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Home My WebLink About1994-068 G--- - RESOLUTION NO. 94-68 1 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE THE APPROVAL AND AWARD OF GRANT NO. 07-49-02680 3 FROM THE ECONOMIC DEVELOPMENT ADMINISTRATION FOR CONSTRUCTION OF WATER, SEWER AND ROAD IMPROVEMENTS WITHIN NORTON A.F.B. 4 5 6 7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Mayor of the City of San Bernardino is hereby authorized and directed to execute the Approval and Award 8 of Grant No. 07-49-02680 from the Economic Development 9 Administration for construction of water, sewer, and road 10 improvements within Norton A.F.B. 11 IIII 12 I I I I 13 I I I I 14 I I I I 15 I I / / 16 / I I / 17 I I I I 18 I I I / 19 I I I / 20 / / / I 21 / / / / 22 / I I I 23 I I / I 24 I I I I 25 IIII 26 / / I I 27 / / / I 28 / / I I 2/16/94 RESO: AUTHORIZING MAYOR TO EXECUTE APPROVAL AND AWARD OF GRANT NO. 07-49-02680. ,...91.1 68 1 I HEREBY CERTIFY that the foregoing resolution was duly 2 adopted by 3 4 5 the Hayor and Common Council of the Ci ty of San Bernardino at a rpgnliir meeting thereof, held on the :/1 "..day of_ M.::ar,...h , 1994, by the following vote, to-wit: Council Members: AYES NAYS ABSTAIN ABSENT 6 NEGRETE 7 CURLIN 8 HERNANDEZ 9 OBERHELMAN 10 DEVLIN 11 POPE-LUDI,AM 12 MILLER 13 14 15 x _.lL_ y y _-X._ y y C;? ~ 0L C L It, '-f>____ Ra~l Clark, City Clerk The foregoing resolution is hereby approved this 22nd //;// ~ ,~ Tom Minor, Mayor Ci ty of San Bernardino 9~, 68 TO: Inland Valley Development Agency Board :\fembers DA TE: March 9, 1994 SUBJECT: ADOPT THE RESOLUTION APPROVING THE AWARD OF THE GRANT AND THE SPECIAL AND GEJIi"ERAL TElli\oIS AND CONDITIONS RECOMMENDED ACTION: Adopt Resolution approving the award of the EDA Grant and the Special and General Terms and Conditions and authorize the Executive Director to execute the Special Terms and Conditions for the EDA Grant. uJ( Q()PDv<L C-i..h, 6>u~,/ 6-1-) a1f~ BACKGROUND AND COMMENTS As you are aware, we received approval for the award of an EDA Gram in the amount of S6,825,000 for the TippecanoeJDel Rosa Road Project. We are also contributing $2,275,000 towards this project for a total project amount of$9, 100,000. As a condition of this grant award, both the IVDA and the City of San Bernardino must execute the attached Special Terms and Conditions. The City of San Bernardino will be approving execution of this document at their regularly scheduled council meeting of March 21,1994. r.d1".olg<:nda\O;1099.f,ecbgnnl.doc ITDl NO,~ 94 68 STAFF MEMORANDUM TO: Members of the Board of the Inland Valley Development Agency Edward W. pilot FROM: DATE: March 2, 1994 RE: RESOLUTION OF THE INLAND VALLEY DEVELOPMENT AGENCY APPROVING THE AWARD OF THE UNITED STATES DEPARTMENT OF COMMERCE, ECONOMIC DEVELOPMENT ADMINISTRATION TITLE IX SSED GRANT AND THE SPECIAL AND GENERAL TERMS AND CONDITIONS RELATED THERETO BACKGROUND The Inland Valley Development Agency ("Agency") is a Joint Powers Authority created pursuant to Government Code Section 6500, et sea. and Health and Safety Code Section 33320.5, for the purposes of acquiring and reusing certain Norton Air Force Base properties if and when available for acquisition. section 4.02 of the Amended Joint Exercise of Powers Agreement authorizes the Agency to apply for, receive and utilize grants and loans from federal or state government or any other source. The United States Department of Commerce, Economic Development Administration ("EDA") has awarded the Agency and the city of San Bernardino ("city") an approximately $6,825,000 Title IX SSED Grant ("Grant") to fund a portion of the design, construction and implementation of certain roadway, highway, water main, booster pump, replacement wells and other utility infrastructure improvements presently estimated to cost approximately $9,100,000 ("Proposed Infrastructure Improvements") for which the Agency will be required to obtain approximately $2,275,000 from other funding sources to complete the Proposed Infrastructure Improvements. The award of the Grant is made subject to the Agency and the city's approval of the Special and General Terms and Conditions related to the Grant. The City and the Agency must provide the EDA with written approval by March 25, 1994. -1- 94" 68 Page 2 The special and General Terms and Conditions currently require the Agency and the City to among other things: (i) provide satisfactory evidence that the requirements of the Comprehensive Environmental Response, compensation and Liability Act of 1980, as amended by the community Environmental Response Facilitation Act of 1992 have been met and any resultant applicable mitigation be incorporated into the conditions; and (ii) agree that any facility to be utilized in the accomplishment of this Project is not listed on the Environmental Protection Agency's List of violating Facilities. However, in light of the fact that the united states Air Force has caused hazardous waste conditions on the Property and that the Property has been designated as a National priorities List Site, neither the Agency nor the city appears to be in a position to make the above representations. Therefore, provided that the EDA agrees to delete or otherwise modify such terms and conditions in accordance with the Addenda to the Special and General Terms and Conditions, it will be appropriate to adopt this Resolution so that the Agency and the City can avail themselves of the benefits of the Grant. RECOMMENDATION Provided that the EDA agrees to delete or otherwise modify the Special and General Terms and conditions as set forth above, it is recommended that the Board of the Agency adopt the Resolution approving the Award of the Grant and the Special and General Terms and Conditions Related Thereto and authorizing the Executive Director to execute the same with any such changes as may be approved by the Executive Director and Agency Counsel. CSBO/OC06/DOC1216A lllJ94U5 -2- 9s\ 68 RESOLUTION NO. RESOLUTION OF THE INLAND VALLEY DEVELOPMENT AGENCY APPROVING THE AWARD OF THE UNITED STATES DEPARTMENT OF COMMERCE, ECONOMIC DEVELOPMENT ADMINISTRATION TITLE IX SSED GRANT AND THE SPECIAL AND GENERAL TERMS AND CONDITIONS RELATED THERETO WHEREAS, the Inland Valley Development Agency ("IVDA") was established by the legislative bodies of the County of San Bernardino, the City of San Bernardino ("city"), a charter ci ty, the City of Loma Linda, a charter city, and the city of Colton, a general law city ("Members"); and WHEREAS, on January 24, 1990, a certain Joint Exercise of Powers Agreement became effective in which is set forth the purposes and powers of the IVDA in connection with the adoption of a redevelopment plan and the acquisition of certain Norton Air Force Base ("NAFB") properties if and when available for acquisition; and WHEREAS, on February 12, 1990 and February 13, 1990, the Members approved and authorized the execution of a certain Amended Joint Exercise of Powers Agreement ("Amended Agreement") which amended and superseded the Joint Exercise of Powers Agreement; and WHEREAS, section 4.02 of the Amended Agreement authorizes the IVDA to apply for, receive and utilize grants and loans from federal or state government or any other source; and - 1 - I 9~ 68 WHEREAS, the IVDA and the city have completed the formal application process with the united states Department of Commerce, Economic Development Administration ("EDA"), for the issuance of an approximately $6,825,000 Title IX SSED Grant ("Grant") to fund a portion of the design, construction and implementation of certain roadway, highway, water main, booster p~p, replacement wells and other utility infrastructure improvements presently estimated to cost approximately $9,100,000 ("Proposed Infrastructure Improvements") for which the IVDA will be required to obtain approximately $2,275,000 from other funding sources to complete the proposed Infrastructure Improvements; and WHEREAS, the EDA has awarded the IVDA and the city the Grant to fund a portion of the Proposed Infrastructure Improvements, subject to the IVDA and the City's approval of the Special and General Terms and Conditions related to the Grant; and WHEREAS, the IVDA deems it appropriate to approve the Award of the Grant and the Special and General Terms and conditions related thereto in the form attached hereto as Exhibit "A" and incorporated herein by this reference. NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE INLAND VALLEY DEVELOPMENT AGENCY, AS FOLLOWS: section 1. The IVDA hereby approves the Award of the Grant and the Special and General Terms and Conditions related - 2 - ,---- 9~ 68 thereto in the form attached hereto as Exhibit "A" and incorporated herein by this reference. section 2. The Executive Director of the IVDA is hereby authorized and directed to execute the Award of the Grant and the Special and General Terms and Conditions related thereto on behalf of the IVDA with any such changes as may be approved by the Executive Director and counsel for the IVDA. - 3 - 9 s\ 68 EXHIBIT "A" APPROVAL AND AWARD OF GRANT AND SPECIAL AND GENERAL CONDITIONS RELATED THERETO 9,1 68 U.S. DEPARTMENT OF COMMERCE ECONOMIC DEVELOPMENT ADMINISTRATION Approval and Award of Grant for Sudden and Severe Economic Dislocation Defense Adjustment Implementation Project No. 07-49-02680 The Regional Director, Denver Regional Office of the Economic Development Administration, acting pursuant to the authority provided by Title IX, section 903 of the amended Public Works and Economic Development Act of 1965 (Act), hereby approves and awards to the City of San Bernardino and the Inland Valley Development Agency, a grant subject to the terms, conditions, and limitations as set forth herein and in the attached Special Terms and Conditions and General Terms and Conditions. This assistance is approved and awarded to enable the Recipient to carry out the objectives of the Act by implementing a comprehensive economic adjustment program to address an actual or threatened economic dislocation or other adjustment problem for the area(s). It does not commit the Economic Development Administration (Grantor) to approve requests for any additional funds. The maximum amount of grant assistance hereby awarded is $6,825,000 or seventy-five (75) percent of the total project cost, whichever is less. Funds will be made available for the Recipient's eligible expenses in accord with the attached Special Terms and Conditions and General Terms and Conditions. This Approval and Award of Grant, subject to the Special Terms and Conditions and General Terms and Conditions shall constitute an obligation to make a grant. Such obligation must be terminated without further cause, if the Recipient fails to sign and return to the Grantor within forty-five (45) days of approval by the Regional Director, its affirmation of intent as set forth below. Dated this /,J--! day of };A~,,-,..y ,199M. / I .'tJ~Q~~ steven R. Brennen Regional Director Denver Regional Office Economic Development Administration 94 68 -2- The Recipient hereby affirms that it intends to use the grant award in accordance with the terms and conditions as above referenced. Dated this day of I 19911. citv of San Bernardino Name of Recipient BY:~~ To~ (Signature and Printed ilinor Name) Mayor (Title of Affirming Official) Inland Vallev Develooment Aaencv Name of Recipient By: (Signature and Printed Name) (Title of Affirming Official)___ CERTIFICATION (By Official other Than Affirming Official) The person signing this affirmation is Governing Body or Board of Recipient ) . , " t.d ',",,\ ,'-"4dl(, \.. )-.{,~. I<- (Signature-City of San Bernardino so authorized by the City Clerk (Title of certifying Official) Rachel Clark (Printed Name) (Date) (Signature-Inland Valley Development Agency (Title of Certifying Official) (Printed Name) (Date) 9t 68 U.S. DEPARTMENT OF COMMERCE ECONOMIC DEVELOPMENT ADMINISTRATION SPECIAL TERMS AND CONDITIONS For Economic Adjustment Assistance Grant under Title IX, section 903 of the Public Works and Economic Development Act of 1965, as amended. Award No. 07-49-02680 TITLE: Title IX Sudden and Severe Economic Dislocation Defense Adjustment Implementation Grant to Construct Water, Sewer, and Road Improvements Located within Norton Air Force Base RECIPIENT: City of San Bernardino and Inland Valley Development Agency GRANT ADMINISTRATOR: Steven R. Brennen, Regional Director Denver Regional Office u.s. Department of Commerce Economic Development Administration 1244 Speer Boulevard Room 670 Denver, Colorado 80204 I. TOTAL AUTHORIZED BUDGET: Federal Cash Contribution Grantee Contribution Total Authorized Budget $6,825,000 2.275.000 $9,100,000 (75%) (25%) 9J 68 special Terms/conditions city of San Bernardino and Inland valley Development Agency San Bernardino, California Award No. 07-49-02680 Page 2 of 8 II. DETAILED BUDGET CATEGORIES: Budaet Cateaories Federal Cash Grantee Share Cash Total 1- Administrative and Legal expenses $ 3,750 $ 1,250 $ 5,000 2. Land, structures, rights-of-way, appraisals, etc 75,000 25,000 100,000 3. Relocation expenses 6,000 2,000 8,000 and payments 4. Architectural and engineering fees 197,000 66,000 263,000 5. Other architectural and engineering fees 18,750 6,250 25,000 6. Project Inspection Fees 281,250 93,750 375,000 7. Demolition and removal 7,500 2,500 10,000 8. Construction 5,973,250 1,990,750 7,964,000 9. contingencies 262.500 87.500 350.000 TOTAL AUTHORIZED BUDGET $6,825,000 $2,275,000 $9,100,000 9J 68 special Terms/conditions City of San Bernardino and Inland Valley Development Agency San Bernardino, California Award No. 07-49-02680 Page J of 8 III. ADDITIONAL TERMS A. PROJECT DEVELOPMENT TIME SCHEDULE: The Grantee agrees to the following project development time schedule: Time allowed after Grantee affirmation of grant award for: Completion of Final Plans and Specifications. 90 days start of Construction.........................210 days Construction Period.......................... 