HomeMy WebLinkAboutContract 1787 ANOKA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
AGREEMENT
between
THE COUNTY OF ANOK_A_,
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, 2004, between the County of Anoka, a pohtical
subdivision of the State of Minnesota, by and through the Anoka County Housing and Redevelopment
Authority, a pubhc body corporate and politic (hereinafter referred to as the "!-Lt~_"), and the City of Columbia
Heights (hereinafter referred to as the "Agency"):
RECITALS
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;
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;
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 terms 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.
H. The attached exhibits as listed below are hereby incorporated in this agreement and made a part hereof:
PART I.
PART II.
PART IH.
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E
Exhibit F
Exhibit G
Exhibit H
GENERAL CONDITIONS
FEDERAL AND LOCAL PROGRAM REQUIREMENTS
EVALUATION AND RECORD KEEPING
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 aga'eements hereinafter mentioned, to be made and
performed by the pat'ties hereto, the parties mutually covenant and agree as provided for in this a~'eement.
COUNTY: /
: Steve Nova~'anager
Governmental Services
AGENCY:
By: __
(signature)
Name: Walter R. Fehst
(print)
Title: City Manager
APPROVED AS TO FORM:
Assistant Count~ttorney
Name:
Date: 2.~ 4/,~g ~ Title:
Date:
(signature)
(print)
Hereinafter, references to the "County" shall be deemed to be references to the Anoka County Housing and
Redevelopment Authority.
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PART I.
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 xn
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 incun'ed 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.
Bo
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.
The Agency'shall submit a properly executed Voucher and Reporting Form no later than fifteen
(15) 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.
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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. Al! 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.
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?quest 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
Ao
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.
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Any work or services assigned or subcontracted hereunder shall be subject to each provision of
this Agreement and proper bidding procedures contained therein. 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 INDEMNIFICATION
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.
B°
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 fi'om the acts or omissions of the Agency and/or its agents, employees,
subcontractors or representatives under this Agreement.
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11. INSURANCE
For all agencies which are no~t 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. Buildin~ 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
~nsurance 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 A~ents - No employee, agent, consultant, officer, or elected or
appointed official of the Agency who exercises any functions or responsibilities with respect to
Block Grant Progn'am 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.
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
prowsions:
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.
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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 rules 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.
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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 terrnination upon thirty (30) days written notice by the Agency
should:
(1) the County fail in its commitment under ~his 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.
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.
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15. REVERSION OF ASSETS
Upon the expiration or termination 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 570.503(b)(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 kmpact 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.
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.
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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)
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.)
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All firms and organizations described above shall be required to submit to the Agency
certificates of compliance demonstrating that they have, in fact, corn. plied 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 yendors 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 ever,/contract or purchase order for goods and services under
this Aareement and shall send to each labor union or representative of workers with which
it has a collective bat'gaining 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.
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:
(i)
Property records shall be maintained accurately and prov{de 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 ktnds used in the purchase of
property; and location, use, and condition of the property.
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(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.
mo
ACQUISITION AND RELOCATION
Any acquisition of real property for any activity assisted under this Agreement shall comply with
Title III of the Federal UnifmTn 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.
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 Sm-face
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)
& (b).
Co
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
Archeologica] 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 Ban'iers Act of i968 (42 USC section 4i5i 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 ~n accordance with the
Federal regulations specified in 24 CFR 570.200(j).
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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~, ~,L.~,,~,j;~;1;~,, 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.
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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.
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/!00 ($10,000.00) Dollars or !ess.
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":
(1) Section
(2) Section
(3) Section
(4) Section
(5) Section
(6) Section
(7) Section
(8)
(9)
(10) Section
(11) Section
(12) Section
(13) Section
(14) Section
through
(15) Section
(16) Section
(17) Section
(18) Section
(19) Section
(20) Section
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";
85.26, "Non-federal audits";
Section 85.32, "Equipment," except in all cases in which the equipment is sold, the
proceeds shall be program income;
Section 85.33, "Supplies";
85.34, "Copyrights";
85.35, "Subawards to debarred and suspended parties";
85.36, "Procurement," except paragraph (a);
85.37, "Subgrants";
85.40, "Monitoring and reporting program performance," except paragraphs (b)
(d) and paragraph (f);
85.41, "Financial reporting," except paragraphs (a), (b), and (e);
85.42,
85.43,
85.44,
85.51~
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.
