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HomeMy WebLinkAbout2021-02-02 - Town Toyota Center - Interlocal Agreements GeneralCOMMUNITY DEVELOPMENT BLOCK GRANT-CORONAVIRUS (CDBG-CV) FOOD SECURITY PROGRAM REGIONAL COLLABORATION AGREEMENT AMONG City of Wenatchee AND City of East Wenatchee AND Chelan Douglas Health District AND Town Toyota Center FOR THE EMERGENCY FOOD ASS ISTANCE PROGRAM (EFAP) THIS AGREEMENT, entered this 3rd day of February, 2021 by and among the City of Wenatchee (herein called “the Lead”), City of East Wenatchee (herein called “the City”), Chelan Douglas Health District (herein called “CDHD”) (sometimes collectively referred to as “the Funders”), and Town Toyota Center (herein called “Subrecipient”); sometimes collectively referred to as “the Parties”. WHEREAS, the Lead and the City have applied for and received funds from the United States Government under Title I of the Housing and Community Development Act of 1974, as amended (HCD Act), Public Law 93-383; and WHEREAS, the Funders are recipients of special allocation funding in order to prevent, prepare for and respond to the Coronavirus (COVID-19) under the authorization of the Coronavirus Aid, Relieve and Economic Security Act (CARES Act), Public Law 116 -136; and WHEREAS, in this Agreement, the Funders are providing reimbursement to the Subrecipient for coordinating the provision and delivery of products for the EFAP; and WHEREAS, the Parties wish to collaborate for the services of the Subrecipient to effectively and efficiently provide food boxes to residents in Chelan and Douglas counties eligible for the EFAP ; and WHEREAS, a separate Agreement is in place between the Funders identifying terms for the services of Serve Wenatchee Valley (SWV) to manage outreach, referrals and eligibility for EFAP clients; NOW, THEREFORE, it is agreed between the Parties hereto that; I. SCOPE OF SERVICE A. Ac tivities Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 2 - The Subrecipient will be responsible for completing the following activities in compliance with all applicable Federal, State and local rules and regulations governing these funds, and in a manner satisfactory to the Funders and eligible under the Community Development Block Grant – Coronavirus (CDBG-CV) program, Program Delivery The focus of this Agreement is to utilize available resources of the Subrecipient to address the Urgent Need related to food security for households located in Chelan and Douglas counties affected by a positive COVID-19 test and needing to quarantine. As the program supports all households in Chelan and Douglas counties, the proportion of funding provided to the Subrecipient by the Funders will be a direct correlation to the quantity of boxes delivered to households in each respective service area. On behalf of the Parties, tasks to be performed by the Subrecipient include: 1. Maintain adequate food inventory to fill all requests within 48 hours 2. Deliver boxes to each household within 48-hours of receipt of request from SWV 3. Document assistance information including: a. Cost of direct program operations b. Content included in boxes c. Number of total boxes delivered d. Confirmation of boxes delivered to residents in the respective jurisdictions i. City of Wenatchee ii. City of East Wenatchee iii. Chelan County iv. Douglas County General Administration Establish and maintain administrative, financial, reporting, and record keeping systems consistent with the requirements of the federal Community Development Block Grant program. These activities generally consist of the following elements: 1. Establish adequate financial and record keeping systems for the project. 2. Comply with applicable civil rights requirements. 3. Maintain written procurement procedures . 4. Submit payment requests and supporting documentation to the appropriate funding entity. 5. Maintain service/delivery records. 6. Resolve all monitoring issues , if identified. 7. Submit CDBG Performance Reports, when requested. B. National Objectives All activities funded with CDBG funds must meet one of the CDBG program’s National Objectives: benefit low - and moderate-income persons; aid in the prevention or elimination of slums or blight; or meet community development needs having a particular urgency, as defined in 24 CFR 570.208. The Subrecipient certifies that the activity(ies) carried out under this Agreement will meet the following National Objective: meet an Urgent Need. C. Levels of Accomplishment – Goals and Performance Measures Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 3 - The Subrecipient agr ees to maintain adequate resources for coordinating 425 food box deliveries. Activity Units per Month Total Units/Year Coordinate Food Box Program N/A 425 The unit of measurement is the number of boxes available for distribution to eligible households. D. Staffing The Subreceipient shall commit to the following staffing for the CDBG 2020 Program Year: • Town Toyota Center 8:00 AM – 5:00 PM ~ 7 Days/week • Available staff to receive requests and delivery information daily from SWV provided by 3:00 pm. Any procurement of professional service contracts shall meet the requirements of federal, state, and local laws, and this contract. E. Performance Monitoring The Funders will monitor the performance of the Subrecipient against goals and perf ormance standards as stated above. Substandard performance determined by the Funders , will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified, contract suspension or termination procedures will be initiated. II. TIME OF PERFORMANCE Services