9 months Project Closeout - All project closeout documents including final financial information and any required program reports shall be submitted to the Government not more than ninety days after the date the Grantee accepts the completed project from the contractor(s). The Grantee shall pursue diligently the development of the project so as to ensure completion of the project and submission of closeout documents within this time schedule. Moreover, the Grantee shall notify the Government in writing of any event which could delay substantially the achievement of the project within prescribed time limits. The Grantee further acknowledges that failure to meet the development time schedule may result in the Government's taking action to terminate the grant in accordance with the regulations set forth at 13 CFR J05.99(b) and 15 CFR 24.43 (53 Fed. Rea. 8048-9, 8102, March 11, 1988). B. GOALS FOR WOMEN AND MINORITIES IN CONSTRUCTION: Department of Labor requirements set forth in 41 CFR 60-4 establish goals and timetables for participation of minorities and women in the construction industry. These regulations apply to all Federally assisted construction contracts in excess of $10,000. The Grantee shall comply with these regulations and shall obtain compliance with 41 CFR 60-4 from contractors and subcontractors employed in the completion of this project by including such notices, clauses and provisions in the Solicitations for Offers or Bids as 94 68 Special Terms/conditions City of San Bernardino and Inland valley Development Agency San Bernardino, California Award No. 07-49-02680 Page 4 of 8 required by 41 CFR 60-4. The goal for the participa- tion of women in each trade area shall be as follows: From April 1, 1981, until further notice: 6.9 percent Al'l changes to this goal, as published in the Federal Reaister in accordance with the Office of Federal Contract Compliance Programs regulations at 41 CFR 60-4.6, or any other successor regulations, shall hereafter be incorporated by reference into these Special Terms and Conditions. Goals for minority participation shall be as prescribed by Appendix B-80, Federal Reaister, Volume 45, No. 194, October 3, 1980, or subsequent publications. The Grantee shall include the "Standard Federal Equal Opportunity Construction Contract specifications" (or cause them to be included, if appropriate) in all Federally assisted contracts and subcontracts of this project. The goals and timetables for minority and female participation may not be less than those published pursuant to 41 CFR 60-4.6. C. DRUG-FREE WORKPLACE ACT: The Grantee understands that it is subject to the Drug-Free Workplace Act of 1988, P.L. 100-690, Title V, subtitle D and 15 CFR Part 26 (55 FR 21678, May 25, 1990) for projects approved on or after March 18, 1989. D. DOC COMMON RULE: On March 11, 1988, the Department of Commerce published regulations, (15 CFR Part 24) 53 Fed. Rea. 8048, 8087-8103, effective October 1, 1988, prescribing requirements previously prescribed pursuant to Office of Management and Budget (OMB) Circular A- 102. Any reference, therefore, to OMB Circular A-102 contained in these Special Conditions or in the General Terms and Conditions of the Grant Agreement, means Department of Commerce Regulation at 15 CFR Part 24. E. NEW RESTRICTIONS ON LOBBYING: This grant is subject to section 319 of Public Law 101-121, which added section 1352, regarding lobbying restrictions, to chapter 13 of Title 31 of the united States Code. The new section is explained by the U.S. Department of Commerce in an "Interim Final Rule," 15 CFR, Part 28 (55 FR 6736-6748, 2/26/90). The Grantee and subrecipients are generally prohibited from using Federal funds for lobbying the 9<'1 68 special Terms/Conditions city of San Bernardino and Inland Valley Development Agency San Bernardino, California Award No. 07-49-02680 Page 5 of 8 Executive or Legislative Branches of the Federal Government in connection with this grant. The Grantee shall require each person who requests or receives from the Grantee a subgrant, contract, or subcontract exceeding $100,000 at any tier under this grant, to file a "certification Regarding Lobbying" and, if applicable, a "Disclosure of Lobbying Activities" form regarding the use of any non federal funds for lobbying. Certifications shall be retained by the next higher tier. All disclosure forms, however, shall be forwarded from tier to tier until received by the Grantee,' who shall forward all disclosure forms to, the Government. (Blank certification and disclosure forms will be supplied by the Government upon request.) The Grantee shall file and shall further require each subgrantee, contractor, or subcontractor that' is subject to the subrecipient Certification and Disclosure provision of this Special Condition to file a disclosure form at the end of each calendar quarter in which there occurs any event that requires disclosure or that materially affects the accuracy of the information contained in any disclosure form previously filed by such person. Disclosure forms shall be handled as described above. An Indian tribe or organization that is seeking an exemption from certification and Disclosure requirements must provide EDA with an attorney's opinion citing the provision or provisions of "other Federal law" upon which it relies to conduct lobbying activities that would otherwise be subject to the prohibitions in and to the certification and Disclosure requirements of section 319 of Public Law No. 101-121. 9J f8 special Terms/Conditions City of San Bernardino and Inland Valley Development Agency San Bernardino, California Award No. 07-49-02680 Page 6 of 8 F. DISCLOSURE OF FEDERAL PARTICIPATION: In compliance with section 623 of Public Law 102-393, no amount of this award shall be used to finance the acquisition of goods or services (including construction services) for the project unless the recipient agrees to: (1) specify in any announcement of the awarding of the contract for the procurement of the goods and services involved (including construction services) the amount of Federal funds that will be used to finance the acquisition; and (2) express the amount announced pursuant to paragraph (1) as a percentage of the total cost of the planned acquisition. The foregoing requirements shall not apply to a procurement for goods or services (including construc- tion services that have an aggregate value of less than $500,000. G. PROHIBITION OF ATTORNEYS' AND CONSULTANTS' FEES The Grantee hereby agrees that no funds made available from this Award shall be used, directly or indirectly, for paying attorneys' or consultants' fees in connection with securing awards made by the Government, such as, for example, preparing the application for this assistance. However, attorneys' or consultants' fees incurred for meeting Award requirements, such as, for example, conducting a title search or preparing plans and specifications, may be eligible Project costs and may be paid out of the funds made available from this Award, provided such costs are otherwise eligible. H. TITLE: Prior to the disbursement of funds by EDA, the Grantee shall provide evidence satisfactory to the Government that the Grantee has acquired good and merchantable title, free of all mortgages or other foreclosable liens, to all land, rights-of-way and easements necessary for the completion of the project. I. GRANTEE AFFIRMATION OF AWARD: This Approval and Award of Grant, subject to the other speciai'Conditionsand the General Terms and Conditions, shall constitute an obligation to make such Award. If the Grantee fails to affirm its intention to use the Award in accordance with the terms and conditions of this Approval and 9 ' " ,:<:- 68 Special Terms/conditions city of San Bernardino and Inland Valley Development Agency San Bernardino, California Award No. 07-49-02680 Page 7 of 8 Award of Grant, it will be terminated without further cause. By signing and returning one of the original Approval and Award of Grant documents within 45 calendar days from the date of approval by the Assistant Secretary, the Grantee hereby affirms that it intends to use the Award in accordance with the terms and conditions as above-referenced. J. EXPIRATION OF AVAILABILITY OF GRANT FUNDS: This Award is subject to Public Law 101-510, enacted November 5, 1990, Section 1405, amending Subchapter IV of chapter 15, title 31, United States Code, which prescribes the rules for determining the availability of appropriations. Accordingly, the grant funds obligated for this Project will expire in five years from the fiscal year of the grant award. This requires that the Project be physically and financially complete by September 30, 1998. K. ARCHITECT/ENGINEER AGREEMENT: Prior to the disbursement of funds by EDA, the Grantee shall submit to the Government for approval an archirtect/engineer agreement that meets the requirements of Section I of the EDA publication, "Requirements for Approved Projects," as well as the competitive procurement standards of Department of Commerce Regulations at 15 CFR 24.36 or OMB Circular A-110, as applicable. The fee for basic architect/engineering services shall be a lump sum or an agreed maximum and no part of the fees for other services shall be based on a cost-plus-a- percentage-of-cost or cost using a multiplier. L. AUDIT REQUIREMENTS: The Grantee is subject to the requirements of the Office of Management and Budget (OMB) Circular A-128 "Audits of state and Local Government," or OMS Circular A-133 "Audits of Institutions of Higher Education and Other Nonprofit Institutions," and of the Department of Commerce regulations issued pursuant thereto at 15 CFR 8a, 29a and 29b. N. NONRELOCATION - INDUSTRIAL SITE: It has been determined that the proposed Project facilities involve the construction of an areawide utility system. The Recipient acknowledges its responsibility for determining that all employers which use or are projected to use greater than ten percent (10%) of the increased capacity of the areawide utility system 9tJ 68 special Terms/Conditions city of San Bernardino and Inland Valley Development Agency San Bernardino, California Award No. 07-49-02680 Page 8 of 8 provided by this Project are in compliance with EDA's Nonrelocation Regulation as set forth in 13 CFR 309.3. This nonrelocation restriction is in effect for the forty-eight (48) month period following Award approval. The Recipient further acknowledges its responsibility for obtaining properly executed certificates of Nonrelocation from said employers. If any of the employers are found to be in violation of EDA's Nonrelocation Regulation as set forth in 13 CFR 309.3 and the Recipient has not previously obtained a properly executed Nonrelocation certificate from same, the Government will terminate the Award for cause and demand repayment of the full amount of this Award, plus interest, all as is more fully set forth in 13 CFR 309.3. O. ENVIRONMENTAL REQUIREMENTS (SE ADDENDUH) p-~....."':" ~..... ~....~-- ......~ _....,..,<""-....~~--.:......... -....~.'......... ..:--.... ---~.-:._-u- of t~- r-......:o~+ ei~Q ny nppn nr l~?s~. the Recinient shall pJ!"8....i~~ ":',....;~-,............. ~~_~~~~..................:1' ......... """"t"'!l 'Co:;-.;,...,,..,'::!' ~R......:_......,..,~t"'\,"+-~'i~+ +-,.,~+- +no ","o'l',i-o'Y"u:t.l""l+-C: r"'I-r +'ho T ...' . - w' ~..L.. ., ",,--r--........ ,...-----~Ll-.: i9R, ilRa ~:~Li::ty ~e~ sf :~:g (~E~....T~), ~~ ----~-~ ~~ -~- ~elibl'11t;lPii -:" t:'....ui _n",rno....+:::I 1 ~oc::pn."c::o 'P~("'i 1 ; +-:::1+; Ii'" ~~+- ,..d:: 1~92 (~:i~F]) \o,Al'U'~ l-.__.... ~<:'- aR8. :'R:. !"8~"1"-"""" ~;:~'i""":3l-\'e mi~~~a~~SR ~g ':M~--:-~r~+~~ .:....+-..... ...~O~...... :.....~_.. ---~.:-.:_-~. 9 1,\ 68 u. S. DEPARTNENT OF CO~r.ofERCE ECONO~IIC DEVELOP~IENT ADmNISTRATION GENERAL TER~!S AND CONDITIONS FOR CONSTRUCTION COMPONENTS OF TITLE IX IMPLEMENTATION GRANTS MARCH 1987 9 LI 68 - 3 - {4) The contr~ctor will cOffi?ly wit~ ~ll provisions of Executive Order No. 11246 of ' September 24, 1965, and of the rules, regulations, and relevant orders, and amendments of the foregoing, of the Secretary of Labor. (5) The, contractor will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965,-and by the rules, regulations and orders, and amendments of the foregoing, of the Secretary'of Labor, and will permit accesS to his books, records, and accounts by the Government and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders. " (6) , In the event of the contractor's non- compliance with the nondiscrimination clauses of this coritract or.with any of such rules, regulations, or orderi; this contract may be cancelled, termin~ted or suspended ,in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. l1246 of septem~r 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of september 24, 1965, or by rules, regul~tions, orders, and amendments of the foregoing, of ~~e Secretary of Labor, or as otherwise provided by la~. '(7) The contractor will include the provisions of paragraph (1) through (6) in every -subcontract or purchase order unless exempted,by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order ~o. 11246 of September 24, 1965, so that such, provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order ~s the Government may ,direct as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, that in the event that the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Gover~ment, the contractor cay request the united States to enter into such litigation to protect the interest of the united States.' 9,,1 68 - 2 - The Grante~ ~ill incorporate or cause to be incoro;rated into any contract for construction work, or mOdificatio,i-0:::l1ereof, as defined in"the--rules a~,d regulations of the presidiib2;r , Committee on Equal Opportunity, ....hich is paid for.~~h9le or in part \o{ith funds obtained from the Federal Governme,!1t 'or borro....er on the credit of the Federal Government ~~?iua~i to a grant, contract, loan, insurance or guarantee, or-undertaken, pursuant to any Federal program involving such grant, contract, loan, insurance S:H guarantee, the following equal opportunity clause,: ", ' :: " "During the performance of this contract', the contractor agrees as follo....s: ., (1) The contractor ....ill not discri",inate acainst, any employee or applicant for employment'oecause"of race, color, religion, sex, or national origin. The contractor ....ill take affirmative action to enSUre that applicants are employed, and that employees,are treated during employment, ....ithout regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the, following: employmen t, upg r ad ing, demot ion, or ". transfer/ recruitment or recruitment advertising; layoff or termination; rates of payor other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous 'places, available to employees and applicants for employment, notices to ,De provided by the contracting officer setting forth the provisions of this nondiscrimination clause. .~ - (2) The contractor ....ill, in all solicitations advertisements for employees placed'by or on behalf the contractor, state that all qualified applicants ....ill receive consideration for employment without regard to race, color, religion, 'sex 'or national origin. . or of , (3) The contractor ....ill send to each labor union or representative or ....orkers with ....hich he has a colle~tive bargaining agreement or other contract or understanding, a notice to be prodded by the asency contractinc officer, advisinc the labor union or ~orkers' r~~resentative of t~e co~trcctor's commitment under section 202 of Executive Order No. l1246 of Septem~r 24, 1965, and shall post copies of the notices in conspicuous places available to employees and applica~t5 for employme~~. 9~ 68 - 4 - The Grau~ee further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in Federally assisted (construction) work: Provided that if the Grantee so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentali~y or subdivision of such oovernment which does not participate in work';n or under the con~ract. The Gran~ee agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the co~?liance of contractors and subcontractors with the equal opportunity clause and the rules, regula~ions, and relevant orders of the Government that it will furnish the Government such information as they may require for the supervision of such compliance, end that it will otherwise assist the Government in the discharge of its primary responsibility for securing compliance._ The Grantee further agrees that it will refrain =rom entering into any contract or contract modification subject to Executive Order l1246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and Federally assisted construction contracts pursuant to the Executive Order and will carry. out such sanctions and penalties for violation of the Equal Opportunity clause as may be imposed upon contractors and subcontractors by the administering ag~ncy or the Secretary of Labor pursuant to Part,II, Subpart D of the Executive Order. In addition, the Grantee agrees that if it fails or refuses to comply with these undertakings the Government may take any or all of the following actions: cancel, terminate, or suspend in whole or in part this grant; refrain from extending any further assistance to the Grantee under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been received from such Grantee; and refer the case to the Department of Justice for appropriate legal proceedings. e. Prior to advertising for bids on the construction of the ?:oject, the Grantee ~ill submit a ~Certifi- cation of Nonsegregated Facilities" as required by the 9' q- 6{1, - 5 - ~lay 9,1967, order (32 F.R. 7439, May 19,1967) on Elimina~ion of Segregated Facilities, by the Secretary of Labor, agreeing to provide prospective construction contractors on the Project with the following notice: "NOTICE TO ,PROSPECTIVE FEDEAALLY ASSISTED CONSTRUCTION CONTRACTORS A certification of ~onsegregated Facilities, as required):>y the Hay 9,1967, order (32 F.R. 7439, May 19, 1967) on Elimination of Segregated Facilities by the Secretary of Labor, must be submitted prior to the award of a Federally assisted construction contract exceeding $10,000 which is not exempt from the provisions of the Equal Opportunity clause. Contractors receiving Federal assisted construction contract awards exceeding $10,000 which are not exemot from the provisions of the Equal Opportunity clause will be required to provide for the forwarding of the- following notice to prospective subcontractors for supplies and construction contracts where the subcontracts exceed $10,000 and are not exempt from the provisions of the Equal Opportunity clause: NOTICE TO PROSPECTIVE SU8CONTRACTORS OF REQUIREMENT FOR CERTIFICATIONS OF, NONSEGREGATED FACILITIE? ' A certification of Nonsegregated Facilities, as required by the Hay 9, 1967, order (32 F.R. 7439, May 19, 1967) on Elimination of Segregated Facilities by the Secretary of Labor, must be submitted prior to the award of a subcontract exceeding SlO,OOO which is not exempt from the provisions of the Equal Opportunity clause. ' Contractors receiving subcontract awards exceeding $10,000 which are not exempt from the provisions of the Equal Opportunity clause _ill be required to provide for the forwarding of this notice to prospective subcontractors for supplies and construction contracts where the sujcontracts exceed $10,000 and are not exempt from the provisions of the Equal Opportunity clause." 