Resolution No. 6934
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RESOLUTION NO. 6934
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF A STANDARD AGREEMENT NO. 96-EDBG-471 BY AND
BETWEEN THE CITY OF VERNON AND THE STATE OF
CALIFORNIA, ACTING BY AND THROUGH THE DEPARTMENT
OF HOUSING AND COMMUNITY DEVELOPMENT, PERTAINING
TO COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
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WHEREAS, the City Council of the City of Vernon by
Resolution No. 6867 on October 15, 1996, authorized the filing of
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an application for Community Development Block Grant ("CDBG")
funds from the State of California Department of Housing and
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Community Development ("HCD") in the amount of Five Hundred
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Thousand Dollars and No Cents ($500,000.00); and
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WHEREAS, the HCD has submitted Standard Agreement No. 96-
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EDBG-471 authorizing said CDBG grant in order to implement a
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business assistance program in the City; and
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WHEREAS, the CDBG grant will be provided to the city of
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Vernon for said program subject to the condition that the City and
citizens participate as set forth in the application by each
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providing the supplemental amount of Fifty-two Thousand Dollars
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and No Cents ($52,000.00); and
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WHEREAS, the Director of Community Services has
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recommended that said Agreement be approved.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are
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true and correct.
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SECTION 2: The city council of the city of Vernon hereby
approves Standard Agreement No. 96-EDBG-471, a copy of which has
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been presented to the City council 'concurrently with this
resolution, and the City Council hereby orders said Agreement to
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be received and filed by the city Clerk.
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SECTION 3: The City council of the city of Vernon hereby
7 authorizes the Mayor and the city Clerk to execute said Agreement
8 for, and on behalf of, the City of Vernon.
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SECTION 4: The City AdministratorlCity Clerk is hereby
10 instructed to return five executed copies of said Agreement
11 together with one certified copy of this resolution to the
12 Department of Housing and community Development, Business
13 Management Office, State of California, P. O. Box 952050,
14 Sacramento, CA 94252-2050, which copies are to be delivered on or
15 before June 7, 1997.
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. SECTION 5: The city Clerk of the city of Vernon shall
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certify to the passage of this resolution, and thereupon and
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thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 25th day of March, 1997.
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~ LEONIS c.' URG, ayor
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ATTEST:
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BRUCE V. MALKENHORST, City Clerk
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
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Resolution No. 6934, was duly adopted by the City Council of the
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City of Vernon at an adjourned regular meeting of the City Council
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duly held on Tuesday, March 25, 1997, and thereafter was duly
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signed by the Mayor of the City of
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BRUCE V. MALKENHORST, City Clerk
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( SEAL)
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~OF CALIFORNIA . . . >
ST~NDARD AGREEMENT - :!ri~~~~~ :~J~:AL
Sm.. 2 (RSV.5.91)
AM. NO.
THIS AGREEMENT. made and entered into this 6th day of January . 19~7,
in the State of California. by and between State of California, through its duly elected or appointed. qualified and acting
96-EDBG-471
TAXPAYER'S FEDERAl. EIotPlOYER IDENTIFICATION NUl.lBE"
j.
TITLE OF OFFICER ACTING FOR STATE
Director
CONTRACTOR'S NAME
AGENCY
, hereafter called the State, and
City of Vernon . hereafter called the Contractor.
WI1NESSETH: That the Contractor fot and in consideration of the covenants, conditions, agreements. and stipulations of the State hereinafter expressed.
does hereby agree to furnish to the State services and materials as follows: (Set forth service to be rendered by Conlractor, amOunt to be paid Contractor.
time for performant:e or completion. and attach plans and specifications. if any.)
This agreement will provide official notification of the grant award under the State's administration of the Housing and Community
Development Block Grant (hereinafter, "CDBG" or "the Program") Program for Non-entitlement jurisdictions pursuant to the
provisions of 42 V.S.C. 5301 et seq., 24 CFR Part 570, Subpart I, and 25 California Code of Regulations, Sections 7050 et seq. In
accepting this grant award, the Grantee agrees to comply with the terms and conditions of this agreement and all attachments hereto,
the representations contained in the Grantee's application (hereinafter, "the Application") which is hereby incorporated by reference
as if set forth in full, and the requirements of the authorities cited above. For purposes of this agreement, use of the term "Grantee"
shall be a reference to "Contractor." Any changes made to the Application after this agreement is executed must receive prior
written approval from the State. .
Imn.: The effective date of this agreement is the date stamped by the State in the lower right hand comer of this page. This
agreement shall terminate on August 3 1, 1999.
Grant Amount: This amount to be paid as a grant to the Grantee under this agreement shall not exceed $500,000.
Grant Activity: The Grantee agrees to perform the grant activity(ies) as summarized below and on Attachments C and D attached
hereto, and as more fully described in the approved Application:
Implementation of a Business Assistance Infrastructure Program that will create or retain at least 20 jobs.
