HomeMy WebLinkAboutRES 06-334 RESOLUTION NO. 06-334
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to execute an agreement with the
State of Texas Office of Rural Community Affairs for funding in the amount of$1,950,000
underthe Texas Community Development Block Grant(TxCDBG)Disaster Recovery Grant
Program. The agreement is substantially in the form attached hereto as Exhibit "A" and
made a part hereof for all purposes.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 31 st of October,
2006.
Mayor Guy N. Goodson -
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OFFICE OF RURAL COMMUNITY AFFAIRS
CONTRACT NO. DRS060004 FOR
CDBG DISASTER RECOVERY GRANT PROGRAM
STATE OF TEXAS j
COUNTY OF TRAVIS j
SECTION 1 PARTIES TO CONTRACT
This contract and agreement is made and entered into by and between the Office of Rural Community
Affairs, an agency of the State of Texas, referred to as the "Office", and the City of Beaumont,
referred to as the "Contractor". The parties have severally and collectively agreed and by the
execution are bound to the mutual obligations and to the.performance and accomplishment of the
described tasks.
SECTION 2. CONTRACT PERIOD
This contract and agreement shall commence on August 31, 2006, and shall terminate on August 30,
2008, unless otherwise specifically provided by the terms of this contract.
SECTION 3. CONTRACTOR PERFORMANCE
The Contractor shall conduct, in a satisfactory manner as determined by the Office, a community
development program, referred to as Texas CDBG Disaster Recovery Grant and allocated under the
HUD Disaster Recovery Grants under the Department of Defense Appropriation Act of 2006 (Public
Law 109-148, approved December 30, 2005), and Title I of the Housing and Community Development
Act of 1974, as amended (42 U.S.C. Sec. 5301 et seq.), referred to as the Act. The Contractor shall
perform all activities in accordance with the terms of the Performance Statement, referred to as
Exhibit A; the Budget, referred to as Exhibit B; the Project Implementation Schedule, referred to as
Exhibit C; the Applicable Laws and Regulations, referred to as Exhibit D; the Certifications, referred to
as Exhibit E; the assurances, certifications, and all other statements made by the Contractor in its
application for the project funded under this contract; and with all other terms, provisions, and
requirements set forth in this contract. The Contractor shall ensure that the persons to benefit from
the activities described in Exhibit A, Performance Statement, of this contract are receiving the service
or a benefit from the use of the new or improved facilities and activities for the contract obligations to
be fulfilled and before submitting the Project Completion Report to this Office. If the persons to
benefit from the activities described in Exhibit A are not.receiving the service or a benefit, the
Contractor is liable to repay to the Office any associated disallowed costs.
SECTION 4. OFFICE OBLIGATIONS
A. Measure of Liability
In consideration of full and satisfactory performance of the activities referred to in Section 3 of this
contract, the Office shall be liable for actual and reasonable costs incurred by the Contractor during
the contract period for performances rendered under this contract by the Contractor, subject to the
limitations set forth in this Section 4.
1. It is expressly understood and agreed by the parties that the Office's obligations under this
Section 4 are contingent upon the actual receipt of adequate state or federal funds to meet
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EXHIBIT "A"
Office's liabilities under this contract. If adequate funds are not available to make payments under
this contract, Office shall notify the Contractor in writing within a reasonable time after such fact is
determined. Office shall terminate this contract and will not be liable for failure to make payments
to the Contractor under this contract.
2. The Office shall not be liable to the Contractor for any costs incurred by the Contractor, or any
portion thereof, which has been paid to the Contractor or is subject to payment to the Contractor,
or has been reimbursed to the Contractor or is subject to reimbursement to the Contractor by any
source other than the Office or the Contractor.
3. The Office shall not be liable to the Contractor for any costs incurred by the Contractor which
are not allowable costs, as set forth in Section 6 (A) of this contract.
4. The Office shall not be liable to the Contractor for any costs incurred by the Contractor or for
any performances rendered by the Contractor which are not strictly in accordance with the terms
of this contract, including the terms of Exhibit A, Exhibit B, Exhibit C, Exhibit D, and Exhibit E of
this contract.
5. The Office shall not be liable to the Contractor for any costs incurred by the Contractor in the
performance of this contract which have not been billed to the Office by the Contractor within sixty
(60) days following termination of this contract unless otherwise provided for in the Certificate of
Expenditures referred to in Section 8 (C) of this contract.
6. The Office shall not be liable for costs incurred or performances rendered by the Contractor
before commencement of this contract or after termination of this contract, unless (a) the costs are
specifically identified in Exhibit A, Performance Statement and Exhibit B, Budget, of this contract,
(b) the costs incurred by the Contractor were for otherwise allowable pre-agreement program
costs that were incurred on or after September 24, 2005 and (c) the Contractor complied with all
the Office's requirements applicable to the Disaster Recovery Grants provided under Public Law
109-148, including all applicable state and federal laws, such as procurement procedures,
applicable environmental, labor, civil rights and acquisition requirements, all provisions of this
contract, and all applicable TxCDBG policies and procedures.
7. The Office shall not be liable for costs incurred and reserved on the Certificate of Expenditures
if such costs are not billed to the Office within ninety days after the contract's termination date. An
exception will be made for the reserved funds for the final 5% administrative drawdown for
programmatic closure. Audit funds reserved on the Certificate of Expenditures eligible for
reimbursement under the provisions of Section 19 of this contract shall be billed to the Office
within twelve months after the end of the Contractor's fiscal year that follows the termination date
of this contract. The Office shall deobligate all reserved funds not requested under this
subsection.
8. The Office shall not be liable to the Contractor for any costs incurred by the Contractor or for
any performances rendered by the Contractor which are not strictly in accordance with Public Law
109-148, the applicable CDBG regulations as amended, and U. S. Department of Housing and
Urban Development (HUD) requirements that govern the use of these CDBG disaster recovery
funds.
B. Excess Payments
The Contractor shall refund to the Office any sum of money which has been paid to the Contractor by
the Office, which the Office determines has resulted in overpayment to the Contractor, or which the
Office determines has not been spent by the Contractor strictly in accordance with the terms of this
contract. Such refund shall be made by the Contractor to the Office within thirty (30) working days
after such refund is requested by the Office.
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C. Limit of Liability
Notwithstanding any other provision of this contract, the total of all payments and other obligations
incurred by the Office under this contract shall not exceed the sum of One Million Nine Hundred Fifty
Thousand and No/100 Dollars ($1,950,000).
SECTION 5. METHOD OF PAYMENT
A. The Contractor shall submit to the Office at its offices in Travis County, Texas, a properly
completed Request for Payment form and State of Texas Purchase Voucher, as specified by the
Office, as often as actually needed. The Office shall determine the reasonableness of each amount
requested and shall not make disbursement of any such payment until the Office has reviewed and
approved such Request.
B. The Contractor's requests for the advance of funds shall be limited to the minimum amounts
needed for effective operation of programs under this contract, and shall be timed as closely as
possible to be in accord with actual cash requirements. The Contractor shall establish procedures to
minimize the time elapsing between the transfer of funds from the Office to the Contractor and shall
ensure that such funds are disbursed as soon as administratively possible.
C. Notwithstanding the provisions of Section 5 (A) of this contract, it is expressly understood and
agreed by the parties that payments under this contract are contingent upon the Contractor's full and
satisfactory performance of its obligations under this contract.
