HomeMy WebLinkAbout10885 ORD - 05/31/1972JRR:dp:5- 30- 72:lst
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AN ORDINANCE
APPROVING AND PROVIDING FOR THE EXECUTION OF A PROPOSED
CONTRACT FOR GRANT TO ACQUIRE AND /OR DEVELOP LAND FOR
OPEN -SPACE PURPOSES; AUTHORIZING THE CITY MANAGER TO
FILE REQUISITIONS FOR FUNDS; AND DECLARING AN EMERGENCY.
WHEREAS, under Title VII of the Housing Act of 1961, as amended,
the United States of America (herein called the "Government ") has tendered to
the City of Corpus Christi (herein called the "Public Body ") a proposed Con-
tract for Grant to Acquire and /or Develop Land for Open -Space Purposes under
which the Government agrees to make a Grant to the Public Body to aid in
a'
financing a project, designated Project No. OSL- TX -06 -59 -1011; and
WHEREAS, the Public Body has given due consideration to said pro-
posed Contract; and
WHEREAS, the Public Body is duly authorized, under and pursuant
to the Constitution and laws of the State of Texas, to undertake and carry out
said Project and to execute such proposed Contract:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI:
SECTION 1. The proposed Contract, designated "Contract for Grant
to Acquire and /or Develop Land for Open -Space Purposes, Contract No.
OSL- TX- 06- 59- 1011(G), consisting of Parts I and II, under and subject to the
provisions, terms and conditions of which the Government will make an Open -
Space Land Acquisition and /or Development Grant under Title VII of the
Housing Act of 1961, as amended, to the Public Body to aid in financing the
cost of a project, designated Project No. OSL- TX -06 -59 -1011, situated in
Corpus Christi, Nueces County, Texas, is hereby in all respects approved.
SECTION 2. The City Manager is hereby authorized and directed to
execute said proposed Contract in two (2) counterparts on behalf of the
Public Body, and the City Secretary is hereby authorized and directed to
impress and attest the official seal of the Public Body on each such counter-
part and to forward such counterparts to the Department of Housing and Urban
Development, together with such other documents relative to the approval
and execution thereof as may be required by the Government.
SECTION 3. The City Manager of this Public Body is hereby authori-
zed to file requisitions, together with necessary supporting documents, with
the Government, from time to time as Grant funds are required, requesting
payments to be made to it on account of the Grant provided for in the Contract,
and to do and perform all other things and acts required to be done or per-
formed in order to obtain such payments.
SECTION 4. The Public Body agrees to abide by all of the provisions,
terms and conditions of said Contract.
SECTION 5. The necessity to immediately authorize the City Manager
to execute the aforesaid Contract in order that the Open -Space Land Acquisition
and /or Development Grant under Title VII of the Housing Act of 1961, as amended,
may be processed without delay in order to provide more open -space development
in the City of Corpus Christi, creates a public emergency and an 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 but 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 the day of 1972.
ATTEST:
i
City Secretary MAYOR plp.Tem
THE dITY OF CORPUS CHRISTI, TEXAS
APPROVED:
7� S/ DAY OF/ 1972:
City Atto ey
UNITED STATES OF AMERICA
DEPARPMENr OF HOUSING AND URBAN DEVELOPMENT
I
CONTRACT FOR GRANT TO ACQUIRE AND /OR DEVELOP LAND
FOR OPEN SPACE PURPOSES
under
Title VII of the Housing Act of 1961, as Amended
Part I
Project No. OSL- TX- 06 -59- 1011
Contract No. OSL- TY- 06- 59-- 1011(G)
THIS AGREEMENT, consisting of this Part I and the Terms and Conditions
(Form HUD- 3180b, dated 6- 69)forming Part II hereof (which Parts, together
are herein called the "Contract"), effective on the date hereinbelow set out,
..•by and between the City of Corpus Christi
(herein called the "Public Bodv ") and the United States of America (herein
..'.'called the "Governmenc "), WITNESSETH: = '
In consideration of the r.:utual covenants, pro:ises, and representations
contained herein, the parties hereto do agree as follows:
SEC. 1. PURPOSE: OF CONTRACT
The purpose of this Contract is to provide Federal financial assistance
to the Public Body in the form of a grant of Federal funds,(herein called the
"Grant ") under Title VII of the Housing Act of 1961, as amended, for the
purpose of carrying out a certain open -space lard project (herein called the
"Project ") and to state the terms and conditions under which such assistance
will be extended.