$ 37,500
$ 46,250
$416,250
General Administration
Activity Delivery
ED Business AssistancelInfrastructure Program
CONTINUED ON
19 SHEETS, EACH BEARING NAME OF CONTRACTOR AND CONTRACT NUMBER.
The provisions on the reverse side hereof constitute a part of this agreement.
IN WI1NESS WHEREOF. this agreement has been executed by the parties hereto. upon the date first above written,
STATE OF CALIFORNIA
CONTRACTOR
AGENCV
CONTRACTOR (If on-""" till individwl. _tale wINIIIw a ~ patItNHMip. etc.}
City of Vernon
BV (AUTHORIZED SIGNATURE)
, .
. BY .
ING DAV
Leonis C. Malburg, Mayor CITY ATTORNEY
ADDRESS DATED J.,,U,.97
4305 Santa Fe Avenue, Vernon, CalIfornia 90058
Department 01 General Services
Use Only
AME OF PEFlSON SIGNIN
Duncan Lent Howard
TITLE
Deputy Director
AMOUNT ENCUMBERED BV THIS
DOCUMENT
$ 500,000
PRIOR AMOUNT ENCUMBERED FOR
THIS CONTRACT
$
PROGRAMICA TEGORV (CODE AND TITLE)
TOTAL AMOUNT ENCUMBERED TO
DATE
$
(OPTIONAL USE)
Federal Funds - CDBG
ITEM
2240-101-0890
OBJECT OF EXPENDITURE (COOE AND TITLE)
FCN 14.228
FISCAL VEAR
Exempt from Deportment of
General SeMc. appl'OYOl
~\ll\ 'l. '2. ~
I hereby certify upon my own personal knowledge that budgeted funds
are available for the period and of the expenditure stated above.
SIGNATURE OF ACCOUNTING OFFICER
!>
o DEPT. OF GEN. SER.
o CONTROUSR
o
o CONTRACTOR
o STATE AGENCY
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. City of Vernon
.96-EDBG-47t
Page 3 of9
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8, AwrQved J\pplication
The Grantee agrees to fully perform the grant activity(ies) as described in the approved
Application, which is on file at the Department of Housing and Community
Development, Division of Community Affairs, 1800 Third Street, Room 390,
Sacramento, California. All written materials or alterations submitted from time to time
as addenda to the original Application and which are approved in writing by the State
prior to the award are hereby incorporated as part of the Application.
9. Commencement and Completion of Grant Activity
a, The Grantee agrees not to commence the grant activity(ies) described on page 1 of
this agreement or to incur any costs to be paid with CDBG funds prior to the
effective date of this agreement and compliance with any applicable conditions set
forth in Attachment D, Special Conditions.
b. With the exception of the Grant Closing Requirements set forth in Attachment C,
the Grantee shall complete the grant activity(ies) by the termination date set forth
on page 1 of this agreement, unless a written request for an extension is approved
90 days prior to grant expiration in writing by the State.
10, Agreement Termination
a, The State may terminate this agreement at any time for cause by giving 14 days
written notice to the Grantee. Cause shall consist of violations of any terms
and/or special conditions of this agreement, upon the request ofHUD, or
withdrawal of the State's expenditure authority. Upon termination of this
agreement, unless otherwise approved in writing by the State, any unexpended
funds received by the Grantee shall be returned to the State within 14 days of the
Notice of Termination.
b, It is mutually understood between the parties that this agreement may have been
written before ascertaining the availability of congressional appropriation of
funds, for the mutual benefit of both parties in order to avoid program and fiscal
delays which would occur if the agreement were executed after the determination
was made.
c, This agreement is valid and enforceable only if sufficient funds are made
available to the State by the United States Government for the federal fiscal year
1996 for the purposes of this program. In addition, this agreement is subject to
any additional restrictions, limitations, or conditions enacted by the Congress or
State Legislature or any statute enacted by the Congress or the State Legislature
which may affect the provisions, terms or funding of this agreement in any
manner,
d. If Congress does not appropriate sufficient funds for the program, the State may
amend the agreement to reflect any reduction in funds or it may terminate this
agreement by giving 14 days written notice to the Grantee.
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96-EDBG-47f
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11. Grant Amount
For the purposes of performing the grant activity, the State agrees to pay to Grantee the
amount specified on page 1. In no instance shall the State be liable for any costs for the
grant activity in excess of this amount, nor for any unauthorized or ineligible costs. The
Grantee agrees to administer this agreement in accordance with the provisions of Section
7098 through and including Section 7124 of Title 25 of the California Code of
Regulations.
12, Levera~e. Matchin~ Funds, and Re~ulatory Relief
The Grantee shall provide leverage and/or matching funds in the amount specified in
Attachment C. The Grantee shall provide regulatory relief as specified on Attachment C.
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13, Method of Payment
a. Advances and Reimbursements
To receive an advance or reimbursement for the grant activity performed, the
Grantee shall submit, on forms provided by the State, a duly executed Cash
Request form, or other form as supplied by the State.