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
sufficiently 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:
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.
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 flso 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 m'ea and to utilize business concerns which are located in
or owned in substantial part by persons residing in the area of the project.
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 Bliaht
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 on 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 pm vided 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
als0 prior to project execution.
-14-
Exhibit A
Project Description and Budget
Amount of CDBG funds provided by Anoka County for the program year beginning 2004 to City of
Columbia Heiqhts for proiects 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.
Bud,qets:
Project # Agency/City & Project Description Amount Funded
~ ~A ~
4~25 City of Columbia Heights: NEI Building Demolition ,2,,-,,8,,0.00
The City of Columbia Heights intends to use these funds to demolish the
NEI building and clear the site. The NEI building has been vacant since
January 1, 2004 and is not viable for rehabilitation. The City intends to
redevelop the site with housing or a mixed-use development.
Individua/s/Househo/ds to Benefit from Project: N/A
Total: $284,860.00
Liaison per Section 4A: Tim Johnson
Authorized to sign vouchers & reports per Section 4A:
Printed Name
Projects to be completed by: December 31, 2005
Per Anoka County Board
Resolution #85-23
Exhibit B
Urban Anoka County CDBG
2004 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 2004 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, 7th Floor, 2100 Third Avenue, Anoka, Minnesota 55303, telephone
number 763-323-5709, Attention: Karen Skepper.
SPECIFIC OJBECTIVES
FOR 2004 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 tlu'ough: (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 commnnities sustaining
efforts begun in those years.
Exhibit C
BOARD OF COUNTY COMMISSIONERS
Anoka County, Minnesota
DATE February 21, 1985 RESOLUTION NO.
OFFERED BY CONIMISSIONE~ Loogfeld
85-23
TIMELY EXPENDITURE OF C.D.B.(S. FUNDS
WHEREAS, Anoko County is an Entitlement County and therefore receives
annual Community Development Block Grant (COB(S) allocations from the
Department of Housing and Urban Development; and,
WHEREAS, the Anoka County Board of Commissioners makes these CDBG funds
available to municipalities in Anoko County for eligible projects; and,
WHEREAS, Anoko County, os the grantee, is responsible for the timely
expenditure of CDBG funds; and,
WHEREAS, Anoko 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 CDBG funds within o reasonable period of time:
FLOW, THEREFORE, BE IT RESOLVED that the .Anoko County Board of
Commissioners adopts the following Policy Regarding Schedule for Expenditure of
Community Development 91ock Grant Funds by Anoko County Subgrontees:
POLICY RE ~AROIN(S SCHEDULE FOR EXPENDITURE OF
COMMUNITY DEVELOPMENT BLOCK GRANT FUNIDS
BY ANOKA COUNTY SUBGRANTEES
Community Development I~lock (3rant Funds will be reserved for eligible budgeted
subgrontee activities for up to 18 months after notice of availability of such funds for
expenditure. If a community fails ts expend CDB(S project funds within that time
limit, the Anoko County Board of Commissioners will withdraw the allocation for that
project.
in order that communities may hove adequate notice of the impending withdrawal,
County CDBG staff will notify those communities which hove not committed CDBC;
proiect funds within 12 months after the start of the applicable CDBG program year 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 dote of the County Board Resolution
referencing this policy, to expend their CDBG 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 ]8 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 Anoko County shall be reollocated at the discretion of the
County Board to either other projects submitted by communities or to County-wide
activities.
Any community based groups or other subgrantees of communities must be notified of
this policy when they ore considered for CDBG funding.