SEC 2. THE PROJECT
(a) The Public Body agrees to undertake, carry out, and complete the
acquisition of fee simple title of that certain land located in
the City of Corpus Christi, County of Nueces, and State of Texas,
and more generally described as follows:
(b) The Public Body agrees to retain said land, as developed, for
permanent open space purposes, and the open space use or uses of
said land shall be for park and recreational purposes, conservation
of land and other natural resources, or historic or scenic purposes.
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SEC. 3 THE GRANT
The Government agrees to make a grant to the Public Body to assist it in
carrying out the Project. The grant shall in no event exceed the lesser of (i)
50 percent of the'eligible Project costs, not including the cost of relocation
payments and assistance, as determined by the Government, and the Government's
share of the cost of relocation payments and assistance provided by the Public
Body in co ction with the Project as specified in Section 4 of the Contract,
or (ii) __ 17,735'5
SEC. 4 RELOCATION PAYMENTS
The Public Body agrees to make relocation payments and payments for eligible
expenses incidental to transfer of title and condemnation litigation, and to provide
relocation assistance to or on behalf of eligible displacees in accordance with and
to the full extent permitted by the regulations or other requirements of the Secre-
tary and within the budgetary limits of the Contract. Notwithstanding any other
provision of the Contract, the Government shall provide a Grant to fund the first
$25,000 of the cost to the Public Body if providing such payments and assistance for
each eligible dispiacee, pursuant to such regulations or other requirements, displace
prior to July 1, 1972. Costs of the Public Body for providing such payments and
=«assistance ,in,excess of•,said $25,000 per eligible displacee on account of displace-
ment occurring on or after July 1, 1972, and all costs of the public body for
providing such payments and assistance on account of displacement occurring on or
after July 1, 1972, shall be treated and funded as are other eligible Project
costs. Grant funds from the total amount thereof set forth in Section 3 of the
Contract; used to fund the cost of relocation payments and assistance in
accordance with this Section of the Contract shall not without the prior written
consent of the Secretary, exceed
SEC. 5. TD EE OF PERFORMALNCE
The Public Body agrees that it will:
Complete the acquisition of the open space within 12 months
following the date of execution of the contract.
SEC. 6 COUNTERPARTS OF THE CONTRACT
This Contract may be executed in two (2) counterparts, each of which
shall be deemed to be an original, and such counterparts shall constitute one
and the same instrument.
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SEC. 7 CHANGES APPLICABLE TO PART II HEREOF
Wherever there appears in the Terms and Conditions, Part II,
of this Contract any reference to or any provisions directed toward
demolition and /or development activities on open -space land acquired
as part of the Project authorized hereunder, such provisions or
reference shall be deemed to be surplusage, it being understood
and agreed by and between the parties hereto that the purpose of
this Contract is to provide for Federal grant to assist in the
acquisition of land for open space purposes.
SEC. 8 COIMPENSATION TO COVERN- ENT FOR ITS AUDITS AND INSPECTIONS
The Public Body will compensate the Government for its inspections
and audits, provided for in Sec. 103(B) of Part II of this Contract, a fixed
fee in the amount of $750 The fixed fee shall be payable at
the himerth0 - f•rrst- requisition for -,a- Grant Payment is approved by a deduction
of the entire amount of the fixed fee from the first Grant payment to the Public
Body: Provided, that in the event the Grant- amount authorized under Section 3
hereof with respect to the actual cost of the Project is increased, the
additional fixed fee payable thereby shall be deducted from the next Grant
Payment made to the Public Body.