The Grantee shall submit all forms to the Department of Housing and Community
Development, Community Development Block Grant Program, MS 390-2, P.O.
Box 952054, Sacramento, California 94252-2054, or any other address of which
the Grantee has been notified in writing. The State shall not authorize payments
unless it determines that the grant activity has been performed in compliance with
the terms of this agreement and its attachments.
b. Final Payment Requests
All requests for advance payments must be submitted by the last day of the 27th
month of this agreement. Payments will not be made for requests submitted past
that deadline. The final reimbursement request must be submitted within 90 days
after the expiration date of this agreement.
14. Meetin~ National OQjectives
All grant activities performed under this agreement must meet a national objective of the
CDBG Program. The national objective for this grant activity is:
Benefit to Members of Tarieted Income Group Households
The work shall consist of activities that create or retain jobs or provide goods,
services, or assistance that principally benefit low and moderate income persons
(members of the Targeted Income Group) pursuant to federal regulation
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96-EDBG-47I
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described at 24 CFR 570.483 (b). Families whose incomes are in the Lowest
Targeted Income Group may not be excluded from participation in any CDBG-
funded activity,
Aid in the Prevention or Eliminatiot) of Slums and Bli~ht
The work shall consist of activities that aid in the prevention or elimination of
slums or blight pursuant to federal regulation described at 24 CFR 570.483 (c).
15. Special Conditions
The Grantee agrees to comply with the special conditions, if any, contained in
Attachment D.
16. Inspections of Gr~t Activity .
a, The Grantee shall inspect any grant activity performed hereunder to ensure that
the grant activity is being and has been performed in accordance with the
applicable Federal, State and/or local requirements, and this agreement.
b. The State reserves the right to inspect any grant activity performed hereunder to
see that the grant activity is being and has been performed in accordance with the
applicable Federal, State and/or local requirements, and this agreement.
c. The Grantee agrees to require that all grant activity found by such inspections not
to conform to the applicable requirements be corrected, and to withhold payment
to the contractor or subcontractor until it is so corrected.
17. Insurance
The Grantee shall have and maintain in full force and effect during the term of this
agreement such forms of insurance, at such levels, as may be determined by the Grantee
and the State to be necessary for specific components of the grant activity described in
Attachment C.
18. Contractors and Subcontractors
a, The Grantee shall not enter into any agreement, written or oral, with any
contractor without the prior determination by the State of the contractor's
eligibility. A contractor or subcontractor is not eligible to receive grant funds if
not licensed and in good standing in California, or if it is listed on the List of
Parties Excluded From, Federal Procurement and Nonprocurement Programs
issued by the General Services Administration, or any successor list thereto, or
appears on the list of Limited Denials of Participation issued by the Federal
Department of Housing and Urban Development or any successor list thereto.
b. The agreement between the Grantee and any contractor shall require the
contractor and its subcontractors, if any, to:
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96-EDBG-47I
Page 6 of9
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1) Perform the grant activity in accordance with Federal, State and local
housing and building codes as are applicable.
2) Comply with the applicable State and Federal requirements described in
Attachments A and B of this agreement which pertain to, among other
things, labor standards, non-discrimination, Americans with Disabilities
Act, Equal Employment Opportunity, and Drug-Free Workplace.
3) Maintain at least the minimum State-required Worker's Compensation
Insurance for those employees who will perform the grant activity or any
part of it.
4) Maintain, if so required by law, unemployment insurance, disability
insurance and liability insurance in an amount to be determined by the
State which is reasonable to compensate any person, firm, or corporati9n
who may be injured or damaged by the contractor or any subcontractor in
performing the grant activity or any part of it.
5) Retain all books, records, accounts, documentation, and all other materials
relevant to the agreement for a period of three (3) years from date of
termination of the agreement, or three (3) years from the conclusion or
resolution of any and all audits or litigation relevant to the agreement or
this standard agreement and any amendments, whichever is later.
6) Permit the State, Federal government, the Bureau of State Audits, the
Department of Housing and Community Development and/or their
representatives, upon reasonable notice, unrestricted access to any or all
books, records, accounts, documentation, and all other materials relevant
to the agreement for the purpose of monitoring, auditing, or otherwise
examining said materials.
19. Oblia:ations of Grantee with Respect to Certain Third Party Relationships
The Grantee shall remain fully obligated under the provisions of this agreement
notwithstanding its designation of any third party or parties for the undertaking of all or
any part of the program with respect to which assistance is being provided under this
agreement to the Grantee. The Grantee shall comply with all lawful requirements of the
State necessary to ensure that the program with respect to which assistance is being
provided under this agreement to the Grantee is carried out in accordance with the State's
Assurance and Certifications, including those with respect to the assumption of
environmental responsibilities of the State under Section 104(h) of the Housing and
Community Development Act of 1974.
