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Home My WebLink AboutReso 1972-6556RESOLUTION NO. 6556 APPROVING AND PROVIDING FOR THE EXECUTION OF A CONTRACT FOR GRANT TO ACQUIRE AND/OR DEVELOP LAND FOR OPEN-SPACE PURPOSES NO. OSC-456G BY AND BETWEEN THE CITY OF CHULA VISTA AND THE UNITED STATES OF AMERICA Be it resolved by the City Council of the City of Chula Vista as follows: Section 1. The pending proposed Contract for Grant to Acquire And/Or Develop Land for Open-Space Purposes No. OSC-456 (G) is hereby in all respects approved. Section 2. The Mayor of the City of Chula Vista is hereby authorized and directed to execute Contract No. OSC-4.56 (G) in two (2) counterparts on behalf of the City of Chula Vista, and the City Clerk is hereby authorized and directed to impress and attest t.lze official seal of the Public Body on each such counter- part and to forward such counterparts to the Department of Housing and Urban Development, for execution on behalf of the Government together with such ocher documents relative to the approval and execution of such counterparts as may be required by the Government. Section i. This Resolution shall take effect immediately. Ad~~pted #:.his tresented by 3th day of August ~ lg7? j ~ ,FJ /: ~~ ~/ r , T (i ~d to ~'~_ ./., i_, ,4I (~~'+t~'1't~r~ ~i ~~C~ ~,~ohn R. Thomson, City Manager ~- Approved as to form b -, ~~- , G~ i George D. Lindberg, City Attorney ADGPTED AI~7D APPROVED BY '1'HE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFOF~vIA, this 8th day of August by the follow~.ne~ vo~.e, to-wit: AYES: Cctur~c~.~me:~~. NAYES: Caune~Pmen ABSENT: Caus~e~~men 19? ?, Scott, Hobel, Hamilton, Egdahl None None ~~ ,. r ~ ~,~ MQ.~ar~ 0 _1 ATTEST ,i ~ ~~ c - ~'/~:~,~ "- , C~.~ y C ` en STATE OF CALIFORNIA j COUNTY OF SA1~1 DIEGO j Aso CITY OF CHULA VISTA j ~~~ ~ ~~ ~_ e C~:~t y a ~ Chu.~a V.c~s a I, J~NNI~ h4o ~LIt~ASZ, C~.~y C.~enFz ab .the C~.~y a~ ~Ch«~.a V~.d.ta, Ca.2.i~otcnta, ~U H~R~BY C~RTI~y ~ha~ the-abase and. ~axego~.ng -%.~ a bu.~.~, xnu2 and conrcec~ cony a{~ and ~ha~ .the camE hay nod been amended an nepea.2edo DATFD: C~.~y C en f ~~ . ~ v. ~` :~ 1);`f) ~L't•'tE'1it C~; liOT~ ~ ;7.11 U. X71 ~)i.L~ il;'~~E)lOy?liCfli; 7 I ~~~'. ~. ~ iI"J.',1..e _ l) iLiJ <<~.i c1 c~ l7ll o~' t1ic T~:~:: "-~ I~c:-L o C };,>l , .s l ~e;', -eel Project No. Calif. OSC-!_,56 Contract No. Calif. osc-45~(~=) n r- r (` ~'"~~ '~ ~ _~i, ;r, -i r•' i~ `• t}~:i ; i' ,.~r°~ :! > ~it~u -i;..,. 'i .~~" ... <a~?6 C;;~~i_~-i ~;.~i crlc (~~n,rri. hUD- ~ ~~'- ~ ~ ~' fc ~~ ~'. ;~ 1 .. _~ r~, , ~ ,.. _ ~ i1P.Z.~~ it ~~~;7. (nd i,_,: itvCilt CFi.~; ) y t? •.~~~C ~__ tir; Oi"1 'l:ll~. G~~ ~~~i ~"1F'lE~ ~ r~~,.'..~-O SE G f~l:'-~C l`\~~ chd (?E, i:1~LC'Il .~~t~l~__,_..~ City of criula Vesta _ _~ _ ._ _ .__ __ _ _.~. . _ _r, . ~l);l- ~-)~l <<.~ ~.c:CA ~.:-~ 1.Uh.~.... aiV.i~,i~ ~~f~d l ~ lu I I: C'- i 1~.i1C_~ G:L• 1.JL~f~.i~.. ~li~l~:_Lii C~_).ICC~ .,.~, ,. ., , ~ , n i; C', Ira ~~'.7_i". Tl-, ~ .r~, ,_.C t ~ ~.~, ~:~ Oi• 'v}1-C' a,~ ,.?.~ CGS ~.~_ .'"i.1, ~_ G __~_ ~':~.U _t"2j:' ,__ .. ,. CC:YI'G ~ 'Lu i,1':~C ~ TGG" C'C,1 ~ !.71~"~"_i- ! ~5~.~'., '<~C i•ii; ~ I'ub1i,, 1;'~~; i-~, -`„'r,c .`c_-._ o`' w ~*~_ ~_~ :i c. ,~?:_-~-~ ~~~i1~~, ~,~~r•;-:~_. c. ..Jl_c ~, I I • a ~~~~,~ "..~~~, ~r_~. . -, _ ]: ~-cr ~ ~ _l. :~ t. ~ r~-~ ~ .. cer~.~._I_n c;:~~~1 , , ;c ~ I ~ r~;-i lo- ,.-t, (i~~r~• _.. - ?~. c<. _Led -L} ,. :. ,, ;.;~, ~- .. f c ~~ 'co ,>-~_.~., tic ~.,.. _., . . end c....a_~.~oi., ~____ _ .:aac,~ su"~~ aE, __6'. ~:~.,,•.c. ~ _i.:i.J- l ,;,_c_, SEC. 2. `I lIT~' Pi30~i:E ~~;'_. ~cZ~ ~'Yl: ~''1~~~1-1.C ~'~'~d~r 8-~;l '~e~~ tU U_ilC_ : i'i,Et-iE;, C£;l'I: Cell"l; , atlCt Cv !JZE'tc' ~i t1C f:!C(lU-1 S1~i10`l Of 1E'.G .31.~~>>-c vi-~~~_G 12i z:nd CJ_ ;1G~.1~ 'f1t oJ_ T~'."L'f, C.ey „~i1? 1_~._.C}_ ZOC__~E~ci .l,:i Tie:' City of Chula Vista, County of-San Diego, and State of California, a;zd more generally descri'~ed. in Exhibit A, attached hereto and made apart hereof. 2. ,~ ~.L~1]°. 3'ab.llc I'C',(iyr' <7~'I"'C",:n tU dC'.~'F'_~C~i ii~r-; ~'~:rl[) l_3! -i;}7 C; fU_~_.~.O,iLn~; r"ic7.Y1",C'1' ~;t~C~l ti'Jl'~}]. -~~lE' :I_T;ij10`TC'iTa;?J~,,. Ci-C;C;C:I'7.~;Cii . Harborside Park- rest_room, turf, ti'ralk~;a.ys, shade trees, hard surface for game courts, shrLibs a.nd bedding plants, tot lot eq>ipment. Otay Park - restrooms, turf, Zaa:11~~~-days, court and game areas, equipment for tot lot, trees, pla.n-~in~• beds a:td ;'round cover, picnic equipment, miscel7_aneous equip- ment. (bl . , Tne T'r~~~;.~ c Foc~•; f,~_;]'c ~:~ ~l,o r' ~;! .: a.) " ' :'.~ __ , ~ ,~ c~ ~ ;1 ~, } u -,c <~}~;c'~'r s}~~,..;E ~>>z_, 1 _~., ~:-rid '(.i. fol' i,_'~i'_ a,f]_d 1"~,,,-. =^.~J_C>~'lc.~ j, . ~}~c~] ~; "J.`l(~ .:, ~°cc; t:;=;o C:,. 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TIil,'~; 0]~ PJ~F'Oiiits~~;OF The f'L?b19.c ~3ody agi•ces that i~t ~'ri).1.: (a~ Co;~~plete t.ne acc;uisitcn of the open ;?pace .rit}1:in _~~r.~h~(,1.~)_ months folle~,rin~ the date of execution of the CaI]~cra.ct. ~ _ ~ ~~~ r 3• , (k') Initiate and complete the development activities contemplated under this Contract ~,aithin 12 months after execu''tion of the Contract. -. i r ~ r ~~ Lk~~71 f~ ~` ~ ~ . I'% ~ r Ci_CE:P.1t,n "LO 1_c E??1 Ui_i~~1 ~J nt l EC ' i rr t O (i~ ~ r'l?3 «~lcL ,.tiEil Gc;_%;_ ~ G ~lC-rr', t ~-, ~`,C~1 _ i._ ,~h`Li.} GCr,'l>L1Lli`~G OI 1,11]_01 "h~. k I {~-' C?1G' c~rld 'tP_E3 ~-.. ., J_ns,'t"L~~u.Ji1~t . -~ i r~ i S}'C. 7. C1:{~_[•;~~ 11:PF'~~l(;t' ~~•., `.l'0 :L'1'~:i'I' .~I i~ ~t_ ';~Ol . ., . ~ -, r, The: :( 1 l ", i]1~~ Gl ,)"" ;_ u.-.'~ }7~ ~ .. _:C_,:. 17~ "L~]C, .,-l. ~'~Gli... L.,_.._„ c~ 1. 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O:~i. ~> - co_C•aed iii ~.},~~ ~~~r)rr~~~,1 i_F i, r~~~d ox 1~r.c~ r.ccor :roc E:a a ~,, r_11 ,~~~~~~ ,_ , ~„ ,~ ~.- ]l 't111S c i)t~:C ).'l._ tC' rG~tr'.i G i?;jFCt ~L7 .lOn ~ ii) ~G~ ~ _ ~ ' O:LYI ~ 't {" ^ . , C? jC'' `-'~L .J O'l : "~' 41 (' .,C) ~ ilO 1 ~ l~ -J't'?_L I,ic> ,.i-e ~ '. ;:L L):1 ~ tG } '_O ~' 1 ~ !~ ~ _ _- t . 1 _ . _ .. ~ r I ~' O" ~I )U' 111 c?:~:: lT _'~;~ ~ f~:;C 1~)i3: i, ~ !11S QC _. ;:,', Gr ~'1~ l'.,: ~ ., ,, _ eto ti1G1 '~r~ i c ~~~ ti c:-i ~ ~_~ r'a,y bG r,_::o i=~r_ed ~ ~, r~ ~ T'lzbl ~ c ? y's o~ ~? or c'E~. ~~ to Gr E __ . _ - ~,~c u inU•t~ ect that c~ ~ T~ro~' 1,~.~e r;~.>''thoc7. tz., ~,.1. ~ive~ ca ,: ~;.rYacti~; c :~c~~.ce si_ : . e or _Ln a sc~r~ L.~,c:e _ _ . , notice (o:r the equival~n~;~ of the z•estric"ticn. rEC . 9 . 1'~.~:,SUT,~~ i•1Ch~ Pri.a:r to enter_ i.n~; in"i;o the Con-l,ract the Puz:~lic 1 0 ly l~ro-a_ided t}ie i'ollo.•;ilz to the Gov~:en~...:~t~t . "(a~ A:~:l~~rances -that (i~ fa-ir ar_d reasonable relocation vo.yments and as:~i.tance shall be pro~,ri ded to or for e1.i~i.ble d.ispla,cce~>, a:~ are r~^quired to lje provided by a 1''c:deral 2~;a;1y under Sc;;ti_on ~0?, ~Oj, ~:.nd 20~.; oi' t,lle IJni- foz~n RG~loc~~tion ::~~~istance s~~id Fic~:1 hropert,,' F,cc;uie-,itiori1'0] ivies l~,ct of 1970, (ii~ relocation assistance prog:ca'v~s offering the services descr?.bed ~._ ~ ,~ C ,•.. i ~ i ~~ ~' ~a ~ , r; r.l, ~ i ~)C-. "7~L'~Y\' :i c~_Ci~ ~i~U ,JUC',~1. U1 Sj21: ( c .> 7 ~l"?c~. ' ~ I j ~ C ' I r) CI l I ~~ i i~i~ L ~'. ( i. Ci s, L.I. (. nT.~ ~ s ~J_C ~ , (.11U. ~1 ~ ; ~ :_ ). , ICJ ~1 ~.. 7 c~~:,(~ L, .J. C U ti71 . ,. .. 1 _ ~... _ y I'i' 1~ `; :i 7~±~.~1't ~L'_.c;~,_ ~t2 ~.c~ o_J 3C,- : „~_~i~il. 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'."Cis `i:? ~".LL.Ci:i :. _7! l_h to^. ~'.~11?1t~~ U~_ :i;..?1 , D1P_ O ~'td.t.P_ ~' ~ ' of C'c?.17_I-0_r ?i1.C2, ;t:0".ih. 0i! i:JCC)I-C1 C7 -- ~~'.J1"VC`s" -~ ~3C1 ~ filec. iI1 ti,~ o~fi_cc, o,_~ the S ~~.Ii T)ie ,"~o Cc)_._~~,~ ~~>_r~,o__uc_~r. ~io~e p _c'. iculaz J_~,~ ci_~~cribc~r' ~~,s the `',^~..,;~r~ <r 'o? `~ , 50 rc^t a l.h~ :~;Oi'~.~?`.']<,, ~r~;~>,~>Q i:C'.~i: Cpl SuJ.Ci i~:;Yi.I?c'~"l•J T;=1 1_r of ;iE'C;[;J_o:7 1 3 , ~_~ :-: C'am' ;J t 7_ I1 ~t t 11 C: ?" 2 1 Z O: _l t ~'_ C . `i 0 7 t "1 '' r_ J- }' ~ ~` "i_ . C; O ,~ C: _' t: t'f; C; T" ^ O ~ZC-`1:1"C'.i!CcC! c7.J.S0 c S ~'-O'J'1 ~~% J-~ti:C ...~ - = - -,0:--, }` a1tC~_. _ ivl... _ - -, Parcels 1 ~~ ~'<?id l9 col.t~:ini;~~ ~.9~~ ~~.r~.s "~,.o~-e o. 1es.