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TEXAS:
AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER, R. MARVIN
TOWNSEND, TO EXECUTE PROPOSED GRANT CONTRACT FOR CODE
ENFORCEMENT PROGRAM, NUMBERED CONTRACT NO. TEX. E -7(G),
BETWEEN THE CITY OF CORPUS CHRISTI, TEXAS AND THE
UNITED STATES OF AMERICA, PERTAINING TO THE PREPARATION
OF CODE ENFORCEMENT PROGRAM NO. TEX. E -7, A COPY OF
WHICH PROPOSED GRANT CONTRACT IS ATTACHED HERETO AND
MADE A PART HEREOF, AND AUTHORIZING THE CITY MANAGER TO
DO SUCH THINGS AS ARE NECESSARY TO CARRY OUT THE AFORE-
SAID PROGRAM ON THE PART OF THE CITY OF CORPUS CHRISTI;
AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
SECTION 1. THAT THE CITY MANAGER, R. MARVIN TOWNSEND, BE, AND
HE IS HEREBY, AUTHORIZED AND DIRECTED TO EXECUTE PROPOSED GRANT CONTRACT
FOR CODE ENFORCEMENT PROGRAM, NUMBERED CONTRACT NO. TEX. E -7(G), BETWEEN
THE CITY OF CORPUS CHRISTI, TEXAS, AND THE UNITED STATES OF AMERICA, PER-
TAINING TO THE PREPARATION OF CODE ENFORCEMENT PROGRAM N0. TEX. E -7, A COPY
OF WHICH PROPOSED GRANT CONTRACT IS ATTACHED HERETO AND MADE A PART HEREOF,
AND AUTHORIZING THE CITY MANAGER TO DO SUCH THINGS AS ARE NECESSARY TO CARRY
OUT THE AFORESAID PROGRAM ON THE PART OF THE CITY OF CORPUS CHRISTI.
SECTION 2. THE NECESSITY TO EXECUTE THE AFORESAID PROPOSED GRANT
CONTRACT FOR CODE ENFORCEMENT PROGRAM IN ORDER TO PROVIDE ADEQUATE LOW -PRICE
HOUSING IN THE CITY OF CORPUS CHRISTI CREATES A PUBLIC EMERGENCY AND
IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE
THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS
INTRODUCTION AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE
SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR HAVING DECLARED SUCH
EMERGENCY AND NECESSITY TO EXIST, AND HAVING REQUESTED THE SUSPENSION OF
THE CHARTER RULE AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF
ITS INTRODUCTION AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND
AFTER ITS PASSAGE, IT IS ACCORDINGLY SO ORDAINED, THIS THAY OF
NOVEMBER, 1968.
ATTEST:
/ice ,L� P• ' �
C TY SECRETARY &e7711,4
ch.�tPil I ! � �l.X -�i1/' /`
AY R
APPROVED:
THE CITY OF CORPUS CHRISTI, TEXAS
AO DAY OF NOVEMBER, 1968:
CITY ATTORNEY
9127
•
UNITED STATILS OF AMERICS •
DEPARTMENT OF HOUSING AND URBAN- DEVELOPMENT
Contract No. Tex. E -7(G)
Program No. Tex. E -7
GRANT CONTRACT FOR CODE ENFORCEMENT PROGRAM
between the
CITY OF CORPUS CHRISTI, TEXAS
and
THE UNITED STATES OF AMERICA
PART I
THIS AGREEMENT, consisting of this Part I and the Terms and Conditions
(Form No. HUD- 3126b, dated 1 -66, as amended and modified hereby) forming
Part II hereof (which Parts, together, are herein called the "Contract "),
made and entered into on the date hereinbelow specified, by and between the
City of Corpus Christi, Texas
(herein called the "Grantee ") and the United States of America (herein
called the "Government "), WITNESSETH:
In consideration of the mutual covenants, promises, and representations
contained herein, the parties hereto do agree as follows:
SEC. 1. Purpose of Contract. -- The purpose of this Contract is to provide
for the extension by the Government to the Grantee of certain Federal
financial assistance under Section 117 of Title I of the Housing Act of 1949,
as amended by all amendatory Acts (said Title I as so amended being herein
sometimes called "Title I "), with respect to the Program described in
Section 2 hereof, and to state the terms and conditions upon which such
assistance will be extended and the understandings of the parties hereto as
to the manner in which they contemplate that the Program will be carried out.
SEC. 2. The Program. The Grantee agrees to initiate and carry out a Code
Enforcement Program (herein called the "Program "), consisting of concentrated
code enforcement activities and the provision of certain public improvements
in a certain area or areas (herein called the "Code Enforcement Area "), as
described in the Application and approved by the Government.
- 1 -
SEC. 3. Additional Public Improvements.
or to take appropriate step., to assure that thereGwill ebeaprovided, thos�de,
additional public improvements needed to assure the stability of the Code
EnfOfOement Area, described in the Application and approved by the Government
as public improvements to be provided at no cost to the Government under this
Contract.
SEC. 4. -Code Enforcement Area - -.The Code Enforcement Area is situated in
the City of Corpus Christi, County of Nueces, State of Texas,
and is described in Exhibit A, attached hereto and made a part hereof by
reference.
SEC, 5. The Grant. -- The Government will make to the Grantee a grant for
the Program in an amount equal to two - thirds
; or of the actual cost less.
the
Program authorized hereunder,' whichever is leas.
SEC. 6. Relocation Grant. --
(a) The Government further agrees to increase the grant otherwise payable
to the Grantee pursuant to the provisions of Section 5 hereof in an amount
equal to the relocation payments which are made by the Grantee in connection
with the Program, in accordance with regulations prescribed by the Government:
Provided, That the amount of such increase shall in no event exceed the sum
of $37,800.00.
(b) The Grantee agrees to make relocation payments to individuals,
families, and business concerns in accordance with the relocation payment
regulations.
(c) Na part of the amount of the relocation payments provided for
hereunder shall be included in computing the amount of the grant otherwise
payable to the Grantee pursuant to the provisions of Section 5 hereof.
SEC. 7. Rehabilitation Grant. --
(a) The Government further agrees to increase the grant payable to the
Grantee pursuant to the provisions of Section 5 hereof in an amount equal to
the rehabilitation grant payments which are made by the Grantee in connection
with the Program in accordance with the provisions of Section 115 of Title I
and the rules and procedures established by the Government for the making of
such grant payments: Provided, That the amount of such increase shall in no
event exceed the sums of $496,500.00.
(b) No part of the amount of the rehabilitation grant payments provided
for hereunder shall be included in computing the amount of the grant otherwise
payable to the Grantee pursuant to the provisions of Section 5 hereof.
SEC. 8. sensation to Government for Its Audits and Inspections. -- The
Grantee will compensate the Government for its audits and inspections, provided
for in Section 103(b) hereof, a fixed fee in the amount of $12,998.00.
The fixed fee shall be payable at the time the first requisition for a grant
• payment is approved, by the Government deducting the entire amount of the
fee from the first grant paydient made to the Grantee: Provided, That, i
Program is not commenced after the first grant payment has been made and the
Government shall claim repayment of the grant as provided in Section 108(b)
hereof, the Grantee shall be entitled to a full setoff of the amount of the
fixed fee against the Government's claim, but no part of the fixed fee shall
be refundable in any other circumstance: Provided further, That, in the
event the approved budget for the Program is increased after payment of the
fixed fee, any additional fixed fee payable thereby shall be deducted from
the next grant payment made to the Grantee.
SEC. 9. Counterparts of the Contract. -- This Contract may be executed in
two counterparts, each of which shall be deemed to be an original,
and such counterparts shall constitute one and the same instrument.
SEC. 10. Chances Applicable to Part II Hereof. -- The following changes
are hereby made in the attached Terms and Conditions designated Part II hereof:
A. SEC. 106 is changed to incorporate thq following additional subsections:
(c) Certain Contractors Ineligible for Contract Awards. -- The Grantee
will not award any contract for work in the Program to any contractor who is,
at the time, ineligible, under the provisions of any applicable regulations
issued by the Secretary of labor, United States Department of Labor, to receive
an award of such contract.