RESOLUTION//85-23 (Continued)
YES
District/![ - Haas X Haas
District 112 -Burman X Burmah
District 113 - Langfeld X Longfeld
District Itb, - Kordiak X Kordiok
District tt$ - Cenaiko X Cenaiko
District 110 - McCarron X McCarron
District 1t7 - Erhort X Erhart
NO
State of Minnesota ) SS
County of Anoko )
I, John "Jay" McLinden, County Administrator, Anoko County, Minnesota, hereby
certify that [ hove compared the foregoing copy of the resolution of the County Board
of said Co.unty with the original record thereof on file in the Administration Office,
Anoka County, Minnesota, os stated in the minutes of the proceedings of said Board at
a meeting duly held on February 21, 1985~ and that the same is a true and correct copy
of said original record and of the whole thereof, and that said resolution was duty
pa~sed by said Board at said meeting.
Witness my hand and seal this 21st day of February, 1985.
Exhibit D
BOARD OF COUNTY COMMISSIONERS
Anoka County, Minnesota
DATE April 23, 1985 RESOLUTION NO.
OFFERED BY COMMISSIONER Langfeld
8S-42
COUNTY BOARD POLICY'-
'COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM INCOME
AMENDING RESOLUTIONS 81-107 AND 82-53
WHEREAS, Title I of the Housing and Community Development Act of 1974 as
amended provides for a program of Community Development Block Grants; and,
WHEREAS, the Anoka County Board of Commissioners has been designated as on
"Urban County" by the Federal Housing and Urban Development Department and
consequently is eligible to participate in the Notional Community Development Block
Grant Program; and,
WHEREAS, the Anoka County Board of Commissioners has directed the
preparation of 'a plan'under the Community Development Block Grant Program in
concert with the municipall ties of Anoka County; and,
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 low and moderate income persons, to aid in the prevention or
elimination of slums or blight or to meet other community development needs having 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: proceed~ 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 from special assessments levied to
recover the cost of constructing a public'works or focility to the extent that such cost
was initially paid with the Community Development Block Grant funds; and,
WHEREAS, in accordar~:e with Federal regulations, Anoka 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
loons to pri,~ate industry, which are made to a revolving loan account which was
approved as 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-f'unded activities which meets the above definition of
program inco~ne, shall be promptly ' ..... ~ - ~ to ~,,uku County.
2) Each LDC which has a CDBG revolving loan 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
LDC which will include:
a) Prohibition of conflict of interest as provided in HUD Regulation 24C?R
Part $70.61 I.
b) Compliance with TitleVI of the Civil Rights Act of 19(,4.
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 from the revolving loan account for so long as Anoka
' County remains an entitlement county.
d) Any other provisions required by State or F-ederol law or regulation.
RESOLUTION It8S-42 (Continued)
Page 2
3) ' Anoka County will establish as ot: May I~ 1985, a revolving loon account for
deposi t of all economic development loan payments received by Anoka County.
BE IT FURTHER RESOLVED that, all program income received by Anoko County
from activities funded in totol or part from a municipolity's CDBG project will
increase thor community's budget for eligible CDBG activities and shall therefore be
ovailoble to the community for'future expenditure pursuont to the Joint Co0perotion
Agreement in effect at the time of expenditure.
District f! - Haas
District 117 - Burmah
District lt3 - Langl:eld
District !lb, - Kordiak
District t15, - Cenaiko
District tie- McCorron
District tt7 - Erhart
YES
X Haas
X Burmah
X Langfe[d
X Kordiak
Cenaik0
X McCar ron
X Erhart
- NO
.State of Minnesoto ) SS
County of Anoka )
I~ John "Jay~' McLJnden~ County Adminbtrator! Anoka County~ Minne.sota~ hereby
certi'fy that I have compared the foregoing copy of the resolution of the County Board
of said County with the original record thereo[: on l:ile in the Administration Office~
Anoka County; Minnesota~ as stated in the minutes Of the proceedings o1: said Board at
a meeting duly held on April :23, 1985, 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 23rd day of April, 1985. . ·
Exhibit E
BOARD OF COUNTY COMMISSIONERS
Anoka County, Minnesota.
August 12, 1986
DATE_ .RESOLUTION NO.
Haas S to[ fen
OFFERED BY C0~I~iISSIONER
8g-70
COUNTY BOARD POLICY -
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM INCOME
AMENDING; RESOLUTION 85-42
WHEREAS, Ti.tie I of the Housing and Community Development Act of 197ti 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 ProgrQm~ and, .