~ , ~~~r~~f HUD-3180b (6-69) SEC. 103. PROVISIONS RELATING TO ADMINISTRATION (A) Books and Records. The Public Body will keep full and accurate books and records with respect to all matters covered by this Contract, including books and records which permit a speedy and effective audit, and will fully disclose: (1) Adequate title evidence in the form of title policies, Torrens certificates, or abstracts, and attorneys' opinions relating to the land or interests in land acquired by the Public Body under this Project; (2) The amount and disposition of both Federal and non-Federal funds which are provided for the Project; (3) All items of cost chargeable or which are proposed to be charged to the total cost of the Project; (4) All Project work and undertakings and all contracts which are entered into by the Public Body pertaining thereto; (5) The families, individuals, and business concerns which are displaced in the carrying out of the Project, the pertinent facts concerning their relocation, and the making of relocation payments therefor; and (6) All proceedings which aze taken by the Public Body with respect to any of the preceding items in this Section. (B) Inspections and Audits. The Public Body will, at any time during normal business hours, and as often as the Secretary or the Comptroller General of the United States may deem necessary, permit the Secretazy and the Comptroller General to have full and free access to all of its books and records with respect to the matters mentioned in subsection (A) of this Section, and will permit the Secretary and the Comptroller General to audit, examine, and make excerpts or transcripts from such books and records, and to review, inspect, and make audits of all Project work, contracts, invoices, materials, pay- rolls, records of personnel, conditions of employment, books of accounts, and other documentary data pertaining to such matters. (C) Reports and Information. The Public Body will, at such times as the Secretary may require, furnish him with periodic reports and statements, and other documentary data and information, as he may request, pertaining to the various matters covered by this Contract. SEC. 104. LAND PROVISIONS (A) General Requirements Concerning Land. The Public Body shall: (1) Take all necessary steps to remove or abrogate all legally enforceable provisions pertaining to the re- striction of the use of the land it is acquiring and/or developing, upon the basis of race, creed, color, or national origin. (2) Include in every agreement, lease, conveyance, or other instrument whereby the land is disposed of, an affirmative covenant binding on the contractor, lessee, grantee, or other party to such instrument and on the suc- cessors in interest to such contractor, lessee, grantee, or other party that there shall be no discrimination upon the basis of race, creed, color, or national origin in the use or occupancy of the land. The covenant shall recite that the United States is a beneficiary of the covenant and entitled to enforce it. (3) Not sell, lease, or otherwise dispose of the land except with the prior written approval of the Secretary. (4) Not voluntarily create, cause, or allow to be created any debt, lien, mortgage, charge, or encumbrance against any of the land which in any way will impair or otherwise adversely affect the preservation of said land for the use or uses set out in Section 2(b) of Part I of this Contract. -2- i .1 , ° - .~ ,f~ c~ ~ ~ ~ ~- HUD-3180b (6-69) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OPEN SPACE LAND PROGRAM CONTRACT FOR GRANT TO ACQUIRE AND/OR DEVELOP LAND FOR OPEN-SPACE PURPOSES UNDER TITLE VII OF THE HOUSING ACT OF 1961, AS AMENDED Part I I Terms and Conditions SEC. 101. USE OF CERTAIIV TERMS Except where the context clearly indicates otherwise, the following terms, as used herein, shall have the meanings ascribed to them in this Section: (A) The capitalized term "Secretary" means the Secretary of Housing and Urban Development or the person authorized to act on his behalf. (B) The term "Contract" means this Contract between the Government and the Public Body, and includes Parts I and II and any additional document or documents incorporated herein by special reference, as well as any amendment. (C) The term "Application" means the written application for the Grant by the Public Body, including any re- visions thereto, together with all explanatory, supporting, or supplementary documents filed therewith. (D) The term "land" means the interest or interests in real property acquired or to be acquired and/or developed by the Public Body as set out in Section 2(a) of Part I of this Contract and shall include a fee interest or such lesser interests as therein contemplated. (E) The term "Project" means the undertaking and carrying out to completion of the acquisition and/or develop- ment of land for open-space uses as set forth in Section 2(b) of Part I of this Contract. SEC. 102. ACCOMPLISI-U4ENT OF PROJECT The Public Body will commence and carry out the Project with all practicable dispatch, in a sound, economical, and efficient manner, in accordance with the Application and the provisions of this Contract, and will initiate and complete the Project within the time limit specified in Section S of Part I of this Contract. Such term may be extended with the written consent of the Secretary. The Public Body will carry out the Project in compliance with all requirements imposed by or pur- suant to regulations of the Secretary effectuating Title VI of the Civil Rights Act of 1964 (78 Stat. 241,252). The Public Body agrees not to discriminate upon the basis of race, creed, color, or national origin in the program or activity for which the Public Body receives financial assistance under this Contract. The United States shall be deemed to be a beneficiary of these provisions both for and in its own right and also for the purpose of protecting the interests of the community- and other parties, public or private, in whose favor or for whose benefit this provision has been provided and shall have the right, in the event of any breach of this provision, to maintain any actions or suits at law or in equity or any other proper proceedings to enforce the curing of such breach. -1- HUD-3180b (6-69) (5) From time to time duly pay and discharge, or cause to be paid and discharged when the same become due, all taxes, assessments, and other governmental charges which are lawfully imposed upon any of the land and which if unpaid may by law become a lien or charge upon said land and thereby impair or otherwise adversely affect the holding of said land for the use or uses set out in Section 2(b) of Pazt I of this Contract. (6) Faithfully observe and conform to all valid requirements of any governmental authority relative to the land and all covenants, terms, and conditions applicable to said land. (B) Fair Market Value. The Public Body shall take all appropriate steps to assure that the consideration it pays for the land does not exceed fair mazket value at the time of acquisition. If the Secretary determines that the consideration paid by the Public Body is in excess of fair market value, for purposes of computing the amount of the Grant, the acquisition cost shall be reduced by the amount of the excess. (C) Special Provisions Relating to Sale or Lease of Land. If the Project proposes that the Public Body lease or sell all or part of the land, the Public Body must first obtain written approval of the Secretary before such leasing or sale is under- taken. Approval will be given only if such leasing or sale is consistent with the Project and adequate controls are embodied in the lease or deed to assure the preservation of the open-space use or uses of such land as set out in Section 2(b) of Part I of this Contract. (D) Use of Land (1) No change in the use of the land to a use other than the open-space uses set out in Section 2(b) of Part I of this Contract will be permitted without the prior written approval of the Secretary. Before such approval will be given, the Public Body must demonstrate to the Secretary's satisfaction that: (a) The conversion is essential to the orderly development and growth of the urban azea involved; (b) The conversion is in accord with the comprehensively planned development of the urban area; and (c) The open-space land is being or will be replaced, without cost to the Federal Government, by other open-space land of at least equal fair market value at the time of conversion, and of as neazly as feasible equivalent usefulness and location (2) The Public Body shall not discriminate upon the basis of race, creed, color, or national origin in the sale, lease, or rental or in the use or occupancy of the land or any improvements erected or to be erected thereon, or any part thereof. (3) The Public Body shall not restrict the use of the land, as developed, on the basis of place of residence, except that a reasonable fee chazged nonresidents over and above any fee that may be chazged residents shall not be interpreted as a restriction of the use of such