(d) Federal labor Standards Provisions. -- Before the Grantee receives
bids or proposals for, or otherwise negotiates for, a proposed contract which
calls for the performance of any work in the Program which will entail, for
such work, the employment by the contractor or his subcontractors of laborers
or mechanics, the Grantee will include in the proposed contract documents
appropriate wage schedules (including the applicable wage determination
decision of the Secretary of labor, United States Department of labor) and
the provisions embodied in that document entitled "Federal Labor Standards
Provisions," attached hereto and marked HUD -3200 and which is made a part
hereof. The schedules, wage determination decision, and other provisions,
as included in such proposed contract documents, shall also be included in
the contract documents as executed. The Grantee will include in each contract
covered by this subsection an appropriate provision requiring the contractor
to insert in each of his subcontracts which will entail the employment by
such subcontractor of laborers or mechanics, as aforesaid, wage end other
provisions which are consistent with such contractor's contract with the
Grantee.
The Grantee will assist and cooperate actively with the Secretary of
Housing and Urban Development and the Secretary of labor in obtaining the
compliance of contractors and subcontractors with the aforementioned Federal
labor Standards Provisions and with the rules, regulations, and relevant
orders of the Secretary of labor and will obtain and furnish to the Secretary
of Housing and Urban Development and to the Secretary of labor such information
as they may require for the supervision of such compliance.
1
• (e) Special Provisions,Belacing to Architects, Etc. -- •
(1) Minimum Salary Rates for Architects Etc. -- Not less than
the salaries prevailing in the locality in which the Program is being carried
out, as determined or adopted (subsequent to a determination under applicable
State or local law) by the Secretary of Housing and Urban Development, shall
be paid to all architects, technical engineers, draftsmen, and technicians
who are employed in connection with the Program.
(2) Payments to Architects Etc. -- Each architect, technical
engineer, draftsman, or technician to whom the foregoing salary provisions
are applicable shall be paid unconditionally and not less often than once
each month. The full amount which is due any such architect, technical
engineer, draftsman, or technician at the time of such payment shall be
computed at the applicable salary rate.
(3) Compliance with Salary Provisions Regardless of Certain
Contraetual Relationships. -- Each contract which is let by the Grantee,
calling for work in the Program, shall require compliance with salary
provisions with respect to architects, technical engineers, draftsmen, and
technicians who are employed thereon by the contractor or by any subcontractors
thereunder, which are in accordance with this subsection, regardless of any
contractual relationship which may be alleged to exist between such contractor
or subcontractor and such architects, technical engineers, draftsmen, or
technicians.
(4) Underpayments of Salaries. -- In case of underpayment of salaries
by any such contractor or by any subcontractor thereunder to architects,
technical engineers, draftsmen, or technicians who are employed by him in
connection with the Program, the Grantee shall withhold from the contractor,
out of payments which are due, so much thereof as may be considered necessary
to pay such employees so employed by the contractor or by any subcontractor
thereunder, the full amount of salaries which are required by the particular
contract, and the Grantee shall disburse, for and on account of the contractor
or the subcontractor (as may be appropriate), to the respective employees to
whom they are due, the amount so withheld.
(5) Claims and Disputes; Architects Etc. -- Claims and disputes
pertaining to salary rates or to classifications of architects, technical
engineers, draftsmen, or.technicians who are employed in connection with the
Program shall be reported by the Grantee to the Secretary of Housing and
Urban Development and otherwise shall be handled in accordance with applicable
law.
(6) Discharging or Discriminating Against Emplovees Because of
Certain Employment Matters. -- No architect, technical engineer, draftsman,
or technician who is employed in connection with the Program shall be discharged
or in any other manner discriminated against because he has filed any complaint
or instituted or caused to be instituted any proceeding or has testified or is
about to testify in any proceeding under or related to the employment standards
applicable hereunder to his employer.
4
B. Sections 107(a) and (b) are hereby changed to substitute the words
"race, color, religion, sex, or national origin" wherever the words
"race, creed, color, or national origin" appear.
SEC. 11. Special Conditions. --
None
PLEASE DO NOT FILL. IN THE DATE.
( S E A L ) CITY OF CORPUS CHRISTI, TEXAS
ATTEST:
City Secretary
By
Mayor
UNITED STATES OF AA'WRICA
Secretary of Housing and Urban Development
By
Assistant Regional Administrator
for Renewal Assistance
Region V
5
• PROGRAM W. TEE. E -7 •
CONTRACT N0. TER. E -7(G)
EXHIBIT A
Molina
The Area is bounded as follows: Beginning at pt. 181' N. of intersection
of Bloomington and Columbia, W. along line 200' N. of Bloomington to pt.
100' E. of East Theresa, N. in straight line to Horne, W. along ROW line
of Horne to pt. 192' W. of Theresa, S. in straight line to pt. 181' N. of
Bloomington, W. along line 181' N. of Bloomington to pt. '100' W. of Elvira,
S. to pt. 100' N. of Bloomington, W. along line 100' N. of Bloomington to
pt. 170' W. of Molina, S. to pt. 100' S. of Bloomington, E. along a line
100' S. of Bloomington to pt. 105' W. of Elvira, S. along a straight line to
the N. ROW line of West Point Rd., along the N. ROW line of West Point Rd.
to Bush. S. on Bush to N. ROW line of Padre Island.Dr., S. E. to Linda Vista,
E. to Columbia, N. E. on Columbia to N. ROW line of West Point Rd., W. 57',
N. to Villareal, E. to W. ROW line of Rene, N. to Bloomington, E. to Columbia,
N. 181' on Columbia.
Hillcrest
The Area is bounded as follows: Nueces Bay Boulevard, West Broadway,
Port Avenue, rear lot line of Nueces Street, Coke Street, and Interstate
Highway 37 excluding Housing Authority property.
Page 1 of 1
GRANT CONTRACT FOR CODE ENFORCEMENT PROGRAM
PART II
CONTENTS
SEC. 101. USE OF CERTAIN TERMS
page
(a�
�tContract" defined . . 1
•
�(bb
"Application" defined 1
SEC. 102.
ACCOMPLISHMENT OF PROGRAM . . . . . . . . . . . . . . . 1
SEC. 103,
PROVISIONS RELATING TO ADMINISTTRATION
)
Books and Records . . . . . . . . . . . . . . . . . . 1
Ja
and Inspections . . . . . . . . . . . 1
ciAudits
c
. •
Reports and Information 1
SEC. 104.
PAYMENT OF GRANT
a
GovernmentIs Obligation . . . . . . . 2
b
Conditions Prerequisite to Payment of Grant . . . . . 2
-
Advance or Progress Payments . 3
d
Requisition for Grant Payment . . . . . 3
e
Rights and Remedies Not Waived . . . . . . . . . . . . 3
SEC. 105.
BUDGETARY AND ACCOUNTING PROVISIONS
a
Accounts . . . . . . . . . . . . . . . . . . . . . . . 3
b
Program Budget and Costs . . . . . . . . . . . . . . . 3
c)
Coats Incurred for the Program 3
d
Documentation of Program Costs 3
e
Checks, Orders, and Vouchers . . . . . . .
SEC. 106.
CONSTRUCTION PROVLSIOm
Contract and "Force Account" Work 4
Ja
b3
Competitive Bidding . . . . . . . . . . . . . . . . . 4
SEC. 107.
EQUAL EMPLOYtEP3 OPPORTUNITY
(a)
Activities and Contracts Not Subject to Executive
Order 11246 . . . . . . . . . . . . . . . 4
(b)
Contracts Subject to Executive order 11246 . . . 5
(cj
Definition -- Contract for Construction . . . . . . 6
(d
Enforcement Obligations of the Grantee 6
- i -
•
Page
SEC. 108. DEFAULTS AM REMIES
-ii -
Cl
Termination or Suspension of Contract . . . . . 7
�a
b;
Forfeiture of Grant . . . . . • • • • • • • • • • 7
SEC. 109.
MISCEUANEOUS PROVISIOM
e
Interest of Public Officials and Employees . . . . 77
b
Interest of Certain Federal Officials . . . . . . . . .
c
Bonus or Commission . . . . . . • • • • • 8
d
Government hot Obligated to Third Parties . . . 8
e
How Contract Affected by Provisions Being Held Invalid 8
f)
Provisions Concerning Certain Waivers . . . . . . . . . 8
-ii -
Cl
SW- 101. USE OF CERTAIN TERMS
Emoept where the context clearly indicates otherwise, the following
terms, as used herein, shall have the meanings ascribed to them in this
Sections
(a) The term "Contract" means this Contract between the Government
and the Grantee, and includes Parts I and II and any additional document
or documents incorporated herein by special reference, as well as any
amendment.
