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HomeMy WebLinkAbout06. Fair Housing Foundation Contract AGENDA MEMO DATE: September 14, 2010 TO: Mayor and Members of the City Council FROM: Office of the City Manager By: Brian Saeki, Director of Community Development SUBJECT: FAIR HOUSING FOUNDATION CONTRACT RECOMMENDATION That the City Council approve a Contract with the Fair Housing Foundation, in the amount of $15,990, to provide fair housing services during fiscal year 2010-2011. BACKGROUND/DISCUSSION As a recipient of Community Development Block Grant (CDBG) funds, the City of Downey (City) is required to affirmatively further the objectives of the Fair Housing Act (42 U.S.C. 3601-20) and Executive Order 11063. The City has complied with these requirements by offering a comprehensive program of fair housing services. Since 1990, the City has offered these services through a contract with the Fair Housing Foundation (FHF). Staff is recommending that the City renew the contract with FHF for the continuation of fair housing services. The Fair Housing Foundation will provide the following services to Downey residents and property owners: Counseling, mediation, and dispute resolution service for landlords, tenants and home seekers. Respond to complaints and inquiries on housing discrimination. Conduct community workshops and seminars for landlords, apartment managers and tenants. Provide education and community outreach on fair housing issues. Distribute fair housing-related educational materials and brochures. Implement recommendations identified in the City-approved “Analysis of Impediments” report. Provide status reports on a monthly, quarterly and annual basis. FISCAL IMPACT If approved, this item will lessen the CDBG budget by $15,990. Funds for the FHF contract were previously allocated and approved in the CDBG Administration Budget. Attachment: FHF Contract S:\Agenda Memos CC 2010\09-14-10\FHF Agrmt Agenda Rpt 2010-11.doc CITY OF DOWNEY, CALIFORNIA CONTRACT BETWEEN CITY OF DOWNEY AND THE FAIR HOUSING FOUNDATION THIS AGREEMENT, entered this August 10, 2010 by and between the City of DOWNEY (herein called the "Grantee") and The Fair Housing Foundation (herein called the "Subrecipient"). WHEREAS, the Grantee has applied for and received funds from the United States Government under Title I of the Housing and Community Development Act of 1974, Public Law 93-383; and WHEREAS, the Grantee wishes to engage the Subrecipient to assist the Grantee in utilizing such funds; NOW, THEREFORE, it is agreed between the parties hereto that; I. SCOPE OF SERVICE A. Activities The Subrecipient will administer and implement a Fair Housing Program, providing services designed to affirmatively further the fair housing objectives of the Fair Housing Act (42 U.S.C. 3601-20), Executive Order 11063, and State and local fair housing laws, regulations, orders and ordinances. The Subrecipient will be responsible for administering a Fair Housing Program in a manner satisfactory to the Grantee and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant Program: Program Delivery 1. Discrimination Complaint Program A. Receiving complaints and inquiries from persons reporting acts relating to some aspect of the City's housing industry that constitute or may constitute housing discrimination. B. Conducting rental and sales audits. C. Investigating rental and sales discrimination complaints, including conditions in the service area, using testing and other methods to determine whether discrimination exists. In those instances in which discrimination exists, assisting victims in gathering evidence in support of claims. 2 2. Enforcement and Impact Litigation A. Using best efforts to meet the needs of victims of sales and rental discrimination by providing them counsel, conducting conciliations or mediations on their behalf, litigating in-house, referring them to enforcement agencies and/or private attorneys. B. Conducting audits and using other measures to achieve compliance with settlements and other agreements and enforcement of law. 3. Landlord Tenant Housing Dispute Resolution Services A. Provide counseling, mediation and referral services to all tenants residing or seeking to reside in rental properties in the City and to all persons engaged in the operation of rental housing in the City. B. Provide referral services to low and moderate income housing consumers, giving priority to handicapped persons, members of minority groups, elderly persons, and other persons who are or have been unable to find suitable, safe, decent, and sanitary dwelling units. C. Provide assistant with unlawful detainer answers. 