SOCIAL SERVICES TO CHILDREN AT CONDON GARDENS TO 9/30/93
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AGREEMENT
THIS AGREEMENT is entered into this 1st day of October, 1992, by and
between the City of Clearwater, a Florida municipal corporation, having its
principal office at 10 South Osceola Avenue, Clearwater, Florida, hereinafter
referred to as the "City", and the BOYS AND GIRLS CLUBS OF THE SUNCOAST,
INC., hereinafter referred to as the "Provider".
WITNESSETH:
WHEREAS, the City has entered into an agreement with the U.S. Department
of Housing and Urban Development for the purpose of conducting a Housing and
Community Development Program (HUD) with federal financial assistance under
Title I of the Housing and Community Development Act of 1974, as amended,
hereinafter called "Act"; and the Cranston-Gonzalez National Affordable
Housing Act of 1990; and
WHEREAS, the City has determined through its Year Eighteen Final
Statement of Objectives and Projected Use of Funds, which was adopted by City
of Clearwater July 3, 1992, the necessity for providing operational
assistance to the Condon Gardens Boys and Girls Club for a variety of
educational and recreational activities; and
WHEREAS, the City desires to engage the Provider to render certain
services in connection therewith:
NOW, THEREFORE, the parties hereto agree as follows:
SECTION I:
SCOPE OF SERVICES
A. The Provider agrees to implement the social services to children at the
Condon Gardens Public Housing Complex, in accordance with the projected
accomplishments attached and made a fully binding part of this
Agreement, as Appendix 1, as follows:
operation of the Condon Gardens Boys and Girls Club located at 2936
Tanglewood Drive, Clearwater. Operational assistance to include funding
for a portion of the salaries and benefits for the program director,
clerk, and summer counselor for agency which encourages stronger self-
esteem & focus on problems of truancy, vandalism, drug abuse and gangs.
SECTION II:
CONDITION OF SERVICE
The Provider hereby agrees to the following:
A. The Program shall serve residents of an area identified as an area
within which over 51% of the residents were of low or mod era t e
income.
B. The Provider shall maintain a citizen participation mechanism, which
will include, but not be limited to the following:
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1 Logging citizen comments or complaints when received.
2. Copies of comments and/or complaints received in writing.
3. Copies of responses to complaints and/or explanations of
resolutions to complaints.
C. The Provider shall comply with the following attachments to the Office
of Management and Budget COMB) Circular No. A-110, "Uniform
Administrative Requirements for Grants and Agreements with Institutions
of Higher Education, Hospitals and Other Non-Profit organizations",
incorporated by reference into this Agreement.
1. Attachment A, "Cash Depositories", except for paragraph 4
concerning deposit insurance.
2. Attachment E, "Bonding and Insurance".
3. Attachment C, "Retention and Custodial Requirements for Records",
except that in lieu of the provisions in paragraph 4, the retention
period for records pertaining to individual CDBG activities starts
from the date of expiration of this Agreement, as prescribed in
570.507, in which the specific activity is reported on for the
final time. i
4. Attachment F, "Standards for Financial Management Systems".
5. Attachment H, "Monitoring and Reporting Program Performance",
paragraph 2.
6. Attachment N, "Monitoring Management Standards", except for
paragraph 3 concerning the standards for real property and except
that paragraphs 6 and 7 are modified so that in all cases in which
personal property is sold, the proceeds shall be "program income"
and that personal property not needed by the SUb-recipient for CDBG
activities shall be transferred to the recipient for the CDBG
program or shall be retained after compensating the recipient.
7. Attachment 0, "Procurement Standards".
D. Costs incurred under this program shall be in compliance with Federal
Management Circular No. A-122, "Cost Principles for Non-Profit
Organizations", incorporated by reference into this Agreement.
E. The Provider shall abide by those provisions of 24 CFR Part 570 subpart
J, when applicable, incorporated by reference into this Agreement.
F. No expenditures or obligations shall be incurred for the program prior
to approval and release of funds from the U.S. Department of Housing and
Urban Development. Further, it is expressly understood that in the
event no funds are released from the U.S. Department of Housing and
Urban Development in connection with this Program, then the city is not
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liable for any claims under this contract.
