2015/07/01 Menifee Valley Boys and Girls Club CDBG FY 15/16 - Low Moderate income before and after school program COMMUNITY DEVELOPMENT BLOCK GRANT AGREEMENT
BETWEEN
CITY OF MENIFEE
AND
BOYS AND GIRLS CLUB OF MENIFEE VALLEY
FOR
PUBLIC SERVICES FOR THE CITY OF MENIFEE
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
THIS COMMUNITY DEVE OPMENT BLOCK GRANT AGREEMENT
("Agreement"), entered into as of this V— day of , 20 tl�- by and between the
CITY OF MENIFEE, a California municipal corporation ("Grantee") and MENIFEE VALLEY
BOYS AND GIRLS CLUB, a California nonprofit corporation ("Subrecipient").
RECITALS
WHEREAS, Grantee participates in the Community Development Block Grant program
administered by the United States Department of Housing and Urban Development ("HUD")
under Title I of the Housing and Community Development Act of 1974 (42 U.S.C. §§ 5301 et seq.)
as amended from time to time, and the regulations promulgated thereunder (24 C.F.R. §§ 570 et
seq.). Pursuant to the Community Development Block Grant program, Grantee receives funds
from HUD ("CDBG Funds")to be used for the support of community development activities that
meet at least one of the three national objectives of the program: (i) benefiting low and moderate
income persons,(ii)preventing and eliminating slums and blight,and(iii)addressing a community
development need having a particular urgency;
WHEREAS, Subrecipient is a nonprofit organization dedicated to providing a safe,
positive, and affordable place for children in the Menifee Valley, especially those who are at risk,
to reach their. full potential as caring, productive, and responsible citizens, including resident
children of Grantee;
WHEREAS, Subrecipient desires to utilize CDBG Funds provide services to children in
the Menifee Valley, including resident children of Grantee;
WHEREAS, Grantee desires to assist Subrecipient with the foregoing by providing
financial assistance to Subrecipient in the form of a grant of CDBG Funds in the amount not to
exceed Thirteen Thousand Twenty Eight Thousand Dollars ($13,028.00) ("City Grant") to be
used by Subrecipient for certain expenses related to the Program, more particularly described
herein as the "Eligible Project Expenses"; and
WHEREAS, Grantee's provision of the City Grant to Subrecipient pursuant to this
Agreement, and the fulfillment generally of this Agreement, are in the vital and best interests of
Grantee and the welfare of its residents, and in accordance with the purpose and provisions of the
Community Development Block Grant program.
NOW, THEREFORE, based upon the foregoing Recitals and for good and valuable
consideration, the receipt and sufficiency of which is acknowledged by both parties, Grantee and
Subrecipient hereby agree as follows:
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I. SCOPE OF SERVICE
A. Activities
Subrecipient will be responsible for administering a Community Development Block Grant
("CDBG") Year 2015-2016 Public Services Program ("Program") in a manner satisfactory to
Grantee and consistent with any standards required as a condition of providing these funds. Such
program will include the following activities eligible under the CDBG program:
ZD
Program Delivery
Activity #1: Scholarships for programs and services to low moderate income ("LMI")
persons, including, but not limited to: Before and After School Program which provides
transportation for enrolled youth to and from school ("Services"). Working parents can
drop off their children at the Boys and Girls Club prior to commuting to work. Through
the program, the children are transported to school by a licensed, certified individual.
Children are provided a healthy snack and beverages and then participate in the "Power
Hour" homework and tutoring program. Scholarships will be provided to at least one
hundred thirty (130) LMI persons.
General Administration
Subrecipient will be responsible for the general administration of the Program activities set
forth herein in a manner satisfactory to Grantee and consistent with the standards set forth
in this Agreement. General administration of the Program includes the following activities:
1. Project Monitoring
2. Project Fiscal Management
3. Project Reporting
B. National Obiectives
All activities funded with CDGB Funds must meet one of the CDBG program's national
objectives: (i)benefiting low and moderate income persons, (ii)preventing and eliminating slums
and blight, and (iii) addressing a community development need having a particular urgency, as
defined in 24 C.F.R. § 570.208.
Subrecipient certifies that the Services will meet one of the CDBG program's national
objectives by providing services that directly benefit LMI persons. Subrecipient will provide the
Services to a minimum of one hundred thirty(130) LMI persons. Subrecipient shall document and
maintain records of the number of LMI persons served throughout the year.
C. Levels of Accomplishment—Goals and Performance Measures
Subrecipient agrees to provide the following levels of program services:
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Activitv Total Units/Year
Activity#1 At Least One Hundred Thirty (130) LMI
Persons
LMI person is defined as a person having an income equal or less to than 80% of the area
median income, and outlined in the following table, or persons presumed to be LMI in
accordance with 24 C.F.R. §570.208(2)(a).
Riverside County Area Median Income (Fiscal Year 2015): $60,500
Family
Members
Extremely Low Income
In Limits Very Low Income Low Income Limits
Household 30% of Median) Limits 50% of Median 80% of Median
Annual Monthly Annual Annual Monthly
1 $13,100 $1,092 $21,750 1 $13,100 $1,092
2 $15,930 $1,328 $24,850 2 $15,930 $1,328
3 $20,090 $1,674 $27,950 3 $20,090 $1,674
4 $24,250 $2,021 $31,050 4 $24,250 $2,021
5 $28,410 $2,368 $33,550 5 $28,410 $2,368
6 $32,570 $2,714 $36,050 6 $32,570 $2,714
7 $36,730 $3,061 $38,550 7 $36,730 $3,061
8 $40,890 $3,408 $41,000 8 $40,890 $3,408
D. Staffing
Subrecipient shall ensure adequate and appropriate staffing is allocated to performance of
the Services. Nothing contained in this Agreement is intended to, or shall be construed in any
manner, as creating or establishing the relationship of employer/employee between the parties.
Subrecipient shall at all times remain an "independent contractor" with respect to the services to
be performed under this Agreement. Grantee shall be exempt from payment of all Unemployment
Compensation, FICA, retirement, life and/or medical insurance, and Workers' Compensation
Insurance, as Subrecipient is an independent contractor.
E. Performance Monitoring
Grantee will monitor the performance of Subrecipient against goals and performance
standards stated above. Substandard performance as determined by Grantee will constitute
noncompliance with this Agreement. If action to correct such substandard performance is not
taken by Subrecipient within ten (10) days after being notified by Grantee of such substandard
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performance, Grantee may, but is not required to initiate contract suspension or termination
procedures to suspend or terminate this Agreement.
II. TIME OF PERFORMANCE
Services shall start on the 1st day of July, 2015, and end on the 30th day of June, 2016.
The term of this Agreement and the provisions herein shall be extended to cover any additional
time period during which Subrecipient remains in control of CDBG Funds or other CDBG asset,
including Program income.
III. BUDGET
Subrecipient shall apply the City Grant funds received from Grantee under this Agreement
in accordance with the line item budget set forth as follows:
Eligible Project Expense Amount:
Salaries $0
Fringe 0
Office Space (Program only) 0
Utilities 0
Communications 0
Reproduction/Printing 0
Supplies and Materials 0
Mileage 0
Audit 0
Scholarships 13,028
Indirect Costs (Specify) 0
TOTAL $13,028
Any indirect costs charged must be consistent with the conditions of this Agreement. In
addition, Grantee may require a more detailed budget breakdown than the one contained herein,
and Subrecipient shall provide such supplementary budget information in a timely fashion in the
form and content prescribed by Grantee. Any amendments to the budget must be approved in
writing by both Grantee and Subrecipient.
IV. PAYMENT
It is expressly agreed and understood that the total amount to be paid by Grantee under this
Agreement shall not exceed Thirteen Thousand Twenty-Eight Dollars and Zero
Cents ($13,028). Drawdowns for the payment of Eligible Project Expenses shall be made against
the line item budget specified in Section III (Budget) herein and in accordance with performance
of the Services.Expenses for general administration shall also be paid against the line item budgets
specified in Section III (Budget) and in accordance with performance of the Services.
City Grant payments shall be made to:
Boys and Girls Club of Menifee Valley
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PO Box 2423 Menifee CA 92586
Payments may be contingent upon certification of Subrecipient's financial management
system in accordance with the standards specified in 24 C.F.R. § 84.21.
V. NOTICES
Subrecipient shall notify Grantee of any of the following changes:
• Loss of Non-Profit Status; or
• Change in leadership of Subrecipient or changes in staff administering this
Agreement.
Notices required by this Agreement shall be in writing and delivered via mail (postage
prepaid), commercial courier, or personal delivery or sent by facsimile or other electronic means.
Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending. All
notices and other written communications under this Agreement shall be addressed to the
individuals in the capacities indicated below, unless otherwise modified by subsequent written
notice.