9 " L} fa - 6 - f. If the Project includes se~er or other ~aste disposal facilities, no Government funds ~ill be disbursed unless the Environmental Protection Agency issues a certificate as required by Section 106, P. L. 89-136. g. The Grantee shall file the certification and agreements required by Section 711, P.L. 89-136, as amended, 13 CFR 30~;7, as amended. h. Public La~ 90-480, as amended, and the regulations iss~ed thereunder (13 CFR 309.14), prescribing standards for the design and construction of any building or facility intended to be accessible to the public or which may result in the' employment of handicapped persons therein. i. No person in the United States shall on the ground of sex be excluded from participating in, be denied the benefits of, or be otherwise subject to discrimination ,in connection ~ith this Project (Section 112 of P.L. 92-65, amended; 13 CFR Part 311). j. Pursuant to Section 504 of the Rehabilitation Act of 1973, the Grantee must provide fair and ecruitable . . treatment for the handicap?ed. The recipient will comply wi th' the Depar,tment of Commerce regulation, 15 CFR Part 8b, im?lementing Section.504.' This regula- tion protects the rights of handicap?ed persons and establishes a mandate to end discriffiination. k. The Grantee hereby covenants and agrees to be bound by Title 15 CFR Subtitle A, Part 8 (Non- Discrimination in Federally Assisted Programs, U. S. Department of CO~uerce), as amended, and by Title 13 CFR Part 3l1. 1. Age Discrimination Act: The Grantee agrees to abide by the regulation of the Department of Commerce pursuant to the provisions of the Age Discrimination Act of 1975 (15 CFR Part 20). The regulation prohibits discrimination on the basis of age in programs or activities receiving Federal financial assistance. 9 r, , ;:,,'. €8 - 7 - m. The Grantee hereby agrees that no funds made available from this grant shall be used, directly or indirectly, for paying attorneys' or consultants' fees in connection with securing grants made by EDA, such as, for example, preparing the application for this assistance. However, a'ttorneys I and consultants I fees incurred for meeting grant requirements such as, for example, conducting a title search, or preparing plans and specifications, may be eligible project costs and may be paid out of'~unds made available from this grant provided such costs are otherwise eligible. n. The Grantee agrees to comply with the require- ments of the Uniform Relocation Assistance Act as contained in 15 CFR Part II (51 FR 2456, July 7, 1986). 0., The Grantee agrees to comply, and require each ~f its contractors and subcontractors to comply with all applic~ble standards, ordersi or regulations issued pursuant to the Clean Air Act, as amended (42 USC l857) and Executive Order ll738; and the Federal Water pollution control Act, as amended (33 use 1251), and to report all violations thereof to the Environmental protection Agency and to EDA and specifically to comply with the following: (1) For the purpose of this paragraph, the following definitions apply: (a) The term "Recipient" means the Grantee. (b) The term "facility. means (a) any building, plant, installation, structure, mine, vessel or other floating craft, location or site of operations (b) owned, leased, or supervised (c) by the Recipient or its contractors and the latter's' subcontractors (d) for the construction, supply and service contracts entered into by the Recipient for the purpose of accomplishing this project. (2) The Recipient agrees to comply with Federal clean air and water standards during the accomplishment of this project and specifically agrees to the following: 9" ~. fS - 8 - (a) .''';::It-' ;::l,.,Y f'::lo'-:':+-:' l-_ '-- ,.I..i':",;~ in i.p,.e 3--: ~~i:~~:~~ :: ~~:= ~__~__~ :3 ~:~ :::::8 8R ~~_ :L......:................:::p....+-::I, ";)..-.+-0,-+-:......... ",:___:,1.- ~':"'~"') "':r'" ",:,1: 't,.:.....,~j,..;....,...,. 1:':::l"";':+-;O~ ......"'..e..-...... +-"" An ......':"~ -0....+-,:: ""f""I. a " SEE ADDENDC (b) That in the event a facility utilized in the accomplishment of this Project becomes listed on the E?A List, the Govern",ent may, inter alia, cancel, terminate for default, or s~spend for such failure, in whole or in part, the agreement; (c) that it will comply '~'ith all the requirements of Section 114 of the Clean Air Act and Section 308 of the Federal ~ater Pollut;on Control Act relating,to inspection, monitoring, entr'y, reports, and information, as well as all other recruirements specified in Section 114 and Section 308; respectively, and all regulations and guidelines issued ,the~eunder; (d) that it will promptly notify the Government of the receipt of any notice from the Director, Office of Federal Activities, Environmental Protection Agency,indicating that any facilities utilized or to be utilized in the accomplishment of this Project is under consideration for listing on the EPA List of Violating Facilities. (e) that it will insert in any of its contracts and require insertion in subcontracts entered into for the purpose of accc~plishing this Project, unless otherwise exempted pursuant to the EPA regulations implementing the Air or ~a~er Act (40 CFR, Part 15.5), provisions which shall "include the criteria and re~uirements set forth in this paragraph, including this subparagraph (e); (fl that in the event that either the Recipient or its contractors or the latters' subcontractors for the construction,. supply and service contacts entered into by the Recipient for the ~urpose of accoNplishing this Project were exempted from complying with the above subparagraphs under the provisions of 40 CFR, Part 15.5 (a), the exemption shall be nullified should the facility give rise to a criminal convic:ion (See 40 CFR, Par: 15.20) during 9.:i r S - 9 - the accomplishment of this Project. Furthermore, with the nullification of the exe~?tion, the above sub- paragraphs shall be effective. The Recipient shall notify the Govern~ent, as soon as the Recipient's, its contractors' or the latters' subcontractor's facility is listed for having given rise to a criminal conviction noted in 40 erR, Part 15.20. p. The Grantee hereby agrees to comply with the requirements of all pertinent rules and regulations issued under and pursuant to the National Environ- mental policy Act of 1969 (P.L. 90-190); the National Historic Preservation Act of 1966 (80 Stat. 915, 16 use 470); Executive Order No. 11593 of May 31, 1971; and the wild and Scenic Rivers Act (P.L. 90-542), as amended. q. The Project will not cause or be a hazard,as a result of flood as required by Executive Order ll296. The Grantee will fulfill any flood insurance require~ _ ments under the Flood Disaster Protection Act of 1973 (P.L. 93-234, 87 Stat. 975), as amended, and any regulations issued thereunder by the U. S. Department of Eousing and Urban Develop~ent and/or the Economic Development Administration (13 eFR 309 .l5). r. The Project shall not include any facilities for the generation, transmission or d istr ibution of electrical energy or the productidn 6~ transmission of gas (natural, manufactured or mixed) . s. The Grantee warrants that the Project will be properly and efficiently administered, operated and maintained as required by Section 604, P.L. 89-136. Prior to construction completion, the Grantee sh,all submit evidence satisfactory to the Government that sufficient funds are available for requisite capital expenditures necessary to com~ence operations and to administer, operate and maintain the project for its useful life. 2. If compliance with any of the provisions of this Agree- ment would require the Grantee to violate any appli- cable Federal, State or Territorial law, the Grantee shall, as soon as possible, r.otify the Government, in 9 Ii 68 - 10 - writing so that appropriate action ~ay be taken by the Government to allow, if possible, the Grantee to proceed as soon as possible with construction of the project. 3. The employment of all laborers and mechanics, including apprentices and trainees, as defined in Parts 3, 5, and Sa, Subtitle A, Title 29, Code of Federal Regulations, as am~Dded, shall be applicable to every invitation for bids, and to every negotiation, request for proposals, or request for quotations, for construction contracts and to every such contract entered into on the basis of such invitation or negotiation. Part Sa. 3, Subtitle A, Title 29, Code of Federal Regulations shall constitute' the conditions of each contract in excess of $10,000, and each Grantee and contractor shall include these conditions or provide for their inclusion, in each such contr,act. Parts Sa. 4, Sa. 5, Sa. 6, and5a.,7 shall also be included in each such contract for the information of the contractor. Apprentices and trainees shall be hired in accordance with the require- ments of Part Sa. B. GENERAL REQUIREMENTS l; Prior to any solicitation of bids for construction work or whenever and so often as the Government requests: a. The Government may require the Grantee to obtain in addition to any other steps required by the Agree- ment, approval by the Government of (i) its final plans and specifications and (ii) the bidding proce- dures for all construction work and for all material and equipment acquisitions. b. The Government may require the Grantee to furnish evidence satisfactory to the Govern~ent that: (1) the Project costs are reasonable; (2) it has sufficient funds in addition to the funds provided by the Government to complete the project, including interim financin;, if any; 9~ 68 - 11 - (3) it has obtained, or can obtain, all land, righ~s-of-way, permits, franchises and all Federal, State and local coordinations and approvals necessary to the completion of the Project, and in all other respects has complied with pertinent Federal, State or local laws; and, (4) its agreement wi~h an architect/engineer for design and other services specifies a fixed or maximum fee for 3asic Services. 3asic Services are described in the booklet, Requirements for Approved projects, issued ~o all Grantees. 2. Grantee expressly agrees to grant to EDA a first priority unsubordinated lien against, or security interest in, the property acquired or improved in whole or in part with the funds made available through this Award and Approval 0: Grant. This lien or security interest must be cerfected in accordance with local'law. EDA will, in i~s sole discretion, determine whether the lien or security interest which- has been granted to EDA is satisfactory, and it may require an opinion of counsel for the Grantee to substantiate that the lien or security interest has been properly recorded. The Grantee further agrees that in the event that it alienates in any manner, any interest in the real property acquired ,or improved with EDA grant funds, EDA shall be entitled to recover damages. EDA's regulation at l3 CFR 5314.4 provides th~t upon disposition of property, acquired or improved with EOA grant funds, EDA shall be entitled to a recovery based upon the ratio of the ~rcentage of EOA's participation in the total cost of the project to the fair market value of the property at the time of the disposition. For the purposes of the lien, the amount of EDA's damages s~all be the full amount of EOA's grant, plus interest from the date of the disposition. This lien must remain in effect through the useful life of the project as defined in 13 erR 53l4.6(a). Alienation shall include, but not be limited to sale, lease, rent, option or mortgage. 3. The Grantee shall perform all construction work and make all material, equipment, and any other property acquisitions by contracts or documents for which prior approval by the Government may be required. 9" 68 - 12 - 4. The Grantee and Grantor shall accept and apply the standards and previsions, as applicable, set forth in Office of Management and Budget Circular No. A-I02, Revised (mlB Circular No. A-I02), "Uniform Administrative Requirements for Grants-in-Aid to State and Local Governments," and OBM Circular No. A-llD, "Uniform Administrative Requirements: Grants and Agreements with Institutions of Higher Education, Hospitals and Other Nonprofit organizations". In the event of conflict between the above OM3 Circulars and enabling legislation, the latter shall prevail. 5. In accordance with O~3 Circular No. A-I02, Attach- ment B, or OHB Circular No. A-llO, Attachment B, the Grantee shall follow its own requirements relating to bid guarantees, . performance bonds, and payment bonds unless the construction contract or subcontract exceeds $100,000. For those contracts or subcontracts exceeaing $100,000, the Federal agency may accept the bonding policy and requirements of the Grantee provided the Federal agency has made a determination that the Government's interest is adequately protected. If such a determination has not been made, the minimum requirements shall be as follows: a. A bid, guarantee from each bidder equivalent to five percent of the bid price. The "b,id guarantee" shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of his bid, execute such contractual documents as may be required withi~ the time specified. b. A performance bond on the part of the contractor for 100 percent of the contract price. A "performance bond" is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract. c. A payment bond on the part of the contractor for 100 percent of the contract price. A "~ayment bond" is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the ccnt:act.o 95 EG - 13 - 6. The Grantee agrees that it will not, without the prior ~ritten oonsent of the Government, order or permit any change in the final plans and specifications .hich would entail any substantial variance in the project, or increase the cost thereof. 7. The Grantee shall provide and maintain on its behalf competent and adequate architectural or engineering services to design,and supervise the development and construction of the project. 8. The Grantee shall establish a project bank account or accounts satisfactory to the Government, into which shall be deposited funds for the financing of the Project. Disbursements from the Project bank account(s) shall be for the purposes and within the amounts for each line item in the approved project budget except as otherwise specifically authorized by the Government. The Government 'reserves the tight to require the prior approval of disbursements from the- Project bank account. (Not applicable to State or local Governments.) 9. The Grantee shall cause to be erected at the site of the Project, and maintained during construction, signs satisfactory to the Government identifying the Project and indicating the fact that the Government is participating in the development ?f the project. 10. The Grantee agrees that it will not- without the prior written consent of the Government, order or permit the total incurred cost to exceed any of the line items in the cost estimates approved by the ~overnment for the ?roject. 11. The Grantee shall include in all contracts and' subcontracts, in language acceptable to the Government, provisions requiring the maximum feasible employment of local labor for work which is or reasonably may be done as on-site work and shall take reasonable steps to assure continuing compliance with such contract provisions. 