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HomeMy WebLinkAbout2005-040 Department of Housing and Community Development y STATE OFCALIFORNIA �y t'I RACT R'S C0�� STANDARD AGREEMENT (vo' STD 213(Rev 06/03) AGREEMENT NUMBER f- 05-DRI-0006 ^, REGISTRATION NUMBER N/A 1. This Agreement is entered into between the State Agency and the Contractor named below: STATE AGENCYS NAME DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT CONTRACTOR'S NAME City of Atascadero 2. The term of this Agreement is: Upon VICD Approval through 04/30/09 3. The maximum amount of this Agreement is: S 1,000,000.00 4. The parties agree to comply with the terms and conditions of the following exhibits which are by this reference made a part of the Agreement. Exhibit A—Authority, Purpose and Scope of Work 10 page(s) Exhibit B— Budget Detail and Payment Provisions 3 page(s) Exhibit C—HCD General Terms and Conditions 10 page(s) Exhibit D—State of California General Terms and Conditions 6 page(s) Exhibit E—Special Terms and Conditions 6 page(s) Exhibit F—Additional Provisions N/A page(s) TOTAL NUMBER OF PAGES ATTACHED: 35 pages IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. CONTRACTOR California Department of General Services Use Only CONTRACTOR'S NAME(if other than an inrtividual,state whether a corporation,partnership,etc.) City of Atascadero „(�,BY(Auto zed gn�re) DA SIGN D(Do not rype) PRIG D N ME AND T LE F P RS SIGNING, p� r, I 1 lel jj ADDRESS r 6907 EI Camino Real DEC 2 ? 706 Atascadero, CA 93422 STATE OF CALIFORNIA AGENCY NAME Departme of Housing and Community Development BY(Autho i DATE SIGNED(Do not type) ' nature) J PRINTED NA E AND TITLE OF PERSON SIGNING Susan J. Phillips, Manager, Budgets and Contracts Branch ® Exempt from: Department of General Services ADDRESS Approval 1800 Third Street, Room 350, Sacramento, CA 95814 City of Atascadero 05-DRI-0006 Page 1 of 10 EXHIBIT A AUTHORITY PURPOSE AND SCOPE OF WORK Section 1: Authority & Purpose This agreement will provide official notification of the grant award under the State's administration of the federal Community Development Block Grant Program (hereinafter, "CDBG" or "the Program") of Disaster Recovery Initiative (DRI) funds appropriated by the Military Construction Appropriations and Emergency Hurricane Supplemental Appropriations Act, 2005, (Public Law 108-324), (hereinafter, "DRI"). In accepting this grant award, the Grantee agrees to comply with the terms and conditions of this agreement and all exhibits hereto, the representations contained in the Grantee's application (hereinafter, "the Application") which is hereby incorporated by reference as if set forth in full, and the requirements of the authorities cited above. For purposes of this agreement, use of the term "Grantee" shall be a reference to "Contractor". Any changes made to the Application after this agreement is executed must receive prior written approval from the State. Section 2: Scope of Work Contractor shall perform the Work as described in the Application, which is on file at the Department of Housing and Community Development, Division of Financial Assistance, 1800 Third Street, Room 330, Sacramento, California and which is incorporated herein by reference. All written materials or alterations submitted as addenda to the original Application and which are approved in writing by the CDBG Program Manager or higher Departmental official, as appropriate, are hereby incorporated as part of the Application. The State reserves the right to require the Contractor to modify any or all parts of the application in order to comply with CDBG requirements. The State reserves the right to review and approve all Work to be performed by the Contractor in relation to this Agreement. Any proposed revision to the Work must be submitted in writing for review and approval by the State. Any approval shall not be presumed unless such approval is made by the State in writing. The grant activity shall principally benefit Targeted Income Group households and shall consist of: Community Facility: Youth Center The Community Facility activity consists of the construction of a Youth/Community Center Complex. r City of Atascadero 05-DRI-0006 Page 2 of 10 EXHIBIT A Section 3: Term of Agreement and Deadlines With the exception of the Grant Closing Requirements set forth in Exhibit C, Section 9, the Grantee shall complete the grant activity(ies) by the termination date set forth on page 1 of this agreement, unless a written request for an extension is approved 90 days prior to grant expiration in writing by the State. Section 4: Expenditure Milestones The Grantee shall expend all funds awarded by the termination date set forth on page I of this agreement, unless an formal time extension is requested in writing and granted by the State. Section 5: State Contract Coordinator The coordinator of this Agreement for the State is the CDBG Program Manager, Division of Financial Assistance, or the Program Manager's designee. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be mailed by first class mail to the State Coordinator at the following address: Allen Jones, CDBG Program Manager Division of Financial Assistance Department of Housing and Community Development P. O. Box 952054 Sacramento, California 94252-2054 Section 6: Contract Contact Coordinator The Contractor's contact for this Agreement is listed below. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be mailed by first class mail to the contact at the following address: Contractor: ECITY OF ATASCADERO Name: Rachelle Rickard Title: Administrative Services Director Phone: 805-470-3428 Fax: 805-470-3429 Email: rrickard(c atascadero.orq Address: 6907 EI Camino Real Atascadero, CA 93422 City of Atascadero 05-DRI-0006 Page 3 of 10 EXHIBIT A Section 7: Special Conditions —General Failure to meet the following special conditions may result in termination of this agreement. Within the specified amount of time from this agreement's execution date, if applicable, the Grantee must comply with the following special conditions: A. 90-DAY CONDITIONS The following conditions apply to all activities, including set aside activities. Grantee must comply within 90 days of this agreement's execution. 1. Environmental Compliance The Grantee shall have satisfied all NEPA requirements. The level of compliance varies by the activity that has been funded. 2. Acquisition/Relocation Compliance Grantee must document that it is in compliance with the Uniform Relocation Act and Section 104 (d) before release of funds. The grantee must submit a specific relocation assistance plan for each activity which may result in temporary or permanent displacement. For projects where there will be temporary or permanent displacement, the grantee must submit signed General Information Notices (GIN) for each tenant who was residing in the project at the time of application submittal. If a grantee believes that there will be no displacement as part of their activities, then they must submit a letter explaining why no displacement or relocation will occur and State Staff will respond in writing and concur or not. Under the DRI legislation, a waiver was granted for the one-for-one replacement of units damaged by a disaster. One-for-one replacement requirements at 42 U.S.C. 5304(d)(2) and 24 CFR 570.488.570.606 and 42.375(a) are waived for low and moderate income dwelling units (1) damaged by the disaster, (2) for which CDBG funds are used for demolition, and (3) which are not suitable for rehabilitation. These requirements are waived provided the grantee uses all resources at its disposal to ensure no displaced homeowner will be denied access to decent, safe and sanitary suitable replacement housing because he or she has not received sufficient financial assistance. 