Communication and details concerning this contract shall be directed to the following
contract representatives:
Grantee Subrecipient
Robert Lennox, Community Services Director John Whann, Executive Director
City of Menifee Menifee Valley Boys & Girls Club
29714 Haun Road 26301 Garbani Road
Menifee, CA 92586 Menifee, CA 92584
Phone: (951) 672-6777 Phone: 951-246-8845
Fax: (951) 679-3 843
VI. SPECIAL CONDITIONS
None
VII. GENERAL CONDITIONS
A. General Compliance
Subrecipient shall carry out the Services and operate the Program in conformity with all
applicable Federal, state, and local laws, regulations, and rules of governmental agencies having
jurisdiction, including without limitation, the CDBG Requirements (except that (1) Subrecipient
does not assume the environmental responsibilities described in 24 C.F.R. § 570.604, and
(2) Subrecipient does not assume the responsibility for initiating the review process under the
provisions of 24 C.F.R. Part 52) and the legal requirements set forth in Exhibit A attached to this
Agreement and the statutes referenced therein, all provisions of the Municipal Code of the City of
Menifee, and all federal and state fair labor standards, including the payment of prevailing wages
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and compliance with the Davis-Bacon Act. "CDBG Requirements"shall collectively refer to the
requirements of Title I of the Housing and Community Development Act of 1974 (42 U.S.C. §§
5301 et seq.)as amended from time to time,and the implementing regulations set forth in 24 C.F.R.
§§ 570 et seq. as amended from time to time, and the requirements set forth and referred to in
Exhibit A attached to this Agreement. Subrecipient further agrees to utilize funds available under
this Agreement to supplement rather than supplant funds otherwise available. In the case of any
conflict between the CDBG Requirements and this Agreement, the CDBG Requirements shall
control; it being understood, however, that in order to be in compliance with this Agreement and
the CDBG Requirements, Subrecipient shall, to the extent possible, comply with the most
restrictive provisions in this Agreement and the CDBG Requirements. Each and every provision
required by law to be included in this Agreement shall be deemed to be included, and this
Agreement shall be read and enforced as though all such provisions were included. Subrecipient
acknowledges and agrees that it shall be and remain, and shall cause Subrecipient personnel to be
and remain, fully knowledgeable and apprised of all local, state and federal laws, rules, and
regulations in any manner affecting the performance under this Agreement, including the CDBG
Requirements. Subrecipient shall indemnify, protect, defend, and hold harmless Grantee and its
officials,officers, employees,and agents,with counsel reasonably acceptable to Grantee,from and
against any and all loss, liability,damage, claim, cost, expense and/or"increased costs"(including
reasonable attorneys' fees, court and litigation costs, and fees of expert witnesses) that results or
arises in any way from any of the following: (a) the noncompliance by Subrecipient of any
applicable local, state and/or federal law, including, without limitation, any applicable federal
and/or state labor laws (including, without limitation, if applicable,the requirement to pay state or
federal prevailing wages and hire apprentices); (b) the implementation of Section 1781 of the
Labor Code, as the same may be amended from time to time, or any other similar law; and/or (c)
failure by Subrecipient to provide any required disclosure or identification as required by Labor
Code Section 1781, as the same may be amended from time to time, or any other similar law. The
foregoing indemnity shall survive termination or expiration of this Agreement. It is agreed by the
parties that Subrecipient shall bear all risks of payment or nonpayment of prevailing wages under
federal law and California law and/or the implementation of Labor Code Section 1781,as the same
may be amended from time to time, and/or any other similar law. "Increased costs," as used in
this Section, shall have the meaning ascribed to it in Labor Code Section 1781, as the same may
be amended from time to time.
B. Hold Harmless
Subrecipient shall indemnify, defend, and hold harmless Grantee and its officers, officials,
employees, representatives, and agents (each, an "Indemnitee") from and against any and all
liability, expense, or damage of any kind or nature, and for, from and against any suits, claims, or
demands, including legal fees and expenses, on account of or arising out of this Agreement or
otherwise in connection with the Program or Services, except to the extent of such loss as may be
caused by the sole negligence or willful misconduct of an Indemnitee. Upon receiving knowledge
of any suit, claim or demand asserted by a third party that Grantee believes is covered by this
indemnity, Grantee shall give Subrecipient written notice of the matter and an opportunity to
defend it, at Subrecipient's sole cost and expense, with legal counsel satisfactory to Grantee.
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C. Workers' Compensation
Subrecipient shall provide Workers' Compensation Insurance coverage for all of its
employees involved in the performance of this Agreement.
D. Insurance & Bondina
Subrecipient shall carry sufficient insurance coverage to protect contract assets from loss
due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket
fidelity bond covering all employees in an amount equal to the amount of the City Grant.
Subrecipient shall comply with the bonding and insurance requirements of 24 C.F.R.
§§ 84.31 and 84.48, Bonding and Insurance.
Subrecipient will not be relieved of any liability, claims, demands, or other obligations
assumed by its failure to procure or maintain insurance, or its failure to procure or maintain
insurance in sufficient amounts, durations, or types.
Subrecipient shall name Grantee and its officers, officials, employees, volunteers, agents,
and representatives as an additional insured under its general liability insurance and provide a copy
of its insurance certificate(s)to Grantee.
Failure on the part of Subrecipient to procure or maintain policies providing the required
coverages, conditions, and minimum limits will constitute a material breach of this Agreement,
upon which Grantee may immediately terminate this Agreement.
E. Licensing
Subrecipient agrees to comply with and obtain at its own expense, if necessary, all
applicable Federal, state, county, or municipal standards for licensing, certifications and operation
of facilities and programs, including the Program, and accreditation and licensing of individuals,
and any other standards or criteria as described in this Agreement to assure quality of the Services.
In the event of an investigation or suspension regarding any Subrecipient license related to
the Services under this Agreement, Grantee may terminate this Agreement and withhold further
City Grant funds. In addition, monies already received under this Agreement may be owed back
to Grantee.
F. Grantee Recognition
Subrecipient shall ensure recognition of the role of Grantee in providing Services through
this Agreement. All activities, facilities, and items utilized pursuant to this Agreement shall be
prominently labeled as to funding source. In addition, Subrecipient will include a reference to the
support provided herein in all publications made possible with City Grant funds under this
Agreement.
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G. Amendments
Grantee or Subrecipient may amend this Agreement at any time provided that such
amendments make specific reference to this Agreement, and are executed in writing, signed by a
duly authorized representative of each party, and approved by Grantee's governing body. Such
amendments shall not invalidate this Agreement, nor relieve or release Grantee or Subrecipient
from its obligations under this Agreement.
Grantee may, in its discretion, amend this Agreement to conform with Federal, state, or
local governmental guidelines, policies, and available funding amounts, or for other reasons. If
such amendments result in a change in the funding, the scope of Services, or schedule of the
activities to be undertaken as part of this Agreement, such modifications will be incorporated only
by written amendment signed by both Grantee and Subrecipient.
H. Suspension or Termination
In accordance with 24 C.F.R. § 85.43, Grantee may suspend or terminate this Agreement
if Subrecipient materially fails to comply with any terms of this Agreement, which include (but
are not limited to)the following:
1. Failure to comply with any of the rules, regulations, or provisions referred
to herein, or such statutes, regulations, executive orders, and HUD
guidelines, policies, or directives as may become applicable at any time;
2. Failure, for any reason, of Subrecipient to fulfill in a timely and proper
manner its obligations under this Agreement;
3. Ineffective or improper use of City Grant funds provided under this
Agreement; or
4. Submission by Subrecipient to Grantee reports that are incorrect or
incomplete in any material respect.
In accordance with 24 C.F.R. § 85.44, this Agreement may also be terminated for
convenience by either Grantee or Subrecipient, in whole or in part, by setting forth the reasons for
such termination, the effective date, and, in the case of partial termination, the portion to be
terminated. However,if in the case of a partial termination, Grantee determines that the remaining
portion of the City Grant funds will not accomplish the purpose for which the grant was made,
Grantee may terminate this Agreement in its entirety.
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VIII. ADMINISTRATIVE REQUIREMENTS
A. Financial Management
1. Accounting Standards
Subrecipient agrees to comply with 24 C.F.R. §§ 84.21-84.28 and agrees to adhere to the
accounting principles and procedures required therein, utilize adequate internal controls, and
maintain necessary source documentation for all costs incurred.
2. Cost Principles
Subrecipient shall administer its program in conformance with OMB Circulars A-122,
"Cost Principles for Non-Profit Organizations," or A-21, "Cost Principles for Educational
Institutions," as applicable. These principles shall be applied for all costs incurred whether
charged on a direct or indirect basis.
[Note: For the above sections, if Subrecipient is a governmental or quasi-governmental
agency, the applicable section of 24 C.F.R. Part 85, "Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local Governments, " and OMB Circular A-87
would apply.]
B. Documentation and Record Keening
1. Records to be Maintained
Subrecipient shall maintain all records required by the Federal regulations specified in
24 C.F.R. § 570.506, that are pertinent to the activities to be funded under this Agreement. Such
records shall include but not be limited to:
a. Records providing a full description of each activity undertaken;
b. Records demonstrating that each activity undertaken meets one of
the National Objectives of the CDBG program;
C. Records required to determine the eligibility of activities;
d. Records required to document the acquisition, improvement, use or
disposition of real property acquired or improved with CDBG assistance;
e. Records documenting compliance with the fair housing and equal
opportunity components of the CDBG program;
f. Financial records as required by 24 C.F.R. § 570.502, and 24 C.F.R.