90 68 - 14 - 12. The Grantee shall establish, maintain and preserve, and require each of its c~ntract~rs and subc~ntractors to establish, maintain and preserve property management, project performance, financial management and reporting documents and systems, and such other books, records, and oth~r data pertinent to the Project as the Government may require. ~~ile such records shall be retained for a period of three years following receipt Of final payment by the Grantee, detailed excepti~ni are stated in 13 CFR 309.9. l3. The Grantee shall require that each of its contractors and subcontractors render to the Government and the General Accounting Office the right to inspect and monitor all work, materials, payrolls, records and personnel; 'invoices and other relevant data and records pertaining to the development and construction of the Project. 14. The Grantee covenants that each of its officials or employees having custody of the project funds during acquisition, construction, development and operation shall be bonded at all times in an amount at least equal to the total funds in his custody at anyone time; provided that if the Grantee is a State or local unit of Government, the Eond shall be in such amount as normally ,required by such body. 15. The Grantee shall carry insurance; and require each contractor and subcontractor to carry insurance, of such types and in such amounts as the Government may specify, with insurance carriers acceptable to the Government; provided that if the Grantee is a State or local unit of Government the insurance requirements normally required by the State or local units of Government will prevail. 16. The Government reserves the right to require the Grantee to submit, prior to the commencement of construction, an independent appraisal or appraisals by an appraiser or appraisers acceptable to the Government of the current fair market value of any or all of the land and facilities (including buildings, machinery and equipment) to be included as part of the aggregate cost of the Project. 9:' 68 - 15 - 17. The Government reserves the right to suspend the grant, and withhold further payments, or prohibit the Grantee from incurring additional obligations, pending corrective action by the Grantee or a decision by the Government to terminate the grant unless the project is completed to the satisfaction of the Government. 18. Costs for interest during the construc~ion period shall not include any interest on borrowed funes in excess or the amount needed to pay current project cos ts . 19. Funds may be made available either by way of a check drawn on the united States Treasury or by way of letter of credit to the ~rantee in accordance with all provisions ~f the grant and all applicable require- ments or the O. S. Government including particularly, but not limited to, OHS Circular No. A-I02, Revised or OMS Circular No. A-llO, O~3 Circular No. A-87~ and Treasury Circular l075. The Grantee agrees to request a Treasury Check or to draw upon a letter of credit' - only to meet actual immediate disbursement needs. Immediate disbursement needs are determined as of the latest practical point for the Grantee's payment or eligible costs. 20. Disbursement of funds by the Government, does not constitute its acceptance of any items'as an eligible Project cost until all Project costs have been audited an? determined to be reasonable by the Government. 21. If the actual costs of the project are'less than the estimated costs, the grant will be reduced to the extent necessary to comply with the Fercentage limitation set forth in the Grant Agreement. 22. The Grant Administrator (GRA), as named in the Special Terms and Conditions, is responsible ~or the a~uinistration of the grant and liaison with the Grantee. The GRA is also responsible ror evaluating the operation of this grant as perrormed by the Grantee, and for the acceptance or all work required under the Grant Award and Terms and Conditions, including the approval or any and all reports and such 94 68 - 16 - othe: s~ecific res=onsibilities as are stiDulated in various" terms of the, grant. The GR.:" is not authorized to make any commitments, otherwise obligate the Governwent, or authorize any changes that affect the grant amount, terws or conditions. Such changes shall be ma~e only with the expressed prior authorization of the Assistant Secretary for Economic Development, or his designated representative, to be accomplished by a writte~ Approval and Award of Grant Amendment. 23. The Gra~tee shall submit annual reports for each year that the assistance continues commencing the date this Award is accepted and for one (1) year thereafter indicating the status of all activities funded by the grant; the costs incurred for each comple~ed and/or partially completed activity, and any operational costs of activities; the degree to which the activities have achieved their goals; and the overall effectiveness of ~'e economic assistance orovided in meeting the adjustment needs of the area." These reports shall be in accordance with the requirements of Attachments E and! of 01<'.3 Circular No. A-102, as amended. Reports shall be submitted to the GRA at the address shown on page one of the Sp~cial Terms and Conditions. An information copy of all reports shall also be submitted to the Director, Economic Adjustment Division, Economic Development Administration, u. S. Depart",ent of Comwerce, BCES 7327, 14th a~d Constitution Avenue, N. W., Washirigton, D. C. 20230. In addition, the Grantee agrees to inform the Government if events occur which have a sicnificant impact upon the Project, whether positive ;r negative in nat'..::e. 24. A. for if: The Government shall have the right to terminate cause all or any part of its 'obligation hereunder (1) Any representative made by"the Grantee to the Government in connection with the aoolication for Gove:n~ent assistance shall be incorrect"or incomplete in any material respect. ( 2) esse:"';::al shall no t The Grantee fails condition of this diligently pursue to comply with the Agreement, or that the development of it th is 94, 68 - 17 - project to ensure completion. It is expressly understood and agreed that the Grantee shall notify the Regional Director in the event delays occur which substantially affect the accomplishment of the project. (3) The intent and purpose of the Project is changed substantially so as to significantly affect the accomplishment of the project as intended. (4) The Gran~ee has violated commitments made by it in its'application and supporting documents or has violated any of the terms or conditions of this Agreement. (5) Any official, employee, architect, attorney, engineer or inspector of or for the Grantee or any Federal, State or local official or representative, becomes directly or indirectly interested financially in the. acquisition of any materials or equipment, or in any construction for the Project, or in the , furnishing of any service to or in connection with th~ Project, or in any benefit arising therefrom. (6) The Grantee fails to report immediately to the Government any change of authorized representa- tive(s) acting in lieu of or in behalf of the Grantee. 25. B. The obligations hereunder may be terminated for convenience if: (1) Both the Grantee and the Government agree that continuation of the project woul~ not produce beneficial results commensurate wit'h the further expenditure of funds. (2) Both the Grantee and the Government shall agree upon the termination conditions, including the effective date and, in the case of partial terminations, the portion to be terminated. (3) The Grantee agrees to incur no new obliaaticns for the terminated Dortion after the effe~tive date and to cancel or.satisfy all outstanding obligations as of that date. 94, 68 - 18 - 26. prior to disburse~ent of any funds by the Government pursuant to this A~ard, the Grantee will arrange to have all facilities provided in this project, which are financed in whole or in part by Federal funds, covered by a covenant or covenants running with the land on which the facilities are located, binding on successors or transferees or assignees, guaranteeing that those facilities will provide service without discrimination to all persons without regard to their race, color, religlon, sex or national origin. 27. The Grantee agrees to comply with the provisions of 13 CFR Part 314 on pro?=rty management and any amendments thereto, and with any requirements imposed by or pursuant to circulars issued by OMS and any amendments thereto. 28. If the project includes a water supply system and/or water facilities, no construction shall be,commenced until 'it has been established to the satisfaction of the Government that the quality and quantity of water available to the project is sufficient for the purposes of the project; provided, however, that if the quality and quantity of water available cannot be determined without the construction of part of the project, the Government may authorize the construction of such part prior to authorizing construction of the remainder of the project. . .. ., 29. The Grantee hereby covenants that in the event it is authorized by the Government to lease any facilities constructed as part of this project..tO. concessionaires or o?erators, it will obtain frc~ such concession- aire(s) or operator(s) and submit to the Government pro?=rly executed Forms (e.g., Certificate of Non-Relocation; Assurances of Compliance with The Department of Co~"erce RegUlations under Title VI of the Civil Rights Act of 1954; and Assurance of Job Opportunities for The Une~ployed) prior to completion of the lease agreement (s) . 30. The Government may, at its option, require the Grantee to include in the recuest for construction bids a requirement that each res?onsive bidder will provide 9~\ E 3 - 19 - . bids on two sc~edules: (1) one based on continuing construction t~roughout the period of adverse weather, and (2) one based on the normal shutdown during the same period. The Grantee must reserve the right to award the construction contract on the basis of the low bid on either schedule. Care must be taken to insure that all work performed during the periods of adverse weather are structurally $ound and as durabie as work performed under favorable weather conditions.' The requirement for work during adverse weather conditions shall be so stated that the contractor shall not be reauired to continue work during actual conditions covered by the following weather warnings as issued by the U. S. Weather Bureau: (1) snow and/or heavy icing, (2) severe thunderstorms, (3) tornado, or (4) hurricane. 31. Nonexpendable personal property acquired with Government funds will be retained until there is no longer a need to accomplish the purpose of the project. After that time the Grantee shall first use such property in other Government projects or secondly in projects of other Federal Governmental agencies: such other projects being those of the Grantee ,herein. w~en the Grantee is unable to use the property as aforesaid the regulations of the Government shall be applied per CH3 Circulars A-102, A-lID or other applicable legal requirements. prope~ty records shall be maintained accurately and provide for: a description of the pro~rty, manufacturer's serial number or other identification number, pei:centage of funds used in, the purchase of the property, location, use and condition of the pi:operty, and such othei: data as may be required per CM3 circulai:s A-I02, A-lID or other applicable legal requirements. A physical inventory of the property shall be taken, and the i:esults reconciled with the property recoi:ds, at least once evei:y two years. A control system shall be in effect to insure adequate safeguards to prevent loss, damage 'or theft, any of w~ich shall be investigated and fully documented. 32. If consti:uction woi:k is to be pei:formed in a geogi:aphical area covered by bid conditions issued by the Office of Federal Contract Co~pliance, the Grantee {) ,~ -J ~. 68 - 20 - ~~all include such bid conditions as part of its ~onstruction contract, or a~y modification thereof. In such areas, the Grantee shall also include in contracts for construction ~ork, or any modification thereof, provisions requiring the contractor to report its manpo...er utilization' on a monthly basis using the latest optional Form 66, Monthly Manpo~er utilization Report. 33. Any program income~~arned by the project between the date of approval and the date of completion shall be deducted from the total project costs for the purpose of determining the net costs on which the Federal share of costs will be based; or added to funds committed to the project by the Government an? the Grantee and used to further eligible program objectives. r II 34. The Grantee shall have the sole authority and full responsibility, without recourse to the Federal ", Government or any of its agencies, for the settlement_ and satisfaction of all contractual and administrative issues arising out of this grant. 35; The Grantee shall submit quarterly performance reports to assure that time schedules are being met and that pr'ojected ....ork units by time periods ar.e being accomplished. Between required performance reporting dates, Grantee shall inform the Government of all problems, delays or adverse conditions ....hich ....ill materially affect the ability to attain program objectives, prevent the meeting of tim-e schedules' and goalS, or preclude the attainment of project work units by established time periods. This disclosure shall be accompanied by a statement of the action taken, or contemplated, and any Federal assistance needed to resolve the situation. 36~ ~The Grantee agrees to furnish a copy of the auditor ,~::-engagement letter upon execution, and four copies of ,:",the resultant audit report upon issuance, to the ~ffice of Management and Budget (OH3) designated cognizant Federal audit agency. 94, 68 - 21 - .. . If the Grantee has no O~3 designated cognizant audit agency, ~~e copies of the auditor engagement letter, and audit report should be sent to the Department of Commerce Regional/District Audit Office responsible for the area in ~hich the Grantee is located. In meeting its audit obligations the Grantee ~ill assur e tha t: a. Audits are performed in accordance ~ith the applicable requirements of OHB Circulars No. A-I02, Attachment P, or A-IIO, Attachment F. The Grantee agrees that a financial and compliance audit on an organization-~ide basis ~ill usually be performed annually, but not less frequently than every t~o years. b. Audits are made in accordance ;;ith the General Accounting Office Standards for Audit of Governmental Organizations, Programs, Activities and" Functions, the Guidelines for Financial and Comoliance Audits of Federally Assisted Programs, any compliance- supplements approved by OHB, and generally accepted auditing standards established by the American Institute of Certified public Accountants. c. Auditors engaged will meet the qualification requirements set forth in the,General Accounting Office Standards for Audit of Governmental Organizatons, Programs, Activities and Functions" in accordance with the applicable procurement requirements of Attachment 0 to OHB Circulars NO. A-I02 or A-lIO., Nongovernmental auditors must be either independent, certified public accountants or independent licensed public accountants licensed on or before December 3l, 1970. d. The auditor will retein the audit work papers and reports for at least three. years from the date of the audit report unless the auditor is notified in ;;riting by the cognizant Federal audit agency of the need to extend the retention period. The audit work papers will be made available .upon request to the cognizant Federal audit agency or its designees and the General Accounting Office or its designees. 