3. Program Income Reuse Plan The Grantee must submit a copy of its plan for administering DRI Program Income only if the funded activities under this contract may generate future repayments or revenue. A plan is not required if the proposed activities will generate future revenue but are being carried out in conjunction with existing CDBG activities. For example, if the funds awarded will provide loans to owner occupants for rehabilitation of their houses and the grantee is already doing the same program with CDBG funds, then any repayments for the DRI award will be treated like CDBG loan repayments. If this is not the case and the activity will generate future program income, then the grantee must develop a DRI Program Income (PI) reuse plan for approval by the State or send repayments back to the State. City of Atascadero 05-DRI-0006 Page 4 of 10 EXHIBIT A 4. Site Control Site control, if applicable, of the proposed project property must be obtained by one of the following: a. fee title; b. a leasehold interest on the project property with provisions that enable the lessee to make improvements on and encumber the property provided that the terms and conditions of any proposed lease shall permit compliance with all program requirements: c. an option to purchase or lease; d. a disposition and development agreement with a public agency; e. a land sales contract, or other enforceable agreement for the acquisition of the property. 5. Funding Commitments All funding required for project completion must be committed within 90 days of the execution date of this agreement. If all funding is not committed, the State shall terminate this agreement pursuant to Exhibit D, Section 6. If the Grantee has applied for other funding prior to the execution of this agreement, the Grantee must notify the Department as soon as that application is approved or denied. If the Grantee must apply for other funding after the execution date of this agreement, the Grantee must apply at the earliest possible opportunity offered by the other funding source(s) and notify the Department as soon as that application is approved or denied. B. SPECIAL CONDITIONS The following conditions apply to all activities, if applicable, including set aside Activities. 1. Easements and Rights-of-Way When required for completion of the CDBG project, the Grantee must obtain all easements and rights-of-way within 12 months of execution of this agreement. Failure to obtain these may result in termination of this agreement. 2. Section 504 Accessibility Requirements Section 504 regulations apply when CDBG funds are used on a new construction housing or community facility project or when an existing community facility or housing project with 15 or more units is being purchased and/or "substantially" rehabilitated. City of Atascadero 05-DRI-0006 Page 5 of 10 EXHIBIT A Qualified CDBG assisted housing units are required to have a certain percentage be designed and made adaptable for persons with mobility and sensory impairments. Any community facilities on such a housing project site or those being developed with CDBG funds must also, to the greatest degree feasible, be made accessible to disabled persons. Grantee shall provide documentation, satisfactory to the Department, verifying that the required housing units/or community facility in the project comply with the accessibility standards. CDBG funds will not be released until the necessary documentation, typically in the form of a certification from the project's architect, is provided. Lastly, public service programs funded with CDBG funds must to the greatest degree possible be conducted in buildings, which meet Section 504 accessibility standards. C. SPECIAL CONDITIONS — PUBLIC WORKS If the work to be performed under this standard agreement involves Public Works, the following special conditions will apply: 1. Proiect Timeline Schedule Within 90 days following execution of this agreement, the Grantee shall submit to the State for review and approval a project timeline schedule. If the CDBG project is part of a larger project, the data and timeline for both the larger project and the CDBG-funded project must be submitted. The following list of key project events, if applicable, must be part of the schedule: a. Completion of all surveys, studies, testing and design; b. Completion of the NEPA and CEQA Environmental Review; c. Acquisition of site control sufficient to construct the project; d. Approval of the plans and specifications with authorization to go out to bid by the legislative body; e. Execution of the construction contract; f. Pre-construction meeting with the construction Contractor; g. Construction period (Start-End); h. Connection of TIG households to the system; i. Final acceptance of work and filing the notice of completion; and j. Project close-out. City of Atascadero 05-DRI-0006 Page 6 of 10 EXHIBIT A 2. Water and sewer laterals or other utility service connections CDBG funds expended on private property improvements may only benefit TIG households. If installation and/or replacement of water and/or sewer or other utility service connections occurs on private property, CDBG funds may be used to pay only the cost of improvements associated with TIG households. The service lateral occurring on private property is the portion of the lateral extending across the private property from the public right of way boundary to the TIG housing unit. [24 CFR 570.202 (b)(6] Water and sewer lateral connections constructed on private property as "housing rehabilitation" [24 CFR 570.202 (b)(6)], must comply with the documentation requirements of the housing rehabilitation activity. Water and sewer lateral connections constructed in the public right of way and not designated as "housing rehabilitation" are not subject to these additional conditions. 3. Assessment Districts CDBG funds may be used to pay for improvements financed by special assessments as provided for in 24 CFR 570.482 (b) Special assessments under the CDBG program. Special assessment means the recovery of capital costs of an improvement through a fee or charge levied or filed as a lien against a property as a direct result of a benefit derived from the improvement. It does not include periodic charges based on the use of a public improvement, such as monthly water or sewer user charges, even if such charges include the recovery of the capital costs of the improvement. [24 CFR 570.200 (c)(1), General Policies, Special Assessments Under the CDBG Program, Definition of special assessment] If the project will include the formation and implementation of an assessment district, the Grantee must submit within 90 days of execution of this agreement, an assessment district formation and implementation timeline schedule which shows that the CDBG funds will be expended and benefits will accrue to the TIG beneficiaries before the end of this CDBG contract. Key time events must include, if applicable, the following items: a. Filing of the environmental notice of determination for the project with the County Clerk. b. Adoption of the Resolution of Intention to form the assessment district by the legislative body. c. Holding the protest hearing and recording the assessments and assessment diagram. d. Awarding the construction contract and sale of bonds. e. Filing the construction contract notice of completion. City of Atascadero 05-DRI-0006 Page 7 of 10 EXHIBIT A 4. User Fees CDBG funds may be used to pay reasonable user fees established by the legislative body as a one time charge to gain access to a public improvement. This one time charge may not include real estate, property or ad valorem taxes even if such taxes include the recovery of all or a portion of the capital costs of the public improvement [24 CFR 570.200 (c) (1)]. (See title of section in 3 above). 5. Rate Structure If the project includes the construction of, or improvements to, an enterprise agency such as a water, sewer, solid waste, natural gas or electric power utility, the Grantee shall provide an assurance that the Grantee will provide for future maintenance and capital replacement of the benefiting enterprise agency. The Grantee must submit documentation to CDBG of the following, within 90 days of the execution of this agreement: a. A copy of the previous years revenue and expenditure budget showing all revenues and expenditures of the enterprise agency involved. Revenues should include all monthly user charges, hookup fees, connection fees, extension fees, plant expansion fees, land development fees and any other fees or charges related to operation, maintenance, capital improvement or development of the enterprise agency involved. Expenditures should include all operating expenses including: labor, materials, equipment, testing, administration, licensing and other costs to operate the system. The budget should include a revenue and expenditure plan for capital replacements and for future growth or expansion. The plan should include the payment of any existing or future capital finance obligations such as revenue bonds or certificates of participation. b. A draft copy of projected revenues and expenditures for the following three years. The draft of future revenues and expenditures must include all the features listed in "a." above. c. A certified copy of the present resolutions and or ordinances which establish the existing monthly user charges, hookup fees, connection fees, extension fees, plant expansion fees, land development fees and any other fees or charges related to the revenues which finance the enterprise agency. d. A listing of the number of each of the various types of monthly users for each separate type of user fee listed in the resolution described in "c." above. e. A written plan, approved by the legislative body, for increases in monthly user charges and fees necessary to meet the projected increases in costs, if any, which develop during the three-year period. City of Atascadero 05-DRI-0006 Page 8 of 10 EXHIBIT A 6. Site Control Documentation of site control by recordation of fee title or easement for all sites required for project completion must be submitted to CDBG prior to going out to bid on the project. 