§§ 84.21-84.28; and
g. Other records necessary to document compliance with Subpart K of
24 C.F.R. Part 570.
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2. Retention
Subrecipient shall retain all financial records, supporting documents, statistical records,
and all other records pertinent to this Agreement for a period of four (4) years. The retention
period begins on the date of the submission of Grantee's annual performance and evaluation report
to HUD in which the Services under this Agreement are reported on for the final time.
Notwithstanding the above, if there is any litigation, claim, audit, negotiation or other action that
involves any of the records cited and that has started before the expiration of the four-year retention
period, then 'such records must be retained until completion of the litigation, claim, audit,
negotiation, or other action and the resolution of all issues, or until the expiration of the four-year
period, whichever occurs later.
3. Client Data
Subrecipient shall maintain client data demonstrating client eligibility for Services
provided. Such data shall include, but not be limited to, client name, address, income level or
other basis for determining eligibility,and description of service provided. Such information shall
be made available to Grantee monitors or their designees for review upon request.
4. Disclosure
Subrecipient understands that client information collected under this contract is private and
the use or disclosure of such information, when not directly connected with the administration of
Grantee's or Subrecipient's responsibilities with respect to the Services provided under this
Agreement, is prohibited unless written consent is obtained from such person receiving service
and, in the case of a minor, that of a responsible parent/guardian of person receiving service.
5. Close-outs
Subrecipient's obligation to Grantee shall not end until all close-out requirements are
completed.Activities during this close-out period shall include,but are not limited to: making final
payments, disposing of program assets (including the return of all unused materials, equipment,
unspent cash advances, program income balances, and accounts receivable to Grantee), and
determining the custodianship of records. Notwithstanding the foregoing, the terms of this
Agreement shall remain in effect during any period that Subrecipient has control over CDBG
Funds, including program income.
Subrecipient will have thirty (30) days after the end of the period defined in Section II
(Time of Performance) to submit all final reimbursement request(s), progress reports, and a
comprehensive annual report.
6. Audits & Inspections
Subrecipient records with respect to any matters covered by this Agreement shall be made
available to Grantee, HUD, and the Comptroller General of the United States or any of their
authorized representatives, at any time during normal business hours, as often as deemed
necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any
deficiencies noted in audit reports must be fully cleared by Subrecipient within thirty (30) days
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after receipt by Subrecipient of the audit report. Failure of Subrecipient to comply with the above
audit requirements will constitute a violation of this Agreement and may result in the withholding
by Grantee of future payments of the City Grant. Subrecipient hereby agrees to have an annual
agency audit conducted in accordance with current Grantee policy concerning subrecipient audits
and OMB Circular A-133.
C. Reporting and Payment Procedures
l. Program Income
Subrecipient shall report quarterly all program income (as defined at 24 C.F.R.
§ 570.500(a)) generated by activities carried out with CDBG Funds made available under this
Agreement. The use of program income by Subrecipient shall comply with the requirements set
forth at 24 C.F.R. § 570.504. By way of further limitations, Subrecipient may use such program
income during the term of this Agreement and shall reduce requests for additional City Grant funds
by the amount of any such program income balances on hand. All unexpended program income
shall be returned to Grantee at the end of the term of this Agreement. Any interest earned on cash
advances from the U.S. Treasury and from funds held in a revolving fund account is not program
income and shall be remitted promptly to Grantee.
2. Indirect Costs
If indirect costs are charged, Subrecipient will develop an indirect cost allocation plan for
determining the appropriate Subrecipient's share of administrative costs and shall submit such plan
to Grantee for approval, in a form specified by Grantee.
3. Pavment Procedures
Grantee shall reimburse Subrecipient only for actual incurred costs upon presentation of
properly executed reimbursement forms as provided and approved by Grantee. Only those Eligible
Project Expenses directly related to this Agreement shall be reimbursed. The amount of each
request must be limited to the amount needed for payment of Eligible Project Expenses.
In the event that Grantee or HUD determines that any CDBG Funds were expended by
Subrecipient for unauthorized or ineligible purposes or the expenditures constitute disallowed
costs in any other way, Grantee or HUD may order repayment of the same. Subrecipient shall
remit the disallowed amount to Grantee within thirty (30) days of written notice of the
disallowance.
a. Subrecipient agrees that funds determined by Grantee to be surplus
upon completion of this Agreement will be subject to cancellation
by Grantee.
b. Subrecipient agrees that upon expiration of this Agreement,
Subrecipient shall transfer to Grantee any CDBG Funds on hand at
the time of the expiration and any accounts receivable attributable
to the use of CDBG Funds.
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C. Grantee shall be relieved of any obligation for payments if funds
allocated to Grantee cease to be available for any cause other than
misfeasance of Grantee itself.
d. Grantee reserves the right to withhold payments pending timely
delivery of program reports or documents as may be required under
this Agreement.
Payments by Grantee will be provided through a reimbursement/invoicing method only,
with payment issued by Grantee after actual costs have been incurred and paid by Subrecipient.
All costs shall be supported by properly executed payrolls, time records, invoices,
vouchers, or other official documentation, as evidence of the nature and propriety of the charges.
All accounting documents pertaining in whole or in part to this Agreement shall be clearly
identified and readily accessible, and upon reasonable notice, Grantee and HUD shall have the
right to audit the records of Subrecipient as they relate to this Agreement and the activities and
services described herein.
Payment reimbursement requests shall be submitted by Subrecipient at a minimum on a
quarterly basis. Failure to submit reimbursement requests in a timely manner may lead to
reallocation of City Grant funds.
Subrecipient shall also:
a. Maintain an effective system of internal fiscal control and
accountability for all CDBG Funds and property acquired or
improved with CDBG Funds, and make sure the same are used
solely for the Services.
b. Keep a continuing record of all disbursements by date, check
number, amount, vendor, description of items purchased, and line
item from which the money was expended, as reflected in
Subrecipient's accounting records.
C. Maintain payroll, financial, and expense reimbursement records for
a period of four (4) years after receipt of final payment under this
Agreement.
d. Permit inspection and audit of its records with respect to all matters
authorized by this Agreement by representatives of Grantee or HUD
at any time during normal business hours and as often as necessary.
e. Inform Grantee concerning any City Grant funds allocated to
Subrecipient, that Subrecipient anticipates will not be expended
during the term of this Agreement, and permit the reassignment of
the same by Grantee to other subrecipients.
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f. Repay Grantee any funds in its possession at the time of the
termination or expiration of this Agreement that may be due to
Grantee or HUD.
g. Maintain complete records concerning the receipt and use of all
program income. Program income shall be reported on a monthly
basis on forms provided by Grantee.
4. Progress Reports
Subrecipient shall submit regular progress reports to Grantee in the form, content, and
frequency as required by Grantee. Progress reports must be submitted at a minimum on quarterly
basis. Reporting periods are defined in the following table:
Quarter Reporting Period Due Date
1 July-September October 20
2 October-December January 20
3 January-March April 20
4 1 March-June I July 20
Along with the quarterly progress reports, Subrecipient shall provide Grantee with twenty-
five percent(25%) sampling of self-certification forms and ten percent (10%) sampling of income
verification for clients served that quarter. Subrecipient shall be responsible for retaining one
hundred percent(100%) certification and/or income certification forms for a minimum of four(4)
years along with other Program records.
Additionally, an annual comprehensive report including inventory of all Services provided
or performed with CDBG Funds, and financial report shall be submitted at the end of the program
year. The annual report shall be submitted no later than August 1 st.
D. Procurement
1. Compliance
Subrecipient shall comply with current Grantee policy concerning the purchase of
equipment and shall maintain inventory records of all non-expendable personal property as defined
by such policy as may be procured with funds provided herein. All Program assets (including
unexpended program income, property, and equipment) shall revert to Grantee upon termination
or expiration of this Agreement.
2. OMB Standards
Unless specified otherwise within this Agreement, Subrecipient shall procure all materials,
property, or services in accordance with the requirements of 24 C.F.R. §§ 84.40-84.48.
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3. Travel
Subrecipient shall obtain written approval from Grantee for any travel outside the
metropolitan area with City Grant funds provided under this Agreement.
E. Use and Reversion of Assets
The use and disposition of real property and equipment under this Agreement shall be in
compliance with the requirements of 24 C.F.R Part 84 and 24 C.F.R. §§ 570.502, 570.50"), and
570.504, as applicable, which include but are not limited to the following:
1. Subrecipient shall transfer to Grantee any CDBG Funds on hand and any
accounts receivable attributable to the use of CDBG Funds under this
Agreement at the time of expiration, cancellation, or termination.
2. In all cases in which equipment acquired, in whole or in part, with CDBG
Funds under this Agreement is sold, the proceeds shall be program income
(prorated to reflect the extent to that funds received under this Agreement
were used to acquire the equipment). Equipment not needed by
Subrecipient for Services under this Agreement shall be (a) transferred to
Grantee for the CDBG program or(b) retained after compensating Grantee
an amount equal to the current fair market value of the equipment less the
percentage of non-CDBG Funds used to acquire the equipment.