4. Education and Outreach Services A. Increase Public Awareness through: 1) Literature Distribution 2) Media exposure both radio and television 3) Fair Housing Newsletter 4) Annual Poster Contest and Reception B. Programs for Housing Consumers 1) Tenant Workshops 2) Booths 3) Presentation to Community Based C. Programs for Housing Providers 1) Landlord Workshops 2) Certificate Management Trainings 3) Realtor Trainings D. City Services 1) Training to Grantee 2) Walk-in Clinics E. Presentations to City Council and 3 B. Levels of Accomplishment In addition to the normal administrative services required as part of this Agreement, the Subrecipient agrees to provide the following levels of program services: PROGRAMGOAL Discrimination Services Inquiries 40 1 Bonafide Cases 10 Bonafide Investigations 10 Educational Audits 10 2 Tester Trainings 4 3 General Housing Services Counseling 300 4 Unlawful Detainer Assistance 5 Mediations 5 Habitability Cases 5 Education & Outreach Services Literature Distribution 3,000 Public Service Announcements 20 Paid Advertisements 2 5 Newslette 4 r Poster Contest and Reception 1 Tenant Workshops 2 Booths 2 Presentations to Community 2 Landlord Workshops 2 Certificate management Trainings 2 Realtor Trainings 0 Training to Grantee 1 Walk-in Clinics 2 6 Presentations to City Council/Commissions0 1 FHF will not limit the number clients counseled on discrimination issues 2 Educational audits will be conducted if needed to meet the Bonafide Cases goal unless otherwise provided for in the contract 3 Tester Trainings are conducted for the entire service area not just within the City limits 4 FHF will not limit the number of clients counseled on general housing issues 5 Paid Advertisements are placed in newsprint media such as La Opinion and the Wave 6 Space and arrangement must be provided by City Staff 4 C. Reporting The Subrecipient will submit to the Grantee the following on or before the 10th day of each month: Monthly reports for providing a detailed summary of discrimination complaints, counseling activities, and other activities as they relate to the Grantee. The Subrecipient will submit t the Grantee the following on or before the 20th day of each month: Monthly billing requests reflecting actual expenditures. The Subrecipient will submit to the Grantee the following on or before the 15th day following the end of each quarter: Case narratives of investigated bonafide complaints and audits. Each narrative is to detail the nature of each discrimination inquiry or complaint, the manner used in testing the complaint or otherwise investigated, the nature of any counseling, conciliation, referral made or litigation initiated. The Subrecipient will submit to the Grantee the following on or before the 90th day after the end of the fiscal year. Year end report providing statistical and financial summaries as they relate to the Grantee. D. Staffing Staff will consist of the following: Executive Director Director of Investigations Case Analyst (2) Housing Associate Outreach Coordinator Housing Counselor (2) Attorneys: FHF will have an Attorney who works on fair housing cases throughout the contract year. Attorney’s will be paid as consultants, under contract. 5 E. Performance Monitoring The Grantee will monitor the performance of the standards required herein. Substandard performance as determined by the Grantee will constitute non-compliance with this agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the Grantee, contract suspension or termination procedures will be initiated. II. TIME OF PERFORMANCE Services of the Subrecipient shall start on the 1st day of July, 2009, and end on the 30th day of June, 2010. The terms of this Agreement and provisions herein shall be extended to cover any additional time period during which the Subrecipient remains in control of CDBG funds or other assets including program income. III. PAYMENT AND BUDGET A. Payment It is expressly agreed and understood that the total amount to be paid by Fifteen Thousand, Six the Grantee under this contract shall not exceed Hundred Dollars ($15,600.00) . Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in Paragraph III.B herein and in accordance with performance specified in Paragraph I.B. Expenses for general administration shall also be paid against the line item budgets specified in Paragraph III.B and in accordance with performance specified in Paragraph I.B. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in OMB Circular A-110, Attachment F. 6 B. Budget Fifteen Thousand, Six Hundred Dollars The line item budget for ($15,600.00) is as follows: CATEGORY AMOUNT PERSONNEL Wages 2,347.08 Executive Director Director of Investigations 1,504.76 1,108.19 Case Analyst Case Analyst 1,1049.46 961.21 Outreach Coordinator Housing Associate 725.08 813.24 Housing Counselor 851.98 Housing Counselor 2,626.00 Fringe: FICA, SUI, Workers Compensation & Benefit Package 11,987.00 TOTAL PERSONNEL DIRECT COSTS 1,723.00 Space: Rent & Telephone 30.00 Mileage: Administration & Outreach Consultants: Legal Director, Attorney, 463.00 Bookkeeping, Computer, & A133 Audit 400.00 Testing Fees 309.00 Other: Liability Insurance, Board Insurance, Staff Development and Training and Travel 688.00 Equipment & Supplies 3,613.00 TOTAL DIRECT COSTS 15,600.00 GRAND TOTAL 7 IV. NOTICES Communication and details concerning this contract shall be directed to the following contract representatives: Grantee Housing Manager City of Downey 7850 Quill Drive #C Downey, CA 90242 Subrecipient Barbara Shull Executive Director Fair Housing Foundation 3605 Long Beach Blvd. #302 Long Beach, CA 90807 V. SPECIAL CONDITIONS The Subrecipient agrees to comply with the requirements of Title 24 Code of Federal Regulations, Part 570 of the Housing and Urban Development regulations concerning Community Development Block Grants (CDBG) and all federal regulations and policies issued pursuant to these regulations. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. VI. GENERAL CONDITIONS A. General Compliance The Subrecipient agrees to comply with all applicable federal, state and local laws and regulations governing the funds provided under this contract. B. Independent Contractor Nothing contained in this agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Subrecipient shall at all times remain an independent contractor with respect to the services to be performed under this agreement. The Grantee shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Subrecipient is an independent Subrecipient. 8 C. Hold Harmless The Subrecipient shall hold harmless, defend and indemnify the Grantee from any and all claims, actions, suits, charges and judgments whatsoever that arise out of the Subrecipient's performance or nonperformance of the services or subject matter called for in this agreement. D. Workers' Compensation The Subrecipient shall provide Workers' Compensation Insurance coverage for all employees involved in the performance of this contract. E. Insurance & Bonding The 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 cash advances from the Grantee. General Liability - with a combined single limit of $1,000,000. Automobile - if used in performing services hereunder, automobile insurance must be obtained in an amount equal to that required for general liability. The Subrecipient shall comply with the bonding and insurance requirements of Attachment B of OMB Circular A-110, Bonding and Insurance. F. Grantor Recognition The Subrecipient shall insure recognition of the role of the grantor agency in providing services through this contract. All activities, facilities and items utilized pursuant to this contract shall be prominently labeled as to funding source. In addition, the Subrecipient will include a reference to the Support provided herein in all publications made possible with funds made available under this contract. 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 both organizations, and approved by the Grantee's governing body. Such amendments shall not invalidate this Agreement, nor relieve or release Grantee or Subrecipient from its obligations under this Agreement. 9 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 schedules 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 Either party may terminate this contract at any time by giving written notice to the other party of such termination and specifying the effective date thereof at least 30 days before the effective of such termination. Partial terminations of the Scope of Services in Paragraph I.A above may only be undertaken with the prior approval of Grantee. In the event of any termination for convenience, all finished or unfinished documents, data, studies, surveys, maps, models, photographs, reports or other materials prepared by Subrecipient under this agreement shall, at the option of the Grantee, become the property of the Grantor, and Subrecipient shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. Grantee may also suspend or terminate this agreement, in whole or in part, if Subrecipient materially fails to comply with any term of this Agreement, or with any of the rules, regulations or provisions referred to herein; and the grantee may declare the Subrecipient ineligible for any further participation in Grantee contracts, in addition to other remedies as provided by law. In the event there is probable cause to believe the Subrecipient is in noncompliance with any applicable rules or regulations, the Grantee may withhold up to fifteen (15) percent of said contract funds until such time as the Subrecipient is found to be in compliance by the Grantee, or is otherwise adjudicated to be in compliance. VII. ADMINISTRATIVE REQUIREMENTS A. Financial Management 1. Accounting Standards The Subrecipient agrees to comply with Attachment F of OMB Circular A-110 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. 10 2. Cost Principles The Subrecipient shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations," as applicable; for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record-Keeping 1. Records to be maintained The Subrecipient shall maintain all records required by the federal regulations specified in 24 CFR Part 570.506, and that are pertinent to the activities to be funded under this Agreement. Such records shall include but are not limited to: a. Records providing a full description of each activity under taken; 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 of 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 CFR Part 570.502, and OMB Circular A110; and g. Other records necessary to document compliance with Subpart K of 24 CFR 570. 2. Retention The Subrecipient shall retain all records pertinent to the expenditures incurred under this contract for a period of three (3) years after the termination of all activities under this agreement, or after the resolution of all Federal audit findings, which ever occurs later. Records for non-expendable property acquired with funds under this contract shall be retained for three (3) years after final disposition of such property. Records for any displaced person must be kept for three (3) years after he/she has received final payment. 