land. (E) Transfer of Public Body's Interests in Land to Another Public Bodes. Before the Public Body transfers its interests in the land to another Public Body, it shall require its transferee to enter into a contract with the Secretazy agreeing in writing to be bound by all of the applicable terms and conditions of this Contract. SEC. 105. PAYMENT OF GRANT (A) Advance or Progress Payments. Under or subject to such conditions as the Government may, in writing, specify which aze not inconsistent with applicable law, the Government may, in its discretion, make advance or progress payments to the Public Body on account of the Grant, or on account of the increase with respect to the Grant provided for in Section 4 of Part I of this Contract, at such time or times prior to the completion of the Project and the final determination of the total -3- HUD-3180b (6-69) cost thereof as, in view of the status of the Project and the matters relative thereto, the Government may deem appropriate, but no such advance or progress payment will be made unless and until the Public Body shall have filed its written request with the Secretary for such advance or progress payment: Provided, That the Public Body is not in default on any of the terms of this Contract. The Public Body shall deposit such advance payment funds in a bank or banks which are members of the Federal Deposit Insurance Corporation. (B) Requisition for Grant Payment. The Public Body shall file its requisition for payment of Grant, including the increase provided for in Section 4 of Part I of this Contract, on a form or forms prescribed by the Secretary. Such requisition shall be accompanied by the Public Body's certification of purposes, demonstrating the need, at the time, for the funds requisitioned; that the amount sought is reasonable; and that the purposes for which it proposes to expend the funds are within the purview of this Contract. (C) Acquisition, Development, and Demolition Costs. Payment of the Grant provided for in Section 3 of Pazt I of this Contract shall be based on acquisition, demolition, and development costs which have been determined by the Secretary as eligible Project costs, in the light of applicable Federal law and in accordance with the Secretary's rules and regulations implementing that law. The acquisition costs shall not include (1) ordinary State or local governmental expenses; (2) costs of acquiring land located outside the urban area for which the Public Body exercises (or participates in the exercise of) open-space responsibilities; (3) the cost of land acquired prior to the notification of the Public Body by the Secretary of his approval of the Application or of the acquisition of such land; or (4) the cost of land acquired with the assistance of funds received di- rectly or indirectly from the Government, or any agency or instrumentality thereof, other than under the terms of this Con- tract. The development cost shall include only those costs which are necessary to prepare the land for open-space use and shall not include (1) the cost of development undertaken prior to the notification of the Public Body by the Secretary of his approval of the Application or of the development of the land or (2) the cost of specialized major recreation facilities. The demolition cost shall include only those costs which are necessary for the demolition and removal of buildings and structures from developed land acquired as part of the Project. SEC. 106. LABOR AND CONSTRUCTION PROVISIONS (A) Contract and "Force Account" Work. The Public Body may elect to carry out any necessary demolition, con- struction, or development activities as a part of the Project by utilization of its own employees or it may have such work done under written contracts let by it. Any contracts entered into for Project work shall contain appropriate provisions to require compliance with all applicable Federal laws and regulations pertaining to such contracts, to the work to be performed there- under, and to the persons employed in the carrying out of such contracts. (B) Competitive Bidding. The Public Body will give full opportunity for free, open, and competitive bidding for each contract to be let by it calling for construction, demolition, or other similar work, as a part of the Project, or for the furnishing of any materials, supplies, or equipment for or use on, the Project and will give such publicity to its advertisements or calla for bids for each such contract as will provide adequate competition; and the award of each such contract, when made, will be made by it as soon as practicable to the lowest responsible bidder: Provided, That in the selection of such materials, equipment, or supplies, the Public Body may, in the interest of standardization or ultimate economy, if the advantage of such standardization or such ultimate economy is clearly evident and an appropriate provision for such action is included by it in the proposed contract documents upon which bids are invited, award a contract to a responsible bidder other than the lowest in price: Provided further, That purchases of such materials, equipment, or supplies in amounts of X2,500 or less, and con- tracts in amounts of X2,500 or less calling for construction, demolition, or other similar work, as a part of the Project. mav, except where contrary to the requirements of State or local law, be made from time to time by the Public Body without negotiation or competitive bidding and without observance of the other provisions of this subsection. (C) Provisions To Be Included in Certain Contracts. Before the Public Body recei~ es bids or proposals for, or other- wise negotiates for, a proposed contract which calls for the performance of anv work on the Project which will entail, fur such work, the employment by the contractor or his subcontractors of laborers or mechanics, the Public Bod} shall include in the proposed contract documents appropriate wage schedules (including applicable wage determinations of the Secretary- of Labor, 4- ~. HUD-3180b (6-69) United States Department of Labor) and other provisions which are consistent with the provisions embodied in that document entitled "Federal Labor Standards Provisions" attached hereto marked HUD-3200 and made a part hereof. Such schedules, wage determinations, and other provisions, as included in such proposed contract documents, shall also be included in the contract documents as executed. The Public Body will include in each contract mentioned in the preceding sentence of this subsection an appropriate provision requiring the contractor to insert in each of his subcontracts which will entail the employ- ment by such subcontractor of laborers or mechanics, as aforesaid, wage and other provisions which are consistent with such contractor's contract with the Public Body. (D) State or Local Laws Concerning Wage Rates for Laborers and Mechanics. If State or local laws require that laborers or mechanics who are employed by the Public Body's contractors, or by such contractors' subcontractors, in the development of the Project, be paid not less than the wages which are established pursuant to such laws and if such wages so established are higher than the wages which are determined by the Secretary of Labor, United States Department of Labor, pursuant to the aforesaid Davis-Bacon Act, to be the wages prevailing in the locality in which the Project is situated, nothing in this Contract is to be construed as intended to relieve the Public Body of ils obligation, if any, to require payment of such higher wages. (E) Equal Employment Opportunity (1) Activities and Contracts Not Subject to Executive Order 11246. In the carrying out of the Project, the Public Body will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The Public Body will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Public Body agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Government setting forth the provisions of this nondiscrimination clause. The Public Body will, in all solicitations or advertisements for employees placed by or on behalf of the Public Body, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. The Public Body will incorporate the foregoing re- quirements ofthis subparagraph (1) in all of its contracts for Project work, except contracts governed by subparagraph (2) of this Section 106(E) and contracts for standard commercial supplies or raw materials, and will require all of its contractors for such work to incorporate such requirements in all subcontracts for Project work. (2) Contracts Subject to Executive Order 11246. The Public Body hereby agrees that it will incorporate or cause to be incorporated into any contract for construction work, or modification thereof, as defined in the regula- tions of the Secretary of Labor at 41 CFR Chapter 60, which is paid for in whole or in pazt with funds obtained from the Federal C,overnment or borrowed on the credit of the Federal Government pursuant to a grant, contract, loan, insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insur- ance, or guarantee, the following equal opportunity clause: During the performance of this contract, the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to insure that applicants are employed, and that employees are treated during employment without regard to their racr~, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employ- ment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination: rates of pay or other forms of compensation; and selection for training, including apprenticeship. 