9.1, 68 - 22 - . e. As required by Depart~ent of Commerce Administration Order 213-5, Audit Follow-up and Resolution,the Grantee is expected to respond to any cruestioned costs and other audit findings and provide additional documentation to support such response within 30 days after the receipt of an audit report from the Offici of Inspector General. EDA will consider any response or documentation received during this 30-day period,in reaching its final determination concerning eligibility of costs; any Grantee response or documentation received by EDA more than 30 days after Grantee receipt of the audit report, and before EDA's final determination, may be considered. EDA's final determination shall be in writing and furnished to the Grantee. Actions that result from,EDA's final determination, such as the establishment of a debt or claim aga,inst the Grantee, are not subject to appeal within EDA. -' f. A final management system will be maintain" in accordance with the standards prescribed in OMB Circular No. A-I02, Attachments G and P or OHB Circular No. A-llO, Attachment F, as applicable. g. Financial records will be retained as well as all other documents pertinent to the grant in accordance with Attachment C of OHB Circulars No. A-102 or A-llO, as applicable. h. Financial reports will be submitted in accordance with the schedule containe~ in the Terms and Conditions, and in accordance with Attachment H of OHB Circular No. A-102 or Attachment G of O~~ Circular No. A-lID, as applicable. 37. The Grantee shall notify the Government promptly whenever the amount of the authorized grant is expected to exceed the needs of the Grantee. , , ., 38. Except for such aspects as, but not limited to, zoning building permits, and recording requirements, this Grant shall be governed by and construed under Federal law. 9 ' /.!. 68 - 23 - 39. By'~ffirming its intention to use the gr~nt awarded, the Grantee represents that it has not paid, and also, agrees not to pay, any bonus or commission for the purpose of obtaining an approval of its application for this assistance. 40. The Grantee agrees to comply with P.L. 89-136, as amended, and all regulations issued pursuant thereto, beginning at l3 erR 301. 41. The Grantee agrees 'that the obligations of the Grantee hereunder shall ~lso be made applicable to any sub- grantee or borrower in any agreement by the Grantee to subgrant or lend funds received by the Grantee under this agreement. 42. No obligations shall be created by Recipient for any purpose pertaining to ~~e operation of the program or activities for which the funds were awarded where the obligation would require performance beyond the '~ expiration date stipulated in the award document. Funds may only be expended beyond the expiration date for activities such as the preparation of final reports and documents directly associated with the close out of the award in accordance with OMS Circulars No. A-lID or A-102, and for obligations properly created prior to' the expiration date. , " Verbal or written assurances of. refunding shall not constitute ~uthority to obligate funds for programmatic activities beyond the expir~tion date. Funds shall not be oblig~ted unless or,until an award document is received by ~~e recipient from the Grant Officer. , 9 ~> PR c'- ADDENDUM TO PAGE 8. SECTION 111.0. OF THE SPECIAL TERMS AND CONDITIONS o. Environmental Requirements The EDA and the Recipient expressly acknowledge that: the Property to be utilized in the accomplishment of this Project has been designated as a National Priorities List site (NPL site); the Property is subject to hazardous substance cleanup by the United States Air Force ("Air Force") pursuant to the Comprehensive Environmental Response, compensation and Liability Act of 1980 (CERCLA), as amended by the community Environmental Response Facilitation Act of 1992 (CERFA); and that the Recipient shall not be subject to any liability arising from or related to the Air Force's hazardous substance cleanup activities on the Property, or as a result of the Property having been designated as an NPL site. CSBO/0005ID0CI217 31'2194 5:05 (~ 8 9,1 - ADDENDUM TO PAGE 8. SECTION A.1.o. (2) (a) OF THE GENERAL TERMS AND CONDITIONS (a) that the property to be utilized in the accomplishment of this Project has been designated as a NPL Site; the Property is subject to hazardous substance cleanup by the Air Force pursuant to CERCLA, as amended by the CERFA; and that the Recipient shall not be subject to any liability arising from or related to the Air Force's hazardous substance cleanup activities on the Property, or as a result of the Property having been designated as an NPL site. CSBO/00061DOC1217 3121!>4BO 9iJ ~ q 10' C U.S. DEPARTMENT OF COMMERCE Economic Development Administration DENVER REGIONAL OFFICE 1244 S_, Boule.ard Room 670 Denve" Colo.-do B0204.35B4 In reply refer to: Project No. 07-49-02680 FEa 7 1994 City of San Bernardino and Inland Valley Development Agency 201 North "E" street, suite 203 San Bernardino, California 92401-1507 f(C'D FEB - 81994 Ladies and Gentlemen: This is to inform you that the Economic Development Administration has approved an Economic Adjustment Assistance grant in response to your application for funding under Title IX of the Public Works and Economic Development Act of 1965, as amended. Enclosed are three copies of the Approval and Award of Grant, Special Terms and Conditions, and General Terms and Conditions, all of which govern the performance of the approved grant program. Any modification or other change in the approved program must have the prior written approval of the Economic Development Administration. If the provisions of this grant are acceptable, please sign two copies of the Approval and Award of Grant and attach a copy of the Special Terms and Conditions, and the General Terms and Conditions to each. Return a full set of documents, properly executed, to the Director, Economic Adjustment Division, Economic Development Administration, U.S. Department of commerce, 14th and Constitution Avenue, N.W., Room 7327, Washington, D.C. 20230, and one to the Grant Administrator cited in the special Terms and Conditions. These documents must be returned to the Economic Development Administration within forty-five (45) days of grant approval. The third set is for your files. You are cautioned not to make any commitments in reliance on this grant until you have carefully reviewed the Special Terms and Conditions, and the General Terms and Conditions and have determined that you are in compliance or that you can comply with them. SinceJ:;el J ,7/" /"" ~-- ", /,~ -~ / //' / ~/~,"4- (,/ " \",~. -;, . / _---- /-C...- "r---,' " 1,------ . steven R. Brennen Regional Director for Economic Development "') Enclosures lli'J C 8 U.S. DEPARTMENT OF COMMERCE ECONOMIC DEVELOPMENT ADMINISTRATION Approval and Award of Grant for Sudden and Severe Economic Dislocation Defense Adjustment Implementation Project No. 07-49-02680 The Regional Director, Denver Regional Office of the Economic Development Administration, acting pursuant to the authority provided by Title IX, section 903 of the amended Public Works and Economic Development Act of 1965 (Act), hereby approves and awards to the City of San Bernardino and the Inland Valley Development Agency, a grant subject to the terms, conditions, and limitations as set forth herein and in the attached Special Terms and Conditions and General Terms and Conditions. This assistance is approved and awarded to enable the Recipient to carry out the objectives of the Act by implementing a comprehensive economic adjustment program to address an actual or threatened economic dislocation or other adjustment problem for the area(s). It does not commit the Economic Development Administration (Grantor) to approve requests for any additional funds. The maximum amount of grant assistance hereby awarded is $6,825,000 or seventy-five (75) percent of the total project cost, whichever is less. Funds will be made available for the Recipient's eligible expenses in accord with the attached Special Terms and Conditions and General Terms and Conditions. This Approval and Award of Grant, subject to the Special Terms and Conditions and General Terms and Conditions shall constitute an obligation to make a grant. Such obligation must be terminated without further cause, if the Recipient fails to sign and return to the Grantor within forty-five (45) days of approval by the Regional Director, its affirmation of intent as set forth below. Dated this ~YL day of y:;;t,AC{.,'J c/' , 1991V. , / 7 //// ;:/'/ / L' ~ j;l;, {/- . &L Steven R. Brennen Regional Director Denver Regional Office Economic Development Administration 94 68 -2- The Recipient hereby affirms that it intends to use the grant award in accordance with the terms and conditions as above referenced. Dated this day of , 1994. citv of San Bernardino Name of Recipient Tom dinor Pn,nted Name) Mayor (Title of Affirming Official) Inland Vallev Development Aqencv Name of Recipient By: (Signature and Printed Name) (Title of Affirming Official)___ CERTIFICATION (By Official Other Than Affirming Official) The person signing this affirmation is so authorized by the Governing Body or Board of Recipient ~ (,) .. ) (,) ! J. ~"j"~_t'J-C ,~I-I'-,' r'--- (Signa~ure-city of San Bernardino City Clerk (Title of Certifying Official) Rachel Clark (Printed Name) (Date) (Title of certifying official) (Signature-Inland Valley Development Agency (Printed Name) (Date) 94 68 U.S. DEPARTMENT OF COMMERCE ECONOMIC DEVELOPMENT ADMINISTRATION SPECIAL TERMS AND CONDITIONS For Economic Adjustment Assistance Grant under Title IX, section 903 of the Public Works and Economic Development Act of 1965, as amended. Award No. 07-49-02680 TITLE: Title IX Sudden and Severe Economic Dislocation Defense Adjustment Implementation Grant to Construct Water, Sewer, and Road Improvements Located Within Norton Air Force Base RECIPIENT: City of San Bernardino and Inland Valley Development Agency GRANT ADMINISTRATOR: Steven R. Brennen, Regional Director Denver Regional Office U.S. Department of Commerce Economic Development Administration 1244 speer Boulevard Room 670 Denver, Colorado 80204 I. TOTAL AUTHORIZED BUDGET: Federal Cash contribution Grantee contribution Total Authorized Budget $6,825,000 2.275.000 $9,100,000 (75%) (25%) -\ 9 <1 6 8 special Terms/conditions city of San Bernardino and Inland valley Development Agency San Bernardino, California Award No. 07-49-02680 Page 2 of 8 II. DETAILED BUDGET CATEGORIES: Budqet Cateqories Federal Cash Grantee Share Cash Total 1. Administrative and Legal expenses $ 3,750 $ 1,250 $ 5,000 2. Land, structures, rights-of-way, appraisals, etc 75,000 25,000 100,000 3. Relocation expenses 6,000 2,000 8,000 and payments 4. Architectural and engineering fees 197,000 66,000 263,000 5. Other architectural and engineering fees 18,750 6,250 25,000 6. Project Inspection Fees 281,250 93,750 375,000 7. Demolition and removal 7,500 2,500 10,000 8. Construction 5,973,250 1,990,750 7,964,000 9. contingencies 262.500 87.500 350.000 TOTAL AUTHORIZED BUDGET $6,825,000 $2,275,000 $9,100,000 q2 rR special Terms/Conditions city of San Bernardino and Inland valley Development Agency San Bernardino, California Award No. 07-49-02680 Page 3 of 8 III. ADDITIONAL TERMS A. PROJECT DEVELOPMENT TIME SCHEDULE: The Grantee agrees to the following project development time schedule: Time allowed after Grantee affirmation of grant award for: completion of Final Plans and Specifications. 90 days start of Construction.........................210 days Construction Period.......................... 9 months Project Closeout - All project closeout documents including final financial information and any required program reports shall be submitted to the Government not more than ninety days after the date the Grantee accepts the completed project from the contractor(s). The Grantee shall pursue diligently the development of the project so as to ensure completion of the project and submission of closeout documents within this time schedule. Moreover, the Grantee shall notify the Government in writing of any event which could delay substantially the achievement of the project within prescribed time limits. The Grantee further acknowledges that failure to meet the development time schedule may result in the Government's taking action to terminate the grant in accordance with the regulations set forth at 13 CFR 305.99(b) and 15 CFR 24.43 (53 Fed. Req. 8048-9, 8102, March 11, 1988). B. GOALS FOR WOMEN AND MINORITIES IN CONSTRUCTION: Department of Labor requirements set forth in 41 CFR 60-4 establish goals and timetables for participation of minorities and women in the construction industry. These regulations apply to all Federally assisted construction contracts in excess of $10,000. The Grantee shall comply with these regulations and shall obtain compliance with 41 CFR 60-4 from contractors and subcontractors employed in the completion of this project by including such notices, clauses and provisions in the Solicitations for Offers or Bids as 94' , CB Special Terms/Conditions City or San Bernardino and Inland Valley Development Agency San Bernardino, Calirornia Award No. 07-49-02680 Page 4 of 8 required by 41 CFR 60-4. The goal for the participa- tion of women in each trade area shall be as follows: From April 1, 1981, until further notice: 6.9 percent Al'r changes to this goal, as published in the Federal Reaister in accordance with the Office of Federal Contract Compliance Programs regulations at 41 CFR 60-4.6, or any other successor regulations, shall hereafter be incorporated by reference into these Special Terms and Conditions. Goals for minority participation shall be as prescribed by Appendix B-80, Federal Reaister, Volume 45, No. 194, October 3, 1980, or subsequent publications. The Grantee shall include the "standard Federal Equal opportunity Construction Contract Specifications" (or cause them to be included, if appropriate) in all Federally assisted contracts and subcontracts of this project. The goals and timetables for minority and female participation may not be less than those published pursuant to 41 CFR 60-4.6. C. DRUG-FREE WORKPLACE ACT: The Grantee understands that it is subject to the Drug-Free Workplace Act of 1988, P.L. 100-690, Title V, Subtitle D and 15 CFR Part 26 (55 FR 21678, May 25, 1990) for projects approved on or after March 18, 1989. D. DOC COMMON RULE: On March 11, 1988, the Department of Commerce published regulations, (15 CFR Part 24) 53 Fed. Rea. 8048, 8087-8103, effective October 1, 1988, prescribing requirements previously prescribed pursuant to Office of Management and Budget (OMB) Circular A- 102. Any reference, therefore, to OMB Circular A-102 contained in these Special Conditions or in the General Terms and Conditions of the Grant Agreement, means Department of Commerce Regulation at 15 CFR Part 24. E. NEW, RESTRICTIONS ON LOBBYING: This grant is subject to Section 319 of Public Law 101-121, which added Section 1352, regarding lobbying restrictions, to Chapter 13 of Title 31 of the United States Code. The new Section is explained by the U.S. Department of Commerce in an "Interim Final Rule," 15 CFR, Part 28 (55 FR 6736-6748, 2/26/90). The Grantee and subrecipients are generally prohibited from using Federal funds for lobbying the 94, 68 special Terms/conditions City of San Bernardino and Inland Valley Development Agency San Bernardino, California Award No. 07-49-02680 Page 5 of 8 ~xecutive or Legislative Branches of the Federal Government in connection with this grant. The Grantee shall require each person who requests or receives from the Grantee a subgrant, contract, or subcontract exceeding $100,000 at any tier under this grant, to file a "certification Regarding Lobbying" and, if applicable, a "Disclosure of Lobbying Activities" form regarding the use of any nonfederal funds for lobbying. certifications shall be retained by the next higher tier. All disclosure forms, however, shall be forwarded from tier to tier until received by the Grantee, who shall forward all disclosure forms to the Government. (Blank certification and disclosure forms will be supplied by the Government upon request.) The Grantee shall file and shall further require each subgrantee, contractor, or subcontractor that is subject to the subrecipient certification and Disclosure provision of this Special Condition to file a disclosure form at the end of each calendar quarter in which there occurs any event that requires disclosure or that materially affects the accuracy of the information contained in any disclosure form previously filed by such person. Disclosure forms shall be handled as described above. An Indian tribe or organization that is seeking an exemption from certification and Disclosure requirements must provide EDA with an attorney's opinion citing the provision or provisions of "other Federal law" upon which it relies to conduct lobbying activities that would otherwise be subject to the prohibitions in and to the certification and Disclosure requirements of section 319 of Public Law No. 101-121. 