3. Client Data The Subrecipient shall maintain client data demonstrating client eligibility for services provided.Such data shall include, but not be 11 limited to, 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 The 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 the Grantee's or Subrecipient's responsibilities with respect to services provided under this contract, 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. 5. Property Records The Subrecipient shall maintain real property inventory records which clearly identify properties purchased, improved or sold. Properties retained shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Parts 570.503(b)(8). 6. National Objectives The Subrecipient agrees to maintain documentation that demonstrates that the activities carried out with funds provided under this contract meet one or more of the CDBG program's national objectives -1) benefit low/moderate income persons, 2) aid in the prevention or elimination of slums or blight, 3) meet community development needs having a particular urgency - as defined in 24 CFR Part 570.208. 7. Close-Outs Subrecipients obligation to the 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 receivable accounts to the Grantee), and determining the custodianship of records. 8. Audits & Inspection All Subrecipient records with respect to any matters covered by this agreement shall be made available to the Grantee, grantor agency, their designees or the Federal Government, at any time during 12 normal business hours, as often as the Grantee or grantor agency deems necessary, to audit, examine and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Subrecipient hereby agrees to have an annual agency audit conducted in accordance with current City policy concerning Subrecipient audits. C. Reporting and Payment Procedures 1. Budgets The Subrecipient will submit a detailed contract budget of a form and content prescribed by the City for approval by the Grantee. The Grantee and the Subrecipient may agree to revise the budget from time to time in accordance with existing City policies. 2. Program Income The Subrecipient shall report all program income as defined at 24 CFR 570.500(a) generated by activities carried out with CDBG funds made available under this contract. The use of program income by the Subrecipient shall comply with the requirements set forth at 24 CFR 570.,504. By way of further limitations, the Subrecipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unused program income shall be returned to the Grantee at the end of the contract period. Any interest earned on cash advances from the U.S. Treasury is not program income and shall be remitted promptly to the Grantee. 3. Indirect Costs If indirect costs are charged, the Subrecipient will develop an indirect cost allocation plan for determining the appropriate Grantee share of administrative costs and shall submit such plan to the Grantee for approval. 4. Payment Procedures The Grantee will pay the Subrecipient funds available under this contract based upon information submitted by the Subrecipient and consistent with any approved budget and City policy concerning payments. With the exception of certain advances, payments will 13 be made for eligible expenses actually incurred by the Subrecipient, and not to exceed actual cash requirements. Payments will be adjusted by the Grantee in accordance with advance fund and program income balances available in Subrecipient accounts. In addition, the Grantee reserves the right to liquidate funds available under this contract for costs incurred by the Grantee on behalf of the Subrecipient. 5. Progress Reports The Subrecipient shall submit regular Progress Reports to the Grantee in the form, content and frequency as required by the Grantee. D. Procurement 1. Compliance The Subrecipient shall comply with current City policy concerning the purchase of equipment and shall maintain an inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the Grantee upon termination of this contract. 2. OMB Standards The Subrecipient shall procure materials in accordance with the requirements of Attachment O of OMB Circular A-110, Procurement Standards, And shall subsequently follow Attachment N, Property Management Standards, covering utilization and disposal of property. 3. Travel The Subrecipient shall obtain written approval from the Grantee for any travel outside the metropolitan area with funds provided under this contract. 4. Relocation, Acquisition and Displacement The Subrecipient agrees to comply with 24 CFR 570.606 relating to the acquisition and disposition of all real property utilizing grant funds, and to the displacement of persons, businesses, nonprofit organizations and farms occurring as a direct result of any acquisition of real property utilizing grant funds. The Subrecipient agrees to comply with applicable Grantee Ordinances, Resolutions, 14 and Policies concerning displacement of individuals from their residences. VIII. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Subrecipient agrees to comply with 1866 Civil Rights Act 42 USC 1992 and with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 109 of Title I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246 as amended by Executive Orders 11375 and 12086. 