D. It is expressly understood and agreed by the parties that any right or remedy provided for in this
Section 5 or in any other provision of this contract shall not preclude the exercise of any other right or
remedy under this contract or under any provision of law, nor shall any action taken in the exercise of
any right or remedy be deemed a waiver of any other rights or remedies. Failure to exercise any right
or remedy shall not constitute a waiver of the right to exercise that or any other right or remedy at any
time.
E. The amount of funds paid by the Office to the Contractor for administration cost (which includes
Planning/Project Delivery-Rita costs in the Budget, Exhibit B) may not exceed ten (10) percent of the
contract award amount without prior approval from the Texas Department of Housing and Community
Affairs (TDHCA) Governing Board. If the Contractor deems the amount is not sufficient for the
activities, the Contractor may request that the Office petition the TDHCA Board for additional costs in
an amount up to fifteen (15) percent of the grant.
SECTION 6. UNIFORM ADMINISTRATIVE REQUIREMENTS COST
PRINCIPLES, AND PROGRAM INCOME
A. Except as specifically modified by law or the provisions of this contract, the Contractor shall
comply with the Regulations in Exhibit D and, for matters not addressed therein, with 24 C.F.R. Part
85, "Administrative Requirements for Grants and Cooperative Agreements to State, Local and
Federally Recognized Indian Tribal Governments" (referred to as the "Common Rule") as modified by
the rules promulgated by the Office of the Governor under the Uniform Grant and Contract
Management Act (TEX. GOVT. CODE ANN. Chapter 783; referred to as "UGCMS."), in performing
this contract. The allowability of costs incurred for performances rendered shall be determined in
accordance with Office of Management and Budget (OMB) Circular A-87, as supplemented by
UGCMS and this contract.
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B. The Contractor shall comply with the requirements set forth in 24 C.F.R. Section 570.489(e) of the
Regulations to account for program income related to activities financed in whole or in part with funds.
provided under this contract.
1. The Contractor shall maintain records of the receipt, accrual, and disposition of all program
income in the same manner as required for all other funds under this contract, and the Contractor
shall provide reports of program income to the Office with each form submitted by the Contractor
in accordance with Section 5 of this contract, and at the termination of this contract.
2. Any program income generated shall be returned to the Office as per waiver published in the
Federal Register August 1, 2006.
3. At least sixty (60) days prior to the termination of this contract, the Contractor shall submit a
plan to the Office for its approval which specifies the manner in which the Contractor proposes to
use any unexpended program income earned under this contract to continue the performance
specified in this contract in the manner specified. Any program income earned by-the Contractor
from this contract, prior to the establishment and approval of a Revolving Loan Fund plan by the
Contractor must be returned to the Office. In the event the Office does not approve the plan
submitted by the Contractor, the Contractor shall return such program income to the Office within
thirty (30) working days after receipt of the Office's notification of disapproval.
SECTION 7. RETENTION AND ACCESSIBILITY OF RECORDS
A. The Contractor shall maintain fiscal records and supporting documentation for all expenditures of
funds made under this contract in a manner which conforms to OMB Circular A-87, 24 C.F.R. Section
570.490 of the Regulations in Exhibit D, and this contract. Such records must include data on the
racial, ethnic, and gender characteristics of persons who are applicants for, participants in, or
beneficiaries of the funds provided under this contract. The Contractor shall retain such records, and
any supporting documentation, for the greater of three years from closeout of this contract or the
period required by other applicable laws and regulations as described in the Regulations in Exhibit D.
B. The Contractor shall give the United States Department of Housing and Urban Development, the
Inspector General, the General Accounting Office, the Auditor of the State of Texas, and the Office, or
any of their duly authorized representatives, access to and the right to examine all books, accounts,
records, reports, files, and other papers, things, or property belonging to or in use by the Contractor
pertaining to this contract. Such rights to access shall continue as long as the records are retained by
the Contractor. The Contractor agrees to maintain such records in an accessible location and to
provide citizens reasonable access to such records consistent with the Texas Public Information Act.
C. The Contractor shall include the substance of this Section 7 in all subcontracts.
SECTION 8. REPORTING REQUIREMENTS
A. The Contractor shall submit to the Office such reports on the operation and performance of this
contract as may be required by the Office including but not limited to the reports specified in this
Section 8.
B. Each grantee must submit a quarterly performance report no later than 30 days following each
calendar quarter, beginning after the first full calendar quarter after grant award and continuing until all
funds have been expended and all expenditures reported. Each quarterly report will include
information about the uses of funds during the applicable quarter including (but not limited to) the
project name, activity, location, and national objective, funds budgeted, obligated, drawn down, and
expended; the funding source and total amount of any non-CDBG disaster funds; beginning and
ending dates of activities; and performance measures such as numbers of low- and moderate- income
persons or households benefiting.
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C. The Contractor shall submit a Certificate of Expenditures to the Office no later than sixty (60) days
after the contract termination date or at the conclusion of all contract activities as determined by the
Office. The Certificate of Expenditures shall be in a format prescribed by the Office and shall be
accompanied by a final Project Completion Report of all activities performed under this contract.
D. In addition to the limitations on liability otherwise specified in this contract, it is expressly
understood and agreed by the parties that if the Contractor fails to submit to the Office in a timely and
satisfactory manner.any report required by this contract, the Office may, at its sole option and in its
sole discretion, withhold any or all payments otherwise due or requested by the Contractor. If the
Office withholds such payments, it shall notify the Contractor in writing of its decision and the reasons
therefore. Payments withheld pursuant to this paragraph may be held by the Office until such time as
the delinquent obligations for which funds are withheld are fulfilled by the Contractor.
E. The Contractor is required to immediately report to the Office any incident of criminal
misapplication of TxCDBG funds associated with this contract.
SECTION 9. MONITORING
The Office reserves the right to perform periodic on-site r monitoring of the Contractor's compliance
with the terms and conditions of this contract, assurance of non-duplication of beneficiaries and of the
adequacy and timeliness of the Contractor's performances under this contract. After each monitoring
visit, the Office shall provide the Contractor with a written report of the monitor's findings. If the
monitoring reports note deficiencies in the Contractor's performances under the terms of this contract,
the monitoring report shall include requirements for the timely correction of such deficiencies by the
Contractor. Failure by the Contractor to take action specified in the monitoring report may be cause
for suspension or termination of this contract, as provided in Sections 17 and 18 of this contract.
SECTION 10. INDEPENDENT CONTRACTOR
It is expressly understood and agreed by the parties that the Office is contracting with the Contractor
as an Independent Contractor, and that the Contractor, as such, agrees to the extent allowed by law
to hold the Office harmless and to indemnify the Office from and against any and all claims, demands,
and causes of action of every kind and character which may be asserted by any third party occurring
or in any way incident to, arising out of; or in connection with the services to be performed by the
Contractor under this contract.
SECTION 11. SUBCONTRACTS
A. Except for subcontracts to which the federal labor standards requirements apply, the Contractor
may subcontract for performances described in this contract without obtaining the Office's prior written
approval. The Contractor shall only subcontract for performances described in this contract to which
the federal labor standards requirements apply after the Contractor has submitted a Subcontractor
Eligibility form, as specified by the Office, for each such proposed subcontract, and the Contractor has
obtained the Office's prior written approval, based on the information submitted, of the Contractor's
intent to enter into such proposed subcontract. The Contractor, in subcontracting for any
performances described in this contract, expressly understands that in entering into such
subcontracts, the Office is in no way liable to the Contractor's subcontractor(s).