G. The Provider shall certify, pursuant to section 109 of the Act, that no
person shall be denied the benefits of the program on the ground of
race, color, national origin or sex.
H. The Provider agrees that to the extent that it staffs the Program with
personnel not presently employed by said party, it will take affirmative
action in attempting to employ low income persons residing in the City
of Clearwater, particularly minority group members.
I. The Provider shall comply with the provisions of 24 CFR 570.504 (c),
"Program Income", gross income directly generated from the use of COBG
funds. In those instances where the city allows the sUb-recipient to
retain program income, these funds shall be expended for COBG eligible
activities, previously approved by the City in accordance with the
projected accomplishments and budget descriptions attached to this
Agreement.
J. The Provider shall adhere to the applicable requirements contained in
the "Acknowledgement of Economic Oevelopment Activities", attached
hereto and made a part hereof as Appendix 2, if applicable.
K. The Provider shall comply with First Amendment Church/State principles,
as follows:
1. It will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment
or give preference in employment to persons on the basis of
religion.
2. It will not discriminate against any person applying for public
services on the basis of religion and will not limit such services
or give preference to persons on the basis of religion.
3. It will provide no religious instruction or counseling, conduct no
religious worship or services, engage in no religious
proselytizing, and exert no other religious influence in the
provision of such public services.
4. The portion of a facility used to provide public services assisted
in whole or in part under this Agreement shall contain no sectarian
or religious symbols or decorations.
5. The funds received under this Agreement shall not be used to
construct, rehabilitate, or restore any religious facility which is
owned by the Provider and in which the public services are to be
provided. However, minor repairs may made if such repairs are
directly related to the public services; are located in a structure
used exclusively for non-religious purposes; and constitute, in
dollar terms, only a minor portion of the COBG expenditure for the
public services.
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L. The Provider shall transfer to the City upon expiration of this
Agreement, any COBG funds on hand at the time of expiration and any
accounts receivable attributable to the use of COBG funds. The
following restrictions and limitations apply to any real property under
the Provider's control which was acquired or improved in whole or in
part with COBG funds in excess of $25,000:
1. Any real property under the Provider's control must be used to meet
one of the National Objectives in the COBG Reaulations. Part
570.208 until five years or such longer period of time as
determined appropriate by the City after expiration of the
Agreement.
2. If the real property is sold within the period of time specified
above, the property must be disposed of in a manner which results
in the City being reimbursed in the amount of the current fair
market value of the property, less any portion thereof attributable
to expenditures on non-COBG funds for acquisition of, or
improvement to, the property. Such reimbursement is required.
M. The Provider agrees that when sponsoring a project financed in whole or
in part under this Agreement, all notices, informational pamphlets,
press releases, advertisements, descriptions of the sponsorship of the
proj ect, research reports, and similar public notices prepared and
released by the Provider shall include the statement:
FUNDED BY THE CITY OF CLEARWATER
COMKUHITY DEVELOPMENT BLOCK GRANT PROGRAM"
In written materials, the words "CITY OF CLEARWATER COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS ADMINISTERED BY THE DEPARTMENT OF PLANNING
AND URBAN DEVELOPMENT" shall appear in the same size letters or type as
the name of the Provider.
N . The Provider shall ensure the following when entering into a sub-
contract agreement:
1. The full correct legal name of the party shall be identified.
2. The "Scope of Services" shall describe the activities to be
performed.
O. The Provider shall maintain sufficient records in accordance with 24 CFR
570.502 and 570.506 to determine compliance with the requirements of
this Agreement, the Community Oevelopment Block Grant Program and all
applicable laws and regulations.
This documentation shall include, but not be limited to, the following:
1. Books, records and documents in accordance with generally accepted
accounting principles, procedures and practices which sufficiently
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and properly reflect all revenues
provided directly or indirectly by
matching funds and program income.
and expenditures
this Agreement,
of funds
including
2. Time sheets for split-funded employees who work on more than one
activity, in order to record the CDBG activity delivery cost by
project and the non-CDBG related charges.
3. How the statutory National Objective(s) and the eligibility
requirement(s) under which funding has been received, have been
met. These also include special requirements such as necessary and
appropriate determinations, income certifications, written
agreements with beneficiaries, where applicable.