94 ~R u~ Special Terms/Conditions City of San Bernardino and Inland valley Development Agency San Bernardino, California Award No. 07-49-02680 Page 6 of 8 F. DISCLOSURE OF FEDERAL PARTICIPATION: In compliance with section 623 of Public Law 102-393, no amount of this award shall be used to, finance the acquisition of goods or services (including construction services) for the project unless the recipient agrees to: (1) specify in any announcement of the awarding of the contract for the procurement of the goods and services involved (including construction services) the amount of Federal funds that will be used to finance the acquisition; and (2) express the amount announced pursuant to paragraph (1) as a percentage of the total cost of the planned acquisition. The foregoing requirements shall not apply to a procurement for goods or services (including construc- tion services that have an aggregate value of less than $500,000. G. PROHIBITION OF ATTORNEYS' AND CONSULTANTS' FEES The Grantee hereby agrees that no funds made available from this Award shall be used, directly or indirectly, for paying attorneys' or consultants' fees in connection with securing awards made by the Government, such as, for example, preparing the application for this assistance. However, attorneys' or consultants' fees incurred for meeting Award requirements, such as, for example, conducting a title search or preparing plans and specifications, may be eligible Project costs and may be paid out of the funds made available from this Award, provided such costs are otherwise eligible. H. TITLE: Prior to the disbursement of funds by EDA, the Grantee shall provide evidence satisfactory to the Government that the Grantee has acquired good and merchantable title, free of all mortgages or other foreclosable liens, to all land, rights-of-way and easements necessary for the completion of the project. I. GRANTEE AFFIRMATION OF AWARD: This Approval and Award of Grant, subject to the other Special Conditions and the General Terms and Conditions, shall constitute an obligation to make such Award. If the Grantee fails to affirm its intention to use the Award in accordance with the terms and conditions of this Approval and 94 68 special Terms/conditions City of San Bernardino and Inland Valley Development Agency San Bernardino, california Award No. 07-49-02680 Page 7 of 8 Award of Grant, it will be terminated without further cause. By signing and returning one of the original Approval and Award of Grant documents within 45 calendar days from the date of approval by the Assistant Secretary, the Grantee hereby affirms that it intends to use the Award in accordance with the terms and conditions as above-referenced. J. EXPIRATION OF AVAILABILITY OF GRANT FUNDS: This Award is subject to Public Law 101-510, enacted November 5, 1990, Section 1405, amending subchapter IV of chapter 15, title 31, United States Code, which prescribes the rules for determining the availability of appropriations. Accordingly, the grant funds obligated for this Project will expire in five years from the fiscal year of the grant award. This requires that the Project be physically and financially complete by September 30, 1998. K. ARCHITECT/ENGINEER AGREEMENT: Prior to the disbursement of funds by EDA, the Grantee shall submit to the Government for approval an archirtect/engineer agreement that meets the requirements of Section I of the EDA publication, "Requirements for Approved projects," as well as the competitive procurement standards of Department of Commerce Regulations at 15 CFR 24.36 or OMB Circular A-110, as applicable. The fee for basic architect/engineering services shall be a lump sum or an agreed maximum and no part of the fees for other services shall be based on a cost-plus-a- percentage-of-cost or cost using a multiplier. L. AUDIT REQUIREMENTS: The Grantee is subject to the requirements of the Office of Management and Budget (OMB) Circular A-128 "Audits of State and Local Government," or OMB Circular A-133 "Audits of Institutions of Higher Education and Other Nonprofit Institutions," and of the Department of Commerce regulations issued pursuant thereto at 15 CFR 8a, 29a and 29b. N. NOHRELOCATION - INDUSTRIAL SITE: It has been determined that the proposed Project facilities involve the construction of an areawide utility system. The Recipient acknowledges its responsibility for determining that all employers which use or are projected to use greater than ten percent (10%) of the increased capacity of the areawide utility system 94 68 special Terms/conditions city of San Bernardino and Inland Valley Development Aqency San Bernardino, california Award No. 07-49-02680 Page 8 of 8 provided by this Project are in compliance with EDA's Nonrelocation Regulation as set forth in 13 CFR 309.3. This nonrelocation restriction is in effect for the forty-eight (48) month period following Award approval. The Recipient further acknowledges its responsibility for obtaining properly executed certificates of Nonrelocation from said employers. If any of the employers are found to be in violation of EDA's Nonrelocation Regulation as set forth in 13 CFR 309.3 and the Recipient has not previously obtained a properly executed Nonrelocation Certificate from same, the Government will terminate the Award for cause and demand repayment of the full amount of this Award, plus interest, all as is more fully set forth in 13 CFR 309.3. O. ENVIRONMENTAL REQUIREMENTS Prior to start of construction and/or upon conveyance of the project site by deed or lease, the Recipient shall provide evidence satisfactory to the Regional Environmentalist that the requirements of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), as amended by the Community Environmental Response Facilitation Act of 1992 (CERFA) have been met and any resultant applicable mitigation be incorporated into these grant conditions. ~ , , ~ ". ' 94 68 U. S. DEPARHIENT OF CO~P'ojERCE ECONOMIC DEVELOPMENT ADMINISTRATION GENERAL TERMS AND CONDITIONS FOR CONSTRUCTION COMPONENTS OF TITLE IX IMPLEMENTATION GRANTS MARCH 1987 94" 68 t"or the purpose of ,these General Terms -and Conditions,';"tal the term .Go'l'ernment.,..refers to the Economic Development Administra- tion; (b)",.tbe term, ",Assistant Secretary' refers to the Assistant Secretary,of'Commerce for Economic Developmentl and,' (cl the term .Gran.t~e~;::refers to the undersigned recipient"_'?.!,," Governmen~~~fur~s under the agreement to which ~n~s~~S~P attachment'made 'a part thereof. The work, the facilT'tles and/or the property" _real or personal, which is fi.nan,c~,.;Z1holly or in part by the Government hereby will be referred ~ ~s 'the project. . The public Works and Economic Development Act of 1965, and its amendments are hereinafter ~~[erred to as P.L. 89-136, as amended. Some of the terms and conditions herein contain by reference or substance a summary of the pertinent statute or regulations published in the Code of Federal Requlations." To the extent that it is ,a summary, ,such term or.condition is not:In derogation of, or an amendment 'to,-: the statute or regulatIon. All statutes or regulations whethe~ oi',not referenced herein are to be applied as amended on the date they are administered. A. statutory Requirements The Government shall be under no obligation to disburse funds unless the Grantee is in compliance with the following requirements: '. 1., The Grantee shall comply, and require each of its contractors and subcontractors' employed. in the completion of the project to comply with all applicable Federal, state, TerritOrial; and local law~i and in particular the fOllowing,Federal laws and regulations issued thereunder: a. The Davis-Bacon Acti as amended (40 USC 276a(5lt (42 USC 3222, as amended)) b. The Contract Work Bours Standards Act, as amended (40 USC 327-332) I c. The Copeland .Anti-Kickback" Act,' as amended (40 USC 276 (c) I 18 USC 874) 1 d; Title VI of the Civil Rights Act of'1964, as amended (42 USC 2000d-2000d-4) and Executive Orders lll14, 11246, and l1375, and specifically the following: 94, 68 - 2. - The Grantee ~ill incorporate or cause to be incorporated into any contract f.o.r construction work, or modificatio.~ffi,~reof, as defined in" the rules v.!"d regulations of the presid~:;1: Committee an Equal Opportunity, .....hich is paid far.~!lj'^.'h~le or in part with funds abtained from the Federal Governme!1t 'ar borrower on the credit of the Federal Government ~~?iua~i to a grant, contract, loan, insurance or guarantee, or "undertaken , pursuant to any Federal program involving such grant, contract, loan, insurance, 9~ guarantee, the following equal opportunity claus~: ,,' ' " " "During the performance of this contract', the contractor agrees as follows: '. (l) The contractor will not discriminate against any employee or applicant far emplayment'oecause of race, colar, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees,are treated during emplayment, without regard to. their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demation, ar. transfer, recruitment or recruitment advertising; layaff or termination; rates of payor ather forms of compensation; and selectian for training, including apprenticeship. The contractor agrees to past in conspicuous places, available to employees and applicants for employment, notices to. ,be provided by the contracting officer setting forth the provisions of this nondiscrimination clause. . .~ - (2) The contractor will, in all solicitatians advertisements for employees placed'by ar on behalf the cantractar, state that all qualified applicants will receive cansideration for employment without regard to race, colar, religian, ~ex br national origin., - or of , " (3) The contractor will send to each labar union or representative or workers with which he has a collective bargaining agreement or other contract or understanding, a notice to. be provided by the agency cantracting officer, advising the labor union ar workers' representative of the contractor's cammitment under Section 202 of Executive Order No. l1246 of September 24, 1965, and shall past capies af the natices in conspicuous places available to employees and applicants for employment. 94, C 8 - 3 - '{4) The contractor will comply with all provisions of Executive Order No. 11246 of ' September 24, 1965, and of the rules, regulations, and relevant orders, and amendments of the foregoing, of the Secretary of Labor. (5) The contractor will furnish all information and re~rts required by Executive Order No. 11246 of September 24, 1965,-and by the rules, regulations and orders, and amendments of the foregoing, of the Secretary' of Labor, and will permit access to his books, records, and accounts by the Government and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders. ' (6) In the event of the contractor's non- compliance with the nondiscrimination clauses of this co'ntract or.,with any of such rules, regulations, or orderi; this contract may be cancelled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 11246 of september 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rules, regul~tions, orders, and amendments of the foregoing, of the Secretary of Labor, or as otherwise provided by law. '(7) The contractor will include the provisions of paragraph (1) through (6) in every -subcontract or purchase order unless exempted,by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such, provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order ~s the Government may ,direct as a means of enforcing such provisions including sanctions for noncompliance: provided, however, that in the event that the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Government, the contractor may request the united States to enter into such litigation to protect the interest of the united States." 94, 68 - 4 - The Grantee further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in Federally assisted (construction) work: Provided that if the Grantee so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in worK'on or under the contract. The Grantee agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Government that it will furnish the Government such information as they may require for the supervision of such compliance, and that it will otherwise assist the Government in the discharge of its primary responsibility for securing compliance. The Grantee further agrees that it will refrain =rom entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and Federally assisted construction contracts pursuant to the Executive Order and will carry. out such sanctions and penalties for violation of the Equal opportunity clause as may be imposed upon contractors and subcontractors by the administering ag~ncy or the Secretary of Labor pursuant to Part,!I, Subpart D of the Executive Order. In addition, the Grantee agrees that if it fails or refuses to comply with these undertakings the Government may take any or all of the following actions: cancel, terminate, or suspend in whole or in part this grant: refrain from extending any further assistance to the Grantee under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been received from such Grantee; and refer the case to the Department of Justice for appropriate legal proceedings. e. Prior to advertising for bids on the construction of the project, the Grantee will submit a .Certifi- cation of Nonsegregated Facilities" as required by the 94, 68 - 5 - May 9, 1967, order (32 F.R. 7439, May 19,1967) on Elimination of Segregated Facilities, by the Secretary of Labor, agreeing to provide prospective construction contractors on the project with the following notice: "NOTICE TO ,PROSPECTIVE FEDERALLY ASSISTED CONSTRUCTION CONTRACTORS A certification of ~onsegregated Facilities, as required by the May 9,1967, order (32 F.R. 7439, May 19, 1967) on Elimination of Segregated Facilities by the Secretary of Labor, must be submitted prior to the award of a Federally assisted construction contract exceeding $10,000 which is not exempt from the provisions of the Equal Opportunity clause. Contractors receiving Federal assisted construction contract awards exceeding $10,000 which are not exempt from the provisions of the Equal Opportunity clause will be required to provide for the forwarding of the- following notice to prospective subcontractors for supplies and construction contracts where the subcontracts exceed $lO,OOO and are not exempt from the provisions of the Equal Opportunity clause: NOTICE TO PROSPECTIVE SUBCONTRACTORS OF REQUIREMENT FOR CERTIFICATIONS OF, NONSEGREGATED FACILITIES A certification of Nonsegregated Facilities, as required by the May 9, 1967, order (32 F.R. 7439, May 19, 1967) on Elimination of Segregated Facilities by the Secretary of Labor, must be submitted prior to the award of a subcontract exceeding $10,000 which is not exempt from the provisions of the Equal Opportunity clause. Contractors receiving subcontract awards exceeding $10,000 which are not exempt from the provisions of the Equal Opportunity clause will be required to provide for the forwarding of this notice to prospective subcontractors for supplies and construction contracts where the subcontracts exceed $10,000 and are not exempt from the provisions of the Equal opportunity clause." 