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If the Grantee places signs stating that the State is providing financing, it shall indicate in
a typeface and size commensurate with the State's funding portion of the project that the
State is a source of financing through the CDBG Program,
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21. Audit/Retention and Inspection of Records
a. The Grantee must have intact, auditable fiscal records at all times, If the Grantee
is found to have missing audit reports from the State Controller's Office ("SCO")
during the term of this agreement, the Grantee will be required to submit a plan to
the State, with task deadlines, for submitting the audit to the SCO, If the
deadlines are not met, the Grantee will be subject to termination of this agreement
and disencumbrance of the funds awarded. The Grantee's audit completion plan is
subject to prior review and approval by the State,
b. The Grantee shall retain all books and records relevant to this agreement for a
minimum of three years after the expiration of the agreement and any and all
amendments hereto, or for three years after the conclusion or resolution of any
and all audits or litigation relevant to this agreement, whichever is later. The
State, the Bureau of State Audits, the Department of Housing and Communio/
Development (the "Department") and/or their representatives Shall have
unrestricted reasonable access to all locations, books and records for the purpose
of monitoring, auditing or otherwise examining said locations, books and records,
with or without prior notice.
c, An expenditure which is not authorized by this agreement or which cannot be
adequately documented shall be disallowed and must be reimbursed to the State
or its designee by the Grantee. Expenditures for grant activities not described in
Attachment C shall be deemed authorized if the performance of such grant
activity is approved in writing by the State prior to the commencement of such
grant activity.
g. If there are audit findings, the Grantee must submit a detailed response to the
State for each audit finding. The State will review the response and, if it agrees
with the response, the audit process ends and the State will notify the Grantee in
writing. If the State is not in agreement, the Grantee will be contacted in writing
and told what corrective actions must be taken. This action could include the
repayment of disallowed costs or other remediation.
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h. The State shall not approve any expenditures for the audit prior to receiving an
acceptable audit report.
1, If so directed by the State upon termination of this agreement, the Grantee shall
cause all records, accounts, documentation and all other materials relevant to the
grant activity to be delivered to the State as depository.
22. State Coordinator
The coordinator of this agreement for the State is the Branch Manager of the Community
Development Block Grant (CDBG) Program, Division of Community Affairs, or the
Branch Manager's designee. Unless otherwise notified, the Grantee shall mail all reports
and communications required by this agreement by first class mail to the State
Coordinator at the address provided in paragraph 13.a.
23. Confli~t of lnterest of Members. Officers, or Employees of Contractots. Members of
Local Goveminll Body. or other Public Officials
No member, officer, or employee of the Grantee, or its designees or agents, no member of
the governing body of the locality in which the program is situated, and no other public
official of such locality or localities who exercise any functions or responsibilities with
respect to the program during his/her tenure or for one year thereafter, shall have any
interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for
grant activities to be performed in connection with the program assisted under this
agreement. The Grantee shall incorporate, or cause to be incorporated, in all such
contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of
this section,
24. Waivers
No waiver of any breach of this agreement shall be held to be a waiver of any prior or
subsequent breach. The failure of the State to enforce at any time the provisions of this
agreement or to require at any time performance by the Grantee of these provisions, shall
in no way be construed to be a waiver of such provisions nor to affect the validity of this
agreement or the right of the State to enforce these provisions.
25. Litillation
a. If any provision of this agreement, or an underlying obligation, is held invalid by
a court of competent jurisdiction, such invalidity, at the sole discretion of the
Department, shall not affect any other provisions of this agreement and the
remainder of this agreement shall remain in full force and effect. Therefore, the
provisions of this agreement are, and shall be, deemed severable,
b. The Grantee shall notify the Department immediately of any claim or action
undertaken by or against it which affects or may affect this agreement or the
Department, and shall take such action with respect to the claim or action as is
consistent with the terms of this agreement and the interests of the State.
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96-EDBG-471,
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26, Certified Resolution
This agreement and any amendments hereto shall be accompanied by a certified
resolution from the Grantee's governing body authorizing its execution.
27, Compliance with State and Federal Laws and Re~ulations
a. The Grantee agrees to comply with all State laws and regulations that pertain to
construction, health and safety, labor, fair employment practices, equal
opportunity, and all other matters applicable to the Grantee, its subgrantees,
contractors or subcontractors, and the grant activity, and any other State
provisions as set forth on Attachment A.
b. The Grantee agrees to comply with all Federal laws and regulations applicable, to
the CDBG Program and to the grant activity, and with any other Federal
provisions as set forth on Attachment B.