1'he contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Public Body setting forth the provisions of this nondiscrimination clause. - J - HUD-3180b (6-69) (2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. (3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representative of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (5) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor or the Secretary of Housing and Urban Development, or pursuant thereto, and will permit access to his books, records, and ac- counts by the Public Body, the Secretary of Housing and Urban Development, and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (6) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of Septem- ber 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise pro- vided by law. (7) The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The con- tractor will take such action with respect to any subcontract or purchase order as the Public Body or the Sec- retary of Housing and Urban Development may direct as a means of enforcing such provisions, including sanc- tionsfor noncompliance: Provided, however, That, in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Public Body, the contractor may request the United States to enter into such litigation to protect the interests of the United States. The Public Body further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, That if the Public Body so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract. The Public Body agrees that it will assist and cooperate actively with the Secretary of Housing and Urban Development and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the Secretary of Housing and Urban Development and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the Secretary of Hous- ing and Urban Development in the discharge of his primary responsibility for securing compliance. 6- HUD-3180b (b-69) The Public Body further agrees that it will refrain from entering into any contract or contract modifica- tion subject to Executive Order 11246 of September 24, 1965, with a contractor debazred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Executive order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the Secretary of Housing and Urban De- velopment or the Secretary of Labor pursuant to Part II, Subpazt D of the Executive order. In addition, the Public Body agrees that if it fails or refuses to comply with these undertakings, the Secretary of Housing and Urban Development may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant contract; refrain from extending any further assistance to the applicant under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been re- ceived from such Public Body; and refer the case to the Department of Justice for appropriate legal proceedings. SEC. 107. DEFAULTS AND REMEDIES (A) Termination or Suspension of Contract. The Government may terminate or suspend this Contract at its dis- cretion upon the happening of any of the following: (1) The failure of the Public Body to complete the Project within the time prescribed in Section 5 of Part I of this Contract; (2) The making of any misrepresentation by the Public Body in its Application or in the furnishing of any information to the Secretary; (3) The violation of any of the terms or conditions of this Contract; (4) Any event which makes the accomplishment of the Project by the Public Body impossible, improbable, infeasible, or illegal; or (5) The commencement of any litigation challenging the performance by the Public Body of any of its duties or obligations which may jeopardize or adversely affect the Project, this Contract, or the Grant. (B) Forfeiture of Grant (1) If the Public Body should change the use of the land from the use or uses designated in Section 2(b) of Part I of this Contract without the prior written approval of the Secretary, or should it transfer its interests in the land to another Public Body without requiring the transferee to execute the contract with the Secretary provided for by Section 104(E) of this Part II, the Public Body shall at the request of the Secretary repay to the Government the amount of the Grant. (2) For any other violation of any of the terms of this Contract, the Secretary may, in addition to such other remedies as may exist at law or in equity, require repayment of all or pazt of the Grant to the Government. (C) When Rights and Remedies Not Waived. In no event shall the making by the Government of any Grant payment to the Public Body constitute or be construed as a waiver by the Government of any breach of covenantor any default which may then exist on the part of the Public Body, and the making of any such payment by the Government while any such breach or default shall exist shall in no wise impair or prejudice any right or remedy available to the Government in respect of such breach or default. -7- HUD-3180b (6-69) SEC. 108. 1l1ISCELLANEOUS PROVISIONS (A) Interest of Public Body Personnel and Other Local Public Officials. The Public Body shall adopt and enforce measures to assure that no member of its governing body and no other officer or employee of the Public Body and no member of the governing body or other public official of any other local public body in the urban area in which the Project is situated, who exercises any functions or responsibilities in connection with the carrying out of the Project, shall, prior to the comple- tion of the Project, voluntarily acquire any personal interest, direct or indirect, in any property included in the Project or in any contract or proposed contract in connection with the undertaking of the Project. If any such member, employee, or officer presently owns or controls, or in the future involuntarily acquires, any such personal interest, he shall immediately disclose such interest to the Public Body. Any member, employee, or officer who shall have or acquire such interest shall not participate in any action by the Public Body affecting the undertaking of the Project, unless the Public Body shall de- termine that, in the light of the personal interest disclosed, the participation of such individual in any such action would not be contrary to the public interest. The Public Body shall promptly advise the Secretary of the facts and circumstances con- cerning any disclosure made to it pursuant to this provision and the action taken by the Public Body upon being made aware of said facts and circumstances. (B) Interest 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 Contract or to any benefit to arise from the same. (C) Bonus or Commission. The Public Body shall not pay any bonus or commission for the purpose of obtaining the Secretary's approval of the Application or any other approval by the Secretary which may be necessary under this Contract. (D) Government Not Obligated to Third Parties. The Government shall not be obligated or liable under this Con- tract to any party other than the Public Body. (E) How Contract Affected by Provisions Being Held Invalid. If any provision of this Contract is held invalid, the remainder of this Contract shall not be affected thereby if it is in conformity with the terms and requirements of applicable law. (F) Provisions Concerning Certain Waivers. Subject to applicable Federal law, any right or remedy which the Government may have under this Contract may be waived in writing by the Government by a formal waiver and either with or without the execution of an amendatory or supplementary agreement, if, in the judgment of the Government, this Contract, as so modified, will still conform to the provisions and requirements of applicable laws. 215395-P (Rev. 6-69) HUD-Wash., D.C. 8- P ~ - ~ ~~ HUD-3200 (8-69) U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FEDERAL LABOR STANDARDS PROVISIONS 1. APPLICABILITY The Project or Program to which the work covered by this Contract pertains is being assisted by the United States of America and the following Federal Labor Standards Provisions are included in this Contract pursuant to the provisions ap- plicable to such Federal assistance. 