IX. REPRESENTATIONS AND WARRANTIES OF SUBRECIPIENT
Subrecipient makes the following representations and warranties as of the date of this
Agreement and agrees that such representations and warranties shall survive and continue
thereafter:
A. Authorization and Validation
The execution, delivery and performance by Subrecipient of this Agreement (i) are within
the powers of Subrecipient and upon its execution will constitute a legal, valid and binding
obligation of Subrecipient enforceable in accordance with its terms, and (ii) will not violate any
provisions of law, any order of any court or other agency of government, or any indenture,
agreement or any other instrument to which Subrecipient is a party or by which Subrecipient , or
any of its property, is bound, or be in conflict with, result in any breach of or constitute (with due
notice and/or lapse of time) a default under any such indenture, agreement or other instrument, or
result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever
upon any of its property or assets, except as contemplated by the provisions of this Agreement.
B. Correct Information
All reports,papers, data and information given to Grantee with respect to Subrecipient and
this Agreement, including the Program are accurate and correct in all material respects and
complete insofar as completeness may be necessary to give Grantee a true and accurate knowledge
of the subject matters thereof, and there has been no change in such information.
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C. Defaults
Subrecipient is not a party to any agreement or instrument that will interfere with its
performance under this Agreement, and is not in default in the performance, observance or
fulfillment of any of the obligations, covenants or conditions set forth in any agreement or
instrument to which it is a party.
D. Pending Litigation
There is not now pending or threatened against or affecting Subrecipient any claim,
investigation, action, suit or proceeding at law, or in equity, or before any court or administrative
agency which, if adversely determined, would impair or affect Subrecipient's ability to perform
the Services.
E. Compliance
Subrecipient has examined and is familiar with all conditions, restrictions, reservations,
and ordinances affecting the performance of the Services. The Services will in all material respects
conform to and comply with all of the requirements of said conditions, restrictions, reservations,
and ordinances and performance of the Services shall conform in all respects with applicable
ordinances and statutes, and shall be in accordance with all requirements of the regulatory
authorities having jurisdiction thereof.
X. SEVERABILITY
If any provision of this Agreement is held invalid, the remainder of the Agreement shall
not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and
effect.
XI. SECTION HEADINGS AND SUBHEADINGS
The section headings and subheadings contained in this Agreement are included for
convenience only and shall not limit or otherwise affect the terms of this Agreement.
XII. WAIVER
Grantee's failure to act with respect to a breach by Subrecipient does not waive its right to
act with respect to subsequent or similar breaches. The failure of Grantee to exercise or enforce
any right or provision shall not constitute a waiver of such right or provision.
XIII. NONLIABILITY OF OFFICIALS AND EMPLOYEES
No member, official, employee, or contractor of Grantee shall be personally liable to
Subrecipient in the event of any default or breach by Grantee or for any amount which may become
due to Subrecipient or on any obligations under this Agreement. No member, official, employee,
or contractor of Subrecipient shall be personally liable to Grantee in the event of any default or
breach by Subrecipient or for any amount which may become due to Grantee or on any obligations
under this Agreement.
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XIV. APPLICABLE LAW; VENUE
The internal laws of the State of California shall govern the interpretation and enforcement
of this Agreement. All legal actions must be instituted and maintained in the Superior Court of
the County of Riverside, State of California, or in any other appropriate court in that County.
XV. EXECUTION IN COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed to be an
original, and such counterparts shall constitute one and the same instrument.
XVI. NO CONFLICT OF INTEREST
For the term of this Agreement, no member, officer, or employee of Grantee, during the
term of his or her service with Grantee, shall have any direct interest in this Agreement, or obtain
any present or anticipated material benefit arising therefrom. In addition, Subrecipient agrees to
file, or to cause its employees or subcontractors to file, a Statement of Economic Interest with
Grantee's Filing Officer if such filing is required under state law in connection with the
performance of the Services.
XVII. THIRD PARTY BENEFICIARIES
With the exception of the specific provisions set forth in this Agreement, there are no
intended third-party beneficiaries under this Agreement and no such other third parties shall have
any rights or obligations hereunder.
XVIII.ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between Grantee and Subrecipient for the
use of funds received under this Agreement and it supersedes all prior or contemporaneous
communications and proposals, whether electronic, oral, or written between Grantee and
Subrecipient with respect to this Agreement.
[Signatures on following page]
2671/031858-0001
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.
Grantee Subrecipient
By: By:
p- ' .1 7—::-N
ROBERT A. J HNSON, CITY MANAGER SUE STJ SON, BOARD
F.,-/
r
Date: G 7i `� Date:
By:
JOHN ,EXECUTIVE
DIRECT
Attest: Date: U
KA HY BENNETT, CITY CLERK
Countersigned:
BRUCE FOLTZ, FIN OFFICER
APPROVED AS TO ORM:
Fed I.D. #
JEFFREY ELCHING, C _ATTORNEY
2671/031858-0001
7625736.2 a09/30/15 -17-
EXHIBIT A
SUMMARY OF LEGAL REQUIREMENTS
In addition to the requirements set forth in other provisions of the Agreement, Subrecipient
shall comply, and shall cause all Subrecipient's personnel to comply, with the following
regulations and requirements insofar as they are applicable to the performance of the Agreement.'
1. Equal Opportunity and Nondiscrimination.
a. Title VI of the Civil Rights Act of 1964, as amended, including Public
Law 88-352 implemented in 24 C.F.R. Part 1. This law provides in part that no person shall, on
the grounds of race, color, or national origin be excluded from participation in, be denied the
benefits of, or be subjected to discrimination under any program or activity receiving federal
financial assistance. In regard to the sale or lease of property, Subrecipient shall cause or require
a covenant running with the land to be inserted in the deed and leases prohibiting discrimination
under this Title, and providing that Grantee and the United States are beneficiaries of and entitled
to enforce such covenants. Subrecipient shall enforce such covenant and shall not itself so
discriminate.
b. Fair Housing Act, Title VIII of the Civil Rights Act of 1968, as
amended, including Public Law 90-234. The Fair Housing Act provides in part that there shall
be no discrimination in housing practices on the basis of race, color, religion, sex, and national
origin. The Fair Housing Act was amended in 1988 to provide protections from discrimination in
any aspect of the sale or rental of housing for families with children and persons with disabilities.
The Fair Housing Act also establishes requirements for the design and construction of new rental
or for-sale multi-family housing to ensure a minimum level of accessibility for persons with
disabilities.
C. Section 109 of Title I of the Housing and Community Development Act
of 1974, as amended, including 42 U.S.C. 5301 et. seq., 42 U.S.C. 6101 et. seq., and 29 U.S.C.
794. This law provides in part that no person on the grounds of race, color, national origin, sex,
or religion shall be excluded from participation in,be denied the benefits of,or otherwise be subject
to discrimination under any activity funded in whole or part with funds under this Title.
d. Section 104(b) of Title I of the Housing and Community Development
Act of 1974, as amended, including 42 U.S.C. 5301 et. seq. This law provides in part that any
grant under Section 106 shall be made only if the grantee certifies to the satisfaction of the
Secretary of HUD that the grantee will, among other things, affirmatively further fair housing.
1 This exhibit is a list and summary of some of the applicable legal requirements and is not a
complete list of all Subrecipient requirements. The description set forth next to a statute or
regulation is a summary of certain provisions in the statute or regulation and is in no way intended
to be a complete description or summary of the statute or regulation. In the event of any conflict
between this summary and the requirements imposed by applicable laws, regulations, and
requirements,the applicable laws, regulations, and requirements shall apply.
EXHIBIT"A"
6858-0001 7 PAGE 1 of 13
625736.25736.2 a09/30/15
e. Executive Order 11246, as amended. This order includes a requirement
that grantees and subrecipients and their contractors and subcontractors not discriminate against
any employee or applicant for employment because of race, color,religion, sex, or national origin.
f. Executive Order 11063,as amended,including 24 C.F.R.Part 107. This
order and its implementing regulations include requirements that all actions necessary be taken to
prevent discrimination because of race, color, religion, sex, or national origin in the use,
occupancy, sale, leasing, rental, or other disposition of property assisted with Federal loans,
advances, grants, or contributions.
g. Section 504 of the Rehabilitation Act of 1973, as amended. This Act
specifies in part that no otherwise qualified individual shall solely by reason of his or her disability
or handicap be excluded from participation (including employment), denied program benefits, or
subjected to discrimination under any program or activity receiving Federal assistance.