P. The Provider is responsible for maintaining and storing all records
pertinent to this Agreement in an orderly fashion in a readily
accessible, permanent and secured location for a period of three (3)
years after expiration of this Agreement, with the following exception:
if any litigation, claim or audit is started before the expiration date
of the three year period, the records will be maintained until all
litigation, claims or audit findings involving these records are
resolved. The City shall be informed in writing after close-out of this
Agreement, of the address where the records are to be kept.
SECTION III:
TERM OF AGREEMENT
This Agreement shall be deemed effective upon approval and release of funds
by the U. S. Department of Housing and Urban Development and being duly
executed by both parties, whichever is later.
This project shall become operational as of October 1, 1992, and shall
continue through September 30, 1993.
SECTION IV:
TERMINATION
The City and the Provider agree:
A. This Agreement may be terminated by either party hereto by written
notice of the other party of such intent to terminate at least thirty
(30) days prior to the effective date of such termination.
B. This Agreement may be terminated in whole or in part, for convenience,
when both parties agree upon the termination conditions. A written
notification shall be required and shall include the following: reason
for the termination, the effective date, and in the case of a partial
termination, the actual portion to be terminated. However, if, in the
case of a partial termination, the City determines that the remaining
portion of the Agreement will not accomplish the purposes of such
Agreement, the City may terminate such in its entirety.
C. The City may place the Provider in default of this Agreement, and may
suspend or terminate this Agreement in whole, or in part, for cause.
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1. Cause shall include, but not be limited to, the following:
a. Failure to comply and/or perform in accordance with this
Agreement, or any federal statute or regulation.
b. Submitting reports to the City which are late, incorrect or
incomplete in any material respect.
c. Implementation of this Agreement, for any reason, is rendered
impossible or infeasible.
d. Failure to respond in writing to any concerns raised by the
Ci ty, including substantiating documents when
required/requested by the City.
e. Any evidence of fraud, mismanagement, and/or waste, as
determined by the City's monitoring of the subrecipient, and
applicable HOD rules and regulations.
2. The City shall notify the Provider in writing when the Provider has
been placed in default. Such notification shall include actions
taken by the City, such as withholding of payments, actions to be
taken by the Provider as a condition precedent to clearing the
deficiency and a reasonable date for compliance, which shall be no
more than fifteen (15) days from notification date.
3. The City shall notify the Provider in writing when sufficient cause
is found for termination of this Agreement. The Provider shall be
given no more than fifteen (15) days in which to reply in writing,
appealing the termination prior to final action being taken by the
City.
D. Let it be further understood that upon curtailment of, or regulatory
constraints placed on, the funds of the U.S. Department of Housing and
Urban Development, this Agreement will terminate effective as of the
time that it is determined such funds are no longer available.
E. Costs of the Provider resulting from obligations incurred during a
suspension or after termination, are not allowable unless the City
expressly authorizes them in the notice of suspension or termination or
subsequently. Other costs during suspension or after termination which
are necessary and not reasonably avoidable are allowable if:
1. The costs result from obligations which were properly incurred
before the effective date of suspension or termination, are not in
anticipation of it, and in the case of termination, are
noncancelable, and
2. The costs would be allowable if the award were not suspended or
expired normally at the end of the Agreement in which the
termination takes effect.
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F. Upon termination of the Agreement, the Provider and the City shall meet
to discuss the City's determination if any amounts are to be repaid to
the City or if additional amounts are due the Provider.
SECTION V:
AMENDMENTS
Any alterations, variations, modifications or waivers of this Agreement shall
only be valid when they have been reduced to writing and duly signed by both
parties. Any changes which do not substantially change the scope of the
project and/or the Project Implementation Schedule or increase the total
amount payable under this Agreement, shall be valid only when reduced to
writing and signed by the City Administration and the Provider.
The City shall not reimburse the Provider for outlays in excess of the funded
amount of the Agreement unless and until the City officially, in writing,
approves such expenditure by executing a written modification to the original
Agreement.
SECTION VI:
METHOD OF PAYMENT
It is expressly understood and agreed that the total compensation to be paid
hereunder for actual expenditures incurred shall not exceed Fourteen thousand
four hundred dollars ($14,400). Such funds must be expended during the term
of the Agreement, and any remaining balance of funds shall revert to the
city. Such compensation shall be paid in accordance with the projected
accomplishments and budget descriptions attached hereto and made a part
hereof as Appendix 1.