B. In no event shall any provision of this Section 11, specifically the requirement that the Contractor
obtain the Office's prior written approval of a subcontractor's eligibility, be construed as relieving the
Contractor of the responsibility for ensuring that the performances rendered under all subcontracts are
rendered so as to comply with all of the terms of this contract, as if such performances rendered were
rendered by the Contractor. The Office's approval under Section 11 does not constitute adoption,
ratification, or acceptance of the Contractor's or subcontractor's performance. The Office maintains
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the right to insist upon the Contractor's full compliance with the terms of this contract, and by the act
of approval under Section 11, the Office does not waive any right of action which may exist or which
may subsequently accrue to the Office under this contract.
C. The Contractor shall comply with 24 CFR Section 85.36, this contract and all applicable federal,
state and local laws, regulations, and ordinances for making procurements under this contract.
D. The Contractor shall maintain a retainage in the amount of five percent (5%) of each construction
or rehabilitation subcontract entered into by the Contractor until the Office determines that the Federal
labor standards requirements applicable to each such subcontract have been satisfied.
SECTION 12. CONFLICT OF INTEREST
A. The Contractor shall ensure that no employee, officer, or agent of the Contractor shall participate
in the selection, or in the award or administration of a subcontract supported by funds provided if a
conflict of interest, real or apparent, would be involved. Such conflict of interest would arise when: 1)
The employee, officer, or agent; 2) any member of his or her immediate family; 3) his or her partner;
or, 4) any organization which employs, or is about to employ any of the above, has a financial or other
interest in the firm or person selected to perform the subcontract. The Contractor shall comply with
Chapter 171, Texas Local Government Code and 24 C.F.R. 570.489(h) of the federal regulations.
B. In all cases not governed by Subsection (A) of this Section, no persons specified in subsection (C)
of this Section who exercise or have exercised any functions or responsibilities with respect to the
activities assisted under this contract or any other CDBG contract 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 or benefit from the activity, or have an interest or benefit from the activity, or
have any interest in any contract, subcontract or agreement with respect thereto, or the proceeds
thereunder, either for themselves or those with whom they have family or business ties during their
tenure or for one year thereafter.
C. The conflict of interest provisions of Subsection (B) apply to any person who is an employee,
agent, consultant, officer, or elected official or appointed official of the Contractor or of a subcontractor
of the Contractor.
D. The Contractor shall include the substance of this section in all subcontracts.
SECTION 13. NONDISCRIMINATION RELIGIOUS ACTIVITY AND FAITH-BASED
ORGANIZATIONS
A. The Contractor shall ensure that no person shall on the ground of race, color, national origin,
religion, sex, age, or handicap be excluded from participation in, be denied the benefits of, or be
subjected to discrimination under or be denied access to any program or activity funded in whole or in
part with funds made available under this contract.
B. Organizations that are religious or faith-based are eligible, on the same basis as any other
organization, to participate in this program and activities funded under this contract..The Contractor
receiving funds under this contract shall not discriminate against an organization on the basis of the
organizations' religious character or affiliation. None of the performances rendered by the Contractor
under this contract shall involve, nor shall any portion of the funds received by the Contractor under
this contract, be used to engage in inherently religious activities. Funds made available under this
contract may not be used for the acquisition, construction, or rehabilitation of structures to the extent
that those structures are used for inherently religious activities. Funds made available under this
contract may be used for the acquisition, construction, or rehabilitation of structures only to the extent
that those structures are used for conducting eligible activities. Where a structure is used for both
eligible and inherently religious activities, funds made available under this contract may not exceed
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the cost of those portions of the acquisition, construction, or rehabilitation that are attributable to
eligible activities in accordance with the cost accounting requirements-applicable to funds provided
under this contract. The Contractor shall comply with the regulations promulgated by the U.S.
Department of Housing and Urban Development on faith-based activities at 24 C.F.R. Sec. 570.2000).
SECTION 14. LEGAL AUTHORITY
A. The Contractor assures and guarantees that the Contractor possesses the legal authority to enter
into this contract, receive funds authorized by this contract, and to perform the services the Contractor
has obligated itself to perform.
B. The person or persons signing and executing this contract on behalf of the Contractor, or
representing themselves as signing and executing this contract on behalf of the Contractor, do hereby
warrant and guarantee that he, she or they have been duly authorized by the Contractor to execute
this contract on behalf of the Contractor and to validly and legally bind the Contractor to all terms,
performances, and provisions set forth.
C. The Office shall have the right to suspend or terminate this contract if there is a dispute as to the
legal authority of either the Contractor or the person signing this contract to enter into this contract or
to render performances. The Contractor is liable to the Office for any money it has received from the
Office for performance of the provisions of this contract, if the Office has suspended or terminated this
contract for reasons enumerated in this Section 14.
SECTION 15. LITIGATION AND CLAIMS
The Contractor shall give the Office immediate notice in writing of 1) any action, including any
proceeding before an administrative agency, filed against the Contractor arising out the performance
of any subcontract; and 2) any claim against the Contractor, the cost and expense of which the
Contractor may be entitled to be reimbursed by the Office. Except as otherwise directed by the
Office, the Contractor shall furnish immediately to the Office copies of all pertinent papers received by
the Contractor with respect to such action or claim.
SECTION 16. CHANGES AND AMENDMENTS
A. Except as specifically provided otherwise in this contract, any alterations, additions, or deletions to
the terms of this contract shall be by amendment in writing and executed by both parties to this
contract, as per the Memorandum of Understanding between the Office and TDHCA any contract
amendments in excess of five (5) percent of the amount of the contract must receive prior approval
from the TDHCA Governing Board or in accordance with alternative requirements as provided to the
Contractor by the Office.
B. It is understood and agreed by the parties that performances under this contract must be rendered
in accordance with the Act, the Regulations of the Office, assurances and certifications made to the
Office by the Contractor, and the assurances and certifications made to the United States Department
of Housing and Urban Development by the State of Texas with regard to the operation of the Texas
Community Development Block Grant Program. Based on these considerations, and in order to
ensure the legal and effective performance of this contract by both parties, it is agreed by the parties
that the performances under this contract are amended by the provisions of the TxCDBG Proiect
Implementation Manual and any amendments thereto and may further be amended in the following
manner: The Office may from time to time during the period of performance of this contract issue
policy directives which serve to establish, interpret, or clarify performance requirements under this
contract. Such policy directives shall be promulgated by the Director of the TxCDBG in the form of
TxCDBG issuances, shall have the effect of qualifying the terms of this contract and shall be binding
upon the Contractor, as if written herein, provided however that the policy directives and any
amendments to the TxCDBG Proiect Implementation Manual shall not alter the terms of this contract
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so as to release the Office of any obligation specified in Section 4 of this contract to reimburse costs
incurred by the Contractor prior to the effective date of the amendments or policy directives.
C. Any alterations, additions, or deletions to the terms of this contract which are required by changes
in Federal or State law or regulations are automatically incorporated into this contract without written
amendment, and shall become effective on the date designated by such law or regulation.
D. Notwithstanding Subsection A of this Section 16, the Contractor may make transfers of funds
between or among budget categories of Exhibit B, Budget, without requiring an amendment to this
contract, or otherwise requiring the Office's prior written approval provided that:
1. The cumulative dollar amount of all transfers among direct budget categories is equal to or
less than five percent (5%)of the total amount of this contract as specified in Section 4 (C);
2. The transfer will not change the scope or objective of the projects funded under this contract;
and
3. The Contractor submits a budget revision report to the Office, on a form specified by the
Office, simultaneously with the submission of the Contractor's first request for payment following
any such transfers made in accordance with this Subsection D.