Subrecipient must ensure that its programs are accessible to and usable by persons with disabilities.
h. The Americans with Disabilities Act (ADA) of 1990, as amended. This
Act prohibits discrimination on the basis of disability in employment by state and local
governments and in places of public accommodation and commercial facilities. The ADA also
requires that facilities that are newly constructed or altered, by, on behalf of, or for use of a public
entity, be designed and constructed in a manner that makes the facility readily accessible to and
usable by persons with disabilities. The Act defines the range of conditions that qualify as
disabilities and the reasonable accommodations that must be made to assure equality of
opportunity, full participation, independent living, and economic self-sufficiency for persons with
disabilities.
i. The Age Discrimination Act of 1975, as amended. This law provides in
part that no person shall be excluded from participation in, be denied program benefits, or
subjected to discrimination on the basis of age under any program or activity receiving federal
assistance.
j. EEO/AA Statement. Subrecipient shall, in all solicitations or
advertisements for employees placed by or on behalf of Subrecipient, state that it is an Equal
Opportunity or Affirmative Action employer.
k. Minority/Women Business Enterprise. Subrecipient will use its best
efforts to afford small businesses and minority and women-owned business enterprises the
maximum practicable opportunity to participate in the performance of the Agreement. As used in
the Agreement, the term "small business" means a business that meets the criteria set forth in
Section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and "minority and women-
owned business enterprise"means a business at least fifty-one percent(51%)owned and controlled
by minority group members or women. For the purpose of this definition, "minority group
members" are Afro-Americans, Spanish-speaking, Spanish-surnamed or Spanish-heritage
Americans, Asian-Americans, and American Indians. Subrecipient may rely on written
representations by businesses regarding their status as minority and female business enterprises in
lieu of an independent investigation.
EXHIBIT"A"
685&0001 7 PAGE 2 of 13
625736.25736.2 a09/30/li
2. Environmental.
a. Air and Water. Subrecipient shall comply with the following regulations
insofar as they apply to the performance of the Agreement: Clean Air Act,42 U.S.C. 7401, et seq.;
Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as amended, 1318
relating to inspection, monitoring, entry, reports, and information, as well as other requirements
specified in said Section 114 and Section 308,and all regulations and guidelines issued thereunder;
and the U.S. Environmental Protection regulations pursuant to 40 C.F.R. Part 50, as amended.
b. Flood Disaster Protection Act of 1973. Subrecipient shall assure that for
activities located in an area identified by FEMA as having special flood hazards, flood insurance
under the National Flood Insurance Program is obtained and maintained.
C. Lead-Based Paint. Subrecipient shall comply with the Lead-Based Paint
Regulations referenced in 24 C.F.R. § 570.608, including 24 C.F.R. Part 35, et. al.
d. Historic Preservation. Subrecipient shall comply with the historic
preservation requirements set forth in the National Historic Preservation Act of 1966, as amended
(16 U.S.C. 470) and the procedures set forth in 36 C.F.R. Part 800, Advisory Council on Historic
Preservation Procedures for Protection of Historic Properties and related laws and Executive
Orders, insofar as they apply to the performance of the Agreement. In general, this requires
concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of
historic properties that are fifty years old or older or that are included on a federal, state, or local
historic property list.
e. Limitation on Activities Pending Clearance. In accordance with 24
C.F.R. § 58.22 entitled "Limitations on activities pending clearance, "neither a recipient nor any
participant in the development process, including public or private nonprofit or for-profit entities,
or any of their contractors, may commit HUD assistance under a program listed in 24 C.F.R.
§ 58.1(b) on an activity or project until HUD or the state has approved the recipient's Request for
Release of Funds (RROF) and the related certifications have been approved. Neither a recipient
nor any participant in the development process may commit non-HUD funds or undertake an
activity or project that would have an adverse environmental impact or limit the choice of
reasonable alternatives. Upon completion of environmental review or receipt of environmental
clearance, Grantee shall notify Subrecipient. HUD funds shall not be utilized before this
requirement is satisfied. The environmental review or violation of the provisions may result in
approval, modification of cancellation of the City Grant. If a project or activity is exempt under
24 C.F.R. § 58.34, or is categorically excluded (except in extraordinary circumstances) under 24
C.F.R. § 58.35(b), no RROF is required and the recipient may undertake the activity immediately
after the Grantee has documented its determination that each activity or project is exempt and
meets the conditions specified for such exemption under this section by issuing a Notice to
Proceed.
3. Uniform Administrative Requirements. The uniform administrative
requirements described in 24 C.F.R. § 570.502.
EXHIBIT"A"
625736.858-0001 7 PAGE 3 of 13
6257362 a09/30/15
4. Other Program Requirements. Subrecipient shall carry out each activity under
the Agreement in accordance with all applicable federal laws and regulations described in Subpart
K of 24 C.F.R. § 570 except for Grantee's environmental responsibilities under 24 C.F.R.
§ 570.604 and Grantee's responsibility for initiating the review process under the provisions of 24
C.F.R. Part 52.
5. Reversion of Assets. Upon the expiration of the Funding Period or sooner
termination of the Agreement, Subrecipient shall transfer to Grantee(a) any and all CDBG Funds,
(b)any accounts receivable attributable to the use of CDBG Funds. In all cases in which equipment
acquired, in whole or in part, with funds under the Agreement is sold, the proceeds shall be
program income (prorated to reflect the extent to that funds received under the Agreement were
used to acquire the equipment). Equipment not needed by Subrecipient for activities under the
Agreement shall at the election of Grantee either be (a) transferred to Grantee for the CDBG
program, or (b) retained by Subrecipient after compensating Grantee an amount equal to the
current fair market value of the equipment less the percentage of non-CDBG funds used to acquire
the equipment.
6. Relocation. Grantee shall not be responsible for relocating any occupants from
any property. If required, Subrecipient shall have the sole and exclusive responsibility for
providing relocation assistance and paying all relocation costs required to comply with all
applicable federal and state laws, rules, and regulations, including the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. § 4601 et seq., as
amended,and implementing regulations,and HUD Handbook 1378. Subrecipient shall indemnify,
defend, and hold Grantee harmless from and against any claims, liabilities, damages, or losses
made against it by tenants or occupants of any property, including without limitation claims for
relocation assistance,inverse condemnation,and claims otherwise arising from any act or omission
of Subrecipient pursuant to the provision of relocation assistance.
7. Allowable Costs and Audits. Subrecipient shall comply with and administer the
Program in accordance with OMB Circular No. A-122 "Cost Principles for Non Profit
Organizations" or OMB Circular No. A-21 "Cost Principles for Educational Institutions", as
applicable. If Subrecipient is a governmental or quasi-governmental agency, the applicable
sections of 24 C.F.R. Part 85, "Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments,"and OMB Circular A-87 shall apply. Subrecipient
shall have an annual audit conducted in accordance with OMB Circular No. A-133, "Audits of
States, Local Governments, and Non-Profit Organizations."
8. Records and Reports. Subrecipient shall provide to Grantee and shall cause each
of its contractors, subcontractors, and subrecipients to provide to Grantee all records and reports
relating to the Program that may be reasonably requested by Grantee in order to enable it to
perform its record keeping and reporting obligations pursuant to the CDBG Requirements,
including but not limited to those described in the Agreement and 24 C.F.R. § 570.506.
9. Religious Organizations. If Subrecipient is a religious organization as defined by
the CDBG Requirements, Subrecipient shall comply with all conditions prescribed by HUD for
the use of CDBG Funds by religious organizations, including the First Amendment of the United
EXHIBIT"A"
7625736.2 a09/01 PAGE 4 of 13
7625736'L a09/30/15
States Constitution regarding church/state principles and the applicable constitutional prohibitions
set forth in 24 C.F.R. § 570.2000).
10. Conflict of Interest. Subrecipient will comply with 24 C.F.R. §§ 84.42, 85.36 and
570.611 regarding the avoidance of conflict of interest, which provisions include (but are not
limited to) the following:
i. Subrecipient shall maintain a written code or standards of conduct that shall
govern the performance of its officers, employees or agents engaged in the award and
administration of contracts supported by Federal funds.
ii. No employee, officer or agent of the Subrecipient shall participate in the
selection, or in the award, or administration of, a contract supported by Federal funds if a
conflict of interest, real or apparent, would be involved.
iii. No covered persons who exercise or have exercised any functions or
responsibilities with respect to CDBG-assisted activities, 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 financial interest in any contract, or have a financial interest in any
contract, subcontract, or agreement with respect to the CDBG-assisted activity, or with
respect to the proceeds from the CDBG-assisted activity, either for themselves or those
with whom they have business or immediate family ties, during their tenure or for a period
of one (1)year thereafter. For purposes of this paragraph, a"covered person"includes any
person who is an employee, agent, consultant, officer, or elected or appointed official of
the Grantee,the Subrecipient, or any designated public agency.
11. Political Activity (24 C.F.R. § 570.207(a)(3)). Subrecipient is prohibited from
using CDBG Funds to finance the use of facilities or equipment for political purposes or to engage
in other partisan political activities, such as sponsoring candidate forums, distributing brochures,
voter transportation, or voter registration.
12. Anti-Lobbying Certification. By its execution of the Agreement, Subrecipient
hereby certifies that:
i. No Federal appropriated funds have been paid or will be paid, by or on
behalf of it,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 into of any
cooperative agreement, and the extension, continuation, renewal, amendment, or
modification of any Federal contract, grant, loan, or cooperative agreement.
ii. If any funds other than Federal 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,it will complete and submit Standard Form-LLL,"Disclosure Form
to Report Lobbying," in accordance with its instructions.