(b) The term "Application" means the written application for the
grant by the Grantee, including any revisions thereto, together with all
explanatory, supporting, or supplementary documents filed therewith.
STM. 102. ACCWLIsmmT OF PROGRAM
The Grantee will commence and carry out the Program with all practicable
dispatch, in a sound, economical, and efficient manner, in accordance with
the Application and the provisions of this Contract, so that the Program will
be completed within 3 years from the date of notification by the Government
of approval of the Application. Said term may be extended with the written
consent of the Government. The Grantee will carry out the Program in
compliance with all requirements imposed by or pursuant to regulations
effectuating Title VI of the Civil Rights Act of 1964 (78 Stat. 241, 252)9
prohibiting discrimination against any person on the ground of race, color,
or national origin.
SEC. 103. PRGVISIONS RELATING TO AMNISTRATION
(a) Books and Records, — The Grantee will keep full and accurate
books and records with respect to all matters covered by this Contract, in
order that a speedy and effective audit may be made.
(b) Audits and Inspections. — The Grantee will, at any time during
normal business hours, and as often as the Government may deem necessary,
permit the Government to have full and free access to all of its books and
records with respect to all matters covered by this Contract, and will permit
the Government to audit, examine, and make excerpts or transcripts from such
books and records, and to review, inspect, and make audits of all Program
work, contracts, invoices, materials, payrolls, records of personnel, conditions
of employment, books of accounts, and other documentary data pertaining to
such matters.
(c) Reports and Information. -- The Grantee will, at such times and in
such manner as the Government may require, furnish the Government with
periodic reports aad statements pertaining to the Program and other matters
covered by this Contract.
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SEC. 101L. PAYMENT OF GRANT.
a ) Government's Obligation. -- The Government will make payments o•
account of the grant payable hereunder for the purpose of covering the
eligible costs of the Program authorized herein.
(b) Conditions Prerequisite to P ent of Grant. -- Notwithstanding any
other provision of this Contract, the Government may elect not to make the
payments provided for herein:
(1) If the Grantee shall have made to the Government any
misrepresentation of a material nature in the Application, or any
supplement thereto or amendment thereof, or in this Contract, or in or
with respect to any document furnished therewith or pursuant thereto;
(2) If the Grantee shall have invited bids or proposals, or shall
have entered into any contract, for the provision of public improvements
as a part of the Program, without obtaining such prior approvals of the
contract documents as may from time to time be required by the Government;
(3) If the Grantee shall have acquired (other than by eminent
domain proceedings), or contracted to acquire, any real property as a
part of the Program at prices, or upon or subject to covenants,
restrictions, terms, or conditions, which shall not have been concurred
in by the Government;
(4) If the Grantee, in acquiring any real property as a part of
the Program by eminent domain proceedings, shall not have received the
Government's concurrence in such action prior to the institution of
such proceedings or shall have consented or acquiesced, by stipulation,
forbearance, or otherwise, to any price, terms, or conditions which
shall not have been concurred in by the Governments except as shall
have been adjudicated by trial or hearing on the merits of the issues
according to law;
(5) If the Grantee shall have failed to carry out its obligation
to provide relocation assistance to individuals or families displaced
as a result of action taken pursuant to the Program;
(6) If the Grantee shall not have maintained a level of expenditures
for code enforcement, exclusive of any expenditures for areas assisted
by Code Enforcement Grants or Title I Urban Renewal Project Grants,
that is not less than its normal expenditures for code enforcement
activities prier to the execution of this Contract, it being understood
and agreed that the determination of normal expenditures shall be based
on the average annual amount expended by the Grantee for code enforcement
during the 2 fiscal years immediately preceding filing of the
Application, excluding expenditures in any federally assisted Code
Enforcement or Title I Urban Renewal Project Areas;
(7) If the Grantee shall not have provided or caused to be provided
those additional public improvements needed to assure the stability of
the Code Enforcement Area in accordance with Section 3 of Part I hereof;
(8) If the Grantee shall have abandoned or, before the completion
thereof, terminated the Program; or
- 2 -
�. (9) IT the Grantee shall, then be iri default with respect to -A
of the provisions of this Contract theretofore to be complied with bye
(o) Advance or Progress Payments. — Under or subject to such conditions
as the Government may specify in writing, which are not inconsistent with
applicable law, the Government mayj in its discretion, make advance or
Progress payments to the Grantee on account of the grant, or on account of
the increase with respect to the grant provided for in Sections 6 and 7 of
Part I hereof, at such time or times prior to the completion of the Program
and the final determination of the total cost thereof as, in view of the
status of the Program and the matters relative thereto, the Government
may deem appropriate.
(d) Requisition for Grant Payment. — The Grantee will file its
requisition for payment of grant, including the increases provided for in
Sections 6 and 7 hereof, on a form or forms prescribed by the Government.
Such requisition will be accompanied by evidence, satisfactory to the
Government, demonstrating the need at the time for the funds requisitioned
and demonstrating that the amount sought is reasonable and the purposes
for which it proposes to expend the funds are within the purview of this
Contract.
(e) Rights and Remedies Not Waived. — In no event shall the making by
the Government of any payment on account of the grant constitute or be
construed as a waiver by the Government of any breach of covenant or any
default which may then exist on the part of the Grantee, and the making of
any such payment by the Government while any such breach or default shall
exist shall in no wise impair or prejudice any right or remedy available to
the Government in respect of such breach or default.
SEC. 105, BUDGETARY AND ACCOUNTING PROVISIONS
(a) Accounts. — The Grantee will establish for the Program separate
accounts to be maintained within its existing accounting system or set up
independently. Such accounts are referred to herein collectively as the
"Program Account."
(b) Program Budget and Costs. — The Grantee will carry out the Program
and incur obligations and make disbursements on behalf of the Program only
for eligible costs (as defined by the Government) and only in conformity
with the latest approved budget for the Program. The budget may be
revised from time to time, but no budget or revision thereof shall be
effective Curless and until the Government shall have approved the same.
Costs incurred in excess of the latest approved budget shall be for the
sole account of the Grantee and shall not be included in the actual cost
of the Program for purposes of computing the Federal grant.
(c) Costs Incurred for the Program. — The Grantee will charge to
the Program Account all eligible costs of the Program.
(d) Documentation of Program Costs. — All costs, including paid
services contributed by the Grantee or others, charged to the Program will
be supported by properly executed payrolls, time records, invoices, contracts,
or vouchers evidencing in proper detail the nature and propriety of the
charges.
— 3 —
(e) checks, Qrdere, and Vouchers. — Any check or order drawn by the
Grantee with respect to any item which is or will be chargeable against the
Program Account will be drawn only in accordance with a properly signed
voucher then on file in the office of the Grantee stating in proper detail
the purpose for which such check or order is drawn. All checks, payrolls,
invoices, contracts, vouchers, orders, or other accounting documents
pertaining in whole or in part to the Program will be clearly identified,
rbadily accessible, and, to the extent feasible, kept separate and apart
from all other such documents.
M. 106. CONSTRUCTION PROVISIONS
(a) Contract and "Force Account" Work. — The Grantee may elect to
carry out any necessary demolition, construction, or development activities
as a part of the Program by utilization of its own employees or it may have
such work done under written contract in a manner acceptable to the
Government.
(b) Competitive Bidding. — The Grantee will give full opportunity for
free, open,and competitive bidding for each contract to be let by it calling
for construction, demolition, or other work, as a part of the Program, or
for the furnishing of any materials, supplies, or equipment for use in
the Program and will give such publicity to its advertisements or calls for
bids for each such contract as will provide adequate competition; and the
award of each such contract, when made, will be made by it as soon as
practicable to the lowest responsible bidder: Provided, That, in the
selection of such materials, equipment, or supplies, the Grantee may, in
the interest of standardization or ultimate economy, if the advantage of
such standardization or such ultimate economy is clearly evident and an
appropriate provision for such action is included by it in the proposed
contract documents upon which bids are invited, award a contract to a
responsible bidder other than the lowest in price: Provided further, That
purchases of such materials, equipment, or supplies in amounts of 32,500 or
less, and contracts in amounts of 32,500 or less calling for construction or
demolition, or other similar work, as a part of the Programs may, except
where contrary to the requirements of State or local law, be made from time
to time by the Grantee without negotiation or competitive bidding and without
observance of the other provisions of this subsection.