SECTION 17. SUSPENSION
Notwithstanding the provisions of TEX. GOVT. CODE ANN. Chapter 2251, in the event the
Contractor fails to comply with any term of this contract, the Office may, upon written notification to the
Contractor, suspend this contract in whole or in part and withhold further payments to the Contractor,
and prohibit the Contractor from incurring additional obligations of funds under this contract.
SECTION 18. TERMINATION
A. The Office shall have the right to terminate this contract, in whole or in part, at any time before the
date of completion specified in Section 2 of this contract whenever the Office determines that the
Contractor has failed to comply with any term of this contract. The Office shall notify the Contractor in
writing prior to the thirtieth (30th) day preceding the date of termination of such determination; the
reasons for such termination; the effective date of such termination; and in the case of partial
termination, the portion of the contract to be terminated.
B. Either of the parties to this contract shall have the right to terminate this contract, in whole or in
part, when both parties agree that the continuation of the activities funded under this contract would
not produce beneficial results commensurate with the further expenditure of funds; provided that both
parties agree, in writing, upon the termination conditions, including the effective date of such
termination; and in the case of partial termination, the portion of the contract to be terminated.
C. Upon termination or receipt of notice to terminate, whichever occurs first, the Contractor shall
cancel, withdraw, or otherwise terminate any outstanding orders or subcontracts related to the
performance of this contract or the part of this contract to be terminated, and shall cease to incur
costs thereunder. The Office shall not be liable to the Contractor or to the Contractor's creditors for
costs incurred after termination of this contract.
D. Notwithstanding any exercise by the Office of its right of suspension under Section 17 of this
contract, or of early termination pursuant to this Section 18, the Contractor shall not be relieved of any
liability to the Office for damages due to the Office by virtue of any breach of this contract by the
Contractor. The Office may withhold payments to the Contractor until such time as the exact amount
of damages due to the Office from the Contractor is agreed upon or is otherwise determined.
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SECTION 19. AUDIT
A. The Contractor shall arrange for the performance of an annual financial and compliance audit of
funds received and performances rendered under this contract, subject to the following conditions and
limitations:
1. (a) Audit Required-Federal Awards. Contractors expending $500,000 or more in Federal
financial assistance for any fiscal year, beginning with fiscal years ending January 31, 2004 and
after, shall have a single audit conducted in accordance with the Single Audit Act Amendments of
1996, 31 U.S.C. 7501, and OMB Circular No. A-133 - Revised as of June 27, 2003, "Audits of
States, Local Governments, and Non-Profit Organizations." Alternatively, Office may require a
program specific audit for certain situations and when the Single Audit Act does not apply. For
purposes of this Section 19, "Federal financial assistance" means assistance that non-Federal
entities receive or administer in the form of grants, loans, loan guarantees, property (including
donated surplus property), cooperative agreements, interest subsidies, insurance, food
commodities, direct appropriations, and other assistance, but does not include amounts received
as reimbursement for services rendered to individuals as described in OMB Circular A-133
§_.205 (h) and §_205 (i). The term includes awards of Federal financial assistance received
directly from Federal agencies, or indirectly through other units of State and local government.
(b) Audit Required-State Awards. Contractors that expended $500,000 or more in State
Awards for any fiscal year, beginning with fiscal years ending January 31, 2004 and after, shall
have a single or program specific audit conducted for that year in accordance with provisions of
the State of Texas Single Audit Circular and the Uniform Grant Management Standards (UGMS).
For purposes of this Section 19, "State Award" means an award of state financial assistance,
including cooperative agreements, in the form of money, property in lieu of money, or other
financial assistance paid or furnished by the state or federal government to an eligible grantee to
carry out a program in accordance with rules, regulations and guidance provided by the grantor
agency. The term does not include technical assistance which provides services instead of
money or other assistance in the form of revenue sharing, loans, loan guarantees, interest
subsidies, insurance, or direct appropriations. Also, the term does not include assistance such as
fellowship or lump sum award, for which the grantee is not required to account. State awards also
do not include federal awards as defined by OMB Circular A-133.
2. Notwithstanding Section 4, the Contractor shall utilize funds budgeted under this contract to
pay for that portion of the cost of such audit services properly allocable to the activities funded by
the Office under this contract, provided however that the Office shall not make payment for the
cost of such audit services until the Office has received a satisfactory audit report and invoice, as
determined by the Office, from the Contractor; the invoice submitted for reimbursement should
clearly show the percentage of cost relative to the total single audit cost of the audit services.
3. The Contractor shall submit one (1) copy of the report of such audit to the Office within thirty
(30) days after the completion of the audit, but no later than nine (9) months after the end of the
Contractor's audit period. The Contractor shall ensure that the audit report is made available for
public inspection within thirty (30) days after completion of the audit. Audits performed under
Subsection A of this Section 19 are subject to review and resolution by the Office or its authorized
representative. The Contractor shall ensure the Audit Report submitted include either in the report
or as part of the cover letter, auditor and contractor contact information, including contact person,
mailing address, telephone, fax number and e-mail address. The Contractor shall ensure the
Audit Report submitted also includes the submission of the CPA Management Letter if a
Management Letter was issued to the Contractor by it's CPA firm. Failure by the Contractor to
submit a completed single audit package as described in the audit requirements by the required
due date could affect funding for all existing contracts, eligibility to apply under the Texas
Community Development Block Grant Program, and the issuance of new contracts for funding
awards.
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4. Notwithstanding the requirements after paragraphs "A-1 through 3" of this Section 19, the
Contractor shall submit within 60 days after its fiscal year end an Audit Certification Form (ACF) or
a similar statement. The ACF or statement will include information indicating if the Contractor has
or has not met the $500,000 expenditure threshold that will require a Single Audit Report in
accordance with the Uniform Grant Management Standards, Subpart C-Post Award
Requirements. Failure by the Contractor to submit an ACF or a similar statement or failure to
submit a completed single audit package as described in the audit requirements by the required
due date could affect funding for all existing contracts, eligibility to apply under the Texas
Community Development Block Grant Program, and the issuance of new contracts for funding
awards.
5. Pursuant to the Texas Administrative Code §5.167(c), "Chapter 2105, Texas Government
Code, requires that all subrecipients of federal block grants be included under the provisions of the
Uniform Grant and Contract Management Standards." The Uniform Grant and Contract
Management Standards (UGMS) (D) sec._.400 requires "Recipients who are required to have a
single audit and receive state or federal awards for more than one state agency shall have a state
single audit coordinating agency. The governor's office shall designate a state single audit
coordinating agency based upon the state awarding agency that provides the predominant
amount of direct funding to a recipient and other factors, as appropriate, to ensure equitable and
manageable workloads." Further, it is the Contractor's responsibility to make this request to the
governor's office pursuant to the Texas Administrative Code §5.167(c)(2), "To have a state single
audit coordinating agency designated a recipient must submit a written request to the Governor's
Budget and Planning Office, P.O. Box 12428, Austin, Texas 78711. This request must list the
state agencies providing financial assistance with the grant amounts for the year to be audited and
indicate that the governing body has authorized the initiation of the single audit."
B. Notwithstanding Subsection A of this Section 19, the Office reserves the right to conduct an annual
financial and compliance review of funds received and performances rendered under this contract.
The Contractor agrees to permit the Office or its authorized representative to audit the Contractor's
records and to obtain any documents, materials, or information necessary to facilitate such review.
C. The Contractor understands and agrees that it shall be liable to the Office for any costs disallowed
pursuant to financial and compliance audit(s) of funds received under this contract. The Contractor
further understands and agrees that reimbursement to the Office of such disallowed costs shall be
paid by the Contractor from funds which were not provided or otherwise made available to the
Contractor under this contract.