7. Payment for Targeted Income Households In order to comply with the provisions of the Housing and Urban Development, Rural Economic Recovery Act of 1983 (HR), the Grantee shall not attempt to recover any capital costs of the public improvement assisted by CDBG funds by assessing any amount against properties owned and occupied by targeted income group families, unless: a. CDBG funds are used to pay the assessment for the targeted income group families; or b. The CDBG funds are used to pay the assessment for the lowest targeted income group families (50 percent of county median income or below) and the Grantee certifies to the State that it lacks sufficient CDBG funds to pay the assessment of all targeted income group families (above 50 percent of median, up to 80 percent of median). D. SPECIAL CONDITIONS — COMMUNITY FACILITIES If the work to be performed under this standard agreement involves Community Facilities, the following special conditions will apply to real property which was acquired or improved in whole or in part using CDBG funds in excess of $25,000. 1. The property must be used to meet the low-income benefit as specified in the application until five years after expiration of this agreement. The Grantee should prepare a lease/or rent limitation agreement with the users of such property to assure the continuing benefit; or 2. If the property does not meet the requirements of paragraph #1 above, then the Grantee shall notify the Department that the following requirements have been met: a. If the property is controlled by a third party, then the third party shall pay to the Grantee's CDBG program an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, and improvement to, the property; or If the property is controlled by the Grantee then, the Grantee shall pay to the Grantee's CDBG program an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, and improvement to, the property; and City of Atascadero 05-DRI-0006 Page 9 of 10 EXHIBIT A b. The Grantee determines, after consultation with affected citizens, that it is appropriate to change the use of the property to a use which doesn't meet the low-income benefit. E. SPECIAL CONDITIONS - INFRASTRUCTURE IN SUPPORT OF MULTI-FAMILY, NON-SENIOR NEW CONSTRUCTION HOUSING If CDBG funds will be used for infrastructure costs in support of multi-family, non-senior newly constructed housing, the following applies: 1. The proportion of the total cost of developing the project to be borne by CDBG funds is not greater than the proportion of units occupied by TIG households; and 2. Not less than 20 percent of the units must be occupied by TIG households at affordable rents. F. SPECIAL CONDITIONS — HOUSING ACQUISITION If the work to be performed under this standard agreement involves Housing Acquisition, the following special conditions will apply: 1. If CDBG funds are to be used for a homebuyer assistance program, the Grantee must: a. Submit a copy of its Homebuyer Assistance Program Guidelines to the State for review and approval within 90 days of the execution of this agreement; and b. Provide homeownership assistance in all target areas identified in the application. 2. If the Grantee proposed to assist homebuyers to purchase newly constructed units in its CDBG application under the Housing Acquisition activity, such units must meet the following requirements: a. Have been available for sale to the general public; and b. The development of the new subdivision must not be dependent upon the funding of the homebuyer loan. c. CDBG funds may not be used for construction. City of Atascadero 05-DRI-0006 Page 10 of 10 EXHIBIT A G. SPECIAL CONDITIONS - HOUSING REHABILITATION If the work to be performed under this standard agreement involves Housing Rehabilitation, the following special conditions,will apply: 1. The Grantee must submit a copy of its Rehabilitation Program Guidelines to the State for review and approval within 90 days of the execution date of this agreement. Note regarding Affordable Rent: If the Grantee's housing rehabilitation program provides for rehabilitating rental properties, the Grantee must submit to the State, within 90 days of the execution date of this agreement, its provisions for assuring "affordable rent" for the targeted income groups. The Grantee may include this information as part of the Program Guidelines. 2. Rehabilitation programs which included more than one target area within the application must perform housing rehabilitation work in all target areas. 3. All sweat equity will be counted at $10 per hour regardless of the homeowner's qualifications or experience. 4. All gas tax funds used as leverage in support of the housing rehabilitation activity must be restricted to the street(s) on which CDBG-assisted units will be located and in the vicinity of the individual housing rehabilitations. City of Atascadero 05-DRI-0006 Page 1 of 3 EXHIBIT B BUDGET DETAIL AND PAYMENT PROVISIONS Section 1: Grant Budget Specifics of the grant budget shall be agreed upon by the State and the Grantee prior to the drawdown of any funds. Section 2: Contract Budget Amounts For the purposes of performing the Work, the State agrees to provide the amount shown in Section 3 of this Agreement (Std. 213). In no instance shall the State be liable for any costs for the Work in excess of this amount, nor for any unauthorized or ineligible costs. Funds shall be provided in the form of a grant for the following purposes: $1,000,000 - 03D Youth Center (LMC) (11) The following limits apply to the expenditure of funds for general administration. The amount shown above for general administration is the amount requested in the grantee's application, unless that amount exceeded the CDBG general administration cap of 7-1/2% of the grant request. If the amount requested for general administration exceeded 7-1/2%, the Department reduced the general administration request to meet that limitation and re-allocated the excess to program implementation. Costs for the annual audit are a general administration expense and are subject to the 7-1/2% limitation. Section 3: Required Match The required DRI match has been met by the State. No match or leverage funds are required from Grantees. Section 4: Program Income If a Grantee receives repayment of DRI activity funds during the term of the grant those funds must be returned to the state. If an assistance activity generates Program Income (PI) during the grant term then those funds must be used prior to requesting any more activity funds from the state. Any repayments of these PI funds after the contract has expired must be: 1) returned to the state; 2) used in accordance with an state approved DRI reuse plan; or 3) if these DRI funds are being used for the same activity as is currently being paid for with local CDBG funds, then repayments shall be placed into the local CDBG program income accounts. City of Atascadero 05-DRI-0006 Page 2 of 3 EXHIBIT B Section 5: Expenditure of Funds A. General Administration Costs for general administration may not be incurred nor funds expended until execution by the State of this agreement, unless the Grantee has received prior written approval from the State. If such approval is desired before execution of this Agreement by the State, the Grantee shall make the request for approval in writing. B. Program Implementation and Activity Delivery Costs for program implementation and activity delivery may not be incurred nor funds expended until the Grantee has received written approval from the State satisfying the special conditions set forth in Exhibit A, Section 7. If such approval is desired before execution of this Agreement by the State, the Grantee shall make the request for approval in writing. C. Grant Administration The Grantee agrees to administer this agreement in accordance with the provisions of Section 7098 through and including Section 7124 of Title 25 of the California Code of Regulations. Section 6: Method of Payment The Grantee shall submit all forms to the Department of Housing and Community Development, Community Development Block Grant Program, MS 330, P.O. Box 952054, Sacramento, California 94252-2054, or any other address of which the Grantee has been notified in writing. The State shall not authorize payments unless it determines that the grant activity has been performed in compliance with the terms of this agreement and its exhibits. A. Funds Requests for Advances and Reimbursements 1. Funds Requests for All Activities To receive an advance or reimbursement for the grant activity performed, the Grantee shall submit, on forms provided by the State, a duly executed Funds Request form, or other form as supplied by the State. 