SEC. 107. EQUAL EMPLOYMMTT OPPORTUNITY
(a) Activities and Contracts Not Subject to Executive Order 11246. —
In the carrying out of the Program, the Grantee will not discriminate against
any employee or applicant for employment because of race, creed, color, or
national origin. The Grantee will take affirmative action to ensure that
applicants are employed, and that employees are treated during e�plcyments
without regard to their race, creed, color, or national origin. such action
shall includes but not be limited to, the following: employments upgrading,
demotions or transfer; recruitment or recruitment advertising; layoff or
— 4 —
•
termination; rates of pay or other forms of compensation; and selection for
training, including apprenticeship. The Grantee agrees to post in conspicuous
places,available to employees and applicants for employment, notices to be
provided by the Government setting forth the provisions of this nondiscrimination
clause. The Grantee will, in all solicitations or advertisements for employees
placed by or on behalf of the Grantee, state that all qualified applicants
will receive consideration for employment without regard to race, creed,
color, or national origin.. The Grantee will incorporate the foregoing
requirements of this subsection (a) in all of its contracts for Program work,
except contracts governed by subsection (b) of this Section 107 and contracts
for standard commercial supplies or raw materials, and will require all of
its contractors for such work to incorporate such requirements in all
subcontracts for program work.
(b) Contracts Subject to Executive Order 11246. -- The Grantee will
incorporate or cause to be incorporated into any contract for construction
or modification thereof which is subject to Executive Order 11246, and the
rules and regulations of the Secretary of Labor pursuant thereto, the following
Provisions, altered only to reflect the proper identity of the parties:
During the performance of this contract, the contractor agrees as follows:
(1) The contractor will not discriminate against any employee or
applicant for employment because of race, creed, color, or national
origin. The contractor will take affirmative action to ensure that
applicants are employed, and that employees are treated during employment,
without regard to their race, creed, color,or national origin. Such
action shall include, but not be limited to, the following: employment,
upgrading, demotion, or transfer; recruitment or recruitment advertising;
layoff or termination; rates of pay or 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 be provided by the municipality setting forth the
provisions of this nondiscrimination clause.
(2) The contractor will, in all solicitations or advertisements
for employees placed by or on behalf of the contractor, state that all
qualified applicants will receive consideration for employment without
regard to race, creed, color, or national origin.
(3) The contractor will send to each labor union or representative
of workers with which he has a collective bargaining agreement or other
contract or understanding, a notice, to be provided by the municipality,
advising the labor union or workers' representative of the contractor's
commitments under Section 202 of Executive Order 11246 of September 24,
1965, and shall post copies of the notice in conspicuous places available
to employees and applicants for employment.
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{4) The contractor will comply with all-provisions of Executive
Order 11246 of September 24, 1965, and of the rules, regulations, and
relevant orders of the Secretary of Labor.
(5) The contractor will furnish all information and reports
required by Executive.Order.11246 of September 24, 1965, and by the
rules, regulations, and orders of the Secretary of Labor or the
Secretary of Housing and Urban Development pursuant thereto, and will
permit access to his books, records, and accounts by the municipality,
the Secretary of Housing and Urban Development, 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 noncompliance with the
nondiscrimination clauses of this contract or with any of such rules,
regulations, or orders, this contract may be canceled, terminated, or
suspended in whole or in part and the contractor may be declared ineligible
for further Government contracts in accordance with procedures authorized
in Executive Order 11246 of September 24, 1965, and such other sanctions
may be imposed and remedies invoked as provided in Executive order 11246
of September 24, 1965,-or by rule, regulation, or order of the Secretary
of Labor, or as otherwise provided by law.
(7) The contractor will include the provisions of paragraphs (1)
through (7) in every subcontract or purchase order unless exempted by _
rules, regulations, or orders of the Secretary of Labor issued pursuant
to Section 204 of Executive Order 11246 of September 24, 1965, so that
such provisions will be binding upon each subcontractor or vendor. The
contractor will take such action with respect to any subcontract or
purchase order as the municipality may direct as a means of enforcing
such provisions, including sanctions for noncomplliance: Provided,
however, That, in the event the contractor becomes involved in, or is
threatened with, litigation with a subcontractor or vendor as a result
of such direction by the municipality, the contractor may request the
United States to enter into such litigation to protect the interests
of the United States.
(c) Definition — Contract for Construction. — As used in this
Section 107, "contract for construction" means any contract or agreement for
the demolition of structures or the provision, repair, or alteration of public
improvements, as provided for in the Program.
(d) Enforoemeat Obligations of the Grantee. — The Grantee will assist
and cooperate actively with the Secretary of Housing and Urban Development
and the Secretary of Labor in obtaining the compliance of contractors and
subcontractors with the provisions set forth in subsection (b) of this
Section 107 and with the rules, regulations, and relevant orders of the
Secretary of Labor and will obtain and furnish to the Secretary of Housing
and Urban Development and to the Secretary of Labor such information as they
may require for the supervision of such compliance. The Grantee will enforce
— 6 —
the obligations of contractors and subcontractors under such provisions,
rules, regulations, and orders and will carry out sanctions and penalties
for violation of such obligations imposed upon contractors and subcontractors
by the Secretary of Labor or the Secretary of Housing and Urban Development.
The Grantee will refrain from entering into any contract subject to Exe cuti
ve
Order 11246 or extension or other modification of such a contract with a
contractor who has been debarred from Government contracts and federally
assisted construction contracts under Part II, Subpart D, of Executive Order
11246, or who has not demonstrated his eligibility for such contracts as
provided in Part II of Executive Order 11246. In the event the Grantee fails
and refuses to comply with'its undertakings, the Grantee agrees that the
Government (i) may cancel, terminate, or suspend this Contract in whole or in
part, (ii) may refrain from extending any further assistance under the program
with respect to which the failure or refusal occurred until satisfactory
assurance of future compliance has been received from the Grantee, or (iii)
may refer the case to the Department of Justice for appropriate legal
proceedings.
SW. 108. DEFAULTS AND Rj-- AWIES
(a) Termination or Suspension of Contract. -- Notwithstanding any
other provision of this Contract, the Government may terminate or suspend
this Contract at its discretion upon the happening of any of the following;
(1) The failure of the Grantee to complete the Program within the
time prescribed herein;
(2) The making of any misrepresentation by the Grantee in its
Application or in the furnishing of any information to the Government;
(3) The violation of any of the terms or conditions of this
Contract; or
(4) Any event which renders the accomplishment of the Program by
the Grantee impossible, improbable, infeasible, or illegal.
(b) Forfeiture of Grant. — For any violation of any of the terms of
this Contract, the Covernment mayq in addition to ouch other remedies as may
exist at lacy or in equity, require repayment of all or part of the grant to
the Government.
SBC. 109. "t1ISC MLANSOUS PROVISIONS
(a) Interest of Public Officials and Enployaas. — No officer or employee
of the Grantee and no member of—its governing oody, and no other public official
of the locality in which the Program will be carried out who exercises any
functions or responsibilities in the review or approval of the undertaking or
carrying out of the Pro=am, shall (1) participate in any decision relating
to this Contract which affects his personal interest or the interest of any
corporation, partnership, or aascciation in which he is, directly or indirectly,
interested, or (2) have any financial interest, direct or indirect, in this
Contract or in the work to be performed under the Program authorized herein.
— 7 —
r 9
•
•
(b) Interest of Certain Federal Officials. — No Member of or Delegate
to the Congress of the United States of America, and no Resident Commissioner,
shall be admitted to any share or part hereof or to any benefit arising
herefrom.
(o) Bonus or Commission. — The Grantee will not pay any bonus or
commission for the purpose of obtaining approval of the Application for the
Federal financial assistance provided for herein, or any other approval by
the Government which may be necessary under this Contract.
(d) Government Not Obligated to Third Parties. — The Government will
not be obligated or liable hereunder to any party other than the Grantee.