. City o'rVernon
. 96-EDBG-471'
Attachment A
Compliance Requirements--State Laws and Regulations
Page 1 of2
1. Drug-Free Workplace Certification
By signing this agreement, the Grantee hereby certifies under penalty of perjury under the
laws of the State of California that the Grantee will comply with the requirements of the
Drug-Free Workplace Act of 1990 (Government Code Section 8350 et seq,) and will
provide a drug-free workplace by taking the following actions:
a, Publish a statement notifying employees that unlawful manufacture, distribution,
dispensation, possession, or use of a controlled substance is prohibited and
specifying actions to be taken against employees for violations, as required by
Government Code Section 8355 (a).
b. Establish a Drug-Free Awareness Program as required by Government Code
Section 8355 (b) to inform employees about all of the following:
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1) the dangers of drug abuse in the workplace;
2) the person's or organization's policy of maintaining a drug-free workplace;
3) any available counseling, rehabilitation and employee assistance
programs; and,
4) penalties that may be imposed upon employees for drug abuse violations.
c. Provide, as required by Government Code Section 8355 (c), that every employee
who performs grant activities under this agreement:
1) will receive a copy of the company's drug-free policy statement; and
2) will agree to abide by the terms of the company's statement as a condition
of employment on this agreement.
Failure to comply with these requirements may result in suspension of payments under
this agreement or termination of the agreement or both, and the Grantee may be ineligible
for award of any future state agreements if the State determines that any of the following
has occurred: the Grantee (1) has made false certification, or (2) violates the certification
by failing to carry out the requirements as noted above.
2. Nondiscrimination Clause
a. During the performance of this agreement, the Grantee and its contractors and
subcontractors shall not unlawfully discriminate, harass or allow harassment,
against any employee or applicant for employment because of sex, race, color,
ancestry, religious creed, national origin, physical disability (including HIV and
AIDS), medical condition (cancer), age, marital status, denial of family and
medical care leave and denial of pregnancy disability leave. The Grantee and its
contractors and subcontractors shall insure that the evaluation and treatment of
their employees and applicants for employment are free from such discrimination
and harassment.
'City of Vernon
96-EDBG-471'
Attachment A
Compliance Requirements--State Laws and Regulations
Page 2 of2
The Grantee and its contractors and subcontractors shall comply with the
provisions of the Fair Employment and Housing Act (Government Code, Section
12900 et seq.) and the applicable regulations promulgated thereunder (California
Code of Regulations, Title 2, Section 7285.0 et seq,). The applicable regulations
of the Fair Employment and Housing Commission implementing Government
Code, Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the
California Code of Regulations are incorporated into this agreement by reference
and made a part hereof as if set forth in full.
The Grantee and its contractors and subcontractors shall give written notice of
their obligations under this clause to labor organizations with which they have a
collective bargaining or other agreement.
b, The Grantee and its contractors and subcontractors shall include the
nondiscrimination and compliance provisions of this clause in all subcontracts to
perform grant activities under this agreement.
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'. City ofVemon
.96-EDBG-471'
Attachment B
Compliance Requirements--Federal Laws and Regulations
. Page 1 of6
1. Anti-Lobbyin~ Certification
The Grantee shall require that the language of this certification be included in all
contracts or subcontracts entered into in connection with this grant activity and that all
subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by Section l352,.Title
31, V,S. Code. Any person who fails to file the required certification shall be subject to a
civil penalty of not less than $10,000 and no more than $100,000 for such failure.
"The undersigned certifies, to the best of his or her knowledge or belief, that:
a. 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;
b. 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,"
2. Bonus or Commission. Prohibition A~ainst Payments of
The assistance provided under this agreement shall not be used in the payment of any
bonus or commission for the purpose of:
a. obtaining the State's approval of the application for such assistance, or
b. the State's approval of the applications for additional assistance, or
c. any other approval or concurrence of the State required under this agreement,
Title I of the Housing and Community Development Act of 1974, or the State
regulations with respect thereto;
Provided, however, that reasonable fees for bona fide technical, consultant, managerial or
other such services, other than actual solicitation, are not hereby prohibited if otherwise
eligible as program costs.
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96-EDBG-471
Attachment B
Compliance Requirements--Federal Laws and Regulations
Page 2 of6
3. Citizen Participation
The Grantee is subject to the requirements concerning citizen participation contained in
Federal regulations at 24 CFR 570.486, Local Government Requirements.
4. Clean Air and Water Acts
This agreement is subject to the requirements of the Clean Air Act, as amended, 42 USC
1857 et seq., the Federal Water Pollution Control Act, as amended, 33 USC 1251 et seq.,
and the regulations of the Environmental Protection Agency with respect thereto, at 40
CFR Part 15, as amended from time to time.
5. Conflict ofInterest of Certain Federal Officials
No member of or delegate to the Congress of the United States, and no resident .
commissioner, shall be admitted to any share or part of this agreemenf or to any benefit to
arise from the same.
6. Environmental Req..uirements
The Grantee shall comply with the provisions of the National Environmental Policy Act
(NEP A) by following the procedures contained in 24 CFR Part 58.