SEC. 9 ASSURANCES
Prior to entering into the Contract the Public Body pro-
vided the following to the Government:
assurances that (i) in acquiring real property it '
will be guided to the greatest extent practicable
under State law, by the land acquisition policies
in Section 301 and the provisions of Section 302
of the Uniform Relocation Assistance and Peal Pro -
perty Acquisition Policies Act of 1970 and (ii)
property owners will be paid or reimbursed for
necessary expenses as specified in Sections 303
and 304 of said Act.
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IN WITNESS WHEREOF,•the Public Body has caused this Contract to be
duly executed in its behalf and its seal to be hereunto affixed and attested;
and thereafter; the Government has caused the same to be duly executed in
its behalf this day of 19._
CITY OF
By
(SEAL)
(Type or Print Name)
'ATTEST: (Title)
.(Type or Print Name)
UNITED STATES OF AMERICA
-.Secretary of Housing and Urban Development
Director, San Antonio i(UD Area Office
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Being a 15.046 -acre triangular tract of land out
of Lots 16 and 9, Section 5, Range IX, Gugenheim and
Cohn Farm Lots, as shown by map of record in Volume
A, Page 53, Map Records, Nueces County, Texas, said
15.046 -acre tract of land being more particularly
described by metes and bounds as -follows:
Beginning at the northeast corner of Lot 1, Cliff
Maus Village, as shown by map of record in Volume 34,
page 100, Map Records of Nueces County, Texas, for
the southeast and beginning corner of the tract
herein described;
Thence N. 89° 51' 50" W.,with the north boundary line
of said Lot 1, Cliff Maus Village, a distance of
863.65 feet to a point in the southeast boundary line
of a 100' wide drainage R.O.W. running parallel to
"Cdlumbia Parkway for the southwest corner of the
tract herein described;
Thence N. 300 14' 30" E., with the southeast boundary
line of said drainage R.O.T.-I., a distance of 1754.29
feet to a point in the east boundary line of said Lot 9,
for the most northerly corner of the tract herein
described;
_.. Thence S. 0° 45' W., with the east boundary line of
said Lot 9, and Lot 16, a distance of 1517.76 feet to
the point of beginning;
Containing 15.046 acres of land more or less.
Ob
•69)
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
OPEN SPACE LAND PROGRAM '
CONTRACT FOR GRANT TO ACQUIRE AND /OR DEVELOP LAND FOR OPEN -SPACE PURPOSES
UNDER TITLE VII OF THE HOUSING ACT OF 1961, AS AMENDED
j Part I
Terms and Conditions
i---------------------------
SEC. 101. USE OF CERTAIN TERMS
i
Except where the context clearly indicates otherwise, the following terms, as used herein, shall have the meanings
ascribed to them in this Section:
1
(A) The capitalized term "Secretary" means the Secretary of Housing and Urban Development or the person
authorized to act on his behalf.
(B) The term "Contract" means this Contract between the Government and the Public Body, and includes Parts I
and 11 and any additional document or documents incorporated herein by special reference, as well as any amendment.
i
(C) The term "Application" means the written application for the Grant by the Public Body, including any re-
visions thereto, together with all explanatory, supporting, or supplementary documents filed therewith.
(D) The term `land" means the interest or interests in real property acquired or to be acquired and /or developed by
the Public Body as set out in Section 2(a) of Part I of this Contract and shall include a fee interest or such lesser interests as
therein contemplated.
(E) The term "Project" means the undertaking and carrying ont to completion of the acquisition and /or develop-
ment of land for open -space uses as set forth in Section 2(b) of Part I of this Contract.
SEC. 102. ACCOMPLISHMENT OF PROJECT
I
The Public Body will commence and carry out the Project with all practicable dispatch, in a sound, economical. and
efficient manner, in accordance with the Application and the provisions of this Contract, and will initiate and complete the
t Project within the time limit specified in Section 5 of Part I of this Contract. Such term may be extended with the written
consent of the Secretary. The Public Body will carry out the Project in compliance with all requirements imposed by or pur-
suant to regulations of the Secretary effectuating Title VI of the Civil Rights Act of 1964 (78 Stat. 241, 252). The Public
Body agrees not to discriminate upon the basis of race, creed, color, or national origin in the program or activity for which the
Public Body receives financial assistance under this Contract. The United States shall be deemed to be a beneficiary of these
provisions both for and in its own right and also for the purpose of protecting the interests of the community and other parties,
public or private, in whose favor or for whose benefit this provision has been provided and shall leave the right, in the event of
any breach of this provision, to maintain any actions or suits at law or in equity or any other proper proceedings to enforce
the curing of such breach.