2. Nondiscrimination The Subrecipient will not discriminate against any employee or applicant for employment because of race, color, creed, religion, ancestry, national origin, sex, disability or other handicap, age, marital status, or status with regard to public assistance. The Subrecipient will take affirmative action to insure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, ;layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Subrecipient agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause. 3. Land Covenants This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and 24 CFR 570, Part I. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this contract, the Subrecipient shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the Grantee and the United States are beneficiaries of and entitled to enforce such covenants. The Subrecipient, in undertaking its obligation to carry out the 15 program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. 4. Section 504 The Subrecipient agrees to comply with any federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 706) which prohibits discrimination against the handicapped in any federally assisted program. The Grantee shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this contract. B. Affirmative Action 1. Approved Plan The Subrecipient agrees that it shall be committed to carry out pursuant to the Grantee's specifications an Affirmative Action Program in keeping with the principles as provided in President's Executive Order 11246 of September 24, 1965. The Grantee shall provide Affirmative Action guidelines to the Subrecipient to assist in the formulation of such program.The Subrecipient shall submit a plan for an Affirmative Action Program for approval prior to the award of funds. 2. W/MBE The Subrecipient will use its best efforts to afford minority and women-owned business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this contract, the term "minority and female business enterprise" means a business at least fifty-one (51) percent 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. The Subrecipient may rely on written representations by Subrecipients regarding their status as minority and female business enterprises in lieu of an independent investigation. 3. Access to Records The Subrecipient shall furnish and cause each of its sub- Subrecipients to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the grantee, HUD or its agent, or other authorized 16 federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein. 4. Notifications The Subrecipient will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the agency contracting officer, advising the labor union or worker's representative of the Subrecipient's commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5. EEO/AA Statement the Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity of Affirmative Action employer. 6. Subcontract Provisions The Subrecipient will include the provision of Paragraphs VIII A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each subSubrecipient or vendor. C. Employment Restrictions 1. Prohibited Activity The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities; sectarian, or religious activities; lobbying, political patronage, and nepotism activities. 2. OSHA Where employees are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to the participant's health or safety. 17 3. Right to Know Participants employed or trained for inherently dangerous occupations, e.g., fire or police jobs, shall be assigned to work in accordance with reasonable safety practices. 4. Labor Standards the Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis Bacon Act as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland "Anti-Kickback" Act (40 U.S.C. 276, 327-333) and all other applicable federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this contract. The Subrecipient shall maintain documentation which demonstrates compliance with hour and wage requirements of this part.Such documentation shall be made available to the Grantee for review upon request. The Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property designed for residential use for less than eight (8) households, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair of any building or work financed in whole or in part with assistance provided under this contract, shall comply with federal requirements adopted by the Grantee pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR, Parts 3, 1, 5, and 7 governing the payment of wages and ration of apprentices and trainees to journeymen; provided, that if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. the 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, for such contracts in excess of $10,000.00. 