WHEREAS, the Anoka County Board of Commissioners has directed the
preparation of a plan under the Community Development Block Grant Program in
concert with the municipalities of Anoka County; and,
wHEREAS, os a portion of said plan, municipalities as the sub-grantee of
Community Development Block Grant funds may utilize said funds in various procjrom
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 having a
par}iculOr 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 from special assessments levied to
recover the cost of constructing a public, works or facility t6 the extent that such cost
was initially paid with the Community Development Block Grant funds; and,
WHEREAS, in accordance with Federal regulations, Anoko County as the
Community Development Block Grant recipient must receive all program income, to
be used 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:
FLOW, THEREFORE, BE IT RESOLVED that 'the Anoko County Board of
Commissioners does hereby establish as o matter of policy lhot:
I) AIl CDI~G program income meeting the above definition, except payments to
County-approved LDC revolving loon account, shall be promptly forwarded to
Anoko County.
2) Each LDC which has o CDBG revolving loan account for economic development
will retain loon repayments within the account for continued use for economic
development subject to oil CDBG regulations7 and that the County or the city
will execute on agreement with the LDC which will inctude:
o) ' · Prohibition of conflict of .interest os provided in HUD Regulation 24CFR
Part 570.~11.
b) Compliance with Title VI af the Civil Rights Act of
c) Requirement for the EDC to submit quarterly reports to the Anoka County
Community Development Director regarding the use and results of
expenditure of fonds [rom the revolving 10an account far so long as Anoka
County remains an entitlement county.
'd) Any other provisions 'required by S tote or Federal law or regulation.
3) Anoka County has established os ~f May I, 1985, o revolving loan account for
deposit of oil economic developmenl loan payments received by Anoko County.
BE'IT FURTHER RESOLVED that, oil program income received by Anoko County
from activities funded in total or part [rom o municipality's CDBG project will
increase that community's budget for eligible CDBG 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.
RESOLUTION ,"/8~;-7 0
Page 2
YES
X
District/tl - Haas Steffen Haas Steffen
· Dis trict lt2 -Burman X Burmon
District 113 - Longfeld Absent Langfeld
District//4 - Kordiak X Kordiak
District #5 - Cenaiko X Cenaiko
District It6 - McCarron X McCarron
District #7 - Erhart X Erhart
NO
State of Minnesota -) SS
County o1: Anoka
I, John "Jay" McLinden, County Administrator, Anoka County, Minnesota, heceby
certify thai 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 al
a meeting duly held on August 12~ 1~8~;~ and that the same is a true and correct copy
o1: said original record and of the whole thereof, and that said resolution was duly
passed by said Board at said meeting.
Witnes~ my hand and seal this 12th day of August, I~)86. -
COUNTY ADMINISTRATOR
Exhibit F
CERTIFICATION
The Undersigned, on behalf of the Agency, certifies, to the best of his or her knowledge and belief, 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:
Walter R. Fe~hst
Its: Its: City Manager
Date: Date: ~ ~.~,~0 ?/
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~en~ '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:
(1) 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 applicants 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.q..otice 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-
!orions 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 books, 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 parr 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 1 t246 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 rules, regulations, or orders of the Sec-
rotary 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 wilt 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:
Provided, 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 and Address
City of Columbia Heights
590 40th Avenue NE
Columbia Heights', MN 55421
~e
Walter R.
Fehst, City Manager
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,
terminate, 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 corpoi'ate 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 per/om-ting the con-
struction, repair or rehabilitation work for the mortgagor or
other borrower.
200.420Equal Opportunity Clause to be included in contracts and
subcontracts.
(a) The following equal 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:
(1) 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 origin.
(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 pro'visions 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 furnish 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(t) 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 isnot required to
be inserted in subcontracts below the second flor. Subcontracts
may incorporate by referenced to the equal opportunity clause.
200.425Modification in and exemptions from the regulatidns 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 $ ].0,000.
(2) Contract and subcontracts not exceeding $t00,000 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
$100,000 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
Exh ib i t
H
U.S. Department of Housing
and Urban Development
Applicability
The Project or Program to which the construction work covered by
this contract pertains is being assisted by thc United States of America
and the following Federal Labor Standards Provisions are included in
this Contra~[ pursuant to the provisions applicable to such Federal
assistance.