D. The Contractor shall take such action to facilitate the performance of such audit or audits
conducted pursuant to this Section 19 as the Office may require of the Contractor. The Office shall
not release any funds for any costs incurred by the Contractor under this contract until the Office has
received a copy of any audit report required by this Section 19.
E. The Contractor shall procure audit services through an open, competitive process at least once
every four years. The auditor shall retain working papers and reports for a minimum of three years
after the date of issuance of the auditor's report to the auditee. Audit working papers shall be made
available upon request to the Office at the completion of the audit, as a part of a quality review, to
resolve audit findings, or to carry out oversight responsibilities consistent with the purposes of this
part. Access to working papers includes the right to obtain copies of working papers, as is reasonable
and necessary.
F. Contractor understands that acceptance of funds under this contract acts as acceptance of the
authority of the State Auditor's Office, or any successor agency, to conduct an audit or investigation in
connection with those funds. Contractor further agrees to cooperate fully with the State Auditor's
Office or its successor in the conduct of the audit or investigation, including providing all records
Page 10 of 14
requested. Contractor will ensure that this clause concerning the authority to audit funds received
indirectly by subcontractors through Contractor and the requirement to cooperate is included in any
subcontract it awards.
SECTION 20. ENVIRONMENTAL CLEARANCE REQUIREMENTS
A. The Contractor understands and agrees that by the execution of this contract the Contractor shall
assume the responsibilities for environmental review, decision making, and other action which would
otherwise apply to the Office under Section 5304(f) of the Act, in accordance with and to the extent
specified in 24 C.F.R. Part 58. In accordance with Section 58.77(b) of such regulations, the
Contractor further understands and agrees that the Contractor shall handle inquiries and complaints
from persons and agencies seeking redress in relation to environmental reviews covered by approved
certifications.
B. Funds provided under this contract may be obligated and expended before the actions specified in
this Section occur only for the following eligible activities:
1. The payment of reasonable planning and administrative costs related to the project;
2. Environmental studies, including environmental clearance activities required by this Section;
and
3. The payment or reimbursement of reasonable project engineering and design costs incurred
for this project.
C. The Contractor shall prepare a written Environmental Assessment of its activities in accordance
with 24 C.F.R. Part 58, Subpart E, and the TCDP Project Implementation Manual. The Contractor
must then follow the steps specified in this subsection to ensure compliance with the National
Environmental Policy Act (NEPA). When the Environmental Assessment is completed, the Contractor
must follow one of the following two (2) procedures. The first is a Finding of Significant Impact, in
which the Request for Release of Funds for the project is an action which may significantly affect the
quality of the human environment. If this is the case, the Contractor must then prepare an
Environmental Impact Statement in accordance with Subpart F or Subpart G of 24 C.F.R. Part 58.
The second and more.common procedure must be followed for all projects not requiring an
Environmental Impact Statement. The Contractor in this instance must publish, in the manner
prescribed in 24 C.F.R. Sections 58.43 and 58.45, a combined legal notice in a single publication: A
Finding of No Significant Impact (FONSI), and a Notice of Intent to Request Release of Funds
(NOI/RROF). In the first part of this notice, the Contractor certifies that, as a result of the
Environmental Assessment, the project is not an action which may or will significantly affect the
quality of the human environment. The Contractor shall then provide the public with at least fifteen
(15) calendar days to comment on this combined notice following its publication date, unless
exceptional circumstances exist as specified in 24 C.F.R. Section 58.46. If no unresolved problems
occur, the Contractor must then concurrently submit to the Office the following documents:
1. Transmittal Letter
2. RROF/FONSI Certification Form
3. Published FONSI/NOI/RROF
4. Publisher's Affidavit
5. Project Site Description
Page 11 of 14
Upon receipt of such documents, the Office must allow a fifteen (15) calendar day comment
period to expire before it can formally release any project funds which are subject to the environmental
review regulations. The Contractor must comply with all other applicable environmental requirements
as specified in Exhibit D of this contract. The Contractor shall document its compliance with such other
requirements in its environmental review file. The environmental review file and source documentation
must be maintained as part of the environmental review record.
SECTION 21. CITIZEN PARTICIPATION WAIVER AND ALTERNATIVE REQUIREMENTS
A. Citizen participation waiver and alternative requirement. Provisions of 42 U.S.C. 5304 (a) (2) and
(3), 42 U.S.C. 12707, 24 CFR 570.486, and 24 CFR 91.115 (b) with respect to citizen participation
requirements are waived and replaced by the requirements below. The streamlined requirements do
not mandate public hearings at either the state or local government level, but do require providing a
reasonable opportunity for citizen comment and ongoing citizen access to information about the use
of grant funds.
B. If any substantial changes are being requested concerning the activities included in this contract,
the public shall be informed and given an opportunity to comment on the proposed changes.
C. Notwithstanding the provisions of Section 7 of this contract, the Contractor shall retain
documentation of citizen outreach and input, comments made and the notice provided to citizens.
Records shall be retained for a period of three (3) years after the termination of this contract. The
Contractor shall make such records available to the public in accordance with TEX. GOV'T. CODE
ANN. Chapter 552.
D. Complaint Procedures. The Contractor shall maintain written citizen complaint procedures that
provide a timely written response to complaints and grievances. Such procedures shall comply with
the Office's requirements. The Contractor shall ensure that its citizens are aware of the location and
hours at which they may obtain a copy of the written procedures and the address and phone number
for submitting complaints.
SECTION 22. SPECIAL CONDITIONS
A. As provided for in Public Law 109-148, the contract funds may not be used for activities
reimbursable by or for which funds are made available by Federal Emergency Management Agency
(FEMA) or the Army Corps of Engineers (Corps). The Contractor shall ensure that any request for
payment submitted to the Office under this contract does not include a fund request for costs for
activities reimbursable by or for which funds are made available by FEMA or the Corps.
B. The Office shall not release any funds for any costs incurred by the Contractor under this contract
until the Office has received a copy of the Contractor's previous fiscal year audit report or certification
from the Contractor that its fiscal control and fund accounting procedures are adequate to assure the
proper disbursal of and accounting for funds provided under this contract. The Office shall specify the
content and form of such certification.
C. The Office shall not be liable to the Contractor for any costs incurred by the Contractor under this
contract until the Office receives a properly completed Depository/Authorized Signators Form, as
specified by the Office, from the Contractor.
D. The Contractor shall not advertise or solicit bids for construction or rehabilitation of a project
assisted with funds provided under this contract until the Contractor has received the applicable
prevailing wage rates from the Office.
Page 12 of 14
E. In accordance with Section 18 of this contract, this contract shall terminate six (6) months after the
commencement date specified in Section 2 unless activities specified in Section 20 or listed under
Section 22 funded under this contract have begun by such date.
F. The Office shall not be obligated to release any funds for any costs incurred by the Contractor
under this contract until the Contractor has provided to the Office any additional information related to
the project described in Exhibit A that the Office determines is necessary to complete the application
material or any additional information to otherwise satisfy any CDBG program or Texas Disaster
Recovery Grant Action Plan requirement.
G. The Contractor shall ensure that any request for payment submitted to the Office under this
contract does not include a request for funds for costs that have been reimbursed from other sources.
H. The Contractor shall, to the fullest extent necessary, pursue resolution of all compliance findings,
collect identified disallowed costs, submit timely bankruptcy filings, provide any required
documentation, attend administrative hearings, provide court testimony, and submit documentation to
the Texas Attorney General for further collection efforts and participate in the process provided under
applicable HUD regulations for any actions that HUD may take to address corrective and remedial
actions associated with funding provided under this contract.