2. MINIMUM WAGE RATES FOR LABORERS AND MECHANICS All laborers and mechanics employed upon the work covered by this Contract shall be paid unconditionally and not less often than once each week, and without subsequent deduction or rebate on any account (except such payroll deductions as are made mandatory by law and such other payroll deductions as are permitted by the applicable regulations issued by the Secretary of Labor, United States Department of Labor, pursuant to the Anti-Kickback Act hereinafter identified), the full amounts due at time of payment computed at wage rates not less than those contained in the wage determination decision of said Secretary of Labor (a copy of which is attached and herein incorporated by reference), regazdless of any contractual re- lationship which may be alleged to exist between the Contractor or any subcontractor and such laborers and mechanics. All laborers and mechanics employed upon such work shall be paid in cash, except that payment may be by check if the employer provides or secures satisfactory facilities approved by the Local Public Agency or Public Body for the cashing of the same without cost or expense to the employee. For the purpose of this clause, contributions made or costs reasonably anticipated under Section 1 (b) (2) of the Davis-Bacon Act on behalf of laborers or mechanics aze considered wages paid to such laborers or mechanics, subject to the provisions of Section 5.5(a)(1)(iv) of Title 29, Code of Federal Regulations. Also for the purpose of this clause, regular contributions made or costs incurred for more than a weekly period under plans, funds, or programs, but covering the particular weekly period, are deemed to be constructively made or incurred during such weekly period. 3. UNDERPAYMENTS OF WAGES OR SALARIES In case of underpayment of wages by the Contractor or by any subcontractor to laborers or mechanics employed by the Contractor or subcontractor upon the work covered by this Contract, the Local Public Agency or Public Body in addition to such other rights as may be afforded it under this Contract shall withhold from the Contractor, out of any payments due th Contractor, so much thereof as the Local Public Agency or Public Body may consider necessary to pay such laborers or mechanics the full amount of wages required by this Contract. The amount so withheld may be disbursed by the Local Pub- lic Agency or Public Body, for and on account of the Contractor or the subcontractor (as may be appropriate), to the respec- tive laborers or mechanics to whom the same is due or on their behalf to plans, funds, or programs for any type of fringe benefit prescribed in the applicable wage determination. 4. ANTICIPATED COSTS OF FRINGE BENEFITS If the Contractor does not make payments to a trustee or other third person, he may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing fringe benefits under a plan or program of a type expressly listed in the wage determination decision of the Secretary of Labor which is a part of this Contract: Provided, however, The Secretary of Labor has found, upon the written request of the Contractor, that the applicable stand- ards of the Davis-Bacon Act have been met. The Secretary of Labor may require the Contractor to set aside in a sepazate account assets for the meeting of obligations under the plan or program. A copy of any findings made by the Secretary of Labor in respect to fringe benefits being provided by the Contractor must be submitted to the Local Public Agency or Public Body with the first payroll filed by the Contractor subsequent to receipt of the findings. -1- HUD-3200 I8-691 5. OVERTIME COMPENSATION REQUIRED BY CONTRACT WORK HOURS STANDARDS ACT (76 Stat. 357-360; Title 40 U.S.C., Sections 327-332) (a) Overtime requirements. No Contractor or subcontractor contracting for any part of the Contract work which may require or involve the employment of laborers or mechanics, including watchmen and guards, shall require or permit any laborer or mechanic in any workweek in which he is employed on such work to work in excess of 8 hours in any calendar day or in excess of 40 hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times his basic rate of pay for all hours worked in excess of 8 hours in any calendar day or in excess of 40 hours in such workweek, as the case may be. (b) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a), the Contractor and any subcontractor responsible therefor shall be liable to any affected employee for his un- paid wages. In addition, such Contractor and subcontractor shall be liable to the United States for liquidated damages. Such iquidated damages shall be computed with respect to each individual laborer or mechanic employed in violation of the clause tet forth in paragraph (a), in the sum of $10 for each calendar day on which such employee was required or permitted to work in excess of 8 hours or in excess of the standard workweek of 40 hours without payment of the overtime wages •equired by the clause set forth in paragraph (a). (c) Withholding for liquidated damages. The Local Public Agency or Public Body shall withhold or cause to be with- ield, from any moneyspayable on account of work performed by the Contractor or subcontractor, such sums as may admin- stratively be determined to be necessary to satisfy any liabilities of such Contractor or subcontractor for liquidated damages ~ provided in the clause set forth in paragraph (b). (d) Subcontracts. The Contractor shall insert in any subcontracts the clauses set forth in paragraphs (a), (b), and (c) of his Section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts which they nay enter into, together with a clause requiring this insertion in any further subcontracts that may in turn be made. i. EMPLOYMENT OF APPRENTICES Apprentices will be permitted to perform work covered by this Contract only under a bona fide apprenticeship program egistered with a State Apprenticeship Agency which is recognized by the Bureau of Apprenticeship and Training, United hates Department of Labor, or, if no such recognized Agency exists in a State, under a program registered with the Bureau of apprenticeship and Training. The allowable ratio of apprentices to journeymen in any craft classification shall not be greater han the ratio permitted to the Contractor as to his entire work force under the registered program. Any employee listed on a payroll at an apprentice wage rate, who is not registered as above, shall be paid the wage rate determined by the Secretary of .abor, United States Department of Labor, for the classification of work he actually performed. The Contractor or subcon- ractor shall furnish the Local Public Agency or Public Body with written evidence of the registration of his program and ap- ~rentices, as well as of the appropriate ratios and wage rates for the area of construction, prior to using any apprentices on he contract work. EMPLOYMENT OF CERTAIN PERSONS PROHIBITED No person under the age of sixteen years and no person who, at the time, is serving sentence in a penal or correctional istitution shall be employed on the work covered by this Contract. REGULATIONS PURSUANT TO SO-CALLED "ANTI-KICKBACK ACT" The Contractor shall comply with the applicable regulations (a copy of which is attached and herein incorporated by ~ference) of the Secretary of Labor, United States Department of Labor, made pursuant to the so-called "Anti-Kickback Act" f June 13, 1934 (48 Stat. 948; 62 Stat. 862; Title 18 U.S.C., Section 874: and Title 40 U.S.C., Section 276c), and any amend- ients or modifications thereof, shall cause appropriate provisions to be inserted in subcontracts to insure compliance therewith -2- ~s~ Huo-sea (8-69) by all subcontractors subject thereto, and shall be responsible for the submission of affidavits required by subcontractors ther under, except as said Secretary of Labor may specifically provide for reasonable limitations, variations, tolerances, and exemp tions from the requirements thereof. 