A. l. (i) Minimum Wages. All laborers and mechanics employed
or working upon the site of the work (or under the United States Hous-
ing Act of 1937 or under the Housing Act of 1949 in the construction
or development of the. project), will be paid unconditionally and not
jess often than once a week, and without subsequent deduction or re-
bate on any account (except such payroll deductions as are permitted
by regulations issued by the Secretary of Labor under the Copeland
Act (29 CFR Part 3), the full amount of wages and bona fide fringe
benefits (or cash equivalents thereof@ due at time of payment com-
puted at rates not less than those contained in the wage determination
of the Secretary of Labor which is attached hereto and made a part
hereof, regardless of any contractual relationship which may be al-
leged to exist between thc contractor and such laborers and mechan-
ics. Contributions made or costs reasonably anticipated for bona fide
fringe benefit-~ under Section l(b)(2) of the Davis-Bacon Act on be-
half of laborers or mechanics arc considered wages .paid to such la-
borers or mechanics, subjeot to the provisions of 29 CFR-5.5(a)(1)(iv);
also, regular contributions made or costs incurred for more than a
weekly period (but net less 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 the appropriate wage rate
and fringe benefits on the wage determination for the classification of
work actually performed, without regard to skill, except as provided
in 29 CFR Part 5.5(a)(4). Laborers or mechanics performing work in
more than one classification may be compensated at the rate specified
for each classification for the time actually worked therein: Provided,
That the employer's payroll records accurately set forth the time spent
in each cDssification in which work is performed. The wage determi-
nation (including any additional classification and wage rates con-
formed under 29 CFR Part 5.5(a)(1)(ii) and the Davis-Bacon poster
(WH-1321) shall be posted at all times by the contractor ~d its sub-
contractors at the site of the work in a prominent and accessible, place
where it can be easily seen by the workers.
(ii) (a) Any elms of laborers or mechanics which is not listed in the
wage determination and which is to be employed under the contract
shall be classified in conformance with the wage determination. HUD
shall approve an additional ~lassification and wage rate and fringe
benefits therefore only when the following criteria have been met:
(1) The work to be performed by the classification requested is not
performed by a classification in the wage determination; and
(2) The classification is utilized in the area by the construction
dusta-=y; and
(3) The proposed wage rate, including any bona fide fringe benefits,
bears a reasonable relationship to the wage rates contained in the wage
determination.
(b) If the contractor and the laborers and mechanics to be employed
in the classification (if known), or their representatives, and HUD or
its designee agree on the classification and wage rate (including the
amount designated for fringe benefits where appropriate), a report of
the action taken shall be sent by HUD or its designee to the Adminis-
trator of the Wage and Hour Division. Employment Standards Admin-
istration. U.S. Department of Labor. Washington, D.C. 202113. The
Administrator, or an authorized representative, will approve, modify,
or disapprove every additional classification action within 30 days of
receipt and so advise HUD or its designee or will notify HUD or its
designee within the 30-day period that additional time is necessary.
(Approved by the Office of Management and Budget under OMB con-
trol number 1215-0140.)
(c) In the event the contractor, the laborers or mechanics to be em-
ployed in the classification or their representatives, and HUD or its
designee do not agree on the proposed classification and wage rate
(including the amount designated for fringe benefits, where appropri-
ate), HUD or its designee shall refer the questions, including the views
of all interested parties and thc recommendation of HUD or its desig-
nee, to the Ad'ministrator for determination. The Administrator. or an
authorized representative, will issue a determination within 30 days
of receipt and so advise HUD or i'ts designee or will notify HUD or it~
designee within the 30-day period that additional time is necessary.
(Approved by the Office of Management and Budget under OMB Con-
trol Number 1215-0140.)
(d) The wage rate (including fringe benefits where appropriate) de-
termined pursuant to subparagraphs (1)(b) or (c) of this paragraph,
shall be paid to all workers performing work in the classification un-
der this contract from the first day on which work is performed in the
classification.