I. Public buildings, facilities, centers, constructed with Office of Rural Community Affairs (ORCA)
Community Development Block.Grant (CDBG) assistance shall have permanent signage placed in a
prominent visible public area with the wording provided below. The formatting of such signage will be
at local discretion to best fit the architectural design of the facility constructed but should be legible
from at least three feet distance.
Other construction projects, e.g., water transmission lines, sewer collection lines, drainage, roadways,
housing rehabilitation, etc. utilizing ORCA CDBG funding shall have temporary signage erected in a
prominent location at the construction project site or along a major thoroughfare within the locality as
directed by the owner.
Project Siqn Wording:
"This project is funded by the Office of Rural Community Affairs of the State of Texas, to
provide for disaster relief, long-term recovery and restoration of infrastructure for communities
impacted by Hurricane Rita funds allocated by the United States Department of Housing and
Urban Development through the Community Development Block Grant Program."
J. The Contractor shall provide documentation to the Office that indicates it has secured an approved
funding commitment of Twenty-three Million Six Hundred Sixty-five Thousand One Hundred Seventy-
eight and No/100 Dollars ($23;665,178) for Flood and Drainage Improvements from the Federal
Emergency Management Agency (FEMA), prior to the Office's release of project funds for such
activities.
K. The Contractor shall submit to the Office documentation (i.e., a resolution) of its local funding
commitment of Six Million Three Hundred Sixty-three Thousand Three Hundred Ninety-two and
No/100 Dollars ($6,363,392) for completion of the project funded under this contract prior to the
Office's release of project funds for such project.
SECTION 23. DEBARMENT
By signing this contract, the Contractor certifies that it will not award any funds provided under this
contract to any party which is debarred, suspended or otherwise excluded from or ineligible for
participation in federal assistance programs under Executive Order 12549 and 24 CFR Part 24. The
Page 13 of 14
Contractor shall receive the certification provided by the Office fro'm each proposed subcontractor
under this contract and its principals.
SECTION 24. POLITICAL AID AND LEGISLATIVE INFLUENCE PROHIBITED
A. None of the funds provided under this contract shall be used for influencing the outcome of any
election, or the passage or defeat of any legislative measure. This prohibition shall not be construed
to prevent any official or employee of the Contractor from furnishing to any member of its governing
body upon request, or to any other local or state official or employee or to any citizen information in
the hands of the employee or official not considered under law to be confidential information. Any
action taken against an employee or official for supplying such information shall subject the person
initiating the action to immediate dismissal from employment.
B. No funds provided under this contract may be used directly or indirectly to hire employees or in
any other way fund or support candidates for the legislative, executive, or judicial branches of
government of the Contractor, the State of Texas, or the government of the United States.
SECTION 25. ORAL AND WRITTEN AGREEMENTS
A. All oral and written agreements between the parties to this contract relating to the subject matter of
this contract that were made prior to the execution of this contract have been reduced to writing and
are contained in this contract.
B. The attachments enumerated and denominated below are hereby made a part of this contract, and
constitute promised performances by the Contractor in accordance with Section 3 of this contract:
1. Exhibit A, Performance Statement, 1 Page
2. Exhibit B, Budget, 3 Pages
3. Exhibit C, Project Implementation Schedule, 1 Page
4. Exhibit D, Applicable Laws and Regulations, 3 Pages
5. Exhibit E, Certifications, 2 Pages
SECTION 26. VENUE
For purposes of litigation pursuant to this contract, venue shall lie in Travis County, Texas.
WITNESS OUR HANDS EFFECTIVE August 31, 2006.
Mr. Kyle Hayes, City Manager
City of Beaumont
Approved and accepted on behalf of the Office of Rural Community Affairs.
Charles S. (Charlie) Stone, Executiv Director
Office of Rural Community Affairs
This contract is not effective unless signed by the Executive Director of the Office of Rural Community
Affairs or by the Executive Director's authorized designee.
Page 14 of 14
EXHIBIT A
CONTRACT NUMBER DRS060004
PERFORMANCE STATEMENT
City of Beaumont
Contractor shall carry out the following activities in the target area identified in its 2006 Texas CDBG
Disaster Recovery Grant application to aid areas most impacted and distressed by Hurricane Rita. The
persons to benefit from the activities described in this Performance Statement must be receiving service or
a benefit from the use of the new or improved facilities and activities for the contract obligations to be
fulfilled. The Contractor shall ensure that the amount of funds expended for each activity described does
not exceed the amount specified for such activity in Exhibit B, Budget.
During Hurricane Rita, the central portion of Beaumont (populated by 26,247 persons) flooded
homes and businesses because the drainage system failed to function.
Flood and Drainage Facilities
Contractor shall utilize contract funds as a portion of the twenty-five percent (25%) match toward a
Hazard Mitigation Grant Program (HMGP) award from the Federal Emergency Management Agency
(FEMA) on behalf of Drainage District#6. The combined funds shall be utilized to excavate approximately
four hundred sixty-eight thousand one hundred fifty cubic yards (468,150 CY) of existing material; construct
forty three thousand three hundred twenty-five linear feet (43,325 I.f.) of drainage structure; utilize sixty-six
thousand eight hundred eighty cubic yards (66,880 CY) of cement stabilized base material; and forty-nine
thousand four hundred ninety-six (49,496) tons of#57 stone. The location of this activity is east along
Calder Street to Main Street, then north one block to Elizabeth Street and east along Elizabeth Street to the
Neches River. This activity will address repetitive flooding problems in a significantly populated area of
twenty-six thousand two hundred forty-seven (26,247) persons in Beaumont and will remove more than nine
hundred (900) homes on the National Flood Insurance Program (NFIP) repetitive loss listing.
These activities shall benefit twenty six thousand two hundred forty-seven (26,247) persons, of
which fourteen thousand eight hundred seventeen (14,817) or fifty-six percent (56%) are of low to moderate
income.
Planning / Project Delivery- Rita
Contractor shall ensure that the amount of the Office funds expended for all eligible project-related
"planning / project delivery" administration activities, including the required annual program compliance and
fiscal audit does not exceed the amount specified for Planning / Project Delivery— Rita in Exhibit B, Budget.