A. The Provider shall submit monthly requests for payment for actual
expenditures, including applicable back-up documentation, no later than
the tenth (10th) day of the succeeding month and the City will provide
reimbursement, upon approval, within ten (10) working days after receipt
of the same, if submitted by the deadline data for inclusion on the
drawdown request.
B. The City agrees to pay the Provider for expenditures incurred under this
Agreement on a monthly basis in accordance with the Budget and Project
Implementation Schedule attached hereto and made a part hereof as
Appendix 1. Line item transfers are allowable only within each
component and may not exceed in the aggregate fifteen percent (15%) of
each line item without Drior written approval of the City. All changes
amounting to more than fifteen percent (15%) require prior written
approval.
SECTION VII:
CONFLICT OF INTEREST
The Provider covenants that no person, under its employ who presently
exercises any functions or responsibilities in connection with Community
Development funded activities, has any personal financial interests, direct
or indirect, in this Agreement. The Provider covenants that in the
performance of this Agreement, no person having such conflicting interest
shall be employed. The Provider covenants that it will comply with all
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provisions of 24 CFR 570.611 "Conflict of Interest", and the state statutes
governing conflicts of interest. The Provider shall disclose, in writing, to
the City any possible conflicting interest or apparent impropriety that is
covered by the Above provisions. This disclosure shall occur immediately
upon knowledge of such possible conflict. The City will then render an
opinion which shall be binding on both parties.
SECTION VIII:
INDEMNIFICATION
The Provider shall indemnify and hold harmless the City from any and all
claims, liability, losses and causes of action which may arise out of the
Agreement. The Provider, through its insurance carrier, shall pay all claims
and losses of any nature whatsoever in connection therewith and shall defend
all suits in the name of the City, when applicable, and shall pay all costs
and judgements which may issue thereon.
Automobile and vehicle coverage shall be required when the use of automobiles
and other vehicles are invol ved in any way in the performance of the
Agreement.
The Provider shall submit to the City an ORIGINAL Certificate of Insurance.
All insurance coverage shall be approved by the City'S Risk management Office
prior to the release of any funds under this Agreement.
Further, in the event evidence of such insurance is not forwarded to the Risk
Management Office within thirty (30) days after the execution of this
Agreement, this Agreement shall become null and void and the City shall have
no obligation under the terms thereof unless a written extension of this
thirty (30) day requirement is secured from the Insurance Manager.
SECTION IX:
REPORTING AND EVALUATION REOUIREMENTS
Maintaining credibility for the community development effort rests heavily on
the ability to produce an impact in low/moderate income areas, through
progress in accomplishing scheduled activities. An effective method for
maintaining project progress against a previously established schedule is
through project evaluation and reporting, which will consist of both written
reports and staff discussions on a regular basis. The Provider also assures
prompt and efficient submission of the following:
A. Monthlv ReDorts are due no later than the tenth (10th) day of the
succeeding month and shall include the request for payment when
applicable. Contents of the Monthly Report, attached hereto and made a
part hereof as Appendix 3, shall include but not necessarily be limited
to the following:
1. The Narrative Report Form
2. The Financial Summary Form, which shall include the request for
payment and documentation, as applicable.
3. The Client Profile Form
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B. Semi-Annual Proaress Evaluation. No later than April 10, the Provider
shall submit evaluation of the effectiveness of the program during the
first six months of the year. The purpose of this report is to permit
the City to implement a subrecipient ranking system for requests for
funding for the subsequent program year. This report shall be provided
on forms to be developed by the City. This requirement may be waived if
the Provider elects not to request funding in the subsequent program
year.
C. Final Evaluation. Within twenty (20) days of contract completion, a
final report documenting how the statutory National Objective and the
eligibility requirements were met, must be submitted by the Provider to
the City's community Development Division for review and approval. The
contents of same shall include a cumulative total of the data submitted
during the program's operation. Further, such report shall include
statistical findings which depict program efficiency; i.e., the number
of dollars spent, including non-CDBG funding sources, to render actual
service to program recipients, and an overall evaluation of the
program's effectiveness, and quantitative results. The final report
will be evaluated and the Provider will be notified if additional data
is necessary or that the project/activity is considered "closed-out".
other Reportinq Requirements may be required by the City in the event of
program changes, need for additional information or documentation and/ or
legislation amendments. The Provider shall be informed, in writing, if any
changes become necessary.