9. EMPLOYMENT OF LABORERS OR MECHANICS NOT LISTED IN AFORESAID WAGE DETERMINATION DECISION Any class of laborers or mechanics which is not listed in the wage determination and which is to be employed under the Contract will be classified or reclassified conformably to the wage determination by the Local Public Agency or Public Body, and a report of the action taken shall be submitted by the Local Public Agency or Public Body, through the Secretary of Housing and Urban Development, to the Secretary of Labor, United States Department of Labor. In the event the interested parties cannot agree on the proper classification or reclassification of a particular class of laborers and mechanics to be used, the question accompanied by the recommendation of the Local Public Agency or Public Body shall be referred, through the Secretary of Mousing and Urban Development, to the Secretary of Labor for final determination. 10. FRINGE BENEFITS NOT EXPRESSED AS HOURLY WAGE RATES The Local Public Agency or Public Body shall require, whenever the minimum wage rate prescribed in the Contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly wage rate and the Contractor is obligated to pay cash equivalent of such a fringe benefit, an hourly cash equivalent thereof to be established. In the event the interested parties cannot agree upon a cash equivalent of the fringe benefit, the question, accompanied by the recommenda- tion of the Local Public Agency or Public Body, shall be referred. through the Secretary of Housing and Urban Development, to the Secretary of Labor for determination. 11. POSTING WAGE DETERMINATION DECISIONS AND AUTHORIZED WAGE DEDUCTIONS The applicable wage poster of the Secretary of Labor, United States Department of Labor, and the applicable wage de- termination decisions of said Secretary of Labor with respect to the various classifications of laborers and mechanics employ: and to be employed upon the work covered by this Contract, and a statement showing all deductions, if any, in accordance with the provisions of this Contract, to be made from wages actually earned by persons so employed or to be employed in such classifications, shall be posted at appropriate conspicuous points at the site of the work. 12. COMPLAINTS, PROCEEDINGS, OR TESTIMONY BY EMPLOYEES No laborer or mechanic to whom the wage, salary, or other labor standazds provisions of this Contract are applicable shall be dischazged or in any other manner discriminated against by the Contractor or any subcontractor because such em- ployee has filed any complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable under this Contract to his employer. 13. CLAIMS AND DISPUTES PERTAINING TO WAGE RATES Claims and disputes pertaining to wage rates or to classifications of laborers and mechanics employed upon the work covered by this Contract shall be promptly reported by the Contractor in writing to the Local Public Agency or Public Body for referral by the latter through the Secretary of Housing and Urban Development to the Secretary of Labor, United States Department of Labor, whose decision shall be final with respect thereto. 14. QUESTIONS CONCERNING CERTAIN FEDERAL STATUTES AND REGULATIONS All questions arising under this Contract which relate to the application or interpretation of (a) the aforesaid Anti- Kickback Act, (b) the Contract Work Hours Standards Act, (c) the aforesaid Davis-Bacon Act, (d) the regulations issued by t Secretary of Labor, United States Department of Labor, pursuant to said Acts, or (e) the labor standards provisions of any -3- UD-3200 •6'91 :her pertinent Federal statute, shall be referred, through the Local Public Agency or Public Body and the Secretary of ousing and Urban Development, to the Secretary of Labor, United States Department of Labor, for said Secretary's appro- iate ruling or interpretation which shall be authoritative and may be relied upon for the purposes of this Contract. i. PAYROLLS AND BASIC PAYROLL RECORDS OF CONTRACTOR AND SUBCONTRACTORS The Contractor and each subcontractor shall prepare his payrolls on forms satisfactory to and in accordance with in- ructions to be furnished by the Local Public Agency or Public Body. The Contractor shall submit weekly to the Local Pub- : Agency or Public Body two certified copies of all payrolls of the Contractor and of the subcontractors, it being understood at the Contractor shall be responsible for the submission of copies of payrolls of all subcontractors. Each such payroll all contain the "Weekly Statement of Compliance" set forth in Section 3.3 of Title 29, Code of Federal Regulations. The ~yrolls and basic payroll records of the Contractor and each subcontractor covering all laborers and mechanics employed ion the work covered by this Contract shall be maintained during the course of the work and preserved for a period of 3 ;azs thereafter. Such payrolls and basic payroll records shall contain the name and address of each such employee, his cor- ct classification, rate of pay (including rates of contributions or costs anticipated of the types described in Section 1(b) (2) 'the Davis-Bacon Act), daily and weekly number of hours worked, deductions made, and actual wages paid. In addition, henever the Secretary of Labor has found under Section 5.5(a) (1) (iv) of Title 29, Code of Federal Regulations, that the ages of any laborer or mechanic include the amount of any costs resonably anticipated in providing benefits under a plan program described in Section 1(b) (2) (B) of the Davis-Bacon Act, the Contractor or subcontractor shall maintain records hich show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, d that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show e costs anticipated or the actual cost incurred in providing such benefits. The Contractor and each subcontractor shall make s employment records with respect to persons employed by him upon the work covered by this Contract available for in- ection by authorized representatives of the Secretary of Housing and Urban Development, the Local Public Agency or iblic. Body, and the United States Department of Labor. Such representatives shall be permitted to interview employees of e Contractor or of any subcontractor during working hours on the job. ~. SPECIFIC COVERAGE OF CERTAIN TYPES OF WORK BY EMPLOYEES The transporting of materials and supplies to or from the site of the Project or Program to which this Contract pertains the employees of the Contractor or of any subcontractor, and the manufacturing or furnishing of materials, articles, sup- ies, or equipment on the site of the Project or Program to which this Contract pertains by persons employed by the Con- tctor or by any subcontractor, shall, for the purposes of this Contract, and without limiting the generality of the foregoing ovisions of this Contract, be deemed to be work to which these Federal Labor Standards Provisions are applicable. INELIGIBLE SUBCONTRACTORS The Contractor shall not subcontract any part of the work covered by this Contract or permit subcontracted work to be rther subcontracted without the Local Public Agency's or Public Body's prior written approval of the subcontractor. The .cal Public Agency or Public Body will not approve any subcontractor for work covered by this Contract who is at the ne ineligible under the provisions of any applicable regulations issued by the Secretary of Labor, United States Department Labor, to receive an award of such subcontract. PROVISIONS TO BE INCLUDED IN CERTAIN SUBCONTRACTS The Contractor shall include or cause to be included in each subcontract covering any of the work covered by this Con- ~ct, provisions which are consistent with these Federal Labor Standazds Provisions and also a clause requiring the subcon- ~ctors to include such provisions in any lower tier subcontracts which they may enter into, together with a clause requiring ~h insertion in any further subcontracts that may in turn be made. -4- ~s~~ HUD-320 (8-6~ 19. BREACH OF FOREGOING FEDERAL LABOR STANDARDS PROVISIONS In addition to the causes for termination of this Contract as herein elsewhere set forth, the Local Public Agency or Public Body reserves the right to terminate this Contract if the Contractor or any subcontractor whose subcontract covers any of the work covered by this Contract shall breach any of these Federal Labor Standards Provisions. A breach of these Federal Labor Standards Provisions may also be grounds for debarment as provided by the applicable regulations issued by the Secretary of Labor, United States Department of Labor. .5- IUD-3200 3-69) ATTACHMENT TO FEDERAL LABOR STANDARDS PROVISIONS SO-CALLED "ANTI-KICKBACK ACT" AND