EXHIBIT"A"
2671/031858-0001
7625736.2 a09/30/15 PAGE 5 of 13
iii. It will 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. This certification is a prerequisite for making or entering
into this transaction imposed by section 1352, title 31, U.S.C. Any person who fails to file the
required certification shall be subject to a civil penalty of not less than $10,000 and not more than
$100,000 for each such failure. At the request of Grantee, Subrecipient shall execute a separate
document that contains the certifications set forth above.
13. Drug-Free Workplace Requirements. Subrecipient shall comply with and be
subject to the requirements of the federal drug-free workplace requirements, which include the
following actions be taken:
i. Publishing a statement notifying employees that the unlawful manufacture,
distribution, dispensing, possession, or use of a controlled substance is prohibited in the
grantee's workplace and specifying the actions that will be taken against employees for
violation of such prohibition.
ii. Establishing an ongoing drug-free awareness program to inform employees
about: (a) the dangers of drug abuse in the work place; (b) the grantee's policy of
maintaining a drug-free workplace; (c) any available drug counseling,
rehabilitation, and employee assistance programs; and (d) the penalties that may be
imposed upon employees for drug abuse violations occurring in the workplace.
iii. Making it a requirement that each employee to be engaged in the
performance of the grant be given a copy of the statement required by paragraph(i).
iv. Notifying the employee in the statement required by paragraph(i)that, as a
condition of employment under the grant,the employee will: (a) abide by the terms of the
statement; and (b)notify the employer in writing of his or her conviction for a violation of
a criminal drug statute occurring in the workplace no later than five (5) calendar days after
such conviction.
V. Notifying the agency in writing, within ten (10) calendar days after
receiving notice under sub-paragraph (iv)(b) from an employee or otherwise receiving
actual notice of such conviction. Employers of convicted employees must provide notice,
including position title,to every grant officer or other designee on whose grant activity the
convicted employee was working, unless the Federal agency has designated a central point
for the receipt of such notices. Notice shall include the identification number(s) of each
affected grant.
vi. Taking one of the following actions, within thirty (30) calendar days of
receiving notice under subparagraph (iv)(b), with respect to any employee who is so
convicted: (a) taking appropriate personnel action against such an employee, up to and
including termination, consistent with the requirements of the Rehabilitation Act of 1973,
EXHIBIT"A"
2671/031858-0001
7625736.2 a09/30/15 PAGE 6 of 13
as amended; or (b) requiring such employee to participate satisfactorily in a drug abuse
assistance or rehabilitation program approved for such purposes by a Federal, State or local
health, law enforcement, or other appropriate agency.
vii. Making a good faith effort to continue to maintain a drug-free workplace
through implementation of paragraphs (i), (ii), (iii), (iv), (v), and (vi).
14. Procurement. Subrecipient will comply with the procurement standards under 24
C.F.R. § 85.36 for governmental subrecipients and 24 C.F.R. §§ 84.40-84.48 for subrecipients that
are non-profit organizations. Subrecipient shall comply with all existing and future Grantee
policies concerning the purchase of equipment.
15. Labor Provisions.
a. Section 3 of the Housing and Community Development Act of 1968.
Subrecipient shall comply with and cause its contractors and subcontractors to comply with the
requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.
§ 1701u), the HUD regulations issued pursuant thereto at 24 C.F.R. Part 135, and any applicable
rules and orders of HUD issued thereunder. The Section 3 clause, set forth in 24 C.F.R § 135.38
provides:
i. The work to be performed under this contract is subject to the requirements
of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C.
§ 170lu ("Section 3"). The purpose of Section 3 is to ensure that employment and other
economic opportunities generated by HUD assistance or HUD-assisted projects covered
by Section 3, shall,to the greatest extent feasible, be directed to low- and very low-income
persons, particularly persons who are recipients of HUD assistance for housing.
ii. The parties to this contract agree to comply with HUD's regulations in 24
C.F.R. Part 135, which implement Section 3. As evidenced by their execution of this
contract, the parties to this contract certify that they are under no contractual or other
impediment that would prevent them from complying with the Part 135 regulations.
iii. The contractor agrees to send to each labor organization or representative
of workers with which the contractor has a collective bargaining agreement or other
understanding if any, a notice advising the labor organization or workers' representative of
the contractor's commitments under this Section 3 clause,and will post copies of the notice
in conspicuous places at the work site where both employees and applicants for training
and employment positions can see the notice. The notice shall describe the Section 3
preference, shall set forth minimum number and job titles subject to hire, availability of
apprenticeship and training positions,the qualifications for each;and the name and location
of the person(s) taking applications for each of the positions; and the anticipated date the
work shall begin.
iv. The contractor agrees to include this Section 3 clause in every subcontract
subject to compliance with regulations in 24 C.F.R. Part 135,and agrees to take appropriate
action,as provided in an applicable provision of the subcontract or in this Section 3 clause,
upon a finding that the subcontractor is in violation of the regulations in 24 C.F.R. Part
EXHIBIT"A"
2671/031858-0001
7625736.2 a09/30/15 PAGE 7 of 13
135. The contractor will not subcontract with any subcontractor where the contractor has
notice or knowledge that the subcontractor has been found in violation of the regulations
in 24 C.F.R. Part 135.
V. The contractor will certify that any vacant employment positions, including
training positions, that are filled (1) after the contractor is selected but before the contract
is executed, and (2) with persons other than those to whom the regulations of 24 C.F.R.
Part 135 require employment opportunities to be directed,were not filled to circumvent the
contractor's obligations under 24 C.F.R. Part 135.
vi. Noncompliance with HUD's regulations in 24 C.F.R Part 135 may result in
sanctions,termination of this contract for default,and debarment or suspension from future
HUD assisted contracts.
Subrecipient shall abide by the Section 3 clause set forth above and will also cause this
Section 3 clause to be inserted in all contracts relating to the Program.
b. Labor Standards. Subrecipient shall comply with the provisions of 24
C.F.R. § 570.603 and related requirements. Subrecipient shall include in all applicable
construction contracts the provisions of federal law imposing labor standards on federally assisted
contracts. Subrecipient shall comply with the requirements of the Secretary of Labor in accordance
with the Davis-Bacon Act as amended(40 U.S.C. 3141 through 3148), the provisions of Contract
Work Hours and Safety Standards Act (40 U.S.C. 327 et seq. and implementing regulations), the
Copeland Anti-Kick Back Act (40 U.S.C. 276c and 18 U.S.C. 874 et seq.), the implementing
regulations of the U.S. Department of Labor including 29 C.F.R. Parts 1, 3, 5, 6 and 7, and all
other applicable Federal, state and local laws and regulations pertaining to labor standards insofar
as those acts apply to the performance of the Agreement. Subrecipient shall maintain
documentation that demonstrates compliance with these provisions and such documentation shall
be made available to Grantee and HUD for review upon request. Subrecipient shall cause or
require to be inserted in full, in all such contracts subject to such regulations, provisions meeting
the requirements of this paragraph.
C. HUD Form 4010. Subrecipient shall comply and cause Subrecipient
Personnel to comply with the provisions of HUD Form 4010 attached hereto. HUD Form 4010
must be included in the bid packet and construction contract and subcontracts for the Program.
EXHIBIT"A"
76257 3.2 a09 301 PAGE 8 of 13 762�736.2 a09/30/I5
Federal Labor Standards Provisions U.S.Department of Housing
and Urban Development
Office of Labor Relations
Applicability (1) The work to be performed by the classification
The Project or Program to which the construction work requested is not performed by a classification in the wage
covered by this contract pertains is being assisted by the determination;and
United States of America and the following Federal Labor (2) The classification is utilized in the area by the
Standards Provisions are included in this Contract construction industry; and
pursuant to the provisions applicable to such Federal (3) The proposed wage rate, including any bona fide
assistance. fringe benefits, bears a reasonable relationship to the
A. 1. (1) Minimum Wages. All laborers and mechanics wage rates contained in the wage determination.
employed or working upon the site of the work, will be paid (b) If the contractor and the laborers and mechanics to be
unconditionally and not less often than once a week, and employed in the classification (if known), or their
without subsequent deduction or rebate on any account representatives, and HUD or its designee agree on the
(except such payroll deductions as are permitted by classification and wage rate (including the amount
regulations issued by the Secretary of Labor under the designated for fringe benefits where appropriate), a report
Copeland Act (29 CFR Part 3), the full amount of wages of the action taken shall be sent by HUD or its designee to
and bona fide fringe benefits (or cash equivalents thereof) the Administrator of the Wage and Hour Division,
due at time of payment computed at rates not less than Employment Standards Administration, U.S. Department of
those contained in the wage determination of the Labor, Washington, D.C. 20210. The Administrator, or an
Secretary of Labor which is attached hereto and made a authorized representative, will approve, modify, or
part hereof, regardless of any contractual relationship disapprove every additional classification action within 30
which may be alleged to exist between the contractor and days of receipt and so advise HUD or its designee or will
such laborers and mechanics. Contributions made or notify HUD or its designee within the 30-day period that
costs reasonably anticipated for bona fide fringe benefits additional time is necessary. (Approved by the Office of
under Section 1(b)(2) of the Davis-Bacon Act on behalf of Management and Budget under OMB control number 1215-
laborers or mechanics are considered wages paid to such 0140.)