92 f" - 6 - f. If the project includes sewer or other waste disposal facilities, no Government funds will be disbursed unless the Environmental Protection Agency issues a certificate as required by section l06, P.L. 89-136. g. The Grantee shall file the certification and agreements required by Section 7ll, P.L. 89-136, as amended, 13 CFR 30~;7, as amended. h. Public Law 90-480, as amended, and the regulations issued thereunder (13 CFR 309.14), prescribing standards for the design and construction of any building or facility intended to be accessible to the public or which may result in the' employment of handicapped persons therein. i. No person in the United States shall on the ground of sex be excluded from participating in, be denied the benefits of, or be otherwise subject to discrimination ,in connection with this Project (Section 112 of P.L. 92-65, amended; 13 CFR Part 311). j. Pursuant to Section 504 of the Rehabilitation Act of 1973, the Grantee must provide fair and equitable treatment for the handicapped. The recipient will comply with the Department of Commerce regulation, 15 CFR Part 8b, implementing Section 504.' This regula- tion protects the rights of handicapped persons and establishes a mandate to end discrimination. k. The Grantee hereby covenants and agrees to be bound by Title 15 CFR Subtitle A, Part 8 (Non- Discrimination in Federally Assisted Programs, U. S. Department of Commerce), as amended, and by Title 13 CFR Part 311. ' 1. Age Discrimination Act: The Grantee agrees to abide by the regulation of the Department of Commerce pursuant to the provisions of the Age Discrimination Act of 1975 (l5 CFR Part 20). The regulation prohibits discrimination on the basis of age in programs or activities receiving Federal financial assistance. 9~ 68 - 7 - m. The Grantee hereby agrees that no funds made available from this grant shall be used, directly or indirectly, for paying attorneys' or consultants' fees in connection with securing grants made by EDA, such as, for example, preparing the application for this assistance. However, attorneys' and consultants' fees incurred for meeting grant requirements such as, for example, conducting a title search, or preparing plans and specifications, may be eligible project costs and may be paid out of'~unds made available from this grant provided such costs are otherwise eligible. n. The Grantee agrees to comply with the require- ments of the Uniform Relocation Assistance Act as contained in 15 CFR Part II (51 FR 2456, July 7, 1986). o. ~he Grantee agrees to comply, and require each of its contractors and subcontractors to comply with all applicable standards, orders, or regulations issued pursuant to the Clean Air Act, as amended (42 USC 1857) and Executive Order 11738; and the Federal Water pollution Control Act, as amended (33 USC 1251), and to report all violations thereof to the Environmental protection Agency and to EDA and specificallY to comply with the following: (1) For the purpose of this paragraph, the following definitions apply: (a) The term "Recipient" means the Grantee. (b) The term "facility" means (a) any building, plant, installation, structure, mine, vessel or other floating craft, location or site of operations (b) owned, leased, or supervised (c) by the Recipient or its contractors and the latter's' subcontractors (d) for the construction, supply and service contracts entered into by the Recipient for the purpose of accomplishing this project. (2) The Recipient agrees to comply with Federal clean air and water standards during the accomplishment of this project and specifically agrees to the following: 9~ 68 - 8 - (a) that any facility to be utilized in the accomplishment of this Project is not listed on the Environmental Protection Agency's (EPA) List of Violating Facilities pursuant to 40 CFR, Part 15.20; (b) That in the event a facility utilized in the accomplishment of this Project becomes listed on the EPA List, the Government may, inter alia, cancel, terminate for default, or suspend for such failure, in whole or in part, the agreement; (c) that it will comply with all the requirements of Section ll4 of the Clean Air Act and Section 308 of the Federal Water Pollut~on Control Act relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in Section ll4 and Section 308, respectively, and all regulations and guidelines issued thereunder; (d) that it will promptly notify the Government of the receipt of any notice from the Director, Office of Federal Activities, Environmental Protection Agency,indicating that any facilities utilized or to be utilized in the accomplishment of this Project is under consideration for listing on the EPA List of Violating Facilities. (e) that it will insert in any of its contracts and require insertion in subcontracts entered into for the purpose of accomplishing this Project, unless otherwise exempted pursuant to the EPA regulations implementing the Air or Water Act (40 CFR, Part 15.5), provisions which shall include the criteria and requirements set forth in this paragraph, including this subparagraph (e); (f) that in the event that either the Recipient or its contractors or the latters' subcontractors for the construction, supply and service contacts entered into by the Recipient for the purpose of accomplishing this Project were exempted from complying with the above subparagraphs under the provisions of 40 CFR, Part l5.5(a), the exemption shall be nullified should the facility give rise to a criminal conviction (See 40 CFR, Part 15.20) during 94,> 68 - 9 - the accomplishment of this Project. Furthermore, with the nullification of the exemption, the above sub- paragraphs shall be effective. The Recipient shall notify the Government, as soon as the Recipient's, its contractors' or the latters' subcontractor's facility is listed for having given rise to a criminal conviction noted in 40 CFR, Part 15.20. p. The Grantee heteby agrees to comply with the requirements of ali pertinent rules and regulations issued under and pursuant to the National Environ- mental Policy Act of 1969 (P.L. 90-190); the National Historic Preservation Act of 1966 (80 Stat. 915, l6 USC 470); Executive Order No. 11593 of May 31, 1971; and the wild and Scenic Rivers Act (P.L. 90-542), as amended. q. The Project will not cause or be a hazard,as a result of flood as required by Executive Order 11296. The Grantee will fulfill any flood insurance require~ _ ments under the Flood Disaster Protection Act of 1973 (P.L. 93-234, 87 Stat. 975), as amended, and any regulations issued thereunder by the U. S. Department of Housing and Urban Development and/or the Economic Development Administration (13 CFR 309.15). r. The Project shall not include any facilities for the generation, transmission or distribution of electrical energy or the production or transmission of gas. (natural, manufactured or mixed). s. The Grantee warrants that the Project will be properly and efficiently administered, operated and maintained as required by Section 604, P.L. 89-136. pr ior to construction completion, the Grantee sh,all submit evidence satisfactory to the Government that sufficient funds are available for requisite capital expenditures necessary to commence operations and to administer, operate and maintain the project for its useful life. 2. If compliance with any of the provisions of this Agree- ment would require the Grantee to violate any appli- cable Federal, State or Territorial law, the Grantee shall, as soon as possible, notify the Government, in 9~' C 8 - 10 - writing so that appropriate action may be taken by the Government to allow, if possible, the Grantee to proceed as soon as possible with construction of the Project. 3. The employment of all laborers and mechanics, including apprentices and trainees, as defined in Parts 3, 5, and 5a, subtitle A, Title 29, Code of Federal Regulations, as am~Dded, shall be applicable to every invitation for bids, and to every negotiation, request for proposals, or request for quotations, for construction contracts and to every such contract entered into on the basis of such invitation or negotiation. Part 5a. 3, Subtitle A, Title 29, Code of Federal Regulations shall constitute-the conditions of each contract in excess of $10,000, and each Grantee and contractor shall include these conditions or provide for their inclusion, in each such contract. Parts 5a. 4, 5a. 5, 5a. 6, and Sa. ,7 shall also be included in each such contract for the information of the contractor. Apprentices and trainees shall be hired in accordance with the ~equire- ments of Part 5a. B. GENERAL REQUIREMENTS 1; Prior to any solicitation of bids for construction work or whenever and so often as the Government requests: a. The Government may require the Grantee to obtain in addition to any other steps required by the Agree- ment, approval by the Government of (i) its final plans and specifications and (ii) the bidding proce- dures for all construction work and for all material and equipment acquisitions. b. The Government may require the Grantee to furnish evidence satisfactory to the Government that: (1) the Project costs are reasonable; (2) it has sufficient funds in addition to the funds provided by the Government to complete the Project, including interim financing, if any; 9~ 68 - II - (3) it has obtained, or can obtain, all land, rights-of-way, permits, franchises and all Federal, state and local coordinations and approvals necessary to the completion of the Project, and in all other respects has complied with pertinent Federal, State or local laws: and, (4) its agreement with an architect/engineer for design and other services specifies a fixed or maximum fee for Basic Services. Basic Services are described in the booklet, Requirements for Approved projects, issued to all Grantees. 2. Grantee expressly agrees to grant to EDA a first priority unsubordinated lien against, or security interest in, the property acquired or improved in whole or in part with the funds made available through this Award and Approval of Grant. This lien or security interest must be perfected in accord~nce with local'law. EDA will, in its sole discretion, determine whether the lien or security interest which- has been granted to EDA is satisfactory, and it may require an opinion of counsel for the Grantee to substantiate that the lien or security interest has been properly recorded. The Grantee further agrees that in the event that it alienates in any manner, any interest in the real property acquired ,or improved with EDA grant funds, EDA shall be entitled to recover damages. EDA's regulation at 13 CFR 5314.4 provides thftt upon disposition of property acquired or improved with EDA grant funds, EDA shall be entitled to a recovery based upon the ratio of the percentage of EDA's participation in the total cost of the project to the fair market value of the property at the time of the disposition. For the purposes of the lien, the amount of EDA's damages shall be the full amount of EDA's grant, plus interest from the date of the disposition. This lien must remain in effect through the useful life of the project as defined in 13 CFR 53l4.6(a). Alienation shall include, but not be limited to sale, lease, rent, option or mortgage. 3. The Grantee shall perform all construction work and make all material, equipment, and any other property acquisitions by contracts or documents for which prior approval by the Government may be required. 9) PQ - 12 - 4. The Grantee and Grantor shall accept and apply the standards and provisions, as applicable, set forth in Office of Management and Budget Circular No. A-l02, Revised (mlB Circular No. A-102), "Uniform Administrative Requirements for Grants-in-Aid to State and Local Governments," and OBM Circular No. A-llO, "Uniform Administrative Requirements: Grants and Agreements with Institutions of Higher Education, Hospitals and Other Nonprofit Organizations". In the event of conflict between the above OMS Circulars and enabling legislation, the latter shall prevail. 5. In accordance with OMS Circular No. A-102, Attach- ment B, or OMS Circular No. A-llO, Attachment B, the Grantee shall follow its own requirements relating to bid guarantees, , performance bonds, and payment bonds unless the construction contract or subcontract exceeds $100,000. For those contracts or subcontracts exce~ding $100,000, the Federal agency may accept the bonding policy and requirements of the Grantee provided the Federal agency has made a determination that the Government's interest is adequately protected. If such a determination has not been made, the minimum requirements shall be as follows: a. A bid, guarantee from each bidder equivalent to five percent of the bid price. The "bid guarantee" shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of his bid, execute such contractual documents as may be required withi~ the time specified. b. A performance bond on the part of the contractor for 100 percent of the contract price. A "performance bond" is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract. c. A payment bond on the part of the contractor for 100 percent of the contract price. A "~ayment bond" is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract. 9 (c 68 - 13 - 6. The Grantee agrees that it will not, without the prior written consent of the Government, order or permit any change in the final plans and sp~cifications which would entail any substantial variance in the Project, or increase the cost thereof. 7. Th~ Grantee shall provide and maintain on its behalf competent and adequate architectural or engineering services to design,and supervise the development and construction of the Project. 8. The Grantee shall establish a project bank account or accounts satisfactory to the Government, into wh ich shall be deposited funds for the financing of the project. Disbursements from the Project bank account(s) shall be for the purposes and within the amounts for each line item in the approved project budget except as otherwise specifically authorized by the Government. The Government reserves the right to require the prior approval of disbursements from the Project bank account. (Not applicable to State or local Governments.) 9. The Grantee shall cause to be erected at the site of the Project, and maintained during construction, signs satisfactory to the Government identifying the Project and indicating the fact that the Government is participating in the development ?f the Project. 10. The Grantee agrees that it will not' without the prior written consent of the Government, order or permit the total incurred cost to exceed any of the line items in the cost estimates approved by the tovernment for the Project. 11. The Grantee shall include in all contracts and' subcontracts, in language acceptable to the Government, provisions requiring the maximum feasible employment of local labor for work which is or reasonably may be done as on-site work and shall take reasonable steps to assure continuing compliance with such contract provisions. ' '9 f o G8 - 14 - 12. The Grantee shall establish, maintain and preserve, and require each of its contractors and subcontractors to establish, maintain and preserve property management, project performance, financial management and reporting documents and systems, and such other books, records, and other data pertinent to the project as the Government may require. While such records shall be retained for a period of three years following receipt ot final payment by the Grantee, detailed exceptioni are stated in 13 CFR 309.9. 13. The Grantee shall require that each of its contractors and subcontractors render to the Government and the General Accounting Office the right to inspect and monitor all work, materials, payrolls, records and personnel, invoices and other relevant data and records pertaining to the development and construction of the Project. 14. The Grantee covenants that each of its officials or employees having custody of the Project funds during acquisition, construction, development and operation shall be bonded at all times in an amount at least equal to the total funds in his custody at anyone time; provided that if the Grantee is a State or local unit of Government, the Bond shall be in such amount as normally required by such body. 15. The Grantee shall carry insurance; and require each contractor and subcontractor to carry insurance, of such types and in such amounts as the Government may specify, with insurance carriers acceptable to the Government; provided that if the Grantee is a State or local unit of Government the insurance requirements normally required by the State or local units of Government will prevail. 