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Resolution No. 6934 ... 1 RESOLUTION NO. 6934 2 3 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 4 5 6 7 8 WHEREAS, the City Council of the City of Vernon by Resolution No. 6867 on October 15, 1996, authorized the filing of 9 10 an application for Community Development Block Grant ("CDBG") funds from the State of California Department of Housing and 11 Community Development ("HCD") in the amount of Five Hundred 12 Thousand Dollars and No Cents ($500,000.00); and 13 WHEREAS, the HCD has submitted Standard Agreement No. 96- 14 EDBG-471 authorizing said CDBG grant in order to implement a 15 business assistance program in the City; and 16 WHEREAS, the CDBG grant will be provided to the city of 17 18 Vernon for said program subject to the condition that the City and citizens participate as set forth in the application by each 19 providing the supplemental amount of Fifty-two Thousand Dollars 20 and No Cents ($52,000.00); and 21 WHEREAS, the Director of Community Services has 22 recommended that said Agreement be approved. 23 24 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: 25 26 SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are 27 true and correct. 28 .. 1 SECTION 2: The city council of the city of Vernon hereby approves Standard Agreement No. 96-EDBG-471, a copy of which has 2 3 been presented to the City council 'concurrently with this resolution, and the City Council hereby orders said Agreement to 4 5 be received and filed by the city Clerk. 6 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. 9 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. 16 . SECTION 5: The city Clerk of the city of Vernon shall 17 certify to the passage of this resolution, and thereupon and 18 thereafter the same shall be in full force and effect. 19 APPROVED AND ADOPTED this 25th day of March, 1997. 20 ~. ~ LEONIS c.' URG, ayor 21 22 23 ATTEST: /'f BRUCE V. MALKENHORST, City Clerk 24 25 26 27 28 -2- .. ... . 1 STATE OF CALIFORNIA ) )ss COUNTY OF LOS ANGELES ) 2 3 I, BRUCE V. MALKENHORST, City Clerk of the City of 4 Vernon, do hereby certify that the foregoing Resolution, being 5 Resolution No. 6934, was duly adopted by the City Council of the 6 City of Vernon at an adjourned regular meeting of the City Council 7 duly held on Tuesday, March 25, 1997, and thereafter was duly 8 signed by the Mayor of the City of L~~ 9 10 11 BRUCE V. MALKENHORST, City Clerk 12 ( SEAL) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -3- ~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 'f . City of Vernon .96-EDBG-47t Page 3 of9 j, 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. . .City of Vernon 96-EDBG-47f Page 4 of9 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. .~ 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 , . .City of Vernon 96-EDBG-47I Page 5 of9 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: '. City'ofVemon 96-EDBG-47I Page 6 of9 J. 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. 20, ~ 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, , City bfVemon . 96-EDBG-471 Page 7 of9 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. . City bfVemon . 96-EDBG-47I' Page 80f9 J. 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. .city ot'Vernon 96-EDBG-471, Page 9 of9 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: ,~, 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. . '. 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. . City of Vernon 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." ". City of Vernon 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 City'ofVemon - 96-EDBG-471, 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 , 96-EDBG-471 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. City of Vernon 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.