laborers or mechanics,subject to the provisions of 29 CFR
5.5(a)(1)(iv); also, regular contributions made or costs (c) In the event the contractor, the laborers or mechanics
incurred for more than a weekly period (but not less often to be employed in the classification or their
than quarterly) under plans, funds, or programs, which representatives, and HUD or its designee do not agree on
cover the particular weekly period, are deemed to be the proposed classification and wage rate (including the
constructively made or incurred during such weekly period. amount designated for fringe benefits, where appropriate),
HUD or its designee shall refer the questions, including
Such laborers and mechanics shall be paid the appropriate the views of all interested parties and the recommendation
wage rate and fringe benefits on the wage determination of HUD or its designee, to the Administrator for
for the classification of work actually performed, without determination. The Administrator, or an authorized
regard to skill, except as provided in 29 CFR 5.5(a)(4). representative,will issue a determination within 30 days of
Laborers or mechanics performing work in more than one receipt and so advise HUD or its designee or will notify
classification may be compensated at the rate specified for HUD or its designee within the 30-day period that
each classification for the time actually worked therein_ additional time is necessary. (Approved by the Office of
Provided, That the employer's payroll records accurately Management and Budget under OMB Control Number
set forth the time spent in each classification in which 1215-0140)
work is performed. The wage determination(including any
additional classification and wage rates conformed under (d) The wage rate (including fringe benefits where
29 CFR 5.5(a)(1)(ii) and the Davis-Bacon poster (WH- appropriate) determined pursuant to subparagraphs
1321)shall be posted at all times by the contractor and its (1)(il)(b) or (c) of this paragraph, shall be paid to all
subcontractors at the site of the work in a prominent and workers performing work in the classification under this
accessible, place where it can be easily seen by the contract from the first day on which work is performed in
workers.
the classification.
(ii) (a) Any class of laborers or mechanics which is not (iii) whenever the minimum wage rate prescribed in the
listed in the wage determination and which is to be contract for a class of laborers or mechanics includes a
employed under the contract shall be classified in fringe benefit which is not expressed as an hourly rate,the
conformance with the wage determination. HUD shall contractor shall either pay the benefit as stated in the
approve an additional classification and wage rate and gage determination or shall pay another bona fide fringe
fringe benefits therefor only when the following criteria benefit or an hourly cash equivalent thereof.
have been met: (iv) If the contractor does not make payments to a trustee
or other third person, the contractor may consider as part
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of the wages of any laborer or mechanic the amount of any communicated in writing to the laborers or mechanics
costs reasonably anticipated in providing bona fide fringe affected, and records which show the costs anticipated or
benefits under a plan or program, Provided, That the the actual cost incurred in providing such benefits.
Secretary of Labor has found, upon the written request of Contractors employing apprentices or trainees under
the contractor,that the applicable standards of the Davis- approved programs shall maintain written evidence of the
Bacon Act have been met. The Secretary of Labor may registration of apprenticeship programs and certification of
require the contractor to set aside in a separate account trainee programs, the registration of the apprentices and
assets for the meeting of obligations under the plan or trainees, and the ratios and wage rates prescribed in the
program. (Approved by the Office of Management and applicable programs. (Approved by the Office of
Budget under OMB Control Number 1215-0140_) Management and Budget under OMB Control Numbers
2. Withholding. HUD or its designee shall upon its own 1215-0140 and 1215-0017.)
action or upon written request of an authorized (ii) (a) The contractor shall submit weekly for each week
representative of the Department of Labor withhold or in which any contract work is performed a copy of all
cause to be withheld from the contractor under this payrolls to HUD or its designee if the agency is a party to
contract or any other Federal contract with the same prime the contract, but if the agency is not such a party, the
contractor, or any other Federally-assisted contract contractor will submit the payrolls to the applicant
subject to Davis-Bacon prevailing wage requirements, sponsor,or owner,as the case may be,for transmission to
which is held by the same prime contractor so much of the HUD or its designee. The payrolls submitted shall set out
accrued payments or advances as may be considered accurately and completely all of the information required
necessary to pay laborers and mechanics, including to be maintained under 29 CFR 5.5(a)(3)(i)except that full
apprentices, trainees and helpers, employed by the social security numbers and home addresses shall not be
contractor or any subcontractor the full amount of wages included on weekly transmittals. Instead the payrolls shall
required by the contract In the event of failure to pay any only need to include an individually identifying number for
laborer or mechanic, including any apprentice, trainee or each employee fe.g.. the last four digits of the employee's
helper, employed or working on the site of the work, all or social security number). The required weekly payroll
part of the wages required by the contract, HUD or its information may be submitted in any form desired.
designee may, after written notice to the contractor, Optional Form WH-347 is available for this purpose from
sponsor, applicant, or owner, take such action as may be the Wage and Hour Division Web site at
necessary to cause the suspension of any further http:L't4,;vw.doLoov/esaAvhdlformslsvh347instr.htm or its
payment, advance, or guarantee of funds until such successor site. The prime contractor is responsible for
violations have ceased. HUD or its designee may, after the submission of copies of payrolls by all subcontractors.
written notice to the contractor, disburse such amounts Contractors and subcontractors shall maintain the full
withheld for and on account of the contractor or social security number and current address of each
subcontractor to the respective employees to whom they covered worker, and shall provide them upon request to
are due_ The Comptroller General shall make such HUD or its designee if the agency is a party to the
disbursements in the case of direct Davis-Bacon Act contract, but if the agency is not such a party, the
contracts. contractor will submit the payrolls to the applicant
3. (1) Payrolls and basic records. Payrolls and basic sponsor, or owner,as the case may be,for transmission to
records relating thereto shall be maintained by the HUD or its designee,the contractor,or the Wage and Hour
contractor during the course of the work preserved for a Division of the Department of Labor for purposes of an
period of three years thereafter for all laborers and investigation or audit of compliance with prevailing wage
mechanics working at the site of the work. Such records requirements. It is not a violation of this subparagraph for
shall contain the name, address, and social security a prime contractor to require a subcontractor to provide
number of each such worker, his or her correct addresses and social security numbers to the prime
classification, hourly rates of wages paid (including rates contractor for its own records, without weekly submission
of contributions or costs anticipated for bona fide fringe to HUD or its designee. (Approved by the Office of
benefits or cash equivalents thereof of the types described Management and Budget under OMB Control Number
in Section I(b)(2)(B) of the Davis-bacon Act), daily and 1215-0149.)
weekly number of hours worked, deductions made and (b) Each payroll submitted shall be accompanied by a
actual wages paid. Whenever the Secretary of Labor has -Statement of Compliance," signed by the contractor or
found under 29 CFR 5.5 (a)(1)(iv) that the wages of any subcontractor or his or her agent who pays or supervises
taborer or mechanic include the amount of any costs the payment of the persons employed under the contract
reasonably anticipated in providing benefits under a plan and shall certify the following:
or program described in Section I(b)(2)(B) of the Davis- (1) That the payroll for the payroll period contains the
Bacon Act, the contractor shall maintain records which information required to be provided under 29 CFR 5.5
show that the commitment to provide such benefits is (a)(3)(ii), the appropriate information is being maintained
enforceable, that the plan or program is financially under 29 CFR 5.5(al{3)(i), and that such information is
responsible, and that the plan or program has been correct and complete;
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(2) That each taborer or mechanic(including each helper, is not registered or otherwise employed as stated above,
apprentice, and trainee) employed on the contract during shall be paid not less than the applicable wage rate on the
the payroll period has been paid the full weekly wages wage determination for the classification of work actually
earned, without rebate, either directly or indirectly, and performed. In addition, any apprentice performing work on
that no deductions have been made either directly or the job site in excess of the ratio permitted under the
indirectly from the full wages earned, other than registered program shall be paid not less than the
permissible deductions as set forth in 29 CFR Part 3; applicable wage rate on the wage determination for the
(3) That each laborer or mechanic has been paid not less work actually performed. Where a contractor is performing
than the applicable wage rates and fringe benefits or cash construction on a project in a locality other than that in
equivalents for the classification of work performed, as which its program is registered, the ratios and wage rates
specified in the applicable wage determination (expressed in percentages of the journeyman's hourly
incorporated into the contract. rate) specified in the contractor's or subcontractor's
(c) The weekly submission of a property executed registered program shall be observed. Every apprentice
certification set forth on the reverse side of Optional Form must be paid at not less than the rate specified in the
WH-347 shall satisfy the requirement for submission of the registered program for the apprentice's level of progress,
"Statement of Compliance" required by subparagraph expressed as a percentage of the journeymen hourly rate
A.3.(H)(b). specified in the applicable wage determination.