(e) How Contract Affected by Provisions Being Held Invalid. — If any
provision of this Contract is held invalid, the remainder of this Contract
shall not be affected thereby if such remainder would then continue to
oonform to the terms and requirements of applicable law.
(f) Provisions Concerning Cortaro Waivers. — Subject to applicable
Federal law, any right or remedy which the Government may have under this
Contract may be waived in writing by the Government by a formal waiver and
either with or without the execution of an amendatory or supplementary
agreement, if, in the judgment of the Government, this Contract, as so modified,
will still conform to the provisions and requirements of applicable laws.
— 8 —
s IUD_) 0
U. S. DEPAR WENT OF HOUSING AND URBAN DEVELOPMENT
FEDERAL LABOR STANDARDS PROVISIONS
1. APPLICABILITY
The Project or Program to which the work covered by this Contract
pertains is being assisted by the United States of America and the
following Federal Labor Standards Provisions are included in this
Contract pursuant to the provisions applicable to such Federal assistance.
2. MI INUM WAGE RATES FOR LABORERS AND DJECHANICS
All laborers and mechanics employed upon the work covered by this
Contract shall be paid unconditionally and not less often than once each
week, and without subsequent deduction or rebate on any account (except
such payroll deductions as are made mandatory by law and such other
payroll deductions as are permitted by the applicable regulations issued
by the Secretary of Labor, United States Department of Labor, pursuant
to the Anti- Kickback Act hereinafter identified), the full amounts due
at time of payment computed at wage rates not less than those contained
in the wage determination decision of said Secretary of Labor (a copy of
which is attached and herein incorporated by reference), regardless of
any contractual relationship which may be alleged to exist between the
Contractor or any subcontractor and such laborers and mechanics. All
laborers and mechanics employed upon such work shall be paid in cash,
except that payment may be by check if the employer provides or secures
satisfactory facilities approved by the Local Public Agency or Public
Body for the cashing of the same without cost or expense to the employee.
For the purpose of this clause, contributions made or costs reasonably
anticipated under Section l(b)(2) of the Davis -Bacon Act on behalf of
laborers or mechanics are considered wages paid to such laborers or
mechanics, subject to the provisions of Section 5.5(a)(1)(iv) of Title 29,
Code of Federal Regulations. Also for the purpose of this clause, regular
contributions made or costs incurred for more than a weekly period under
plans, funds, or programs, but covering the particular weekly period,
are deemed to be constructively made or incurred during such weekly period.
3• UNDERPAYMENTS OF WAGES OR SALARIES
In case of underpayment of wages by the Contractor or by any
subcontractor to laborers or mechanics employed by the Contractor or
subcontractor upon the work covered by this Contract, the Local Public
Agency or Public Body in addition to such other rights as may be afforded
it under this Contract shall withhold from the Contractor, out of any
payments due the Contractor, so much thereof as the Local Public Agency
or Public Body may consider necessary to pay such laborers or mechanics
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the full amount of wages required by-this Contract. The amount so •
withheld may be disbursed by the Local Public Agency. or Public, Body,
for and on account of the Contractor or the subcontractor (as may be
appropriate), to the respective laborers or mechanics to whom the same
is due or on their behalf to plans, funds, or programs for any type of
fringe benefit prescribed in the applicable wage determination.
4. ANTICIPATED COSTS OF FRINGE BENEFITS
If the Contractor does not make payments to a trustee or other
third person, he may consider as part of the wages of any laborer or
mechanic the amount of any costs reasonably anticipated in providing
fringe benefits under a plan or program of a type expressly listed in
the wage determination decision of the Secretary of Labor which is a
part of this Contract: Provided, however, The Secretary of Labor has
found, upon the written request of the Contractor, that the applicable
standards of the Davis -Bacon Act have been met. The Secretary of Labor
may require the Contractor to set aside in a separate account assets for
the meeting of obligations under the plan or program. A copy of any
findings made by the Secretary of Labor in respect to fringe benefits
being provided by the Contractor must be submitted to the Local Public
Agency or Public Body with the first payroll filed by the Contractor
subsequent to receipt o£ the findings.
5. OVERTIME COMPENSATION REQUIRED BY CONTRACT WORK HOURS STANDARDS
ACT (76 Stat. 357 -360; Title 40 U.S.C., Sections 327 -332)
(a) Overtime requirements. No Contractor or subcontractor
contracting for any part of the Contract work which may require or
involve the employment of laborers or mechanics, including watchmen and
guards, shall require or permit any laborer or mechanic in any workweek
in which he is employed on such work to work in excess of eight hours
in any calendar day or in excess of forty hours in such workweek unless
such laborer or mechanic receives compensation at a rate not less than
one and one -half times his basic rate of pay for all hours worked in
excess of eight hours in any calendar day or in excess of forty hours
in such workweek, as the case may be.
(b) Violation; liability for unpaid wages; liquidated damages.
In the event of any violation of the clause set forth in paragraph (a),
the Contractor and any subcontractor responsible therefor shall be
liable to any affected employee for his unpaid wages. In addition,
such Contractor and subcontractor shall be liable to the United States
for liquidated damages. Such liquidated damages shall be computed with
respect to each individual laborer or mechanic employed in violation
of the clause set forth in paragraph (a), in the sum of $10 for each
calendar day on which such employee was required or permitted to work
in excess of eight hours or in excess of the standard workweek of forty
hours without payment of the overtime wages required by the clause set
forth in paragraph (a).
11FsZ
(c) Withholding for liquidated-damages. The Local.Public Agency or
Public Body shall withhold or cause to be withheld, from any moneys payable •
on account of work performed by the Contractor or•subcontractor, such sums
as may administratively be determined to be necessary to satisfy any
liabilities of such Contractor or subcontractor for liquidated damages as
provided in the clause set forth in paragraph (b).
(d) Subcontracts. The Contractor shall insert in any subcontracts
the clauses set forth in paragraphs (a), (b), and (c) of this Section and
also a clause requiring the subcontractors to include these clauses in any
lower tier subcontracts which they may enter into, together with a clause
requiring this insertion in any furt::er subcontracts that may in turn be made.
6. EMPLOYMEAT OF APPRENTICES
Apprentices will be permitted to perform work covered by this Contract
only under a bona fide apprenticeship program registered with a State
Apprenticeship Agency which is recognized by the Bureau of Apprenticeship
and Training. United States Department of Labor, or, if no such recognized
Agency exists in a State, under a program registered with the Bureau of
Apprenticeship and Training. The allowable ratio of apprentices to journey-
men in any craft classification shall not be greater than the ratio permitted
to the Contractor as to his entire work force under the registered program.
Arty employee listed on a payroll at an apprentice wage rate, who is not
registered as above, shall be paid the wage rate determined by the Secretary
of Labor, United States Department of Labor, for the classification of work
he actually performed. The Contractor or subcontractor shall furnish the
Local Public Agency or Public Body with written evidence of the registration
of his program and apprentices, as well as of the appropriate ratios and
wage rates for the area of construction, prior to using any apprentices on
the contract work.
7. EMPLOYMENT OF CERTAIN PERSONS PROHIBITED
No person under the age of sixteen years and no person who, at the time,
is serving sentence in a penal or correctional institution shall be employed
on the work covered by this Contract.
8. REGULATIONS PURSUANT TO SO-CALLED "ANTI- KICKBACK ACT"
The Contractor shall comply with the applicable regulations (a copy of
which is attached and herein incorporated by referenc.) of the Secretary
of Labor. United States Department of Labor, Wade pursuant to the so-called
"Anti- Kickback Act" of June 13, 1934 (48 Stat. 948; 62 Stat. 862; Title 18
U.S.C., Section 874; and Title 40 U.S.C., Section 276c), and any amendments
or modifications thereof, shall cause appropriate provisions to be inserted
in subcontracts to insure compliance therewith by all subcontractors subject
thereto, and shall be responsible for the submission of affidavits required
by subcontractors thereunder, except as said Secretary of Labor may
specifically provide for reasonable limitations, variations, tolerances,
and exemptions from the requirements thereof.