(iii) Whenever the minimum wage rate prescribcd in the contract for
a class of laborers or mechanics includes a fringe benefit which is not
expressed as an hourly rate, th~ contractor shall either pay the benefit
as stated in the Wage determination or shall pay another bona rifle
fringe benefit or an hourly cash equivalent thereof.
(iv) if the contractor does not make payments to a trustee or other
third person, the contractor may consider as part of the wages of any
laborer or mechanic the amount of any costs re, sonably anticipated
in providing bona fide fringe benefits under a plan or program, Pro-
vided. That the Secretary of Labor has found, upon the written re-
quest of the contractor, that the applicable standards of thc Davis-
Bacon Act have been met. The Secretary of Labor may require th;'
contractor to set aside in a separate account assets for the meeting of
obligations under the plan or program. (Approved by the Office uf
Management and Budget under OlvlB Control Number 1215-0140.)
2. Withholding. HUD or its designee shall upon its own action or
upon written request of an authorized representative of the Depart-
ment of Labor withhold or cause to be withheld from the contractor
under this contract or any other Federal contract with the same prime
contractor, or any other Federally-assisted contract subject to Davis-
Bacon prevailing wage requirements, which is held by the same prime
contractor so much of thc accrued payments or advances ~s may be
considered necessary to pay laborers and' mechanics, including ap-
prentices, trainees and helpers, employed by thc contractor or any
subcontractor the full amount of wages required by the contract In the
event of failure to pay any laborer or mechanic, including any appren-
tice, trainee or helper, employed or working on the site of the work
(or under the United States Housing Act of 1937 or under the Housing
Act of 1949 in the construction or development of the project), all or
part of the wages required by the contract, HUD or its designee may,
after written notice to the contractor, sponsor, applicant, or owner,
take such action as may be necessary to cause the suspension of any
further payment, advance, or guarantee of funds until such violations
form HUD-401 n (2JB4)
tel Handbeok 1344.1
Page 1 ot 4
Previous edition is ot~solete
have ceased. HUD or its designee may, after written notice to the
contractor, disburse such amounts withheld for and on account of the
contractor or subcontractor to the respective employees to whom they
are due. The ComptroIIer General shah make such disbursements in
the case of direct Davis=Bacon Act contracts.
3. (i) Payrolls and basic records. Payrolls and basic records relat-
ing thereto, shall be maintained by the contractor during thc course of
the work preserved for a period of three years thereafter for all labor-
ers and mechanics working at the site of the work (or under the United
States Housing Act of 1937. or under thc Housing Act of 194.9, in the
construction or development of the project). Such records shall con-
rain the name, address, and social security number of each such worker,
his or her correct classification, hourly rates of wages paid (including
rates of contributions or costs anticipated for bona fide fringe ben-
efits or cash equivalents thereof of the types described in Section
l(b)(2)(B) of the Davis-bacon Act), daily and weekly number of hours
Worked, deductions made and actual wages paid. Whenever the Sec-
retary of Labor has found under 29 CFR 5.5 (a)(1)(iv) that the wages
of any laborer or mechanic include the amount of any cost~ reason-
ably anticipated in providing benefits under a plan or program dc-
scribed in Section l(b)(2)(B) of the Davis-Bacon Act, thc contractm
shall maintain records which show that thc commitment to provide
such benefits is enforceable, that thc plan or program is financially
responsible, and that the plan or program has been communicated in
writing to the laborers or mechanics affected, and records which show
the costs anticipated or the actual cost incurred in providing such ben-
efits. Contractors employing apprentices or trainees under approved
programs shall maintain written evidence of the registration of ap-
prenticeship programs and certification of trainee programs, the reg-
istration of the apprentices and trainees, and the ratios and wage rates
prescribed in thc applicable programs. (Approved by thc Office of
Management and Budget under OM B Control Numbers 1215-0140
and 1215-.0017.)