REGULATIONS PROMULGATED PURSUANT THERETO BY THE SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR TITLE 18, U.S.C., section 874 (Replaces section 1 of the Act of June 13, 1934 (48 Stat. 948, 40 U.S.C., sec. 276b) pursuant to the Act of June 25, 1948, 62 Stat. 862) KICKBACKS FROM PUBLIC WORKS EMPLOYEES Whoever, by force, intimidation, or threat of procuring dismissal from employment, or by any other manner whatso- ver induces any person employed in the construction, prosecution, completion or repair of any public building, public work, r building or work financed in whole or in part by loans or grants from the United States, to give up any part of the com- ensation to which he is entitled under his contract of employment, shall be fined not more than $5,000 or imprisoned not rore than five years, or both. SECTION 2 OF THE ACT OF JUNE 13, 1934, AS AMENDED (48 Stat. 948, 62 Stat. 862, 63 Stat. 108, 72 Stat. 967, 40 U.S.C., sec. 276c) The Secretary of Labor shall make reasonable regulations for contractors and subcontractors engaged in the construction, rosecution, completion or repair of public buildings, public works or buildings or works financed in whole or in part by loans r grants from the United States, including a provision that each contractor and subcontractor shall furnish weekly a statement -ith respect to the wages paid each employee during the preceding week. Section 1001 of Title 18 (United States Code) shall pply to such statements. ---XXX--- Pursuant to the aforesaid Anti-Kickback Act, the Secretary of Labor, United States Department of Labor, has promul- ated the regulations hereinafter set forth, which regulations are found in Title 29, Subtitle A, Code of Federal Regulations, art 3. The term "this part," as used in the regulations hereinafter set forth, refers to Part 31ast above mentioned. Said reg- lations are as follows: TITLE 29 -LABOR Subtitle A -Office of the Secretary of Labor ART 3-CONT1tACTORS AND SUBCONTRACTORS ON PUBLIC BUILDING OR PUBLIC WORK FINANCED IN WHOLE OR IN PART BY LOANS OR GRANTS FROM THE UNITED STATES ection 3.1 Purpose and scope. This part prescribes "anti-kickback" regulations under section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 6c), popularly known as the Copeland Act. This part applies to any contract which is subject to Federal wage standards ~d which is for the construction, prosecution, completion, or repair of public buildings, public works or buildings or works rranced in whole or in part by loans or grants from the United States. The part is intended to aid in the enforcement of the iinimum wage provisions of the Davis-Bacon Act and the various statutes dealing with Federally-assisted construction that ~ntairr similar minimum wage provisions, including those provisions which are not subject to Reorganization Plan No. 14 -6- ~ss~ HUD-3200 IS-69) (c.g., the College Housing Act of 1950, the Federal Water Pollution Control Act, and the 1lousing Act of 1959), and in the enforcement of the overtime provisions of the Contract Work Hours Standards Act whenever they are applicable to constructi work. The part details the obligation of contractors and subcontractors relative to the weekly submission of statements regar~ ing the wages paid on work covered thereby; sets forth the circumstances and procedures governing the making of payroll de- ductions from the wages of those employed on such work; and delineates the methods of payment permissible on such work. Section 3.2 Definitions. As used in the regulations in this part: (a) The terms "building" or "work" generally include construction activity as distinguished from manufacturing, furnishing of materials, or servicing and maintenance work. The terms include, without limitation, buildings, structures, and improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, and canals; dredging, shoring, scaffolding, drilling, blasting, excavating, clearing, and landscaping. Unless conducted in connection with and at the site of such a building or work as is described in the foregoing sentence, the manufacture or furui: ing of materials, articles, supplies, or equipment (whether or not a Federal or State agency acquires title to such materials, articles, supplies, or equipment during the course of the manufacture or furnishing, or owns the materials from which they ar manufactured or furnished) is not a "building" or "work" within the meaning of the regulations in ibis part. (b) The terms "construction," "prosecution," "completion," or "repair" mean all types of work done on a particular building or work at the site thereof, including, without limitation, altering,remodcling, painting and decorating, the transpor ing of materials and supplies to or from the building or work by the employees of the construction contractor or construction subcontractor, and the manufacturing or furnishing of materials, articles, supplies, or equipment on the site of the building o work, by persons employed at the site by the contractor or subcontractor. (c) The terms "public building" or "public work" include building or work for whose construction, prosecution, com- pletion, or repair; as defined above, a 1''cderal agency is a contracting party, regardless of whether title thereof is in a Federal agency. (d) The term "building or work financed in whole or in part by loans or grants from the United States" includes build ing or work for whose construction, prosecution, completion, or repair, as defined above, payment or part payment is rnadc directly or indirectly from funds provided by loans or grants by a Federal agency. The term does not include building or wo for which Federal assistance is limited solely to loan guarantees or insurance. (e) Every person paid by a contractor or subcontractor in any manner for his labor in the construction, prosecution, completion, or repair of a public building or public work or building or work financed in whole or in part by loans or grants from the United States is "employed" and receiving "wages," regardless of any contractual relationship alleged to exist betty him and the real employer. (f) The term "any affiliated person" includes a spouse, child, parent, or other close relative of the contractor or sub- contractor; apartner or officer of the contractor or subcontractor; a corporation closely connected with the contractor or subcontractor as parent, subsidiary or otherwise, and an officer or agent of such corporation. (g) The term "Federal agency" means the United States, the District of Columbia, and all executive departments, in- dependent establishments, administrative agencies, and instrumentalities of the United States and of the District of Columbi including corporations, all or substantially all of the stock of which is beneficially owned by the United States, by the Distri of Columbia, or any of the foregoing departments, establishments, agencies, and instrumentalities. Section 3.3 Weekly statement with respect to payment of wages. (a) As used in this section, the term "employee" shall not apply to persons in classifications higher than that of labor or mechanic and those who are the immediate supervisors of such employees. 7- UD-3200 3-69) (b) Each contractor or subcontractor engaged in the construction, prosecution, completion, or repair of any public wilding or public work, or building or work financed in whole or in part by loans or grants from the United States, shall ~rnish each week a statement with respect to the wages paid each of its employees engaged on work covered by 29 CFR arts 3 and 5 during the preceding weekly payroll period. This statement shall be executed by the contractor or subcon- actor or by an authorized officer or employee of the contractor or subcontractor who supervises the payment of wages, and call be on form WH 348, "Statement of Compliance", or on an identical form on the back of WH 347, "Payroll (For Con- actors Optional Use)" or on any form with identical wording. Sample copies of WH 347 and Wl3 348 may be obtained from ie, Government contracting or sponsoring agency, and copies of these forms may be purchased at the Government Printing ffice. (c) The requirements of this section shall not apply to any contract of X2,000 or less. (d) Upon a written finding by the head of a Federal agency, the Secretary of Labor may provide reasonable limitations, riations, tolerances, and exemptions from the requirements of this section subject to such conditions as the Secretazy of ibor may specify. 