Reports and/or requested documentation not received by the due date, shall be
considered delinquent, and may be considered by the city as sufficient cause
to suspend CDBG payments to the Provider.
SECTION X:
AUDIT AND INSPECTIONS
At any time during normal business hours and as often as City and/or Federal
Government representatives may deem necessary, there shall be made available
to representatives of the City and/or the Federal Government an opportunity
to review, inspect or audit all records, documentation, and any other data
relating to all matters covered by the Agreement.
An annual organization audit shall be submitted to the City 120 days after
the end of the Provider's fiscal year. The audit shall be performed in
accordance with OMB Circular A-110 Attachment F, OMB Circular A-133 or OMB
Circular A-128, as applicable. If this Agreement is closed-out prior to the
receipt of an audit report, the City reserves the right to recover any
disallowed costs identified in an audit after such close-out.
SECTION XI: COMPLIANCE WITH LOCAL. STATE , FEDERAL REGULATIONS
The Provider agrees to comply with all applicable federal regulations as they
may apply to program administration. Additionally, the Provider will comply
with all state and local laws and ordinances hereto applicable.
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SECTION XII:
ADDITIONAL CONDITIONS AND COMPENSATION
It is expressly understood and agreed by the parties hereto that monies
contemplated by this Agreement to be used for compensation originated from
grants of federal Community Development Block Grant funds, and must be
implemented in full compliance with all of HUD's rules and regulations.
It is expressly understood and agreed that in the event of curtailment or
non-production of said federal grant funds, that the financial sources
necessary to continue to pay the Provider compensation will not be available
and that this Agreement will thereby terminate effective as of the time that
it is determined that said funds are no longer available.
In the event of such determination, the Provider agrees that it will not look
to, nor seek to hold liable, the City or any individual member of the City
Commission thereof personally for the performance of this Agreement and all
of the parties hereto shall be released from further liability each to the
other under the terms of this Agreement.
IN WITNESS WHEREOF. the parties hereto have caused this Agreement to be
executed by their duly authorized officials on the day and date first above
indicated.
BOYS AND GIRLS CLUBS OF THE SUNCOAST,
INC.
By ((27
President
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CITY OF CLEARWATER, FLORIDA
Date
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Approved as to form & correctness:
Date
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EQUAL EMPLOYMENT OPPORTUNITY CLAUSE
FOR CONTRACTS SUBJECT TO EXECUTIVE ORDER 11235
The applicant hereby agrees that it will incorporate or cause to be
incorporated into any contract for construction work, or modification
thereof, as defined in the regulations of the Secretary of Labor at 41 CFR
Chapter 60, which is paid for in whole or in part with funds obtained from
the Federal Government or borrowed on the credit of the Federal Government
pursuant to the grant, contract, loan insurance, or guarantee, or undertaken
pursuant to any Federal program invol ving such grant, contract, loan,
insurance, 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
orl.gl.n. The contractor will take affirmative action to ensure that
applicants are employed, and that employees are treated during
employment without regard to their 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 payor other
forms of compensation; and selection of training, including
apprenticeship. The contractor agrees to post in a conspicuous place,
available to employees and applicants for employment, notices to be
provided setting forth the provision of this nondiscrimination clause.
(2) The contractor will, in all solicitations or advertisements for
employees placed by or 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 rules, regulations,
and orders of the Secretary of Labor, or pursuant thereto, and will
permit access to his books, records, and accounts by the administering
agency 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 non-compliance with the non-
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discrimination 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 September 24, 1965, or by rule, regulation, or
order of the Secretary of Labor, or as otherwise provided 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
contractor will take such action with respect to any subcontract or
purchase order as the administering agency may direct as a means of
enforcing such provisions, including sanctions for non-compliance
provided, however, that in the event a contractor becomes involved in or
is threatened with, litigation with a subcontractor or vendor as a'
result of such direction by the administering agency, the contractor may
request the united States to enter into such litigation to protect the
interest of the united States.