7, Eq..ual Opportunity
a. The Civil Ri~hts, Housing and Community Development. and Age
Discrimination Acts Assurances
During the performance of this agreement, the Grantee assures that no .otherwise
qualified person shall be excluded from participation or employment, denied
program benefits, or be subjected to discrimination based on race, color, national
origin, sex, age, handicap, religion, familial status, or religious preference, under
any grant activity funded by this agreement, as required by Title VI of the Civil
Rights Act of 1964, Title I of the Housing and Community Development Act of
1974, as amended, the Age Discrimination Act of 1975, the Fair Housing
Amendment Act of 1988, and all implementing regulations.
b, Rehabilitation Act of 1973 and the "504 Coordinator"
The Grantee further agrees to implement the Rehabilitation Act of 1973, as
amended, and its regulations, 24 CFR Part 8, including, but not limited to, for
Grantees with 15 or more permanent full or part time employees, the local
designation of a specific person charged with local enforcement of this Act, as the
"504 Coordinator."
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96-EDBG-471
Attachment B
Compliance Requirements--Federal Laws and Regulations
Page 3 of6
c. The Training, Employment. and Contractin~ Opportunities for Business and
Lower Income Persons Assurance of Compliance
1) The grant activity to be performed under this agreement is on a project
assisted under a program providing direct Federal financial assistance
from the Department of Housing and Urban Development and is subject to
the requirements of Section 3 of the Housing and Urban Development Act
of 1968, as amended, 12 U.S.C. 1701u.
Section 3 sets forth numerical goals for meeting the greatest extent
feasible requirement, opportunities for training and employment be given
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 area of
the project.
2) The parties to this agreement will comply with the provisions of said
Section 3 and the regulations issued pursuant thereto by the Secretary of
Housing and Urban Development set forth in 24 CFR Part 135, and all
applicable rules and orders of the Department issued thereunder prior to
the execution of this agreement. The parties to this agreement certify and
agree that they are under no contractual or other disability which would
prevent them from complying with these requirements.
3) The Grantee will include these Section 3 clauses in every contract and
subcontract for work in connection with the grant activity and will, at the
direction of the State, take appropriate action pursuant to the contract or
subcontract upon a finding that the Grantee or any contractor or
subcontractor is in violation of regulations issued by the Secretary of
Housing and Urban Development, 24 CFR Part 135 and, will not let any
contract unless the Grantee or contractor or subcontractor has first
provided it with a preliminary statement of ability to comply with the
requirements of these regulations.
4) Compliance with the provisions of Section 3, the regulations set forth in
24 CFR Part 135, and all applicable rules and orders of the Department
issued thereunder prior to the execution of this agreement shall be a
condition of the Federal financial assistance provided to the grant activity,
binding upon the Grantee, its successors, and assigns, Failure to fulfill
these requirements shall subject the Grantee, its contractors and
subcontractors, its successors, and assigns to those sanctions specified by
the agreement through which federal assistance is provided, and to such
sanctions as are specified by 24 CFR Part 135.
d. Americans with Disabilities Act (ADA) of 1990
By signing this agreement, the Grantee assures the State that it complies with the
Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. 12101 et seq.), which
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Attachment B
Compliance Requirements--Federal Laws and Regulations
Page 4 of6
prohibits discrimination on the basis of disability, as well as all applicable
regulations and guidelines issued pursuant to the ADA.
e. Assurance of Compliance with Requirements Placed on Construction Contracts of
$10.000 or more
The Grantee hereby agrees to place in every contract and subcontract for
construction exceeding $10,000 the Notice of Requirement for Affirmative Action
to ensure Equal Employment Opportunity (Executive Order 11246), the Standard
Equal Employment Opportunity, Construction Contract Specifications. The
Grantee furthermore agrees to insert the appropriate Goals and Timetables issued
by the V,S. Department of Labor in such contracts and subcontracts,
8. Flood Disaster Protection
This agreement is subject to the requirements of the Flood Disaster Ptotection Act of
1973 (P.L. 93-234). No portion of the assistance provided under this agreement is
approved for acquisition or construction purposes as defined under Section 3(a) of said
Act, for use in an area identified by the Secretary as having special flood hazards which is
located in a community not then in compliance with the requirements for participation in
the national flood insurance program pursuant to Section 201 (d) of said Act.
The use of any assistance provided under this agreement for such acquisition or
construction in such identified areas in communities then participating in the national
flood insurance program shall'be subject to the mandatory purchase of flood insurance
requirements of Section 1 02( a) of said Act.
Any contract or agreement for the sale, lease, or other transfer of land acquired, cleared or
improved with assistance provided under this agreement shall contain certain provisions.
These provisions will apply if such land is located in an area identified by the Secretary
as having special flood hazards and in which the sale of flood insurance has been made
available under the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et
seq.
These provisions shall obligate the transferee and its successors or assigns to obtain and
maintain, during the ownership of such land, such flood insurance as required with
respect to financial assistance for acquisition or construction purposes under Section
1 02(s) of the Flood Disaster Protection Act of 1973. Such provisions shall be required
notwithstanding the fact that the construction on such land is not itself funded with
assistance provided under this agreement.
9. Labor Standards--Federal Labor Standards Provisions
The Grantee shall cause or require to be inserted in full, in all such contracts subject to
such regulations, provisions meeting the requirements of:
Davis-Bacon Act (40 USC 276a - 276a-5) requires that workers receive no less than the
prevailing wages being paid for similar work in their locality. Prevailing wages are
. City of Vernon
, 96-EDBG-471.
