~hip ~d State Apprenticeship Agency (wher~ appropriate) to be eligible for probationary emp[oymcnt a~ an apprcnticc. The allow~b[~ r~io appren~cc~ to journeymen on thc job ~itc [n ~y c~t ~hall not be grc2tcr thru the ~tio permitted to thc contractor ~ to ~c cndrc work force under thc registered program. Any a payroll at ~n apptcndc~ w~gc r~tc, who i~ not regi~cd wise employed ~ ~tated above, ~h~I be ~aid not le~ t~m cable w~ge r~tc on the w~gc dctc~ination for the w~rk actually performed. In addition, any appren~ce pcrfo~ing' on thc job ~itc in cxc~ of the ratio pc~ittcd und~ thc registered prcgr~m ~h~l be p~d not lc~ th~n thc appli~blc wage r~tc on thc wag~ detc~i~adon for thc work actu~ly performed. Whcm a con= tractor i~ pc~orming co~c~o~ on a prcjcct [na lcc~ity o~cr th~ that [n which [t~ prcg~m i~ ~gi~tcr~d, the rafic~ ~d pr~sed in percentage~ of ~e jou~cym~'~ hourt~ ~c) specified in the c~tractor'~ ot ~ubccnt~ctor's mg~tcrcd prog~m ~h~l be ob= ~c~cd. Evc~ apprentice must be paid at ~ot lc~ th~ H~ ie thc registered prog~m for ~c apprentice'~ lev~ c~pre~scd ~ a pc~t~gc of thc jou~cymcn hourt~ rate ~peciHcd thc applicable wage determination. Apprcmic~ ~hafl' bencH~ in ~cc~cc with thc prov~icn~ of ~e appr~dc~hip gr~. If the apprenticeship prog~m d~ not ~pccify f~ng~ bencH,, app~cnti~ mu~t be paid thc full amount cf f~ngc bcncfi~ l[~t~ on the wage dctc~ination for ~e appfl~blc ct~sific~icn. If mini~mtor dem~inc~ that a different p~c2cc pr~ail~ for ~e appli- cable apprentice cl~fic~tion, fringes shall.be p~d ~n acccrd~c~ form HUD-4010 (2/84) Previous edition I$ ol:~alete Page 2 of 4 re[. Handbeok 1344. I · ~' with that determination. In the event the Bureau of Apprenticeship and Training, or a State Apprenticeship Agency recognized by the Bureau, withdraws approval of an apprenticeship program, the con- tractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted' to work at less than the predetermined rate for thc work performed unless they are employed pursuant ',to and individually registered in .a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employ- ment and Training Administration. The ratio of trainees to journey- men on the job site shall not be greater than permitted under the plan approved by thc Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage deter- mination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If thc trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on thc wage determination unless thc Administrator of the Wage and Hour Division determines that there is an apprcntice- shilJ program associated with the corresponding journeyman wage rate on thc wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee ram who is not registered and participating in a training plan approved by thc Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In addition, any trainee performing work on the job site in excess of thc ratio permitted under thc registered program shall be paid not less than thc applicable wage rate on thc wage deter- ruination for thc work actually performed. In thc event thc Employ- ment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than thc applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of appren- tices, trainees and journeymen under this par~ shall be in conformity with thc equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. 5. Compliance with Copelaud Act requirements. The contractor shall comply with the requirements of 29 CFR Part 3 which are incur. porated by reference in this contract 6. Subcontracts. The contractor or subcontractor will insert in any subcontracts thc clauses contained in 29 CFR $.$(a)(I) through (10) and such other clauses as HUD or its designee may by appropriate instructions require, and also' a clause requiring the subcontractors to include these clauses in an}' lower tier subcontracts. The prime eon- tractor shall bc responsible for thc compliance by any subcontractor or lower tier subcontractor with ail thc contract clauses in 29 CFR Part $.$. 7. Contract termination; debarment, A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12. 8. Compliance with Davis-Bacon and Related Act Requirement~ All rulings and interpretations of the Davis-Bacon and Related Acts con- tained in 29 CFR Parts I, 3, and 5' arc herein incorporated by refer- 'cage in this contract 9. Disputes concerning labor standards. Disputes arising out of .the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall bc resolved in accordance with the procedures of the Department of La- bor set forth in 29 CFR Parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and HUD or its designee, the U.S. Department or' La- bor. or thc employees or their representatives. 