of the Subrecipient shall start on the 3rd day of February, 2021 and end on the 30th day of April, 2021. The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Subrecipient remains in control of CDBG funds or other CDBG assets, including program income. III. BUDGET Operating the EFAP is a $26,680.00/month expense for the Subrecipeint. In order to maintain adequate inventory, staffing and equipment to respond to food security needs in a timely manner, the Funders are committed to proportionally supporting this cost. Included on the invoices provided by the Subrecipient shall be the following budget line items: Line Item Amount: Staffing ~ personnel providing direct program support N/A Inventory ~ physical supplies for boxes N/A Operations ~ direct costs of facility or equipment N/A MONTHLY TOTAL $26,680.00/month TOTAL AGREEMENT $79,980.00 There are no indirect costs expected to be included in billing. If applicable, any indirect costs charged must be consistent with the conditions of Paragraph VIII (C)(2) of this Agreement. In addition, th e Funders may require a more detailed budget breakdown Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 4 - than the one contained herein, and the Subrecipient shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the Funders . Any amendments to the budget must be approved in writing by the Parties . IV. PAYMENT It is expressly agreed and understood that the total monthly amount to be paid to the Subrecipient under this Agreement shall not exceed $26,680.00 per month for an Agreement total of $79,980.00. The Subrecipient will provide a monthly report to the Funders identifying the proportion of boxes that were delivered to their respective service areas. The percentage of requests each entity had within their service area of the total delivered boxes w ill equal the portion they are responsible for covering of the $26,680.00 monthly direct operating expense; cumulative total for each month is not to exceed a total $26,680.00 . Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in Paragraph III herein and in accordance with performance. If applicable, expenses for general administration shall also be paid against the line item budgets specified in Paragraph III and in accordance with performance. Payments may be contingent upon certification of the Subrecipient’s financial management system in accordance with the standards specified in 24 CFR 84.21. V. NOTICES Notices required by this Agreement shall be in writing and delivered via mail (postage prep aid), commercial courier, or personal delivery or sent by facsimile or other electronic means. Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending. All notices and other written communications under this Agreemen t shall be addressed to the individuals in the capacities indicated below, unless otherwise modified by subsequent written notice. Communication and details concerning this contract shall be directed to the following contract representatives: The City of Wenatchee The City of East Wenatchee Brooklyn Holton Lori Barnett, Community Development Director P.O. Box 519 271 – 9th Street NE Wenatchee, WA 98807 East Wenatchee, WA 98802 (509) 888-3258 509-884-5396 Email: bholton@wenatcheewa.gov Email: lbarnett@eastwenatcheewa.gov The Town Toyota Center Serve Wenatchee Valley Mark Miller, General Manager Thom Nees, Executive Director 1300 Walla Wall Street 12 Orondo Avenue Wenatchee, WA 98801 Wenatchee, WA 98801 (509) 888-7330 509-663-4673 Email: mmiller@towntoyotacenter.com Email: thom@servewenatchee.org The Chelan Douglas Health District Emelia Gutzwiler, Ehs li 200 Valley Mall Parkway Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 5 - East Wenatchee, WA 98802 (509) 886-6400 Imt.lofr@cdhd.wa.gov VI. SPECIAL CONDITIONS None VII. GENERAL CONDITIONS A. General Compliance The Subrecipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the U.S. Housing and Urban Development regulations concerning Community Development Block Grants (CDBG)) including subpa rt K of these regulations, except that (1) the Subrecipient does not assume the Funders’ environmental responsibilities described in 24 CFR 570.604 and (2) the Subrecipient does not assume the Funders’ responsibility for initiating the review process under the provisions of 24 CFR Part 52. The Subrecipient also agrees to comply with all other applicable Federal, state and local laws, regulations, and policies governing the funds provided under this contract. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. B. “Independent Contractor” Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Subrecipient shall at all times remain an “independent contractor” with respect to the services to be performed under this Agreement. The Funders shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers’ Compensation Insurance, as the Subrecipient is an independent contractor. C. Hold Harmless The Subrecipient shall hold harmless, defend and indemnify the Funders from any and all claims, actions, suits, charges and judgments whatsoever that arise out of the Subrecipient’s performance or nonperformance of the services or subject matter called for in this Agreement. D. Workers’ Compensation The Subrecipient shall provide Workers’ Compens ation Insurance coverage for all of its employees involved in the performance of this Agreement. E. Insurance & Bonding The Subrecipient shall carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue phys ical damage, and as a minimum shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from the Funders. The Subrecipient shall comply with the bonding and insurance requirements of 24 CFR 84.31 and 84.48, Bonding and Insurance. Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 6 - F. Funder Recognition The Subrecipient shall insure recognition of the role of the Funders in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition, the Subrecipient will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. G. Amendments The Funders or Subrecipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by each governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Subrecipient from obligations under this Agreement. The Funders may, in their discretion, amend this Agreement to conform with Federal, state or local governmental guidelines, policies and available fundin g amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by all Parties . H. Suspension or Termination In accordance with 24 CFR 85.43, the Funders may suspend or terminate this Agreement if t he Subrecipient materially fails to comply with any terms of this Agreement, which include (but are not limited to) the following: 1. Failure to comply with any of the rules, regulations or provisions referred to herein, or such statutes, regulations, executive orders, and HUD guidelines, policies or directives as may become applicable at any time; 2. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper manner its obligations under this Agreement; 3. Ineffective or improper use of funds provided under this Agreement; or 4. Submission by the Subrecipient to the Funders , reports that are incorrect or in complete in any material respect. In accordance with 24 CFR 85.44, this Agreement may also be terminated for convenience by any Party, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if in the case of a partial termination, the Funders will determine if any respective remaining portion of their funding will not accomplish the purpose for which the award was made, the Funders may terminate their respective award in its entirety. VIII. ADMINISTRATIVE REQUIREMENTS A. Financial Management Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 7 - 1. Accounting Standards The Subrecipient agrees to comply with 24 CFR 84.21−28 and agrees to adhere to the accounting principles and procedures r equired therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The Subrecipient shall administer its program in conformance with OMB Circulars A- 122, “Cost Principles for Non-Prof it Organizations,” or A-21, “Cost Principles for Educational Institutions,” as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record Keeping 1. Records to be Maintained The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: a. Records providing a full description of each activity undertaken; b. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; c. Records required to determine the eligibility of activities; d. Records required to document th e acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; e. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; f. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21−28; and g. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. 2. Retention The Subrecipient shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of four (4) years. The retention period begins on the date of the submission of the annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final tim e. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the four -year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the four - year period, whichever occurs later. 3. Client Data Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 8 - The Subrecipient shall maintain client data demonstrating services provided were supported by confirmed eligibility as provided by SWV. Such data shall include, but not be limited to, client name, address, income level or other basis SWV used to determine eligibility, and description of service provided. Such information shall be made a vailable to Monitors or their designees for review upon request. 4. Disclosure The Subrecipient understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of CDBG program responsibilities with respect to services provided under this contract, is prohibited by the Public Records Act as set forth in Chapter 42.56 RCW unless written consent is obtained from such person receiving service and, in the case of a minor, that of a res ponsible parent/guardian. 5. Close-outs The Subrecipient’s obligation shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of p rogram assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the Subrecipient has control over CDBG funds, including program income. 6. Audits & Inspections All Subrecipient’s records with respect to any matters covered by this Agreement shall be made available to the Funders , grantor agency, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. The Subrecipient hereby agrees to have an annual agency audit conducted in accordance with current policy concerning audits and OMB Circular A-133. C. Reporting and Payment Procedures 1. Program Income The Subrecipient shall report annually all program income (as defined at 24 CFR 570.500(a)) generated by activities carried out with CDBG funds made available under this Agreement. All program income shall be returned at the end of the contract perio d. Any interest earned on cash advances from the U.S. Treasury and from funds held in a revolving fund account is not program income and shall be remitted promptly . 2. Indirect Costs Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 9 - Indirect costs are not an eligible expense. 