- 3 -
9. EMPLOYMENT OF LABORERS OR MECE4PiICS.NOT LISTED IN AFORESAID WAGE •
DETERMINATION DECISION
Any class of laborers or mechanics which is not listed in the wage
determination and which is to be employed under the Contract will be
classified or reclassified conformably to the wage determination by the
Local Public Agency or Public Body, and a report of the action taken shall
be submitted by the Local Public Agency or Public Body, through the
Secretary of Housing and Urban Development, to the Secretary of Labor,
United States Department of Labor. In the event the interested parties
cannot agree on the proper classification or reclassification of a
particular class of laborers and mechanics to be used, the.question
accompanied by the recommendation of the Local Public Agency or public
Body shall be referred, through the Secretary of Housing and Urban
Development, to the Secretary of Labor for final determination.
10. FRINGE BENEFITS NOT EXPRESSED AS HOURLY WAGE RATES
The Local Public Agency or Public Body shall require, whenever the
minimum wage rate prescribed in the Contract for a class of laborers or
mechanics includes a fringe benefit which is not expressed as an hourly
wage rate and the Contractor is obligated to pay a cash equivalent of such
a fringe benefit, an hourly cash equivalent thereof to be established. In
the event the interested parties cannot agree upon a cash equivalent of the
fringe benefit, the question, accompanied by the recommendation of the
Local Public Agency or Public Body, shall be referred, through the Secretary
of Housine and Urban Development, to the Secretary of Labor for determination.
11. POSTING WAGE DETERMINATION DECISIONS AND AUTEDR]ZED WAGE DEDUCTIONS
The applicable wage poster of the Secretary of Labor, United States
Department of Labor, and the applicable wage determination decisions of
said Secretary of Labor with respect to the various classifications of
laborers and mechanics employed and to be employed upon the work covered
by this Contract, and a statement showing all deductions, if any, in
accordance with the provisions of this Contract, to be made from wages
actually earned by persons so employed or to be employed in such classifications,
shall be posted at appropriate conspicuous points at the site of the work.
12. COMPLAINTS, PROCEEDINGS, OR TESTIMONY BY EMPLOYEES
No laborer or mechanic to whom the wage, salary, or other labor
standards provisions of this Contract are applicable shall be discharged
or in any other manner discriminated against by the Contractor or any
subcontractor because such employee has filed any complaint or instituted
or caused to be instituted any proceeding or has testified or is about to
testify in any proceeding under or relating to the labor standards applicable
under this Contract to his employer.
-4-
13. CLAIMS AND DISPUTES PERTAINING TO WAGE RATES
Claims and disputes pertaining to wage rates or to classifications of
laborers and mechanics employed upon the work covered by this Contract shall
be promptly reported by the Contractor is writing to the Local Public Agency
or Public Body for referral by the latter through the Secretary of Housing
and Urban Development to the Secretary of Labor, United States Department of
Labor, whose decision shall be final with respect thereto.
14. QUESTIONS CONCERNING CERTAIN FEDERAL STATUTES AND REGULATIONS
All questions arising under this Contract which relate to the
application or interpretation of (a) the aforesaid Anti - Kickback Act,
(b) the Contract Work Hours Standards Act, (c) the aforesaid Davis -Bacon
Act, (d) the regulations issued by the Secretary of Labor, United States
Department of Labor, pursuant to said Acts, or (e) the labor standards
provisions of any other pertinent Federal statute, shall be referred,
through the Local Public Agency or Public Body and the Secretary of Housing
and Urbaa Development, to the Secretary of Labor, United States Department
of Labor, for said Secretary's appropriate ruling or interpretation which
shall be authoritative and may be relied upon for the purposes of this
Contract.
15. PAYROLLS AND BASIC PAYROLL RECORDS OF CONTRACTOR AND SUBCONTRACTORS
The Contractor and each subcontractor shall prepare his payrolls on
forms satisfactory to and in accordance with instructions to be furnished
by the Local Public Agency or Public Body. The Contractor shall submit
weekly to the Local Public Agency or Public Body two certified copies of
all payrolls of the Contractor and of the subcontractors, it being understood
that the Contractor shall be responsible for the submission of copies of
payrolls of all subcontractors. Each such payroll shall contain the "Weekly
Statement of Compliance" set forth in Section 3.3 of Title 29, Code of
Federal Regulations. The payrolls and basic payroll records of the
Contractor and each subcontractor covering all laborers and•mechaaics
employed upon the work covered by this Contract shall be maintained during
the course of the work and preserved for a period of three years thereafter.
Such payrolls and basic payroll records sball contain the name and address
of each such employee, his correct classification, rate of pay (including
rates of contributions or costs anticipated of the types described in
Section 1(b )1(2) of the Davis -Bacon Act), daily and weekly number of hours
worked, deductions made, and actual wages paid. In addition, whenever the
Secretary of Labor has found under Section 5.5(a)(1)(iv) of Title 29, Code
of Federal Regulations, that the wages of any laborer or mechanic include
the amount of any costs reasonably anticipated in providing benefits under
a plan or program described in Section l(b)(2)(B) of the Davis -Bacon Act,
the Contractor or subcontractor shall maintain records which show that the
commitment to provide such benefits is enforceable, that the plan or program
is financially responsible, and that the plan or program has been communicated
in writing to the laborers or mechanics affected, and records which show the
costs anticipated or the actual cost incurred in providing such benefits.
- 5 -
The Contractor and each subcontractor shall make his employment records
with respect to persons employed by him upon the-work covered by this
Contract available for inspection by authorized representatives of the
Secretary of Housing and Urban Development, the Local Public Agency or
Public Body, and the United States Department of Labor. Such representatives
shall be permitted to interview employees of the Contractor or of any
subcontractor during working hours on the job.
16. SPECIFIC COVERAGE OF CERTAIN TYPES OF WORK BY EMPLOYERS
The transporting of materials and supplies to or from the site of
the Project or Program to which this Contract pertains by the employees
of the Contractor or of any subcontractor, and the manufacturing or
furnishing of materials, articles, supplies, or equipment on the site of
the Project or Program to which this Contract pertains by persons employed
by the Contractor or by any subcontractor, shall, for the purposes of this
Contract, and without limiting the generality of the foregoing provisions
of this Contract, be deemed to be work to which these Federal Labor Standards
Provisions are applicable.
17. INELIGIBLE SUBCONTRACTORS
The Contractor shall not subcontract any part of the work covered by
this Contract or permit subcontracted work to be further subcontracted
without the Local Public Agency's or Public Body's prior written approval
of the subcontractor. The Local Public Agency or Public Body will not
approve any subcontractor for work covered by this Contract who is at the
time ineligible under the provisions of any applicable regulations issued
by the Secretary of Labor, United States Department of Labor, to receive
an award of such subcontract.
18. PROVISIONS TO BE INCLUDED IN CERTAIN SUBCONTRACTS
The Contractor shall include or cause to be included in each subcontract
covering any of the work covered by this Contract, provisions which are
consistent with these Federal Labor Standards Provisions and also a clause
requiring the subcontractors to include such provisions in any lower tier
subcontracts which they may enter into, together with a clause requiring
such insertion in any further subcontracts that may in turn be made.
19. BREACH OF FOREGOING FEDERAL LABOR STANDARDS PROVISIONS
In addition to the causes for termination of this Contract as herein
elsewhere set forth, the Local Public Agency or Public Body reserves
the right to terminate this Contract if the Contractor or any subcontractor
whose subcontract covers any of the work covered by this Contract shall
breach any of these Federal Labor Standards Provisions. A breach of these
Federal Labor Standards Provisions may also be grounds for debarment as
provided by the applicable regulations issued by the Secretary of Labor,
United State: Department of Labor.
r4
�•
ATTACHMENT TO FEDERAL'
LABOR STANDARDS PROVISIONS
SO- CALLED "ANTI - KICKBACK ACT" AND REaUTIONS PROhM.OATED
PURSUANT THEP.ETO BY THE SECRETARY OF LABOR,
UNITED STATES DEPARTMENT OF LABOR
TITLE 18, U.S.C., section 874
(Replaces section 1 of the Act of June 13. 1934 (48 Stat. 948, 40 U.S.C.,
sec. 276b) pursuant to the Act of June 25, 1948,'62 Stat. 862)
KICKBACKS FROM PUBLIC WORKS &1PLOYEES
Whoever, by force, intimidation, or threat of procuring dismissal from employment, or by any
other manner whatsoever. induces any person employed in the construction, prosecution, completion or
repair of any public building, public work, or building or Rork financed in whole or in part by loans
or grants from the United States, to give up my part of the compensation to which he is entitled
under his contract of employment, shall be fined not more than $5,000 or imprisoned not more than
five years, or both.