2. Funds Requests for Lump Sum Draws for Housing Rehabilitation Activities If the Grantee is using a lump sum draw down payment method for a Housing Rehabilitation activity, the funds disbursed to the grantee under a lump sum cash request are subject to the expenditure requirements contained in the Federal regulations at 24 CFR 570.513. Any funds drawn down under a lump sum arrangement must be expended by the ending date of this agreement. City of Atascadero 05-DRI-0006 Page 3of3 EXHIBIT B Section 7: Final Payment Requests A. Final Funds Requests for Advances and Reimbursements 1. For grantees on the advance payment system All requests for advance payments must be submitted 90 days prior to the expiration date of this agreement. 2. For grantees on the reimbursement payment system. All requests for final reimbursement must be submitted within 45 days after the expiration date of this agreement. 3. For all requests for any grant funds that have not been previously requested If the final cash request for funds expended during the contract term has not been requested by the 45th day after this agreement's expiration date, the State will disencumber any funds remaining in the standard agreement. City of Atascadero 05-DRI-0006 Page 1 of 10 EXHIBIT C HCD GENERAL TERMS AND CONDITIONS Section 1: Effective Date, Commencement of Work and Completion Dates This Agreement is effective upon approval by the State which is the date stamped by the Department of Housing and Community Development (HCD) in the lower right hand corner of page one of the Agreement. The Contractor agrees that Work shall not commence, nor will any costs be incurred to be paid with CDBG funds, prior to the effective Date of the Agreement, unless Grantee has received written approval in accordance with Exhibit B, Paragraph 5, Item A and B. This Agreement shall expire on the date set forth in the Standard Agreement, Page 1, Item 2 and Contractor agrees that the work shall be completed by this expiration date. Section 2: Sufficiency of Funds and Termination A. Termination for Cause The State may terminate this Agreement at any time for cause by giving at least 14 days notice in writing to the Contractor. Cause shall consist of violations of any terms and/or special conditions of this agreement, upon the request of HUD, or withdrawal of the State's expenditure authority. Upon termination of this agreement, unless otherwise approved in writing by the State, any unexpended funds received by the Grantee shall be returned to the State within 14 days of the Notice of Termination. B. Congressional Appropriation of Funds It is mutually understood between the parties that this agreement may have been written before ascertaining the availability of congressional appropriation of funds, for the mutual benefit of both parties in order to avoid program and fiscal delays which would occur if the agreement were executed after the determination was made. This agreement is valid and enforceable only if sufficient funds are made available to the State by the United States Government for the federal fiscal year 2005, 2006 and 2007 for multi-year contracts, for the purposes of this program. In addition, this agreement is subject to any additional restrictions, limitations, or conditions enacted by the Congress or State Legislature or any statute enacted by the Congress or the State Legislature which may affect the provisions, terms or funding of this agreement in any manner. If Congress does not appropriate sufficient funds for the program, the State may amend the agreement to reflect any reduction in funds or it may terminate this agreement by giving 14 days written notice to the Grantee. Section 3: Meeting a National Obiective All grant activities performed under this agreement must meet a national objective of the CDBG Program. The national objective for this grant activity is: benefit to low income persons/households. City of Atascadero 05-DRI-0006 Page 2 of 10 EXHIBIT C A. Benefit to Targeted Income Group Households The CDBG funded activities shall benefit low income persons or households, as defined by HUD; also known as the Target Income Group (TIG), as specified in the grant application. Benefit must be provided to TIG households/ persons by the grant expiration date. Households whose incomes are in the Lowest Targeted Income Group may not be excluded from participation in any CDBG-funded activities. B. Elimination of Slums and Blight For CDBG funded activities which the application indicated would be used to meet the national objective of Elimination of Slums and Blight, the Grantee, shall provide documentation that the activity does indeed eliminate a blighted condition on a project site or in a project area. The elimination of the blighted condition must be achieved no later than the termination of the grant. Section 4: Inspections of Grant Activity A. Required Grantee Inspections Grantee shall inspect any grant activity performed hereunder to ensure that the grant activity is being and has been performed in accordance with the applicable Federal, State and/or local requirements, and this agreement. B. State Inspections The State reserves the right to inspect any grant activity performed hereunder to see that the grant activity is being and has been performed in accordance with the applicable Federal, State and/or local requirements, and this agreement. The Grantee agrees to require that all grant activity found by such inspections not to conform to the applicable requirements be corrected, and to withhold payment to the contractor or subcontractor until it is so corrected. Section 5: Insurance The Grantee shall have and maintain in full force and effect during the term of this agreement such forms of insurance, at such levels, as may be determined by the Grantee and the State to be necessary for specific components of the grant activity described in Exhibit A. City of Atascadero 05-DRI-0006 Page 3of10 EXHIBIT C Section 6: Contractors and Subcontractors A. Contractor Eligibility The Grantee shall not enter into any agreement, written or oral, with any contractor without the prior determination of the contractor's eligibility. A contractor or subcontractor is not eligible to receive grant funds if the contractor is not licensed in good standing in California, or is listed on the Federal Consolidated List of Debarred, Suspended, and Ineligible Contractors. B. Contract Requirements The agreement between the Grantee and any contractor shall require the contractor and its subcontractors, if any, to: 1. Compliance with State and Federal Regulations Perform the grant activity in accordance with Federal, State and local housing and building codes as are applicable. Comply with the applicable State and Federal requirements described in Exhibits D and E of this agreement which pertain to, among other things, labor standards, non-discrimination, Americans with Disabilities Act, Equal Employment Opportunity, and Drug-Free Workplace. 