16. The Government reserves the right to require the Grantee to submit, prior to the commencement of construction, an independent appraisal or appraisals by an appraiser or appraisers acceptable to the Government of the current fair market value of any or all of the land and facilities (including buildings, machinery and equipment) to be included as part of the aggregate cost of the project. 9t f R - 15 - l7. The Government reserves the right to suspend the grant, and withhold further payments, or prohibit the Grantee from incurring additional obligations, pending corrective action by the Grantee or a decision by the Government to terminate the grant unless the project is completed to the satisfaction of the Government. lB. Costs for interest during the construction period shall not include any interest on borrowed funds in excess of the amount needed to pay current project costs. 19. Funds may be made available either by way of a check drawn on the united States Treasury or by way of letter of credit to the Grantee in accordance with all provisions of the grant and all applicable require- ments of the U. S. Government including particularly, but not limited to, OMB Circular No. A-102, Revised or OMB Circular No. A-llO, OMB Circular No. A-B7~ and Treasury Circular 1075. The Grantee agrees to request a Treasury Check or to draw upon a letter of credit' only to meet actual immediate disbursement needs. Immediate disbursement needs are determined as of the latest practical point for the Grantee's payment of eligible costs. 20. Disbur sement of funds by the Government. does not constitute its acceptance of any items'as an eligible project cost until all Project costs have been audited an9 determined to be reasonable by the Government. 21. If the actual costs of the project are-less than the estimated costs, the grant will be reduced to the extent necessary to comply with the percentage limitation set forth in the Grant Agreement. 22. The Grant Administrator (GRA), as named in the Special Terms and Conditions, is responsible ~or the administration of the grant and liaison with the Grantee. The GRA is also responsible for evaluating the operation of this grant as performed by the Grantee, and for the acceptance of all work required under the Grant Award and Terms and Conditions, including the approval of any and all reports and such 94, 68 - l6 - other specific responsibilities as are stipulated in various terms of the grant. The GRA is not authorized to make any commitments, otherwise obligate the Government, or authorize any changes that affect the grant amount, terms or conditions. Such changes shall be made only with the expressed prior authorization of the Assistant Secretary for Economic Development, or his designated representative, to be accomplished by a written Approval and Award of Grant Amendment. 23. The Grantee shall submit annual reports for each year that the assistance continues commencing the date this Award is accepted and for one (1) year thereafter indicating the status of all activities funded by the grant; the ~osts incurred for each comple~ed and/or partially completed activity, and any operational costs of activities; the degree to which the activities have achieved their goals; and the overall effectiveness of the economic assistance provided in meeting the adjustment needs of the area. These reports shall be in accordance with the requirements of Attachments H and I of OMB Circular No. A-102, as amended. Reports shall be submitted to the GRA at the address shown on page one of the Special Terms and Conditions. An information copy of all reports shall also be submitted to the Director, Economic Adjustment Division, Economic Development Administration, u. S. Department of Commerce, HeHB 7327, 14th and Constitution Avenue, N. W., Washington, D. C. 20230. In addition, the Grantee agrees to inform the Government if events occur which have a significant impact upon the project, whether positive or negative in nature. 24. A. for if: The Government shall have the right to terminate cause all or any part of its 'obligation hereunder (1) Any representative made by"the Grantee to the Government in connection with the application for Government assistance shall be incorrect or incomplete in any material respect. ( 2) essential shall no t The Grantee fails condition of this diligently pursue to comply with the Agreement, or that the development of it this 94 68 - 17 - Project to ensure completion. It is expressly understood and agreed that the Grantee shall notify the Regional Director in the event delays occur which substantially affect the accomplishment of the project. (3) The intent and purpose of the Project is changed substantially so as to significantly affect the accomplishment of the project as intended. (4) The Gran~ee has violated commitments made by it in its'application and supporting documents or has violated any of the terms or conditions of this Agreement. (5) Any official, employee, architect, attorney, engineer or inspector of or for the Grantee or any Federal, State or local official or representative, becomes directly or indirectly interested financially in the, acquisition of any materials or equipment, or in any construction for the project, or in the furnishing of any service to or in connection with th~ Project, or in any benefit arising therefrom. (6) The Grantee fails to report immediately to the Government any change of authorized representa- tive(s) acting in lieu of or in behalf of the Grantee. 25. B. The obligations hereunder may be terminated for convenience if: (1) Both the Grantee and the Government agree that continuation of the Project woul& not produce beneficial results commensurate wit'h the further expenditure of funds. (2) Both the Grantee and the Government shall agree upon the termination conditions, including the effective date and, in the case of partial terminations, the portion to be terminated. (3) The Grantee agrees to incur no new obligations for the terminated portion after the effective date and to cancel or satisfy all outstanding obligations as of that date. 94 68 - l8 - 26. prior to disbursement of any funds by the Government pursuant to this Award, the Grantee will arrange to have all facilities provided in this project, which are financed in whole or in part by Federal funds, covered by a covenant or covenants running with the land on which the facilities are located, binding on successors or transferees or assignees, guaranteeing that those facilities will provide service without discrimination to all persons without regard to their race, color, religlon, sex or national origin. 27. The Grantee agrees to comply with the provisions of 13 CFR Part 314 on property management and any amendments thereto, and with any requirements imposed by or pursuant to circulars issued by OMB and any amendments thereto. 28. If the project includes a water supply system and/or water facilities, no construction shall be commenced until 'it has been established to the satisfaction of the Government that the quality and quantity of water available to the project is sufficient for the purposes of the project; provided, however, that if the quality and quantity of water available cannot be determined without the construction of part of the project, the Government may authorize the construction of such part prior to authorizing construction of the remainder of the project. . . ~ . , 29. The Grantee hereby covenants that in the event it is authorized by the Government to lease any facilities constructed as part of this project"to.concessionaires or operators, it will obtain from such concession- aire(s) or operator(s) and submit to the Government properly executed Forms (e.g., Certificate of Non-Relocation; Assurances of compliance with The Department of Commerce Regulations under Title VI of the Civil Rights Act of 1964: and Assurance of Job Opportunities for The Unemployed) prior to completion of the lease agreement (s) . 30. The Government may, at its option, require the Grantee to include in the request for construction bids a requirement that each responsive bidder will provide 94 rR - 19 - . bids on two schedules: (1) one based on continuing construction throughout the period of adverse weather, and (2) one based on the normal shutdown during the same period. The Grantee must reserve the right to award the construction contract on the basis of the low bid on either schedule. Care must be taken to insure that all work performed during the periods of adverse weather are structurally sound and as durable as work performed under favorable weather conditions.' The requirement for work during adverse weather conditions shall be so stated that the contractor shall not be required to continue work during actual conditions covered by the following weather warnings as issued by the U. S. Weather Bureau: (1) snow and/or heavy icing, (2) severe thunderstorms, (3) tornado, or (4) hurricane. 31. Nonexpendable personal property acquired with Government funds will be retained until there is no longer a need to accomplish the purpose of the project. After that time the Grantee shall first use such property in other Government projects or secondly in projects of other Federal Governmental agencies; such other projects being those of the Grantee ,herein. When the Grantee is unable to use the property as aforesaid the regulations of the Government shall be applied per OMB Circulars A-102, A-110 or other applicable legal requirements. prope~ty records shall be maintained accurately and provide for: a description of the propercy, manufacturer's serial number or other identification number, percentage of funds used in, the purchase of the property, location, use and condition of the property, and such other data as may be required per OMB Circulars A-102, A-110 or other applicable legal requirements. A physical inventory of the property shall be taken, and the results reconciled with the property records, at least once every two years. A control system shall be in effect to insure adequate safeguards to prevent loss, damage or theft, any of w~ich shall be investigated and fully documented. 32. If construction work is to be performed in a geographiCal area covered by bid conditions issued by the Office of Federal Contract Compliance, the Grantee 94, 68 - 20 - , - . r shall include such bid conditions as part of its ~onstruction contract, or any modification thereof. In such areas, the Grantee shall also include in contracts for construction work, or any modification thereof, provisions requiring the contractor to report its manpower utilizatio~ on a monthly basis using the latest Optional Form 66, Monthly Manpower Utilization Repor t. 33. Any program income/earned by the Project between the date of approval and the date of completion shall be deducted from the total project costs for the purpose of determining the net costs on which the Federal share of costs will be based; or added to funds committed to the project by the Government an? the Grantee and used to further eligible program objectives. 34. The Grantee shall have the sole authority and full responsibility, without recourse to the Federal Government or any of its agencies, for the settlement_ and satisfaction of all contractual and administrative issues arising out of this grant. II. 35; The Grantee shall submit quarterly performance reports to assure that time schedules are being met and that projected work units by time periods are being accomplished. Between required performance reporting dates, Grantee shall inform the Government of all problems, delays or adverse conditions which will materially affect the ability to attain program objectives, prevent the meeting of tinl1'! schedules, and goals, or preclude the attainment of project work units by established time periods. This disclosure shall be accompanied by a statement of the action taken, or contemplated, and any Federal assistance needed to resolve the situation. 36'. ':~.The Grantee agrees to furnish a copy of the auditor ,i~~ngagement lett~r upon execution, and four copies of ;:",the resultant audit report upon issuance, to the ~ffice of Management and Budget (OMB) designated cognizant Federal audit agency. '.' . 94 68 - 2l - .~ . If the Grantee has no OMB designated cognizant audit agency, the copies of the auditor engagement letter, and audit report should be sent to the Department of Commerce Regional/District Audit Office responsible for the area in which the Grantee is located. In meeting its audit obligations the Grantee will assure that: ~ a. Audits are performed in accordance with the applicable requirements of OMB Circulars No. A-102, Attachment P, or A-llO, Attachment F. The Grantee agrees that a financial and compliance audit on an organization-wide basis will usually be performed annually, but not less frequently than every two years. b. Audits are made in accordance with the General Accounting Office Standards for Audit of Governmental Organizations, Programs, Activities and, Functions, the Guideline~ for financial and Compliance Audits of Federally Assisted Programs, any compliance- supplements approved by OMB, and generally accepted auditing standards established by the American Institute of Certified Public Accountants. c. Auditors engaged will meet the qualification requirements set forth in the ,General Accounting Office Standards for Audit of Governmental Or anizatons Proqrams, Act v1t1es an Funct ons,. 1n accordance with the applicable procurement requirements of Attachment 0 to OMS Circulars No. A-102 or A-llO., Nongovernmental auditors must be either independent, certified public accountants or independent licensed public accountants licensed on or before December 31, 1970. d. The auditor will ret~in the audit work papers and reports for at least three. years from the date of the audit report unless the auditor is notified in writing by the cognizant Federal audit agency of the need to extend the retention period. The audit work papers will be made available .upon request to the cognizant Federal audit agency or its designees and the General Accounting Office or its designees. 94, G 8 - 22 - . e. As required by Department of Commerce Administration Order 213-5, Audit Follow-up and Resolution,the Grantee is expected to respond to any questioned costs and other audit findings and provide additional documentation to support such response within 30 days after the receipt of an audit report from the Office of Inspector General. EDA will consider any response or documentation received during this 30-day period ,in reaching its final determination concerning eligibiiity of costs; any Grantee response or documentation received by EDA more than 30 days after Grantee receipt of the audit report, and before EDA's final determination, may be considered. EDA's final determination shall be in writing and furnished to the Grantee. Actions that result from,EDA's final determination, such as the establishment of a debt or claim against the Grantee, are not subject to appeal within EDA. f. A final management system will be maintain' in accordance with the standards prescribed in OMB ' Circular No. A-102, Attachments G and P or OMB Circular No. A-llO, Attachment F, as applicable. g. Financial records will be retained as well as all other documents pertinent to the grant in accordance wi th Attachment C of OMB Cir'culars No. A-102 or A-llO, as applicable. h. Financial reports will be submitted in accordance with the schedule contained. in the Terms and Conditions, and in accordance with Attachment H of OMB Circular No. A-l02 or Attachment G of OMB Circular No. A-llO, as applicable. 37. The Grantee shall notify the Government promptly whenever the amount of the authorized grant is expected to exceed the needs of the Grantee. 38. Except for such aspects as, but not limited to, zoning building permits, and recording requirements, this Grant shall be governed by and construed under Federal law. .,