Page 1 of 1
EXHIBIT B
CONTRACT NUMBER DRS060004
BUDGET
City of Beaumont
CONTRACT OTHER
LINE CATEGORIES FUNDS FUNDS TOTAL
1 a. Water Facilities $ $ $
1 b. Sewer Facilities $ $ $
2. Solid Waste Disposal Facilities $ $ $
3. Other Public Utilities (Gas) $ $ $
4. Street Improvements $ $ $
5. Flood and Drainage Facilities $ 1,825,000 $ 23,015,178' $ 30,903,570
5a. Flood and Drainage— Debris Removal $ $ 6,063,3922 $
6. Neighborhood Facilities/ $ $ $
Community Centers
7. Senior Centers $ $ $
8. Centers for the Handicapped/ $ $ $
Sheltered Workshops
9. Parks, Playgrounds, and Other $ $ $
Recreational Facilities
10. Fire Protections Facilities $ $ $
and Equipment
11. Parking Facilities $ $ $
12. Pedestrian Malls and Walkways $ $ $
13. Specially Authorized Assistance $ $ $
to Privately Owned Utilities
14. Specially Authorized Public $ $ $
Facilities and Improvements
15. Public Services (LIMITED TO $ $ $
15% OF REQUEST)
16. Interim Assistance $ $ $
Page 1 of 3
CONTRACT OTHER
LINE CATEGORIES FUNDS FUNDS TOTAL
17. Rehabilitation of Private $ $ $
Properties (Housing)
17a. Rehabilitation of Private $ $ $
Properties (Water Service)
17b. Rehabilitation of Private $ $ $
Properties (Sewer Service)
17c. Rehabilitation — Housing $ $ $
Reconstruction
17d. Rehabilitation — Emergency Repairs $ $ $
18. Rehabilitation of Public $ $ $
Residential Structures
19. Public Housing Modernization $ $ $
19a. Homeownership Assistance $ $ $
19b. Affordable New Housing $ $ $
20. Clearance Demolition Activities $ $ $
21. Historic Preservation $ $ $
22. Removal of Architectural Barriers $ $ $
23. Code Enforcement $ $ $
24. Acquisition $ $ $
25. Relocation Payments & Assistance $ $ $
26. Economic Development Loan $ $ $
27. Economic Devel. Interest Subsidy $ $ $
28. Economic Devel. Loan Guarantee $ $ $
29. Special Activities by Local Devel $ $ $
Corporations, Etc.
30. Engineering/Architectural Serv. $ - 0 - $ 650,000' $ 650,000
(Total for all construction accounts)
31. Planning & Urban Env. Design $ $ $
(NOT TO EXCEED 16%)
31 a. COG Planning' - Rita $
Page 2 of 3
LINE CATEGORIES CONTRACT OTHER FUNDS FUNDS TOTAL
31 a. COG Planning - Rita $ $ $
32. General Administration $ $ $
32a, COG Administration- Rita $ $ $
33. Planning/ Project Delivery— Rita $ 125,000 $ 300,0002 $ 425,000
TOTALS $ 1,950,000 $ 30,028,570 $ 31,978,570
HMGP-FEMA Match total of: $23,665,178.00
z City of Beaumont Match total of: $6,363,392.00
Page 3 of 3
EXHIBIT C
PROJECT IMPLEMENTATION SCHEDULE
CITY OF BEAUMONT
Activity: Flood/Drainage 1 2 3 4 5 6 71 81 9 10 11112113 14 15116117 18 19120121 22 23 24
Procurement of Professional Services X
Environmental Review X X
Plans & Specifications X X
Clearance of Special Conditions X X X
Wage Rate Request/Decision/10-Day Call X X
Bid Advertisement/Contract Award X
Construction X X X X X X X X X X X
Interim & Final Inspections X X X X X X X X X X X
General Administration X X X X X X X X X X X X X X X X X X X X X X X X
Audit & Close-out X X X X
CONTRACT START DATE CONTRACT ENDING DATE
August 31, 2006 August 30, 2008
Page 1 of 1
EXHIBIT D
THE APPLICABLE LAWS AND REGULATIONS
The Contractor shall comply with the Act and Regulations specified in Section 3 of this contract and with the
OMB Circular and federal regulations specified in Section 6 of this contract; Cash Management Improvement
Act regulations (31 C.F.R. Part 205); and with all other federal, state, and local laws and regulations applicable
to the activities and performances rendered by the Contractor under this contract including but not limited to the
laws, and the regulations promulgated thereunder specified in Section I through VII of this Exhibit D.
I. CIVIL RIGHTS
Title VI of the Civil Rights Act of 1964, (42 U.S.C. Section 2000d et seq.); 24 C.F.R. Part I, "Nondiscrimination in
Federally Assisted Programs of the Department of Housing and Urban Development - Effectuation of Title VI of
the Civil Rights Act of 1964";
Title VIII of the Civil Rights Act of 1968, "The Fair Housing Act of 1968" (42 U.S.C. Sec 3601 et seq.), as
amended;
Executive Order 11063, as amended by Executive Order 12259, and 24 C. F.R. Part 107, "Nondiscrimination
and Equal Opportunity in Housing under Executive Order 11063". The failure or refusal of the Contractor to
comply with the requirements of Executive Order 11063 or 24 C.F.R. Part 107 shall be a proper basis for the
imposition of sanctions specified in 24 C.F.R. 107.60;
The Age Discrimination Act of 1975 (42 U.S.C. Sec. 6101 et seq.);
Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Sec. 794.) and "Nondiscrimination Based on Handicap
in Federally-Assisted Programs and Activities of the Department of Housing and Urban Development", 24
C.F.R. Part 8. By signing this contract, the Contractor understands and agrees that the activities funded shall
be operated in accordance with 24 C.F.R. Part 8; and the Architectural Barriers Act of 1968 (42 U.S.C. Sec.
4151 et seq.), including the use of a telecommunications device for deaf persons (TDDs) or equally effective
communication system.
Il. LABOR STANDARDS
The Davis-Bacon Act, as amended (40 U.S.C. Secs. 276a - 276a-5);
The Contract Work Hours & Safety Standards Act (40 U.S.C. 327 et seq.);
The Copeland "Anti-Kickback" Act (18 U.S.C. Sec. 874).
III. EMPLOYMENT OPPORTUNITIES
Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. Sec.1701 u).
IV. LEAD-BASED PAINT
Section 302 of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. Sec. 4831(b)) and the procedures
established by the Office thereunder.
Page 1 of 3
V. ENVIRONMENTAL LAW AND AUTHORITIES
Environmental Review Procedures for Recipients assuming HUD Environmental Responsibilities, 24 CFR
Part 58, as amended.
In accordance with the provisions of law cited in §58.1(b), the responsible entity must assume the
environmental responsibilities for projects under programs cited in §58.1(b), and in doing so must comply with
the provisions of the National Environmental Policy Act of 1969, as amended and the Council on
Environmental Quality regulations contained in 40 CFR parts 1500 through 1508. This includes responsibility
for compliance with the applicable provisions and requirements of the Federal laws and authorities specified
in §58.5 [below]. The responsible entity must certify that it has complied with the requirements that would
apply to HUD under these laws and authorities and must consider the criteria, standards, policies and
regulations of these laws and authorities.
(a) Historic Properties
(1) The National Historic Preservation Act of 1966 as amended (16 U.S.C. 470 et seq.), particularly
sections 106 and 110 (16 U.S.C. 470 and 470h-2), except as provided in §58.17 for Section 17
projects.
(2) Executive Order 11593, Protection and Enhancement of the Cultural Environment, May 13, 1971
(36 FR 8921), 3 CFR 1971-1975 Comp., p. 559, particularly section 2(c).
(3) Federal historic preservation regulations as follows:
(i) 36 CFR part 800 with respect to HUD programs other than Urban Development Action Grants
(UDAG) and
(ii) 36 CFR part 801 with respect to UDAG.
(4) The Reservoir Salvage Act of 1960 as amended by the Archeological and Historic Preservation Act
of 1974 (16 U.S.C. 469 et seq.), particularly section 3 (16 U.S.C. 469a-1).
(b) Flood lain management and wetland protection
(1) Executive Order 11988, Floodplain Management, May 24, 1977 (42 FR 26951), 3 CFR, 1977
Comp., p. 117, as interpreted in HUD regulations at 24 CFR part 55, particularly section 2(a) of the
order (For an explanation of the relationship between the decision-making process in 24 CFR part
55 and this part, see §55.10 of this subtitle A.)
(2) Executive Order 11990, Protection of Wetlands, May 24,1977 (42 FR 26961), 3 CFR, 1977 Comp.,
p. 121 particularly sections 2 and 5.