The applicant further agrees that it will be bound by the above Equal
Opportuni ty clause with respect to its own employment practices when it
participates in federally assisted construction work: provided that, if the
applicant 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 applicant agrees that it will assist and cooperate actively with the
administering agency 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 administering agency and the Secretary of Labor such
information as they may require for the supervision of such compliance, and
that it will otherwise assist the administering agency in the discharge of
the agency's primary responsibility for securing compliance.
The applicant further agrees that it will refrain from entering into any
contract or contract modification subject to Executive Order 11246 of
September 24, 1965, with a contractor debarred 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 administering
agency of the Secretary of Labor pursuant to Par II, Subpart 0 of the
Executive Order. In addition, the applicant agrees that if it fails or
refuses to comply with these undertakings, the administering agency may take
any or all of the following actions: cancel, terminate, suspend in whole or
in part this grant (contract, loan, insurance guarantee); refrain from
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extending any further assistance to the applicant under the program with
respect to which the failure or refund occurred until satisfactory assurance
of future compliance has been received from such applicant; and refer the
case to the Department of Justice for appropriate legal proceedings.
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SECTION 3 CLAUSE
A. The work to be performed under this contract is on a project assisted
under a program providing direct Federal financial assistance from the
Department of Housing and Urban Development and is subj ect to the
requirements of Section 3 of the Housing and Urban Development Act of
1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the
greatest extent feasible, opportunities for training and employment be
given to lower income residents of the project area, and contracts for
work in connection with the project be awarded to business concerns
which are located in, or owned in substantial part by persons residing
in the area of the project.
B. The parties to this contract will comply with the provision of said
Section 3 and the regulations issued pursuant thereto by the Secretary
of Housing and Urban Development set forth in 24 CFR 135.20, and all
applicable rules and orders of the Department issued thereunder prior to
the execution of this contract. The parties to this contract certify
and agree that they are under no contractual or other disability which
would prevent them from complying with these requirements.
C. The contractor will send to each labor organization or representative of
workers with which he has a collective bargaining agreement or other
contract or understanding, if any, a notice advising the said labor
organization of workers' representative of his commitments under this
Section 3 Clause and shall post copies of the notice in conspicuous
places available to employees and applicants for employment or training.
D. The contractor will include this Section 3 Clause in every subcontract
for work in connection with the project and will, at the direction of
the applicant for or recipient of Federal financial assistance, take
appropriate action pursuant to the subcontract upon a finding that the
subcontractor is in violation of regulations issued by the Secretary of
Housing and Urban Development, 24 CFR 135.20. The contractor will not
subcontract with any subcontractor where it has notice or knowledge that
the latter has been found in violation of regulations under 24 CFR
135.20, and will not let any subcontract unless the subcontractor has
first provided it with a preliminary statement of ability to comply with
the requirements of these regulations.
E. Compliance with the provisions of Section 3, the regulations set forth
in 24 CFR 135.20, and all applicable rules and orders of the Department
issued thereunder prior to the execution of the contract, shall be a
condition of the federal financial assistance provided to the project,
binding upon the applicant or recipient for such assistance, its
successors, and assigns. Failure to fulfill these requirements shall
subject the applicant or recipient, its contractors and subcontractors,
its successors, and assigns to those sanctions specified by the grant or
loan agreement or contract throught which Federal assistance is
provided, and to such sanctions as are specified by 24 CFR 135.20.
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ACKNOWLEDGEMENT OF ECONOMIC DEVELOPMENT ACTIVITIES
If the Provider will be using CDBG funds for an Economic Development
Activity, the following federal requirements must be acknowledged:
LOW/MODERATE INCOME JOBS
criteria
A low/moderate jobs activity is one which creates or retains permanent jobs,
at least 51% of which are taken by low/moderate income persons or considered
to be available to low/moderate income persons.
In counting iobs created or iobs retained, the following pOlicies apply:
o Part-time jobs must be converted to full-time equivalents.
o Only Dermanent jobs count.
o TemDorarv jobs may not be included.
o Regardless of the sources of funding, all permanent jobs created by
the activity must be counted.
o Trickle-down jobs (jobs indirect Iv created by the assisted activity
may not be counted).