(ii} (a) Thc Contractor shall submit weekly for each week in which
any contract work i's performed a copy of all payrolls to HUD or its
designee if the agency is a party to the contract, but if the agency is
not' such a party, thc contractor will submit the payrolls to the appli-
cant sponsor, or owner, as thc case may be, for transmission to HUD
or its designee. Thc payrolls submitted shall set out accurately and
completely ail of the information required to bc maintained under 29
CFR Part 5.5(a)(3)(_i). This information may be submitted in any form
desired. Optional Form WH-347 is available for this purpose and
may be purchased from the Superintendent of Documents (Fore?al
Stock Number 029-005-00014-1). U.S. Government Printing Office,
Washington. DC. 20402. The prime contractor is responsible for the
submission of copies of payrolls by all subcontractors. (Approved by
thc Off icc of Management and Budget under OMB Control Number
1215-0149.)
tu~ ~,,--. ~,,,.r,~h ~,u,,,~d shall be accompanied b a "Statement of
Compliance," signed by the contractor or subcontractor or his or her
agent who pays or supervises the payment of the persons employed
under .thc contract and shall certify thc following:
(I) That thc payroll for thc payroll period contains the information
required to be maintained under 29 CFR Part 5.5 (a)(3)(i) and that
such information is correct and complete;
(2) That each laborer or mechanic (including each helper, apprentice,
and trainee) employed on thc contract during the payroll period has
been paid the full weekly wages earned, without rebate, either di-
rectly or indirectly, and that no deductions have been made either
directly or indirectly from the full wages earned, other than portals.
sible deductions as set forth in 29 CFR Part t;
(3) That each laborer or mechanic has. been paid not less than the
applicable wage rates and fringe benefits or cash equivalents for the
classification of work performed, as specified in the applicable wage
determination incorporated into the contract.
(c) The weekly submission of a properly executed certification set
forth on the reverse side of Optional Form WH-347 shah satisfy the
requirement for submission of the "Statement of Compliance" required
by paragraph A.3.(ii)(b) of this section.
(d) The falsification of any of the above certifications may subject
the contractor or subcontractor to civil or criminal prosecution under
Section 1001 of Title 18 and Section 231 of Title 31 of the United
States Code.
(iii) The contractor or subcontractor shall make the records required
under paragraph A,3.(i) of this section available for inspection, copy7
ins, or transcription by authorized representatives of HUD or its des-
ignee or the Department of Labor, and shall permit such representa-
tives to interview employees during working hours on the job. If the
contractor or subcontractor fails to submit the required records or to
make them available, HUD or its designee may, after written notice to
the contractor, sponsor, applicant or owner, take such action as may
be necessary to cause the suspension of any further payment advance,
or guarantee of funds. Furthermore, failure to submit thc required
records upon request or to make such records available may be grounds
. for debarment action pursuant to 29 CFR Part 5.12..
4. Apprentices and Trainees.
(i) Apprentices. Apprentices will be permitted to work at less than
the Predetermined rate for the WOrk they performed when they are
employed pursuant to and individually registered in a bona fide ap-
prenticeship program registered with the U.S. Department of Labor,
Employment and Training Administration. Bureau of Apprenticeship
and Training. or with a State Apprenticeship Agency. recognized by
the Bureau, or if a person is employed in his or her first 90 days of
probationary employment as an apprentice in such an apprenticeship
program, who is not individually registered in the program, but who
has been.certified by the Bureau of Apprenticeship and Training or a
State Apprenticeship Agency (where appropriate) to be eligible for
probationary employment as an apprentice. The allowable ratio of
apprentices to journeymen on thc job site in any craft classification
shall not be greater than the ratio permitted to the contractor as to the
entire work force under thc registered program. Any worker listed on
a payroll at an apprentice wage rate, who is not registered or other-
wise employed as stated above, shall be l~aid not less than the appli-
cable wage rate on the wage determination for the classification of
work actually performed. In addition, any apprentice performing Work
on the job site in excess of the ratio permitted under thc registered
program shall be paid nOt less than the applicable wage rate on the
wage determination for the work actually performed. Where a con-
tractor is performing construction on a project in a locality other than
that in which its program is registered, the ratios and wage rates (ex-
pressed in percentages of the journeyman's hourly rate) specified in
the contractor's or subcontractor's registered program shall be ob-
served. Every apprentice must be paid at not less than the rate speci-
fied in the registered program far the apprentice's level of progress,
expressed as a percentage of the journeymen hourly rate specified in
thc applicable wage determination. Apprentices shall be paid fringe