(c) Coastal Zone Management
(1) The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.), as amended, particularly
sections 307(c) and (d) (16 U.S.C. 1456(c) and (d)).
(d) Sole source aquifers
(1) The Safe Drinking Water Act of 1974 (42 U.S.C. 201, 300(f) et seq., and 21 U.S.C. 349) as
amended; particularly section 1424(e)(42 U.S.C. 300h-3(e).
(2) Sole Source Aquifers (Environmental Protection Agency-40 CFR part 149.)
Page 2 of 3
(e) Endangered species
(1) The Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) as amended, particularly section 7
(16 U.S.C. 1536)
(f) Wild and scenic rivers
(1) The Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1271 et seq.) as amended, particularly sections
7(b) and (c) (16 U.S.C. 1278(b) and (c)).
(g) Air quality
(1) The Clean Air Act (42 U.S.C. 7401 et seq. ) as amended, particularly sections 176(c) and (d) (42
U.S.C. 7506(c) and (d)).
(2) Determining Conformity of Federal Actions to State or Federal Implementation Plans
(Environmental Protection Agency-40 CFR parts 6, 51, and 93).
(h) Farmland protection
(1) Farmland Protection Policy Act of 1981 (7 U.S.C. 4201 et seq.) particularly sections 1540(b) and
1541 (7 U.S.C. 4201(b) and 4202).
(2) Farmland Protection Policy (Department of Agriculture-7 CFR part 658).
(i) HUD environmental standards
(1) Applicable criteria and standards specified in HUD environmental regulations (24 CFR part
51)(other than the runway clear zone and clear zone notification requirement in 24 CFR
51.303(a)(3)
(2) HUD Notice 79-33, Policy Guidance to Address the Problems Posed by Toxic Chemicals and
Radioactive Materials, September 10, 1979).
(j) Environmental justice
(1) Executive Order 12898 of February 11, 1994 --- Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations, (59 FR 7629), 3 CFR, 1994 Comp. p.
859.
(k) Other requirements
See 24 CFR Part 58.6.
VI. ACQUISITION/RELOCATION
i
The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. Sec. 4601 et
seq.), 24 C.F.R. Part 42, and 24 C.F.R. Section 570.606.
V11. FAITH-BASED ACTIVITIES
Executive Order 13279 of December 12, 2002 - Equal Protection of the Laws for Faith-Based and Community
Organizations, (67 FR 77141).
Page 3 of 3
EXHIBIT E
CERTIFICATIONS
WITH RESPECT TO THE EXPENDITURE OF FUNDS PROVIDED UNDER THIS CONTRACT BY THE aity
of Beaumont, THAT;
(1) IT WILL MINIMIZE DISPLACEMENT OF PERSONS AS A RESULT OF ACTIVITIES
ASSISTED WITH SUCH FUNDS;
(2) THE PROGRAM WILL BE CONDUCTED AND ADMINISTERED IN CONFORMITY WITH
THE CIVIL RIGHTS ACT OF 1964 (42 U.S.C. SEC. 2000a et seq.) AND THE FAIR HOUSING ACT
(42 U.S.C. SEC 3901 et seq.), AND THAT IT WILL AFFIRMATIVELY FURTHER FAIR HOUSING,
AS SPECIFIED BY THE OFFICE;
(3) IT WILL PROVIDE FOR OPPORTUNITIES FOR CITIZEN PARTICIPATION, HEARINGS
AND ACCESS TO INFORMATION WITH RESPECT TO ITS COMMUNITY DEVELOPMENT
PROGRAMS, AS SPECIFIED BY THE OFFICE;
(4) IT WILL NOT ATTEMPT TO RECOVER ANY CAPITAL COSTS OF PUBLIC IMPROVE-
MENTS ASSISTED IN WHOLE OR IN PART WITH SUCH FUNDS BY ASSESSING ANY AMOUNT
AGAINST PROPERTIES OWNED AND OCCUPIED BY PERSONS OF LOW AND MODERATE
INCOME, INCLUDING ANY FEE CHARGED OR ASSESSMENT MADE AS A CONDITION OF
OBTAINING ACCESS TO SUCH PUBLIC IMPROVEMENTS UNLESS (A) SUCH FUNDS ARE
USED TO PAY THE PROPORTION OF SUCH FEE OR ASSESSMENT THAT RELATED TO THE
CAPITAL COSTS OF SUCH PUBLIC IMPROVEMENTS THAT ARE FINANCED FROM REVENUE
SOURCES OTHER THAN SUCH FUNDS; OR (B) FOR PURPOSES OF ASSESSING ANY
AMOUNT AGAINST PROPERTIES OWNED AND OCCUPIED BY PERSONS OF MODERATE
INCOME, THE CONTRACTOR CERTIFIES THAT IT LACKS SUFFICIENT FUNDS UNDER THIS
CONTRACT TO COMPLY WITH THE REQUIREMENTS OF CLAUSE (A).
(5) IN THE EVENT THAT DISPLACEMENT OF RESIDENTIAL DWELLINGS WILL OCCUR IN
CONNECTION WITH A PROJECT ASSISTED WITH TxCDBG FUNDS, IT WILL FOLLOW A
RESIDENTIAL ANTI DISPLACEMENT AND RELOCATION ASSISTANCE PLAN, AS SPECIFIED
BY THE OFFICE.
(6) IT SHALL ADOPT AND ENFORCE A POLICY PROHIBITING THE USE OF EXCESSIVE
FORCE BY LAW ENFORCEMENT AGENCIES WITHIN ITS JURISDICTION AGAINST ANY
INDIVIDUAL ENGAGED IN NONVIOLENT CIVIL RIGHTS DEMONSTRATIONS AND A POLICY OF
ENFORCING APPLICABLE STATE AND LOCAL LAWS AGAINST PHYSICALLY BARRING
ENTRANCE TO OR EXIT FROM A FACILITY OR LOCATION WHICH IS THE SUBJECT OF SUCH
NONVIOLENT CIVIL RIGHTS DEMONSTRATION WITHIN ITS JURISDICTION.
Page 1 of 2
CERTIFICATION REGARDING LOBBYING FOR
CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS
City of Beaumont
CERTIFIES, TO THE BEST OF ITS KNOWLEDGE AND BELIEF, THAT:
(1) NO FEDERAL APPROPRIATED FUNDS HAVE BEEN PAID OR WILL BE PAID, BY OR ON
BEHALF OF THE UNDERSIGNED, TO ANY PERSON FOR INFLUENCING OR ATTEMPTING TO
INFLUENCE AN OFFICER OR EMPLOYEE OF AN 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.
(2) 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, THE UNDERSIGNED SHALL COMPLETE AND SUBMIT STANDARD FORM - LLL,
"DISCLOSURE FORM TO REPORT LOBBYING", IN ACCORDANCE WITH ITS INSTRUCTIONS.
(3) THE UNDERSIGNED SHALL REQUIRE THAT THE LANGUAGE OF THIS CERTIFICATION
BE INCLUDED IN THE AWARD DOCUMENTS FOR ALL SUBAWARDS AT ALL TIERS
(INCLUDING SUBCONTRACTS, SUBGRANTS, AND CONTRACTS UNDER GRANTS, LOANS,
AND COOPERATIVE AGREEMENTS) AND THAT ALL SUBRECIPIENTS SHALL CERTIFY AND
DISCLOSE ACCORDINGLY.
THIS CERTIFICATION IS A MATERIAL REPRESENTATION OF FACT 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 NOT MORE THAN
$100,000 FOR EACH SUCH FAILURE.
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