SECTION 2 OF THE ACT OF JUNE 13, 1934, AS AMENDED (48 Stat. 948, 62 Stat. 862,
63 Stat. 108, 72 Stat. 967, 40 U.S.C., sec. 276c)
The Secretary of Labor shall make reasonable regulations for contractors and subcontractors en-
gaged in the construction, prosecution, completion or repair of public buildings, public works or
buildings or works financed in whole or in part by loans or grants from the United States, including
a provision that each contractor and subcontractor shall furnish weekly a statement with respect to
the wages paid each employee during the preceding week. Section 1001 of Title 18 (United States
Code) shall apply to such statements.
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-- xxx - - -
Pursuant to the aforesaid Anti- Kickback Act, the Secretary of Labor, United States Department of
Labor, has promulgated the regulations hereinafter set forth, which regulations are found in Title 29,
Subtitle A. Code of Federal Regulations, Part 3. The term, "this part," as used in the regulations
hereinafter set forth, refers to Part 3 last above mentioned. Said regulations are as follows:
CONTRACTORS AND SUBCONTRACTORS ON PUBLIC BUILDING AND PUBLIC WORK
AND ON BUILDING AND WORK FINANCED IN WHOLE OR IN PART
BY LOANS OR GRANTS FROM THE UNITED STATES
Sec. 3.1 Purpose and scope.
This part prescribes "anti - kickback" regulations under Section 2 of the Act of June 13, 1934,
as amended (40 U.S.C. 276c), popularly known as the Copeland Act. This part applies to any contract
which is subject to Federal wage standards and which is for the construction, prosecution, completion,
or repair of public buildings, public works or buildings or works financed in whole or in part by
loans or grants from the United States. The part is intended to aid in the enforcement of the mini-
mum wage provisions of the Davis -Bacon Act and the various statutes dealing with Federally- assisted
construction that contain similar minimum wage provisions, including those provisions which are not
subject to Reorganization Plan No. 14 (e.g., the College Housing Act of 1950, the Federal Water Pol-
lution Oontrol Act, and the Housing Act of 1959), and in the enforcement of the overtime provisions
- 1 -
{,:
the Contract Work Hours Standards Act whenever they are applicable to-construction work.
details the obligation of contractors and subcontractors relative to the weekly submission of s
ments regarding the wages paid on work covered thereby; sets forth tbe'circumstances and procedures
governing the making of payroll deductions from the wages of those employed on such work; and de-
lineates the methods of payment permissible on such work.
Sea 3.2 Definition &
As used in the regulations in this pest:
(a) The terms "building" or "work" generally include construction activity as distinguished
from manufacturing, furnishing of materials, or servicing and maintenance work. The terms include,
without limitation, buildings, structures, and improvements of all types, such as bridges, dams,
plants, highways, parkways, streets, subways, tunnels, sewers, mains, powerlines, pumping stations,
railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters,
levees, and canals; dredging, shoring, scaffolding, drilling, blasting, excavating, clearing, and
landscaping. Unless conducted in connection with and at the site of such a building or work as is
described in the foregoing sentence, the manufacture or furnishing of materials, articles, supplies,
or equipment (whether or not a Federal or State agency acquires title to such materials, articles,
supplies, or equipment dpring the course of the manufacture or furnishing, or owns the materials
from which they are manufactured or furnished) is not a "building" or "work" within the meaning of
the regulations in this part.
(b) The terms "construction," "prosecution," "completion," or "repair" mean all types of work
done on a particular building or work at the site thereof, including, without limitation, altering,
remodeling, painting and decorating, the transporting of materials and supplies to or from the
building or work by the employees of the construction contractor or construction subcontractor, and
the manufacturing or furnishing of materials, articles, supplies, or equipment on the site of the
building or work, by persons employed at the site by the contractor or subcontractor.
(c) The terms "public building" or "public work" include building or work for whose construc-
tion, prosecution, completion, or repair, as defined above, a Federal agency is a contracting party,
regardless of whether title thereof is in a Federal agency.
(d) The term "building or work financed in whole or in part by loans or grants from the United
States" includes building or work for whose construction, prosecution, completion, or repair, as de-
fined above, payment or part payment is made directly or indirectly from funds provided by loans or
grants by a Federal agency. The term does not include building or work for which Federal assistance
is limited solely to land guarantees or insurance.
(e) Every person paid by a contractor or subcontractor in any manner for his labor in the con-
struction, prosecution, completion, or repair of a public building or public work or building or work
financed in whole or in part by loans or grants from the United States is "employed" and receiving
"wages," regardless of any contractual relationship alleged to exist between him and the real employer.
(f) The term "any affiliated person" includes a spouse, child, parent, or other close relative
of the contractor or subcontractor; a partner or officer of the contractor or subcontractor; a cor-
poration closely connected with the contractor or subcontractor as parent, subsidiary, or otherwise,
and an officer or agent of such corporation.
(g) The term "Federal agency" means the United States, the District of Columbia, and all execu-
tive departments, independent establishments, administrative agencies, and instrumentalities of the
United States and of the District of Columbia, including corporations, all or substantially all of
the stock of which is beneficially owned by the United States, by the District of Columbia, or any of
the foregoing departments, establishments, agencies, and instrumentalities.
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{
• Sec. 3.3 Meekly statement with respect to payment of wages. •
(a) As�used in this section, the term "employee" shall -not apply to persons in classifications
higher than that of laborer or.mechanic and those who are the immediate supervisors of such employees.
(b). Each contractor or subcontractor engaged in the construction, prosecution, completion, or
repair of any public building or public work, or building or work financed in whole or in part by
loans or grants from the United States, shall furnish each week a statement with respect to the wages
paid each of its employees engaged on work covered by these regulations during the preceding weekly
payroll period. The statement shall be executed by the contractor or subcontractor or by an author-
ized officer or employee of the contractor or subcontractor who supervises the payment of wages, and
shall be in the following form:
WEEKLY STATEWENT OF COMPLIANCE
19—
(Name of donator) party) -
do hereby state:
(1) That I pay or supervise the payment of the persons employed by
on the : that
(Contractor or emkrontraetor) (Bmildin, or, .ark)
during the payroll period commencing on the day of
19—, and ending on the day of , 19 —, all persons
employed on said project have been paid the full weekly wages earned, that
no rebates have been or will be made either directly or indirectly to or on
behalf of said from the full weekly
( Cantraetor or ao6eoatraetorl
wages earned by any person and that no deductions have been made either di-
rectly or indirectly from the full wages earned by any person, other than
permissible deductions as defined in Regulations. Part 3 (29 CFR Part 3),
issued by the Secretary of Labor under the Copeland Act, as amended (48 Stat.
948, 63 Stat. 108, 72 Stat.- 967; 76 Stat. 537; 40 U.S.C. 276c), and described
below:
(Paragraph describing deductions if any)
(2) That any payrolls otherwise under this contract required to be sub-
mitted for the above period are correct and complete; that the wage rates for
laborers or mechanics contained therein are not less than the applicable wage
rates contained in any wage determination incorporated into the contract;
that the classifications set forth therein for each laborer or mechanic con-
form with the work he performed.
(3) That any apprentices employed In the above period are duly registered
In a bona fide apprenticeship program registered with a State apprenticeship
agency recognized by the.[eureau of Apprenticeship and Training,] United
States Department of Labor, or if no such recognized agency exists in a
State, are registered with the Bureau of Apprenticeship and Training, United
States Department of Labor.
Sig —tare and title)
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-:
.Section 1001 of Title 18 of the-United States Code (Criminal Code and Criminal Procedure) sh4
to such statement as provided at 72 Stat. 967 (I8 U.S.C. 1001, among other things, provides tha who-
ever knowingly and willfully makes or uses a document or fraudulent statement of entry, in any matter
within the jurisdiction of any department or agency of the United States, shall be fined not more than
$10,000 or imprisoned not more than five years, or both).
(c) The requirements of this section shall not apply to any contract of $2,000 or leas.
(d) Upon a written finding by the head of a Federal agency, the Secretary of Labor may provide
reasonable limitations, variations, tolerances, and exemptions from the requirements of this section
subject to such conditions as the Secretary of Labor may specify.