Apprentices shall be paid fringe benefits in accordance
(d) The falsification of any of the above certifications may with the provisions of the apprenticeship program. If the
subject the contractor or subcontractor to civil or criminal apprenticeship program does not specify fringe benefits,
prosecution under Section 1001 of Title 18 and Section apprentices must be paid the full amount of fringe benefits
231 of Title 31 of the United Stafes Code. listed on the wage determination for the applicable
(iii) The contractor or subcontractor shall make the classification. If the Administrator determines that a
records required under subparagraph A.3.(i) available for different practice prevails for the applicable apprentice
inspection, copying, or transcription by authorized classification,fringes shall be paid in accordance with that
representatives of HUD or its designee or the Department determination. in the event the Office of Apprenticeship
of Labor, and shall permit such representatives to Training, Employer and Labor Services, or a State
interview employees during working hours on the job. If Apprenticeship Agency recognized by the Office,
the contractor or subcontractor fails to submit the required withdraws approval of an apprenticeship program, the
records or to make them available, HUD or its designee contractor will no longer be permitted to utilize
may, after written notice to the contractor, sponsor, apprentices at less than the applicable predetermined rate
applicant or owner, take such action as may be necessary for the work performed until an acceptable program is
to cause the suspension of any further payment, advance, approved.
or guarantee of funds. Furthermore, failure to submit the (ii) Trainees. Except as provided in 29 CFR 5.16,
required records upon request or to make such records trainees will not be permitted to work at less than the
available may be grounds for debarment action pursuant to predetermined rate for the work performed unless they are
29 CFR 5.12. employed pursuant %to and individually registered in a
4. Apprentices and Trainees. program which has received prior approval, evidenced by
(i) Apprentices. Apprentices will be permitted to work at formal certification by the U.S. Department of Labor,
less than the predetermined rate for the work they Employment and Training Administration. The ratio of
performed when they are employed pursuant to and trainees to journeymen on the job site shall not be greater
individually registered in a bona fide apprenticeship than permitted under the plan approved by the
program registered with the U.S. Department of Labor, Employment and Training Administration. Every trainee
Employment and Training Administration, Office of must be paid at not less than the rate specified in the
Apprenticeship Training, Employer and Labor Services, or approved program for the trainee's level of progress,
with a State Apprenticeship Agency recognized by the expressed as a percentage of the journeyman hourly rate
Office, or if a person is employed in his or her first 90 specified in the applicable wage determination. Trainees
days of probationary employment as an apprentice in such shall be paid fringe benefits in accordance with the
an apprenticeship program, who is not individually provisions of the trainee program. If the trainee program
registered in the program, but who has been certified by does not mention fringe benefits, trainees shall be paid
the Office of Apprenticeship Training, Employer and Labor the full amount of fringe benefits listed on the wage
Services or a State Apprenticeship Agency (where determination unless the Administrator of the Wage and
appropriate)to be eligible for probationary employment as Hour Division determines that there is an apprenticeship
an apprentice. The allowable ratio of apprentices to program associated with the corresponding journeyman
journeymen on the job site in any craft classification shall wage rate on the wage determination which provides for
not be greater than the ratio permitted to the contractor as less than full fringe benefits for apprentices. Any
to the entire veork force under the registered program. Any employee listed on the payroll at a trainee rate who is not
worker listed on a payroll at an apprentice wage rate, who registered and participating in a training plan approved by
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the Employment and Training Administration shall be paid awarded HUD contracts or participate in HUD programs
not less than the applicable wage rate on the wage pursuant to 24 CFR Part 24.
determination for the work actually performed. In addition, (ii) No part of this contract shall be subcontracted to any
any trainee performing work on the job site in excess of person or firm ineligible for award of a Government
the ratio permitted under the registered program shall be contract by virtue of Section 3(a) of the Davis-Bacon Act
paid not less than the applicable wage rate on the wage or 29 CFR 5.12(a)(1) or to be awarded HUD contracts or
determination for the work actually performed. In the participate in HUD programs pursuant to 24 CFR Part 24.
event the Employment and Training Administration
(
withdraws approval of a training program, the contractor ur) The penalty for making false statements is prescribed
will no longer be permitted to utilize trainees at less than in the U.S. Criminal Code, 18 U.S_C_ 1001. Additionally,
the applicable predetermined rate for the work performed U.S. Criminal Code, Section 1 01 0, Title 18, U.S.C.,
until an acceptable program is approved_ `Federal Housing Administration transactions', provides in
part: "Whoever, for the purpose of . . _ influencing in any
(iii) Equal employment opportunity. The utilization of way the action of such Administration..... makes, utters or
apprentices,trainees and journeymen under 29 CFR Part 5 publishes any statement knowing the same to be false_....
shall be in conformity with the equal employment shall be fined not more than $5,000 or imprisoned not
opportunity requirements of Executive Order 11246, as more than two years,or both."
amended. and 29 CFR Part 30. 11. Complaints, Proceedings, or Testimony by
5. Compliance with Copeland Act requirements. The Employees. No laborer or mechanic to whom the wage,
contractor shall comply with the requirements of 29 CFR salary,or other labor standards provisions of this Contract
Part 3 which are incorporated by reference in this contract are applicable shall be discharged or in any other manner
6. Subcontracts. The contractor or subcontractor will discriminated against by the Contractor or any
insert in any subcontracts the clauses contained in subcontractor because such employee has filed any
subparagraphs 1 through 11 in this paragraph A and such complaint or instituted or caused to be instituted any
other clauses as HUD or its designee may by appropriate proceeding or has testified or is about to testify in any
instructions require, and a copy of the applicable proceeding under or relating to the labor standards
prevailing wage decision, and also a clause requiring the applicable under this Contract to his employer.
subcontractors to include these clauses in any lower tier B. Contract Work Hours and Safety Standards Act. The
subcontracts. The prime contractor shall be responsible provisions of this paragraph B are applicable where the amount of the
for the compliance by any subcontractor or lower tier prime contract exceeds 5100,000. As used in this paragraph, the
subcontractor with all the contract clauses in this terms`laborers`and"mechanics"include watchmen and guards.
paragraph. (1) Overtime requirements. No contractor or subcontractor
7. Contract termination; debarment. A breach of the contracting for any pan of the contract work which may require or
contract clauses in 29 CFR 5.5 may be grounds for involve the employment of laborers or mechanics shall require or
termination of the contract and for debarment as a permit any such laborer or mechanic in any workweek in which the
contractor and a subcontractor as provided in 29 CFR individual is employed on such:ark to work in excess of 40 hours in
5•12• such workweek unless such laborer or mechanic receives
8. Compliance with Davis-Bacon and Related Act Requirements. compensation at a rate not less than one and one-half times the basic
All rulings and interpretations of the Davis-Bacon and rate of pay for all hours ,arked in excess of 40 hours in such
Related Acts contained in 29 CFR Parts 1, 3, and 5 are workweek.
herein incorporated by reference in this contract (2) Violation; liability for unpaid wages; liquidated
9. Disputes concerning labor standards. Disputes damages. to the event of any violation of the clause set
arising out of the labor standards provisions of this forth in subparagraph (1)of this paragraph, the contractor
contract shall not be subject to the general disputes and any subcontractor responsible therefor shall be liable
clause of this contract. Such disputes shall be resolved in for the unpaid wages. In addition, such contractor and
accordance with the procedures of the Department of subcontractor shall be liable to the United States (in the
Labor set forth in 29 CFR Parts 5, 6, and 7_ Disputes case of work done under contract for the District of
within the meaning of this clause include disputes between Columbia or a territory, to such District or to such
the contractor (or any of its subcontractors) and HUD or territory), for liquidated damages. Such liquidated
its designee, the U.S. Department of Labor. or the damages shall be computed with respect to each individual
employees or their representatives. laborer or mechanic, including watchmen and .guards,
10. (i) Certification of Eligibility. By entering into this employed in violation of the clause set forth in
contract the contractor certifies that neither it (nor he or subparagraph(1) of this paragraph,in thesuun of$10 for each
she) nor any person or firm who has an interest in the calendar day on which such individual tans required or permitted to
contractor's firm is a person or firm ineligible to be work in excess of the standard workweek of 40 hours without payment
awarded Government contracts by virtue of Section 3(a)of of the overtime wages required by the clause set forth in sub
the Davis-Bacon Act or 29 CFR 5.12(a)(1) or to be paragraph(1)of this paragraph.
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(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 performed 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 include these
clauses in any lower tier subcontracts. The prime
contractor shall be responsible for compliance by any
subcontractor or lower tier subcontractor with the clauses
set forth in subparagraphs (1) through (4) of this
paragraph.
C. Health and Safety. The provisions of this paragraph C are
applicable where the amount of the prime contract exceeds S1 M,L`00.
(1) No laborer or mechanic shall be required to work in
surroundings or under working conditions which are
unsanitary, hazardous, or dangerous to his health and
safety as determined under construction safety and health
standards promulgated by the Secretary of Labor by
regulation-
(2) The Contractor shall comply with all regulations
issued by the Secretary of Labor pursuant to Title 29 Part
1926 and failure to comply may result in imposition of
sanctions pursuant to the Contract Work Hours and Safety
Standards Act, (Public Lava 91-54, 83 Stat 96). 40 USC
3701 et seg.
(3) The contractor shall include the provisions of this
paragraph in every subcontract so that such provisions will
be binding on each subcontractor. The contractor shall
take such action with respect to any subcontractor as the
Secretary of Housing and Urban Development or the
Secretary of Labor shall direct as a means of enforcing
such provisions.
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