3. Payment Procedures The Subrecipient will receive payment by the appropriate Funders under this Agreement based upon information submitted by the Subrecipient and consistent with the approved budget proportion percentages and policy concerning payments. Payments will be ma de for eligible expenses actually incurred by the Subrecipient, and not to exceed actual cash requirements. The Funders reserve the right to liquidate funds available under this contract for costs incurred by the respective Funder on behalf of the Subrecipient. 4. Progress Reports The Subrecipient shall submit monthly invoices accompanied by supporting documents including program details and budgetary information as identified in IA-Program delivery and III – Budget. D. Procurement 1. Compliance The Subrecipient shall comply with current policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. All program assets (unexpended program income, property, equipment, etc.) shall revert to the appropriate Funder upon termination of this Agreement. 2. OMB Standards Unless specified otherwise within this agreement, the Subrecipient shall procure all materials, property, or services in accordance with the requirements of 24 CFR 84.40 −48. 3. Travel The Subrecipient shall obtain written approval from the Funders for any travel outside of Chelan or Douglas counties with funds provided under this Agreement. E. Use and Reversion of Assets The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502, 570.503, and 570.504, as applicable, which include but are not limited to the following: 1. The Subrecipient shall transfer to the respective Parties any CDBG funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination. 2. Real property under the Subrecipient’s control that was acquired or improved, in whole or in part, with funds under this Agreement in excess of $25,000 shall be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until ten (10) years after expiration of this Agreement. If the Subrecipient fails to Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 10 - use CDBG-assisted real property in a manner that meets a CDBG National Objective for the prescribed period of time, the Subrecipient shall pay the appropriate Funder(s) an amount equal to the cur rent fair market value of the property less any portion of the value attributable to expenditures of non -CDBG funds for acquisition of, or improvement to, the property. Such payment shall constitute program income. The Subrecipient may retain real proper ty acquired or improved under this Agreement after the expiration of the ten -year period. 3. In all cases in which equipment acquired, in whole or in part, with funds under this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to that funds received under this Agreement were used to acquire the equipment). Equipment not needed by the Subrecipient for activities under this Agreement shall be (a) transferred to the appropriate Funder(s) for the CDBG program or (b) retained after compensating the appropriate Funder(s) [an amount equal to the current fair market value of the equipment less the percentage of non-CDBG funds used to acquire the equipment]. I X. PERSONNEL & PARTICIPANT CONDITIONS A. Civil Rights 1. Compliance The Subrecipient agrees to comply with local and state civil rights ordinances and with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Ho using and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107 and 12086. 2. Nondiscrimination The Subrecipient agrees to comply with the non -discrimination in employment and contracting opportunities laws, regulations, and executive orders referenced in 24 CFR 570.607, as revised by Executive Order 13279. The applicable non -discrimination provisions in Section 109 of the HCDA are still applicable. 3. Land Covenants This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P. L. 88-352) and 24 CFR 570.601 and 570.602. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this contract, the Subrecipient shall cause or require a covenant running with the land to be inserted in the deed or leas e for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the Funders and the United States are beneficiaries of and entitled to enforce such covenants. The Subrecipient, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 11 - 4. Section 504 The Subrecipient agrees to comply with all Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination against the individuals with disabilities or handicaps in any Federally assisted program. The Funders shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement. B. Affirmative Action 1. Approved Plan The Subrecipient agrees that it shall be committed to carry out pursuant to the F unders ’ specifications an Affirmative Action Program in keeping with the principles as provided in President’s Executive Order 11246 of September 24, 1966. The Funders shall provide Affirmative Action guidelines to the Subrecipient to assist in the formulation of such program. The Subrecipient shall submit a plan for an Affirmative Action Program for approval prior to the award of funds. 2. Women- and Minority-Owned Busines ses (W/MBE) The Subrecipient will use its best efforts to afford small businesses, minority business enterprises, and women’s business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this con tract, the terms “small business” means a business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and “minority and women’s business enterprise” means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, “minority group members” are Afro-Americans, Spanish-speaking, Spanish surnamed or Spanish-heritage Americans, Asian-Americans, and American Indians. The Subrecipient may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation. 