9 F.R. 95, Jan. 4, 1964, as amended at 33 F.R. 10186, July 17, 1968] action 3.4 Submission of weekly statements and the preservation and inspection of weekly payroll records (a) Each weekly statement required under § 3.3 shall be delivered by the contractor or subcontractor, within seven ys after the regular payment date of the payroll period, to a representative of a Federal or State agency in charge at the e of the building or work, or, if there is no representative of a Federal or State agency at the site of the building or work, statement shall be mailed by the contractor or subcontractor, within such time, to a Federal or State agency contracting r or financing the building or work. After such examination and check as may be made, such statement, or a copy thereof, all be kept available, or shall be transmitted together with a report of any violation, in accordance with applicable procedures 'scribed by the United States Department of Labor. (b) Each contractor or subcontractor shall preserve his weekly payroll records for a period of three years from date of mpletion of the contract. The payroll records shall set out accurately and completely the name and address of each laborer ~ mechanic, his correct classification, rate of pay, daily and weekly number of hours worked, deductions made, and actual ges paid. Such payroll records shall be made available at all times for inspection by the contracting officer or his authorized presentative, and by authorized representatives of the Department of Labor. ction 3.5 Payroll deductions permissible without application to or approval of the Secretary of Labor. Deductions made under the circumstances or in the situations described in the paragraphs of this section may be made bout application to and approval of the Secretary of Labor: (a) Any deduction made in compliance with the requirements of Federal, State, or local law, such as Federal or State hholding income taxes and Federal social security taxes. (b) Any deduction of sums previously paid to the employee as a bona fide prepayment of wages when such prepayment lade without discount or interest. A "bona fide prepayment of wages" is considered to have been made only when cash or equivalent has been advanced to the person employed in such manner as to give him complete freedom of disposition of the anted funds. (c) Any deduction of amounts required by court process to be paid to another, unless the deduction is in favor of the tractor, subcontractor or any affiliated person, or when collusion or collaboration exists. $- ~~s.~ HUD-3200 1891 (d) Any deduction constituting a contribution on behalf of the person employed to funds established by the employer or representatives of employees, or both, for the prupose of providing either from principal or income, or both, medical or hospital care, pensions or annuities on retirement, death benefits, compensation for injuries, illness, accidents, sickness, or disability, or for insurance to provide any of the foregoing, or unemployment benefits, vacation pay, savings accounts, or similar payments for the benefit of employees, their families and dependents: Provided, however, That the following standard are met: (1) The deduction is not otherwise prohibited by law; (2) it is either: (i) Voluntarily consented to by the employee in writing and in advance of the period in which the work is to be done and such consent is not a condition either for the obtaining of or for the continuation of employment, or (ii) provided for in a bona fide collective bargaining agreement be- tween the contractor or subcontractor and representatives of its employees; (3) no profit or other benefit is otherwise obtaine directly or indirectly, by the contractor or subcontractor or any affiliated person in the form of commission, dividend, or otherwise; and (4) the deductions shall serve the convenience and interest of the employee. (e) Any deduction contributing towazd the purchase of United States Defense Stamps and Bonds when voluntarily authorized by the employee. (f) Any deduction requested by the employee to enable him to repay loans to or to purchase shares in credit unions organized and operated in accordance with Federal and State credit union statutes. (g) Any deduction voluntazily authorized by the employee for the making of contributions to governmental or quasi- governmental agencies, such as the American Red Cross. (h) Any deduction voluntarily authorized by the employee for the making of contributions to Community Chests, United Givers Funds, and similiaz charitable organizations. (i) Any deductions to pay regular union initiation fees and membership dues, not including fines or special assessments: Provided, however, That a collective bargaining agreement between the contractor or subcontractor and representatives of its employees provides for such deductions and the deductions are not otherwise prohibited by law. (j) r-iny deduction not more than for the "reasonable cost" of board, lodging, or other facilities meeting the require- ments of section 3(m) of the Fair Labor Standards Act of 1938, as amended, and Pazt 531 of this title. When such a deductio is made the additional records required under § 516.27 (a) of this title shall be kept. Section 3.6 Payroll deductions permissible with the approval of the Secretary of Labor. Any contractor or subcontractor may apply to the Secretary of Labor for permission to make any deduction not per- mitted under § 3.5. The Secretazy may grant permission whenever he finds that: (a) The contractor, subcontractor, or any affiliated person does not make a profit or benefit directly or indirectly from the deduction either in the form of a commission, dividend, or otherwise; (b) The deduction is not otherwise prohibited by law; (c) The deduction is either (1) voluntarily consented to by the employee in writing and in advance of the period in whip the work is to be done and such consent is not a condition either for the obtaining of employment or its continuance, or (2) provided for in a bona fide collective bazgaining agreement between the contractor or subcontractor and representatives of its employees; and (d) The deduction serves the convenience and interest of the employee. -9- UD-3200 ~-69) ection 3.7 Applications for the approval of the Secretary of Labor. Any application for the making of payroll deductions under § 3.6 shall comply with the requirements prescribed in the allowing paragraphs of this section: (a) The application shall be in writing and shall be addressed to the Secretary of Labor. (b) The application shall identify the contract or contracts under which the work in question is to be performed. Per- ission will be given for deductions only on specific, identified contracts, except upon a showing of exceptional circumstances. (c) The application shall state affirmatively that there is compliance with the standards set forth in the provisions of 3.6. The affirmation shall be accompanied by a full statement of the facts indicating such compliance. (d) The application shall include a description of the proposed deduction, the purpose to be served thereby, and the asses of laborers or mechanics from whose wages the proposed deduction would be made. (e) The application shall state the name and business of any third person to whom any funds obtained from the pro- ~sed deductions are to be transmitted and the affiliation of such person, if any, with the applicant. ection 3.8 Action by the Secretary of Labor upon applications. The Secretary of Labor shall decide whether or not the requested deduction is permissible under provisions of § 3.6; Id shall notify the applicant in writing of his decision. ection 3.9 Prohibited payroll deductions. Deductions not elsewhere provided for by this part and which are not found to be permissible under § 3.6 are prohibited. ection 3.10 Methods of payment of wages. The payment of wages shall be by cash, negotiable instruments payable on demand, or the additional forms of compensa- ~n for which deductions are permissible under this part. No other methods of payment shall be recognized on work subject the Copeland Act. action 3.11 Regulations part of contract. All contracts made with respect to the construction, prosecution, completion, or repair of any public building or public irk or building or work financed in whole or in part by loans or grants from the United States covered by the regulations in is part shall expressly bind the contractor or subcont-actor to comply with such of the regulations in this part as may be ap- icable. In this regard, see. § 5.5 (a) of this subtitle. -10- irU. S. GOVERNMENT PRINTING OFFICE : 1970 O - 494-820 (12) ~~ ~ss~