2. Maintaining Proper Insurance Maintain at least the minimum State-required Worker's Compensation Insurance for those employees who will perform the grant activity or any part of it. Maintain, if so required by law, unemployment insurance, disability insurance and liability insurance in an amount to be determined by the State which is reasonable to compensate any person, firm, or corporation who may be injured or damaged by the contractor or any subcontractor in performing the grant activity or any part of it. 3. Record Keeping and Accounting Requirements Retain all books, records, accounts, documentation, and all other materials relevant to the agreement for a period of four (4) years from date of termination of -the agreement, or four (4) years from the conclusion or resolution of any and all audits or litigation relevant to the agreement or this standard agreement and any amendments, whichever is later. 4. Compliance Monitoring by State or Federal Agencies Permit the State, Federal government, the Bureau of State Audits, the Department of Housing and Community Development and/or their representatives, upon reasonable notice, unrestricted access to any or all books, records, accounts, documentation, and all other materials relevant to the agreement for the purpose of monitoring, auditing, or otherwise examining said materials. City of Atascadero 05-DRI-0006 Page 4 of 10 EXHIBIT C Section 7: Periodic Reporting Requirements During the term of the agreement, the Grantee must submit the following reports by the deadlines noted or as otherwise required at the discretion of the State. The Grantee's performance under this agreement will be based in part on whether it has submitted the reports on a timely basis. A. Financial and Beneficiary Reporting 1. Financial and Accomplishment Reporting (semi annual) During the term of the grant, starting with the full execution of this agreement, a Financial and Accomplishment Report (FAR) must be submitted 45 days after June 30th and 30 days after December 31St of each year. 2. Funds Request Form (Quarterly) Funds Request Form (quarterly) shall be submitted. Submit on or before January; 31St, April 30th, August 15th, and October 315L of each year during the term of this Agreement. 3. Grantee Performance Report (Once at Close out) Once the activity has been completed the grantee must submit a Grantee Performance Report (GPR). B. Construction Compliance Reporting 1. Wage Compliance Report (semi annual) If an activity under this contract required payment of prevailing wages because of a public construction contract award, then the grantee must submit wage compliance reports. The reports are due 45 days after June 30th, and 30 days after December 31 st of each year during the term of the contract. 2. Section 3 Report ( annual) If an activity under this contract triggers Section 3 compliance, then a Section 3 Report must be submitted. Submit 45 days after June 30th each year during the term of the contract. C. Program Income Reporting (annual and quarterly) Grantees with activities that generate loans or assets that may generate repayments or income, must either send those funds back to the State, or document to the State that those funds were used for the same activity as other CDBG awards, or submit a DRI program income reuse plan for approval. Upon approval of a DRI reuse plan, the grantees must submit program income reports. City of Atascadero 05-DRI-0006 Page 5 of 10 EXHIBIT C 1. Quarterly Reports Quarterly program income reports must be submitted on or before January; 31St April 30th, August 15`h, and October 31s' of each year. 2. Annual Reports Annual program income reports will be due 45 days after June 30th each year. D. Other Reports as Required Grantee must submit any other reports that may be required as a Special Condition of this contract. Section 8: Monitoring Requirements CDBG may perform a program and/or fiscal monitoring of the grant. The Grantee will be required to resolve any monitoring findings to CDBG's satisfaction by the deadlines set by close out of the grant. Section 9: Grant Close Out Requirements A. Required Reports By 45 days after the termination date of this agreement, the Grantee must submit the following: 1. Final FAR A final Financial and Accomplishment Report (FAR) must be submitted for the last report period of the grant. 2. Final Funds Request A final funds request must be submitted. The funds request will ask for any remaining balance of funds that were expended for the funded activities. B. Additional Reports and Documents By 90 days after the termination date of this agreement, the Grantee must submit the following: 1. Grantee Performance Report (GPM A GPR must be submitted showing all the beneficiary information and demographic breakdowns for each completed activity. City of Atascadero 05-DRI-0006 Page 6 of 10 EXHIBIT C 2. Close out Certification A completed Close out certification form must be submitted on the Grantee's letterhead, signed by the authorized signatory. 3. Unexpended Funds A check made payable to the Department must be sent in for return of any unexpended grant funds on hand as of the date of contract expiration. All grant funds must be spent prior to the expiration date of the grant. 4. Close out FAR A close out Financial and Accomplishment Report must be submitted showing all funds have been requested, received and expended. The period of this report is from the Start Date of the agreement to the End Date of the agreement. 5. Other Special Conditions All evidence, satisfactory to the State, of compliance with any other Special Conditions of this agreement must be submitted. 6. Annual Audit report The Grantee must submit a final audit report to the State Controller's Office, not directly to CDBG, pursuant to the requirements of Federal Office of Management and Budget (OMB) Circular A-133. Section 10: Obligations of Grantee with Respect to Certain Third Party Relationships The Grantee shall remain fully obligated under the provisions of this agreement notwithstanding its designation of any third party or parties for the undertaking of all or any part of the program with respect to which assistance is being provided under this agreement to the Grantee. The Grantee shall comply with all lawful requirements of the State necessary to ensure that the program with respect to which assistance is being provided under this agreement to the Grantee is carried out in accordance with the State's Assurance and Certifications, including those with respect to the assumption of environmental responsibilities of the State under Section 104(h) of the Housing and Community Development Act of 1974. Section 11: Posting CDBG Acknowledgement Signs If the Grantee places signs in public acknowledging the project, then the State CDBG program must be included on the sign. The sign must indicate that the State is providing financing and the State acknowledgement shall be done in a typeface and size commensurate with the State's funding portion of the project. City of Atascadero 05-DRI-0006 Page 7 of 10 EXHIBIT C Section 12: Audit/Retention and Inspection of Records A. Missing Audits The Grantee must have intact, auditable fiscal records at all times. If the Grantee is found to have missing audit reports from the State Controller's Office ("SCO") during the term of this agreement, the Grantee will be required to submit a plan to the State, with task deadlines, for submitting the audit to the SCO. If the deadlines are not met, the Grantee will be subject to termination of this agreement and disencumbrance of the funds awarded. The Grantee's audit completion plan is subject to prior review and approval by the State. B. Record Inspections Grantee agrees that the Department of Housing and Community Development (HCD) or its delegatee will have the right to review, obtain, and copy all records pertaining to performance of the contract. Grantee agrees to provide HCD or its delegatee with any relevant information requested and shall permit HCD or its delegatee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with PCC § 10115 et seq., GC § 8546.7 and 2 CCR §1896.60 et seq. Grantee further agrees to maintain such records for a period of four (4) years after final payment under the contract. C. Investigations and Monitoring Grantee shall comply with the caveats and be aware of the penalties for violations of fraud and for obstruction of investigation as set forth in PCC § 10115.10. An expenditure which is not authorized by this agreement or which cannot be adequately documented shall be disallowed and must be reimbursed to the State or its designee by the Grantee. Expenditures for grant activities not described in Exhibit A shall be deemed authorized if the performance of such grant activity is approved