Attachment B
Compliance Requirements--Federal Laws and Regulations
Page 5 of6
J.
computed by the Department of Labor and are issued in the form of federal wage
decisions for each classification of work, The law applies to most construction,
alteration, or repair contracts over $2,000.
Copeland "Anti-Ki~kback" Ayt (47 USC 276(c) requires that workers be paid at least
once a week without any deductions or rebates except permissible deductions.
Contract Work Hours and Safety Standards Act - CWHSSA (40 USC 327 - 333) requires
that workers receive "overtime" compensation at a rate of 1-1/2 times their regular hourly
wage after they have worked 40 hours in one week.
Title 29. Code of Federal Reiulations. Subtitle A. Part~ 1. 3 and 5 are the regulations and
procedures issued by the Secretary of Labor for the administration and enforcement of the
Davis-Bacon Act, as amended. .
10. Lead-Based Paint H~ards
The construction or rehabilitation of residential structures with assistance provided under
this agreement is subject to the HUD Lead-Based Paint regulations, 24 CFR Part 35. Any
grants or loans made by the Grantee for the rehabilitation of residential structures with
assistance provided under this agreement shall be made subject to the provisions for the
elimination of lead-based paint hazards under subpart B of said regulations, and the
Grantee shall be responsible for the inspections and certifications required under Section
35.14(t) thereof.
11. NLRB Certification
The Grantee warrants by execution of this agreement and does swear under penalty of
perjury that no more than one final unappealable finding of contempt of court by a
Federal Court has been issued against the Grantee within the immediately preceding two-
year period because of the Grantee's failure to comply with an order of a Federal Court
which orders the Grantee to comply with an order of the National Labor Relations Board
(public Contract Code Section 10296).
12. Procurement
The Grantee shall comply with the procurement provisions in 24 CFR Part 85.36,
Administrative Requirements for Grants and Cooperative Agreements to State, Local and
Federally Recognized Indian Tribal Governments.
13. Proiram Income
"Program Income" means gross income earned by the Grantee from grant-funded
activities and is subject to CDBG regulatory requirements pursuant to 24 CFR 570.489
(e), Program Administrative Requirements, Program Income.
These regulations include the requirement that the Grantee record receipt and expenditure
of program income as part of the financial transactions of the grant activity.
. City'ofVemon
. 96-EDBG-471.
Attachment B
Compliance Requirements--Federal Laws and Regulations
Page 60f6
14. Relocation. Displacement. and Acquisition
The provisions of the Uniform Relocation Act, as amended, 49 CFR Part 24, and Section
104(d) of the Housing and Community Development Act of 1974 shall be followed
where any acquisition of real property is carried out by the Grantee and assisted in whole
or in part by funds allocated by CDBG.
In addition, where the rehabilitation of residential rental units results in increased rents
for members of the targeted income group, the Grantee shall also comply with the
requirements of the above-cited laws. Relocation expenses which may, by law, be paid
are eligible expenses for use of CDBG funds.
..
. City' of Vemon
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Attachment C
Grant Activity
Page 1 of2
1. Description of Grant Activity/Grant Amount
The grant activity(ies) shall consist of, and the amounts for each activity are:
Implementation of a business assistance program as described in the application that will
result in the creation or retention of at least 20 jobs. Where the program national
objective to be met by the activity is to principally benefit members of the Targeted
Income Group, then at least 51 % of aUjobs created or retained by each business assisted
under this contract shall be filled by members of the Targeted Income Group,
$ 37,500
$ 46,250
$416,250
General Administration
Activity Delivery
ED Business Assistance/Infrastructure Program
2. Operating Budget
Specifics of the operating budget shall be agreed upon by the State and the Grantee prior
to the drawdown of any funds.
3. Leverage/Mfltching Funds/Regulatory Relief
~
$52,000
Total $52,000
Source Private
Source
City utility $52,000
Total $52,000
Owner equity
4. E}\penditure of Funds
Economic Development - Enterprise Fund and Over-the-Counter;
100% by the 24th month of the contract
5. Periodic Reporting Requirements
During the term of the agreement, the Grantee must submit the following reports by the
deadlines noted or as otherwise required at the discretion of the State. The Grantee's
performance under this agreement will be based in part on whether it has submitted the
reports on a timely basis.
a, Program Activity Report. Submit 30 days after March 31 and September 30 of
each year during the term of the contract.
b. Grantee Performance Report (annual). Submit 45 days after June 30 each year
during the term of the contract.
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96-EDBG-471
Attachment C
Grant Activity
Page 2 of2
c. Program Income Report. Submit 45 days after June 30 each year during the term
of the contract.
d. Any other reports that may be required as a Special Condition of this contract, as
described in Attachment D.