3. Access to Records The Subrecipient shall furnish and cause each of its own subrecipients or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Funders , HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain complianc e with the rules, regulations and provisions stated herein. 4. Notifications The Subrecipient will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, t o be provided by the agency contracting officer, advising the labor union or worker’s representative of the Subrecipient’s commitments hereunder, and shall post copies of the notice in conspicuous places available to employees and applicants for employment . Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 12 - 5. Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative Act ion employer. 6. Subcontract Provisions The Subrecipient will include the provisions of Paragraphs X.A, Civil Rights, and B, Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be bind ing upon each of its own subrecipients or subcontractors. C. Employment Restrictions 1. Prohibited Activity The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for: political ac tivities; inherently religious activities; lobbying; political patronage; and nepotism activities. 2. Labor Standards The Subrecipient agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis -Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and all other applicable Federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. Th e Subrecipient agrees to comply with the Copeland Anti-Kick Back Act (18 U.S.C. 874 et seq.) and its implementing regulations of the U.S. Department of Labor at 29 CFR Part 5. The Subrecipient shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the Funders for review upon request. The Subrecipient agrees that, except with respect to the rehabilitation or construction of residential property containing less t han eight (8) units, all contractors engaged under contracts in excess of $2,000.00 for construction, renovation or repair work financed in whole or in part with assistance provided under this contract, shall comply with Federal requirements adopted by the Funders pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers; provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. The Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph. 3. “Section 3” Clause a. Compliance Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 13 - Compliance with the provisions of Section 3 of the HUD Act of 1968, as amended, and as implemented by the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this contract, shall be a condition of the Federal financial assistance provided under this contract and binding upon the Funders , the Subrecipient and any of the Subrecipient’s subrecipients and subcontractors. Failure to fulfill these requirements shall subject the Funders , the Subrecipient and any of the Subrecipient’s subrecipients and subcontractors, their su ccessors and assigns, to those sanctions specified by the Agreement through which Federal assistance is provided. The Subrecipient certifies and agrees that no contractual or other disability exists that would prevent compliance with these requirements. The Subrecipient further agrees to comply with these “Section 3” requirements and to include the following language in all subcontracts executed under this Agreement: “The work to be performed under this Agreement is a project assisted under a program providing direct Federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701). Section 3 requires that to the greatest extent feasible opportunities for t raining and employment be given to low - and very low -income residents of the project area, and that contracts for work in connection with the project be awarded to business concerns that provide economic opportunities for low - and very low -income persons residing in the metropolitan area in which the project is located.” The Subrecipient further agrees to ensure that opportunities for training and employment arising in connection with a housing rehabilitation (including reduction and abatement of lead-bas ed paint hazards), housing construction, or other public construction project are given to low - and very low -income persons residing within the metropolitan area in which the CDBG -funded project is located; where feasible, priority should be given to low - and very low -income persons within the service area of the project or the neighborhood in which the project is located, and to low - and very low -income participants in other HUD programs; and award contracts for work undertaken in connection with a housing rehabilitation (including reduction and abatement of lead -based paint hazards), housing construction, or other public construction project to business concerns that provide economic opportunities for low - and very low -income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to business concerns that provide economic opportunities to low - and very low -income residents within the service area or the neighborhood in which the pr oject is located, and to low - and very low -income participants in other HUD programs. The Subrecipient certifies and agrees that no contractual or other legal incapacity exists that would prevent compliance with these requirements. Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 14 - b. Notifications T he Subrecipient agrees to send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice advising said labor organization or worker’s representative of its 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. c. Subcontracts The Subrecipient will include this Section 3 clause in every subcontr act and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the grantor agency. The Subrecipient will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. D. Conduct 1. Assignability The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Funders thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Funders under this contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the Funders . 2. Subcontracts a. Approvals The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of the Funders prior to the execution of such agreement. b. Monitoring The Subrecipient will monitor all subcontracted servic es on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow -up actions taken to correct areas of noncompliance. c. Content The Subrecipient shall cause all of the provisions of this contract in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement. Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 15 - d. Selection Process The Subrecipient shall undertake to insure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis in accordance with applicable procurement requirements. Executed copies of all subcontracts shall be forwarded to the Funders along with documentation concerning the selection process. 3. Hatch Act The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C. 4. Conflict of Interest The Subrecipient agrees to abide by the provisions of 24 CFR 84.42 and 570.611, which include (but are not limited to) the following: a. The Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds. b. No employee, officer or agent of the Subrecipient shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. c. No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG -assisted activities, or who are in a position to participate in a decision -making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG-assisted activity, or with respect to the proceeds from the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Funders , the Subrecipient, or any designated public agency. 5. Lobbying The Subrecipient hereby certifies that: a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 16 - employee of Congres s, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form -LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions; and c. It will require that the language of paragraph (d) of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contract s under grants, loans, and cooperative agreements) and that all Subrecipients shall certify and disclose accordingly: d. Lobbying Certification 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.C. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 6. Copyright If this contract results in any copyrightable material or inventions, the Funders and/or grantor agency reserves the right to royalty -free, non-exclusive and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for governmental purposes. 7. Religious Activities The Subrecipient agrees that funds provided under this Agreement will not be utilized for in herently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction, or proselytization. X. ENVIRONMENTAL CONDITIONS The Subrecipient agrees to comply with the following requirements insofar as they may apply to any performance at any time of this Agreement. A. Air and Water - Clean Air Act, 42 U.S.C. , 7401, et seq.; Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 17 - - Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and in formation, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder; - Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, as amended. B. Flood Disaster Protection In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), the Subrecipient shall assure that for activities located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation). C. Lead-Based Paint The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead -Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, Subpart B. Such regulations pertain to all CDBG - assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead -based paint. Such notification shall point out the hazards of lead -based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead -based paint poisoning and the advisability and availability of blood lead level screening for children under seven. The notice should also point out that if lead-based paint is found on the property, abatement measures may be undertaken. The regulations further require that, depending on the amount of Federal funds applied to a property, paint testing, risk assessment, treatment and/or abatement may be conducted. D. Historic Preservation The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR Part 800, Advisory Co uncil on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this agreement. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, state, or local historic property list. XI . SEVERABILITY If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect. XI I. SECTION HEADINGS AND SUBHEADINGS The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement. Sub Recipient Agreement: Community Action Council – Literacy Council Program CDBG PY2017 - 18 - XI I I. WAIVER Failure of the Parties to act with respect to a breach by the Subrecipient does not waive its right to act with respect to subsequent or similar breaches. The failure of the Parties to exercise or enforce any right or provision shall not constitute a waiver of such right or provision.