benefits in accordance with the pro.visions of the apprenticeship pro-
gram. If the apprenticeship program does not specify fringe benefits,
apprentices must be paid the full amount of fringe benefits listed on
the wage determination for the applicable classification. If the Ad-
ministrator determines that a different practice prevails for the appli-
cable apprentice classification, fringes shall.be paid in accordance
form HUD-4010 (2/84)
Previous edition is obsolete Page 2. of 4 raf. Handbook 1344.1
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 permitte~ to work at less than the predetermined rate for the 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 the 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 the trainee program does not
mention fringe benefits, trainees shall be paid the full amount of fringe
benefits listed on the wage determination unless the Administrator of
the Wage and Hour Division determines that there is an apprentice-
shil5 program associated with the corresponding journeyman wage rate
on the wage determination which provides for less than full fringe
benefits for apprentices. Any employee listed on the payroll at a trainee
rate who is not rggistered and participating in a training plan approved
by the 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 the ratio permitted under the registered program
shall be paid not less than the applicable wage rate on the wage deter-
mination for the work actually performed. In the event the Employ-
ment and Training Administration withdraws approval of a trairiing
program, the contractor will no longer be permitted to utilize trainees
at less than the 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 part shall be in conformity
with the equal employment opportunity requirements of Executive
Order I1246, as amended, and 29 CFR Part 30.
5. Compliance with Copeland Act requirements. The contractor
shall comply with the requirements of 29 CFR Part 3 which are incor-
porated by reference in this contract
6, Subcontracts. The contractor or subcontractor will insert in any
subcontracts the clauses contained in 29 CFR 5.5(a)(1) 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 any lower tier subcontracts. The prime eon-
tractor shall be responsible for the compliance by any subcontractor
or lower tier subcontractor with ail the contract clauses in 29 CFR
Part 5.5.
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 Requirements. All
rulings and interpretations of the Davis-Bacon and Related Acts con-
tained in 29 CFR Parts 1, 3, and 5 are herein incorporated by refer-
'once 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 be
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 of La-
bor, or the 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)('l) or to be awarded
HUD contracts or participate in HUD programs pursuant to 24 CFR
Part 24.
(ii) No part 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 5.12(a)(I) 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. 1001. Additionally, U.S. Criminal Code,
Section I 0l 0, Title 18, U.S.C., "Federal Housing Administration
transactions", provides in part: "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-
stituted or caused to be instituted any proceeding or has testified or is
about to testify in any proceeding under or relating to the labor stan-
dards applicable under this Contract to his employer.
B. Contract Work Hours and Safety Standards Act. As used in
this paragraph, the 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 uupaid wages; liquidated damages. In
the event of any violation of the clause set forth in subparagraph (I)
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 ediUon is obsolete Page 3 of 4 ref. Handbook 1344.1
(3) Withholding for unpaid wages and liquidated damages. HUD
or its designee shall upon its own action or upon written request 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 the contractor or subcontractor under any such contract or
any other Federal contract with the same prime contract, or any other
Federally-.assisted contract subject to the Contract Work Hours and
Safety standards Act which is held by the same prime contractor such
sums as may be determined to be necessary to satisfy any liabilities
of such contractor or subcontractor for unpaid wages and liquidated
damages as provided in the clause set forth in subparagraph (2) of this
paragraph.
(4) Subcontracts. The contractor or subcontractor shall insert in any
subcontracts the clauses set forth in subparagraph (1) through (4) of
this paragraph and also a clause requiring the subcontractors to in-
clude these clauses in any lower tier subcontracts. The prime con-
tractor shall be responsible for compliance by any subcontractor or
lower tmr subcontractor with the clauses set forth in subparagraphs
(I) 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 Laborpursuant to Title 29 Part 1926 (formerly part 151
8) and failure to comply may result in imposition of sanctions pursu-
ant to the Contract Work Hours and Safety Standards Act (Public Law
91-54, 83 Stat 96).
(3) The Contractor ihall include the provisions of this Article in ev-
ery 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
the Secretary of Labor shall direct as a means of enforcing such pro-
visions.
form HUD-4010 (2/84)
Previous edition is obsolete Page 4 of 4 ref. Handbook 1344.1