in writing by the State prior to the commencement of such grant activity. Absent, fraud or mistake on the part of the State, the determination by the State of the allowability of any expenditures shall be final. D. Annual Audits Pursuant to OMB Circular A-133, the Grantee shall perform an annual audit at the close of each fiscal year in which this agreement is in effect. Audit costs for this agreement are a general administration expense and are subject to the general administration expenditure limits associated with this agreement. The costs of the CDBG-related portion of the audit may be charged to the program in accordance with Public Law 98-502, OMB Circular A-133 and Section 7122 of Title 25 California Code of Regulations. Notwithstanding the foregoing, the Department will not reimburse the Grantee for any audit cost incurred after the expiration date of this agreement. City of Atascadero 05-DRI-0006 Page 8 of 10 EXHIBIT C The audit shall be performed by a qualified State, local or independent auditor. The contract for audit shall include a clause which permits access by the State to the independent auditor's working papers. If there are audit findings, the Grantee must submit a detailed response to the State for each audit finding. The State will review the response and, if it agrees with the response, the audit process ends and the State will notify the Grantee in writing. If the State is not in agreement, the Grantee will be contacted in writing and told what corrective actions must be taken. This action could include the repayment of disallowed costs or other remediation. The State shall not approve any expenditures for the audit prior to receiving an acceptable audit report. If so directed by the State upon termination of this agreement, the Grantee shall cause all records, accounts, documentation and all other materials relevant to the grant activity to be delivered to the State as depository. Section 13: Conflict of Interest of Members, Officers, or Employees of Contractors, Members of Local Governing Body, or other Public Officials No member, officer, or employee of the Grantee, or its designees or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercise any functions or responsibilities with respect to the program during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for grant activities to be performed in connection with the program assisted under this agreement. The Grantee shall incorporate, or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this section. Section 14: Waivers No waiver of any breach of this agreement shall be held to be a waiver of any prior or subsequent breach. The failure of the State to enforce at any time the provisions of this agreement or to require at any time performance by the Grantee of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this agreement or the right of the State to enforce these provisions. Section 15: Litigation A. Legal Findings about Agreement If any provision of this agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of the Department, shall not affect any other provisions of this agreement and the remainder of this agreement shall remain in full force and effect. Therefore, the provisions of this agreement are, and shall be, deemed severable. City of Atascadero 05-DRI-0006 Page 9 of 10 EXHIBIT C B. Notification of Legal Action The Grantee shall notify the Department immediately of any claim or action undertaken by or against it which affects or may affect this agreement or the Department, and shall take such action with respect to the claim or action as is consistent with the terms of this agreement and the interests of the State. Section 16: Lead-Based Paint Hazards Activities performed with assistance provided under this agreement are subject to lead-based paint hazard regulations contained in Title 8 and Title 17 of the California Code of Regulations. Any grants or loans made by the Grantee with assistance provided under this agreement shall be made subject to the provisions for the elimination or mitigation of lead-based paint hazards under these Regulations. The Grantee shall be responsible for the notifications, inspections, and clearance certifications required under these Regulations. Section 17: Prevailing Wages A. Use of Funds for Construction Work Where funds provided through this Agreement are used for construction work, or in support of construction work, Contractor shall ensure that the requirements of Chapter 1 (commencing with section 1720) of Part 7 of the Labor Code (pertaining to the payment of prevailing wages and administered by the California Department of Industrial Relations) are met. B. Covered Construction Activities For the purposes of this requirement "construction work" includes, but is not limited to rehabilitation, alteration, demolition, installation or repair done under contract and paid for, in whole or in part, through this Agreement. All construction work shall be done through the use of a written contract with a properly licensed building contractor incorporating these requirements (the "construction contract"). Where the construction contract will be between the Contractor and a licensed building contractor, Contractor shall serve as the "awarding body" as that term is defined in the Labor Code. Where Contractor will provide funds to a third party that will enter into the construction contract with a licensed building contractor, the third party shall serve as the "awarding body." Prior to any disbursement of funds, including but not limited to release of any final retention payment, the Department may require a certification from the awarding body that prevailing wages have been or will be paid. City of Atascadero 05-DRI-0006 Page 10 of 10 EXHIBIT C Section 18: Compliance with State and Federal Laws and Regulations The Grantee agrees to comply with all State laws and regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, and all other matters applicable to the Grantee, its sub-grantee's, contractors or subcontractors, and the grant activity, and any other State provisions as set forth on Exhibit D. The Grantee agrees to comply with all Federal laws and regulations applicable to the CDBG Program and to the grant activity, and with any other Federal provisions as set forth on Exhibit E. City of Atascadero 05-DRI-0006 Page 1 of 6 EXHIBIT D GENERAL TERMS and CONDITIONS Section 1: Approval This Agreement is of no force and effect until signed by both parties. Section 2: Amendment No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties. No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties. Section 3: Assignment This Agreement is not assignable by the Contractor, either in whole or in part, without the consent of the State in the form of a formal written amendment. Section 4: Indemnification Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers and any other person, firm or corporation furnishing or supplying work services, materials or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by the Contractor in the performance of this Agreement. Section 5: Disputes Contractor shall continue with the responsibilities under this Agreement during any dispute. Section 6: Termination for Cause The State may terminate this Agreement and be relieved of any payments should the Contractor fail to perform the requirements of this Agreement at the time and in the manner herein provided. [See Exhibit C for additional breach, notice and provisions.] Section 7: Independent Contractor ractor, in the performance of is Contractor, and the agents indepedemployees of ndent capacity and not as has officers ore employees or agents of Agreement, shall act m a p the State. City of Atascadero 05-DRI-0006 Page 2 of 6 EXHIBIT D Section 8: Non-Discrimination Clause A. During the performance of this Agreement, Contractor and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and denial of family care leave. Contractor and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement. B. Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Agreement. Section 9: Timeliness Time is of the essence in this Agreement. Section 10: Governing Law This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California. Section 11: Child Support Compliance Act if this Agreement is in excess of $100,000, by executing this Agreement, Contractor acknowledges and agrees to the following: A. Contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and B. Contractor, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. City of Atascadero 05-DRI-0006 Page 3 of 6 EXHIBIT D Section 12: Severability In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby. Section 13: Drug-Free Workplace Requirements Contractor shall comply with the requirements of the Drug-Free Workplace Act of 1990 (Government Code Section 8350 et seq.) and shall provide a drug-free workplace by taking the following actions: A. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations. B. Establish a Drug-Free Awareness Program to inform employees about: (1) the dangers of drug abuse in the workplace; (2) the Contractor's policy of maintaining a drug-free workplace; (3) any available counseling, rehabilitation and employee assistance programs; and (4) penalties that may be imposed upon employees for drug abuse violations. C. Every employee who works on the proposed contract will: (1) receive a copy of the Contractor's drug-free workplace policy statement; and (2) agree to abide by the terms of the Contractor's statement as a condition of employment under this agreement. Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Contractor may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: (1) the Contractor has made false certification, or violated the certification by failing to carry out the requirements as noted above. (Government Code section 8350 et seq.) DOING BUSINESS WITH THE STATE OF CALIFORNIA The following laws apply to persons or entities doing business with the State of California: Section 14: Conflict of Interest Contractor needs to be aware of the following provisions regarding current or former state employees. If Contractor has any questions on the status of any person rendering services or involved with the Agreement, the awarding agency must be contacted immediately for clarification. City of Atascadero 05-DRI-0006 Page 4 of 6 EXHIBIT D A. Current State Employees (Public Contracts Code section 10410)- 1. No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment. 2. No officer or employee shall contract on his or her own behalf as an independent Contractor with any state agency to provide goods or services. B. Former State Employees (Public Contracts Code section 10411): 1. For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency. 2. For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service. C. If Contractor violates any provisions of above paragraphs, such action by Contractor shall render this Agreement void. (Public Contracts Code section 10420). D. Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (Public Contracts Code section 10430 (e)) Section 15: Labor CodeMorkers' Compensation Contractor needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Contractor affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code section 3700) Section 16: Americans With Disabilities Act Contractor assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.) City of Atascadero 05-DRI-0006 Page 5 of 6 EXHIBIT D Section 17: Contractor Name Change An amendment is required to change the Contractor's name as listed on this Agreement. Upon receipt of legal documentation of the name change, the State will process the amendment. Section 18: Corporate Qualifications to Do Business in California A. If Contractor is a corporation, the State may verify that the Contractor is currently qualified to do business in California in order to ensure that all obligations due to the State are fulfilled. B. "Doing business" is defined in R&TC Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. Although there are some statutory exceptions to taxation, rarely will a corporate contractor performing within the State not be subject to the franchise tax. C. Both domestic and foreign corporations (those incorporated outside California) must be in good standing in order to be qualified to do business in California. If Contractor is a corporation, the State will determine whether Contractor is in good standing by contacting the Office of the Secretary of State. Section 19: Resolution A county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement. Section 20: Air or Water Pollution Violation Under the State laws, the Contractor shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of the provisions of federal law relating to air or water pollution. Section 21: Payee Data Record Form Std. 204 This form must be completed by all contractors that are not another state agency or other government entity. City of Atascadero 05-DRI-0006 Page 6 of 6 EXHIBIT D Section 22: National Labor Relations Board Certification If Contractor is receiving federal funds under this Agreement, Contractor certifies that no more than one (1) final unappealable finding of contempt of court by a Federal court has been issued against Contractor within the immediately preceding two-year period because of Contractor's failure to comply with an order of a Federal court, which orders Contractor to comply with an order of the National Labor Relations Board. (Not applicable to public entities.) Section 23: Domestic Partners For contracts executed or amended after July 1, 2004, the contractor may elect to offer domestic partner benefits to the contractor's employees in accordance with Public Contract Code section 10295.3. However, the contractor cannot require an employee to cover the costs of providing any benefits which have otherwise been provided to all employees regardless of marital or domestic partner status. City of Atascadero 05-DRI-0006 Page 1 of 6 EXHIBIT E FEDERAL TERMS AND CONDITIONS Section 1: Anti-Lobbying Certification The Grantee shall require that the language of this certification be included in all contracts or subcontracts entered into in connection with this grant activity and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and no more than $100,000 for such failure. A. Certification Language for Contract "The undersigned certifies, to the best of his or her knowledge or belief, that no Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; if any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions." Section 2: Prohibition Against Payments of Bonus or Commission The assistance provided under this agreement shall not be used in the payment of any bonus or commission for the purpose of: A. State Approval of Application No funds shall be used for obtaining the State's approval of the application for such assistance. B. State Approval of Additional Assistance No grant funds shall be used for obtaining State's approval of applications for additional assistance. City of Atascadero 05-DRI-0006 Page 2 of 6 EXHIBIT E C. Any Other Approvals No grant funds can pay for any other approval or concurrence of the State required under this agreement, Title I of the Housing and Community Development Act of 1974, or the State regulations with respect thereto; provided, however, that reasonable fees for bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as program costs. Section 3: Citizen Participation The Grantee is subject to the requirements concerning citizen participation contained in Federal regulations at 24 CFR 570.486, Local Government Requirements. Section 4: Clean Air and Water Acts This agreement is subject to the requirements of the Clean Air Act, as amended, 42 USC 1857 et seq., the Federal Water Pollution Control Act, as amended, 33 USC 1251 et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR Part 15, as amended from time to time. Section 5: Conflict of 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 agreement or to any benefit to arise from the same. Section 6: Environmental Requirements The Grantee shall comply with the provisions of the National Environmental Policy Act (NEPA) by following the procedures contained in 24 CFR Part 58. Section 7: Equal Opportunity A. The Civil Rights, Housing and Community Development, and Age Discrimination Acts Assurances During the performance of this agreement, the Grantee assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, national origin, sex, age, handicap, religion, familial status, or religious preference, under any grant activity funded by this agreement, as required by Title VI of the Civil Rights Act of 1964, Title I of the Housing and Community Development Act of 1974, as amended, the Age Discrimination Act of 1975, the Fair Housing Amendment Act of 1988, and all implementing regulations. City of Atascadero 05-DRI-0006 Page 3 of 6 EXHIBIT E B. Rehabilitation Act of 1973 and the "504 Coordinator" The Grantee further agrees to implement the Rehabilitation Act of 1973, as amended, and its regulations, 24 CFR Part 8, including, but not limited to, for Grantees with 15 or more permanent full or part time employees, the local designation of a specific person charged with local enforcement of this Act, as the "504 Coordinator." C. The Training, Employment, and Contracting Opportunities for Business and Lower Income Persons Assurance of Compliance 1. Section 3 Compliance The grant activity to be performed under this agreement is on a project assisted under a program providing direct Federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Recipients, contractors and subcontractors shall direct their efforts to provide, to the greatest extent feasible, training and employment opportunities generated from the expenditure of section 3 covered assistance to section 3 residents in the order of priority provided in 24 CFR 135.34(a)(2). The parties to this agreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this agreement. The parties to this agreement certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. 