6. Monitorin~ Requirements
CDBG may perform a program and/or fiscal monitoring of the grant. The Grantee will be
required to resolve any monitoring findings to CDBG's satisfaction by the deadlines set
by the State,
Prior to closing out this agreement, the Department shall review the actual national
objective and/or public benefit achievements of the Grantee. In the e~nt that the
national objective and/or public benefit requirements are not met, the Department may, in
its sole discretion, impose any or all of the following remedies: recapture of part or all of
the program income; reimbursement of part or all of the grant amount; and/or exclusion
of the Grantee from future CDBG funding for a period of time to be determined by the
State.
7. Grant Closin~ Requirements
By 90 days after the termination date of this agreement, the Grantee must submit the
following:
a. Grantee Performance Report (final)
b, Certificate of Completion
c. Cash Request, if any, for final reimbursement
d. Unexpended Funds, Any unexpended funds must be accounted for and returned
payable to the Department.
e. Audit Report. The Grantee must submit a final audit report to the State
Controller's Office six months after the expiration date of this agreement.
f. Evidence, satisfactory to the State, of compliance with any other Special
Conditions of this agreement, as described in Attachment D,
..
.
, City of Vernon
96-EDBG-471
Attachment D
Special Conditions
Page 1 of2
1.
A. 90-DA Y CONDITIONS--ALL ACTIVITIES
Within 90 days of this agreement's execution date, the Grantee must comply with the
following special conditions:
1, Residential Antidisplacement and Relocation Assistance Plan (the Plan)
If Federal relocation laws apply to the Grantee's CDBG-funded activity, the
Grantee must submit a relocation plan.
2. Pro~ram Income Plan
The Grantee must submit a copy of its plan for administering Program Income.
The plan must include a discussion of how the Grantee will collect and disburse
program income for CDBG-eligible activities. The Grantee milst also submit
program guidelines regarding the Grantee's administrative policies and procedures
for managing the program income activities.
B. SPECIAL CONDITIONS--ALL ACTIVITIES
1. EnviroI)Il1ental compliance
The Grantee shall have satisfied all NEP A requirements, prior to incurring any
activity related costs. The level of compliance varies by the activity that has been
funded,
2, Business Assistance Activity
Where the national objective being met is to principally benefit the Targeted
Income Group through job creation or retention, the Grantee shall submit an
Employment Plan which emphasizes the recruitment and hiring of Targeted
Income Group members, women, minorities, and local residents. For job
retention projects, the Grantee's Employment Plan shall specify procedures that
ensure that a determination will be made from the evidence provided to the
Grantee that without the CDBG assistance the jobs will be lost. The Plan shall
acknowledge the Grantee has the responsibility to monitor and document the
employment information.
The Plan shall also include the written employment agreement required to be
executed between the Grantee and the business owner [requirements of the.
Employment Agreement are described in 24 CFR 570.506(b)(5) (6), and (7)].
The written employment agreement must include a commitment by the business
that the jobs are to be created or retained by Au&ust 31.1999, and that at least
51 % of.sill. jobs created or retained (on a full-time equivalent basis) will be held by
Targeted Income Group persons.
"
. City of Vernon
. 96-EOBG-471
Attachment D
Special Conditions
Page 2 of2
1.
The Employment Agreement shall specify that any business receiving assistance
shall agree prior to receiving assistance, to provide a listing by job title of the
permanent jobs projected to be created; identify which jobs, if any are part-time
and the annual hours of work for each position, and which jobs are projected to be
filled by member of the Targeted Income Group.
The Employment Agreement shall specify that any business receiving assistance
shall agree prior to receiving assistance, to provide periodic reporting (at least
quarterly) that lists jobs by job title of all of the permanent jobs actually filled,
and which of those jobs are held by members of the Targeted Income Group.
Additionally, the data will include the job applicants and jobholders'
ethnicity/race, handicapped status, gender, head of household status,
Business Assistance Infrastructure Activity-Where the Grantee is implementing
a Business Assistance Infrastructure activity, the Grantee shall~~;ubmit their .
methodology for determining the infrastructure benefit area, a Fair Share
Allocation Plan, and a Fair Share Payment Plan. These documents shall specify
how the Grantee will administer and ensure compliance by future development
including the requirement that the future development complies with COBG job
creation and principal benefit to the targeted income group requirements, (see
CFR 570.483(b)(4)(F).
Where the business assistance program national objective to be met by
elimination of slums and blight, that designation means a blighted area or
structure characterized by one or more conditions listed in Section 7056(b)(3) of
the State COBG regulations and as documented under HUO regulations specified
in the Code of federal Regulations, Title 24, Part 570.483(c). The Grantee shall
provide documentation showing that the proposed project is within a designated
redevelopment project areas that conforms to the regulations listed above,
3. COBG Underwritin~ Guidelines
Submit program guidelines that ensures federal financial underwriting compliance
prior to the provisions of COBG assistance to a business. The underwriting
guidelines must be used to determine whether proposed COBG subsidy is
appropriate to assist a business project and that a minimum level of public benefit
will be obtained from the expenditure of COBG funds in support of the projects.