10. (i) Certification of Eligibility. By entering into this contract the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of Section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR Parr 24. (ii) No par Of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of Sec- tion 3(a) of the Davis-Bacon Act or 29 CFR $. 12(a)(l) or to be awarded HUD contracts or participate in HUD programs pursuant to 24 CFR' Part 24. (iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. I001. Additionally, U.S. Criminal Code, Section ! 01 0, Title Ii, U.S.C., "Federal Housing Administration transactions", provides in pan: "Whoever, for the purpose of... in- fluencing in any way the action of such Administration ..... makes, utters or publishes any statement knowing the same to be false ..... shall be fined not more than $5,000 or imprisoned not more than two years, or both." 11. Complaints, Proceedings, or Testimony by Employees. No laborer or mechanic to whom the wage, salary, or other labor stan- dards provisions of this Contract are applicable shall be discharged or in any other manner discriminated against by the Contractor or any subcontractor because such employee has filed any complaint or in. stitutcd or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to thc labor stan- dards applicable under this Contract to his employer. B. Contract Work Hours and Safety Standards Act. As used in this paragraph, thc terms "laborers" and "mechanics" include watch- men and guards. (1) Overtime requirements. No contractor or subcontractor con- tracting for any part of the contract work which may require or in- volve the employment of laborers or mechanics shall require or per- mit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of eight hours in any calendar day or in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess Of eight hours in any calendar day or in excess of forty hours in such workweek, whichever is greater. (2) Violation; liability for 'unpaid wages; liquidated damages. In the event of any violation of the cl. ause set forth in subparagraph (1) of this paragraph, the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such con- tractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated dam. ages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in subparagraph (1) of this paragraph, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of eight hours or in excess of the standard workweek of forty hours without payment · of .the overtime wages required by the clause set forth in sub para- graph (1) of this paragraph. form HUD-4010 (2/84) Previous editk3n is obsolete Page 3 of 4 raL Handbook 1344.1 (3) Withholding for unpaid wages and liquidated damages. HUD or its designee shall upon it~ own action or upon written requcst of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work per- formed by thc contractor or subcontractor under any such contract or any other Federal contract with the same prime contract, or any other Federally-~ssisted contract subject to the Contract Work Hours and Safety Standards Act which is hcld by thc same prime contractor such sums aa may bc determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damagcs az provided in thc clause set forth in subparagraph (2) of this paragraph. (4) Subcontracts. Thc contractor or subcontractor shall insert in any subcontract~ the clauses set forth in subparagraph (1) through (4) of this paragraph and also a clause requiring thc subcontractors to in- clude these clauses in any lower tier subcontracts. The prime con- tractor shall be responsible for compliance by any subcontractor oF lowcr tier subcontractor with the clauses s,~t forth in subparagraphs (1) through (4} of this paragraph.' C. Health and Safety " (1) No laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous, or dan- gerous to his health and safety as determined under construction safety and health standards promulgated by the Secretary of Labor by regu- lation. (2) The Contractor shall comply with all regulations issued by the Secretary of Labor.pursuant to Title 29 Part 1926 (formerly part 151 8) and failure to comply may result in imposition of sanctions pursu- ant to thc Contract Work Hours and Safety Standards Act (Public Law 91-54, 83 Stat 96). (3) The Contractor shall include the provisions of this Article in er. cry subcontract so that such provisions will be binding on each sub* contractor. The Contractor shall take such action with respect to any subcontract as the Secretary of Housing and Urban Development or thc Secretary of Labor shall direct az a means of enforcing such pro- visions. form HU D-4010 (2/84) Previous edition is obsolete Page 4 of 4 roi. Handbook 1344.1