Sec._ 3.4 Submission of weekly statements and the preservation and Inspection of weekly
payroll records.
(a) Each weekly statement required under Sec. 3.3 shall be delivered by the contractor or sub-
contractor, within seven days after the regular payment date of the payroll period, to a representa-
tive of a Federal or State agency in charge at the site of the building or work, or, if there is no
representative of a Federal or State agency at the site of the building or work, the statement shall
be mailed by the contractor or subcontractor, within such time, to a Federal or State agency con-
tracting for or financing the building or work. After such examination and check as may be made,
such statement, or a copy thereof, shall be kept available, or shall be transmitted together with a
report of any violation, in accordance with applicable procedures prescribed by the United States
Department of Labor.
(b) Each contractor or subcontractor shall preserve his weekly payroll records for a period of
three years from date of completion of the contract. The payroll records shall set out accurately
and completely the name and address of each laborer and mechanic, his correct classification, rate
of pay, daily and weekly number of hours worked, deductions made, and actual wages paid. Such pay-
roll records shall be made available at all times for inspection by the contracting officer or his
authorized representative, and by authorized representatives of the Department of Labor.
Sec. 3.5 Payroll deductions permissible without application to or approval of the
Secretary of Labor.
Deductions made under the circumstances or in the situations described in the paragraphs of
this section may be made without application to and approval of the Secretary of Labor:
(a) Any deduction made in compliance with the requirements of Federal, State, or local law,
such as Federal or State withholding income taxes and Federal social security taxes.
(b) Any deduction of sums previously paid to the employee as a bone fide prepayment of wages
when such prepayment is made without discount or interest. A "bona fide prepayment of wages" is
considered to have been made only when cash or its equivalent has been advanced to the person em-
ployed in such manner as to give him complete freedom of disposition of the advanced funds.
(c) Any deduction of amounts required by court process to be paid to another, unless, the de-
duction is in favor of the contractor, subcontractor, or any affiliated person, or when collusion or
collaboration exists.
(d) Any deduction constituting a contribution on behalf of the person employed to funds estab-
lished by the employer or representatives of employees, or both, for the purpose of providing either
from principal or income, or both, medical or hospital care, pensions or annuities or retirement,
death benefits, compensation for injuries, illness, accidents, sickness, or disability, or for insur-
ance to provide say of the foregoing, or unemployment benefits, vacation pay, savings accounts, or
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W.Ilar payments for the benefit of employees, their families and dependents: 'Provided, howeve
That the following standards are met: (1) The deduction is not otherwise prohibited by law; (2) it
is either: (1) Voluntarily consented to by the employee in writing and in advance of the period in
which the work is to be done and such consent is not a condition either for the obtaining of or for
the continuation of employment, or (11) provided for in a bona fide collective bargaining agreement
-between the contractor or subcontractor and representatives of its employees; (3) no profit or other
benefit is otherwise obtained, directly or indirectly, by the contractor or subcontractor or any
affiliated person In the form of commission, dividend, or otherwise; and (4) the deductions shall
serve the convenience and interest of the employee.
(e) Any deduction contributing toward the purchase of United States Defense Stamps and Bonds
when voluntarily authorized by the employee.
(f) Any deduction requested by the employee to enable him to repay loans to or to purchase
shares in credit unions organized and operated in accordance with Federal and State credit union
statutes.
(g) Any deduction voluntarily authorized by the employee for the making of contributions to
governmental or quasi - governmental agencies, such as the American Red Cross.
(h) Any deduction voluntarily authorized by the employee for the making of contributions to
Community Chests, United Givers Fiords, and similar charitable organizations.
(i) Any deductions to pay regular union initiation fees and membership dues, not including
fines or special assessments: Provided, however, That a collective bargaining agreement between the
contractor or subcontractor and representatives of its employees provides for such deductions and the
deductions are not otherwise prohibited by law.
(j) Any deduction not more than for the "reasonable cost" of board, lodging, or other facilities
meeting the requirements of section 3(m) of the Fair Labor Standards Act of 1938, as amended, and
Part 531 of this title. When such a deduction is made the additional records required under Sec.
516.25(a) of this title shall be kept.
Sec. 3.6 Payroll deductions permissible with the approval of the Secretary of Labor.
Any contractor or subcontractor may apply to the Secretary of Labor for permission to make any
deduction not permitted under Sec. 3.5. The Secretary may grant permission whenever he finds that:
(a) The contractor. subcontractor, or any affiliated person does not make a profit or benefit
directly or indirectly from the deduction either in the form of a commission, dividend, or otherwise;
(b) The deduction is not otherwise prohibited by law;
(c) The deduction is either (1) voluntarily consented to by the employee in writing and in ad-
vance of the period in which the work is to be done and such consent is not a condition either for
the obtaining of employment or its continuance, or (2) provided for in a bona fide collective bar-
gaining agreement between the contractor or subcontractor and representatives of its employees; and
(d) The deduction serves the convenience and interest of the employee.
Sea 3.7 Applications for the approval of the Secretary of Labor.
Any application for the making of payroll deductions under Sec. 3.6 shall comply with the re-
quirements prescribed in the following paragraphs of this section:
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• (a) The application-shall be in writing and shall be addressed to'the Secretary of Labo-O
(b) The application shall identify the contract or contracts under which the work in question
is to be performed. Permission will be given for deductions only on specific, identified contracts,
except upon a showing of exceptional circumstances.
CO The application shall state affirmatively that there is compliance with the standards set
forth in the provisions of Sec. 3.6. The affirmation shall be accompanied by a full statement of the
facts indicating such compliance.
(d) The application shall include a description of the proposed deduction, the purpose to be
served thereby, and the classes of labore.rs or mechanics from whose wages the proposed deduction
would be made.
(e) The application shall state the name aad business of any third person to whom any funds ob-
tained from the proposed deductions are to be transmitted and the affiliation of such person, if any,
with the applicant.
Sec. 3.8 Action by the Secretary of Labor upon applications.
The Secretary of Labor shall decide whether or not the requested deduction is permissible under
provisions of Sec. 3.6; and shall notify the applicant in writing of his decision.
Sec. 3.3 Prohibited payroll deductions.
Deductions not elsewhere provided for by this part and which are not found to be permissible
under Sec. 3.6 are prohibited.
Sec. 3.10 Methods of payment of wages.
The payment of wages shall be by cash, negotiable instruments payable on demand, or the addi-
tional forme of compensation for which deductions are permissible under this part. No other methods
of payment shall be recognized on work subject to the Copeland Act.
Sec. 3.11 Regulations part of contract.
All contracts made with respect to the construction, prosecution, completion, or repair of any
public building or public work or building or work financed in whole or in part by loans or grants
from the United States covered by the regulations in this part shall expressly bind the contractor
or subcontractor to comply with such of the regulations in this part as may be applicable. In this
regard, see Sec. 5.5(a) of this subtitle.
W. Willard Wirtz,
Secretary of Labor.
228611 - e
HUD-Wash., D. G
CORPUS CHRISTI, TEXAS
OO'' �i
/�LJ1LLu DAY 01/ I9�u
TO THE MEMBERS OF THE CITY COUNCIL
CORPUS CHRISTI TEXAS
FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING
ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPEN-
SION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL
BE PASSED FINALLY ON THE DATE IT IS INTRODUCED AND THAT SUCH ORDINANCE OR
RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; I, THEREFORE:
REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDI-
NANCE FINALLY ON THE DATE IT IS INTRODUCED OR AT THE PRESENT MEETING OF THE
CITY COUNCIL.
RESPECTFULLY,
�e z'4 �%.��:, '✓
ro
THE CITY OF CORPUS CHRISTI, TEXAS
THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE:
JACK R. BLACKMON =Qi
RONNIE SIZEMORE
V. A. "DICK" BRADLEY, JR.
P. JIMENEZ, JR., M.D.
GABE LOZANO, SR.
KEN MCDAN 1 EL
W. J. "WRANGLER" ROBERTS
THE ABOVE ORDINANCE WAS PASSED BY THE FOLLLOjjjWING��, VOTE:
JACK R. BLACKMON
RONNIE SIZEMORE
V. A. "DICK" BRADLEY, JR.
P. JIMENEZ, JR., M.D.
GABE LOZANO, SR.
KEN MCDANIEL
W. J. "WRANGLER" ROBERTS