For iobs retained, the following additional criteria apply:
o There is clear and objective evidence that permanent jobs will be
lost without COBG assistance. Such evidence includes: a notice by
the business to affected employees, a public announcement by the
business, or relevant financial records.
o Retained jobs are considered to involve the employment of
low/moderate income persons if 51% of such jobs are known to be
held by low/moderate income persons when COBG assistance is
provided.
Jobs are considered to be available to low/moderate income persons when ~
the following conditions are fulfilled:
o Special skills that can only be acquired with one or more years of
training or work experience, or education beyond high school, are
not a pre-requisite to fill such jobs, or else the business
nevertheless agrees to hire unqualified persons and train them; and
o The Provider ensures that the assisted business adheres to the
principles of "first consideration" by: using a hiring practice
that in all likelihood will result in over 51% of those hired being
low/moderate income persons; seriously considering a sufficient
number of low/moderate income job applicants to meet this intent;
Page 16 of 18
I
I
determining that the distance from the job applicant's residence is
close to the job site or that transportation is available to the
job site.
RECORDS TO BE MAINTAINED
Where the low/moderate income benefit is based on job creation, the
Provider's files must include the documentation described in either (A) or
(B) below:
(A) For activities where at least 51% of the jobs will be available to
low/moderate income persons, documentation for each assisted business
must include:
A copy of a written agreement containing:
o A commitment by the business that it will make at least 51% of the
jobs available to low/moderate income persons and will provide
training for any of those jobs requiring special skills or
education; and,
o A listing by job title of the permanent jobs to be created,
indicating which jobs will be available to low/moderate income
persons, which jobs require special skills or education, and which
jobs are part-time; and,
o A description of actions to be taken by the Provider and business
to ensure that low/moderate income persons receive "first
consideration" for these jobs; and,
o A listing, by jOb title, of permanent jobs filled, and which jobs
were available to low/moderate income persons, as well as a
description of how "first consideration" was given to such persons
for those jobs. The description must include what type of hiring
process was used; which low/moderate income persons were
interviewed for a particular job and which interviewees were hired.
(B) For activities where at least 51% of the jobs will be taken by
low/moderate income persons, documentation for each assisted business
must include:
A copy of a written agreement containing:
o A commitment by the business that at least 51% of the jobs, on a
full-time equivalent basis, will be taken bv low/moderate income
persons and a listing by job title of the permanent jobs created;
and,
o A listing, by job title, of the permanent jobs filled and which
jobs were initially held by low/moderate income persons; and,
o Information on the size and annual income of the persons' immediate
Page 17 of 18
I
I
family prior to the low/moderate income person being hired for the
jOb.
Where low/moderate income benefit is based on iob retention, the files must
include the following documentation:
o Evidence that jobs would be lost without CDBG assistance.
o A listing, by jOb title, of permanent jobs retained, indicating
which of those jObs are part-time and (if known) which are held by
low/moderate income persons at the time the assistance is provided.
o Identification of any retained jObs not already held by
low/moderate income persons which are projected to become available
to low/moderate income persons through job turnover within two
years of the time CDBG assistance is provided. (Job turnover
projections should also be included in the record.)
o Information on the size and annual income of the low /moderate
income persons' immediate family for each retained job claimed to
be held by a low/moderate income person. Acceptable documentation
on jOb applicant/ employee family income includes anyone of the
following:
~ Notice that job applicant/employee is a referral from state,
county, or local employment agency or other entity that agrees to
refer individuals determined to be low/moderate income according to
HOD criteria. (These entities must maintain documentation for city
or federal inspection.)
~ Written certification, signed by the jOb applicant/employee, of
family income and size to establish low/moderate income status by
showing: the actual income of the family, or a statement that the
family income is below CDBG low /moderate income requirements.
(These certifications must include a statement that they are
subject to verification by the local or federal government.)
~ Evidence that job applicant/employee qualifies for assistance under
another program w1th income qualification criteria at least as
restrict1ve as those used by the CDBG program, such as referrals
from the Job Training Partnership Act (JTPA) Program, except for
referrals under the JTPA Title III Program for dislocated workers.
ADDITIONAL CONSIDERATIONS
The Provider must prepare a "necessary or aoorooriate" determination whenever
CDBG assistance is provided for a private, for-profit entity carrying out
economic development
Page 18 of 18
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