5. "Section 3" Clause a. Compliance Compliance with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this contract, shall be a condition of the federal financial assistance provided under this contract and binding upon the Grantee, the Subrecipient and subSubrecipients. Failure to fulfill these requirements shall subject the Grantee, the Subrecipient and 18 any subSubrecipient, their successors and assigns, the those sanctions specified by the agreement through which federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with these requirements. The Subrecipient further agrees to comply with the "Section 3" requirements and to include the following language in all subcontract executed under this agreement: "the work to be performed under this contract is a project assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the areas of the project." The Subrecipient certifies and agrees that no contractual or other disability exists which would prevent compliance with the requirements. b. Notifications The Subrecipient agrees to send each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker's representative of its commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. c. Subcontracts The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subSubrecipient is in violation of regulations issued by the Grantor Agency. The Subrecipient will not subcontract with any subSubrecipient where it has notice or knowledge that the letter has been found in violation of regulations under 24 CFR 135 and will not let any subcontract unless the subSubrecipient has first 19 provided it with a preliminary statement of ability to comply with the requirements of these regulations. D. Conduct 1. Assignability The Subrecipient shall not assign or transfer any interest in this contract without the prior written consent of the Grantee thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Grantee under this contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the Grantee. 2. Hatch Act The Subrecipient agrees that no funds provided, nor personnel employed under this contract, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V United States Code. 3. Conflict of Interest The Subrecipient agrees to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that it presently has no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this contract. The Subrecipient further covenants that in the performance of this contract no person having such a financial interest shall be employed or retained by the Subrecipient hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the Grantee, or of any designated public agencies or Subrecipients which are receiving funds under the CDBG Entitlement program. 4. Subcontracts a. Approvals The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of the Grantee prior to the execution of such agreement. b. Monitoring 20 The Subrecipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance. c. Content The Subrecipient shall cause all of the provisions of this contract in its entirety to be included in and made a part of any subcontract executed in the performance of this agreement. d. Selection Process The Subrecipient shall undertake to insure that all subcontracts let in the performance of this agreement shall be awarded on a fair and open competition basis. Executed copies of all subcontracts shall be forwarded to the Grantee along with documentation concerning the selection process. 5. Copyrights If this contract results in any copyrightable materials, the Grantee and/or grantor agency reserves the right to royalty-free, non- exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize use and to authorize others to use, the work for government purposes. 6. Religious Organization The Subrecipient agrees that funds provided under this contract will not be utilized for religious activities, to promote religious interests, or for the benefit of a religious organization in accordance with the federal regulations specified in 24 CFR 570.200(j). IX. ENVIRONMENTAL CONDITIONS A. Air and Water The Subrecipient agrees to comply with the following regulations insofar as they apply to the performance of this contract: Clean Air Act, 42 U.S.C., 1857, 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 21 said Section 114 and Section 308, and all regulations and guidelines issued thereunder. Environmental Protection Agency (EPA) regulations pursuant to 40 C.F.R., Part 50, as amended. National Environmental Policy Act of 1969. HUD Environmental Review Procedures (24 CFR, Part 58). B. Flood Disaster Protection The Subrecipient agrees to comply with the requirements of the Flood Disaster Protection Act of 1973 (P.L. - 2234) in regard to the sale, lease or other transfer of land acquired, cleared or improved under the terms of this contract, as it may apply to the provisions of this contract. C. Lead-Based Paint The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this contract shall be subject to HUD Lead-Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, and in particular Sub-Part B thereof. Such regulations pertain to all HUD-assisted housing and require that all owners, prospective owners, and tenants or properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead-based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning. D. Historic Preservation The Subrecipient agrees to 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 CFR, Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this contract. In general, this requires concurrence from the Sate 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. 22 IN WITNESS WHEREOF, the parties have executed this contract as of the date first written above. Grantee Subrecipient By: By: MAYOR Title: Executive Director Attest: CITY CLERK APPROVED AS TO FORM AND LEGAL SUFFICIENCY Fed. I.D. # 95-6122678 CITY ATTORNEY AFFIRMATIVE ACTION APPROVAL 23