2. Section 3 Contract Language The Grantee will include these Section 3 clauses in every contract and subcontract for work in connection with the grant activity and will, at the direction of the State, take appropriate action pursuant to the contract or subcontract upon a finding that the Grantee or any contractor or subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR Part 135 and, will not let any contract unless the Grantee or contractor or subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. 3. Non Compliance Non compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of the Department issued thereunder prior to the execution of this agreement shall be a condition of the Federal financial assistance provided to the grant activity, binding upon the Grantee, its successors, and assigns. Failure to fulfill these requirements shall subject the Grantee, its contractors and subcontractors, its successors, and assigns to those sanctions specified by the agreement through which federal assistance is provided, and to such sanctions as are specified by 24 CFR Part 135. City of Atascadero ` 05-DRI-0006 Page 4 of 6 EXHIBIT E D. Assurance of Compliance with Requirements Placed on Construction Contracts of$10,000 or more The Grantee hereby agrees to place in every contract and subcontract for construction exceeding $10,000 the Notice of Requirement for Affirmative Action to ensure Equal Employment Opportunity (Executive Order 11246), the Standard Equal Employment Opportunity, and the Construction Contract Specifications. The Grantee furthermore agrees to insert the appropriate Goals and Timetables issued by the U.S. Department of Labor in such contracts and subcontracts. Section 8: Flood Disaster Protection This agreement is subject to the requirements of the Flood Disaster Protection Act of 1973 (P.L. 93-234). No portion of the assistance provided under this agreement is approved for acquisition or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by the Secretary as having special flood hazards which is located in a community not then in compliance with the requirements for participation in the national flood insurance program pursuant to Section 201(d) of said Act. The use of any assistance provided under this agreement for such acquisition or construction in such identified areas in communities then participating in the national flood insurance program shall be subject to the mandatory purchase of flood insurance requirements of Section 102(a) of said Act. Any contract or agreement for the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this agreement shall contain certain provisions. These provisions will apply if such land is located in an area identified by the Secretary as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq. These provisions shall obligate the transferee and its successors or assigns to obtain and maintain, during the ownership of such land, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under Section 102(s) of the Flood Disaster Protection Act of 1973. Such provisions shall be required notwithstanding the fact that the construction on such land is not itself funded with assistance provided under this agreement. City of Atascadero 05-DRI-0006 Page 5 of 6 EXHIBIT E Section 9: Labor Standards-Federal Labor Standards Provisions and Related Acts The Grantee shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of: A. Davis-Bacon Act (40 USC 276a - 276a-5) This requires that workers receive no less than the prevailing wages being paid for similar work in their locality. Prevailing wages are computed by the Department of Labor and are issued in the form of federal wage decisions for each classification of work. The law applies to most construction, alteration, or repair contracts over $2,000. B. Copeland "Anti-Kickback" Act (47 USC 276(c) This requires that workers be paid at least once a week without any deductions or rebates except permissible deductions. C. Contract Work Hours and Safety Standards Act -CWHSSA (40 USC 327 - 333) This requires that workers receive "overtime" compensation at a rate of 1-1/2 times their regular hourly wage after they have worked 40 hours in one week. D. Title 29, Code of Federal Regulations, Subtitle A, Parts I, 3 and 5 These are the regulations and procedures issued by the Secretary of Labor for the administration and enforcement of the Davis-Bacon Act, as amended. Section 10: Procurement The Grantee shall comply with the procurement provisions in 24 CFR Part 85.36, Administrative Requirements for Grants and Cooperative Agreements to State, Local and Federally Recognized Indian Tribal Governments. Section 11: Program Income "Program Income" means gross income earned by the Grantee from grant-funded activities and is subject to CDBG regulatory requirements pursuant to 24 CFR 570.489 (e), Program Administrative Requirements, Program Income. These regulations include the requirement that the Grantee record receipt and expenditure of program income as part of the financial transactions of the grant activity. Prior to closing out this agreement, the Department shall review the actual national objective and/or public benefit achievements of the Grantee. In the event that the national objective and/or public benefit requirements are not met, the Department may, in its sole discretion, impose any or all of the following remedies: recapture of part or all of the program income; reimbursement of part or all of the grant amount; and/or exclusion of the Grantee from further CDBG funding for a period of time to be determined by the State. City of Atascadero 05-DRI-0006 Page 6 of 6 EXHIBIT E Section 12: Relocation, Displacement, and Acquisition The provisions of the Uniform Relocation Act, as amended, 49 CFR Part 24, and Section 104(d) of the Housing and Community Development Act of 1974 shall be followed where any acquisition of real property is carried out by the Grantee and assisted in whole or in part by funds allocated by CDBG. In addition, where the rehabilitation of residential rental units results in increased rents for members of the targeted income group, the Grantee shall also comply with the requirements of the above-cited laws. Relocation expenses which may, by law, be paid are eligible expenses for use of CDBG funds. Section 13: Compliance with Federal Flood Reform Act of 1994 The Grantee is subject to the requirements of Section 582 of the National Flood Insurance Reform Act of 1994, as amended, (42 U.S.C. 5154(a)) which prohibits flood disaster assistance in certain circumstances. In general, it provides that no, "Federal disaster relief assistance" (applicable to HUD or other Federal assistance for disaster relief in "flood disaster area" as defined at section 582(d)(2) to include an area receiving a Presidential declaration of a major disaster or emergency as a result of flood conditions), made available in a flood disaster are may be agrees to comply with all State laws and regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, and all other matters applicable to the Grantee, its sub-grantee's, contractors or subcontractors, and the grant activity, and any other State provisions as set forth on Exhibit D. Section 14: Uniform Administrative Requirements The grantee shall comply with applicable uniform administrative requirements as described in 24 CFR §570.502, including cited sections of 24 CFR part 85.