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HUD -3180b
(6 -69)
SEC. 103. PROVISIONS RELATING TO ADMINISTRATION
(A) Books and Records. The Public Body will keep full and accurate books and records with respect to all matters
covered by this Contract, including books and records which permit a speedy and effective audit, and will fully disclose:
(1) Adequate Lille evidence in the form of title policies, Torrens certificates, or abstracts, and attorneys'
opinions relating to the land or interests in land acquired by the Public Body under this Project;
(2) The amount and disposition of both Federal and non - Federal funds which are provided for the Project;
I (3) All items of cost chargeable or which are proposed to be charged to the total cost of the Project;
(4) All Project work and undertakings and all contracts which are entered into by the Public Body pertaining
thereto;
(5) The families, individuals, and business concerns which are displaced in the carrying out of the Project,
the pertinent facts concerning their relocation, and the making of relocation payments therefor; and
(6) All proceedings which are taken by the Public Body with respect to any of the preceding items in this
Section.
(B) Inspections and Audits. The Public Body will, at any time during normal business hours, and as often as the
Secretary or the Comptroller General of the United States may deem necessary, permit the Secretary and the Comptroller
General to have full and free access to all of its books and records with respect to the matters mentioned in subsection (A) of
this Section, and will permit the Secretary and the Comptroller General to audit, examine, and make excerpts or transcripts
from such books and records, and to review, inspect, and make audits of all Project work, contracts, invoices, materials, pay-
rolls, records of personnel, conditions of employment, books of accounts, and other documentary data pertaining to such
matters.
(C) Reports and Information. The Public Body will, at such times as the Secretary may require, famish him with
periodic reports and statements, and other documentary data and information, as he may request, pertaining to the various
matters covered by this Contract.
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SEC. 104. LAND PROVISIONS
i
(A) General Requirements Concerning Land. The Public Body shall:
(1) Take all necessary steps to remove or abrogate all legally enforceable provisions pertaining to the re-
striction of the use of the land it is acquiring and /or developing, upon the basis of race, creed, color, or national
{ origin.
(2) Include in every agreement, lease, conveyance, or other instrument whereby the land is disposed of, an
affirmative covenant binding on the contractor, lessee, grantee, or other party to such instrument and on the suc-
cessors in interest to such contractor, lessee, grantee, or other party that there shall be no discrimination upon the
basis of race, creed, color, or national origin in the use or occupancy of the land. The covenant shall recite that the
United States is a beneficiary of the covenant and entitled to enforce it.
(3) Not sell, lease, or otherwise dispose of the land except with the prior written approval of the Secretary.
(4) Not voluntarily create, cause, or allow to be created any debt, lien, mortgage, charge, or encumbrance
against any of the land which in any way will impair or otherwise adversely affect the preservation of said land for
the use or uses set out in Section 2(b) of Part I of this Contract.
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(6.69)
-(5) From time to time duly pay and discharge, or cause to be paid and discharged when the same become
due, all taxes, assessments, and other governmental charges which are lawfully imposed upon any of the land and
which if unpaid may by law become a lien or charge upon said land and thereby impair or otherwise adversely affect
the holding of said land for the use or uses set out in Section 2(b) of Part I of this Contract.
(6) Faithfully observe and conform to all valid requirements of any governmental authority relative to the
land and all covenants, terns, and conditions applicable to said land.
(B) Fair Market Value. The Public Body shall take all appropriate steps to assure that the consideration it pays
for the land does not exceed fair market value at the time of acquisition. If the Secretary determines that the consideration
paid by the Public Body is in excess of fair market value, for purposes of computing the amount of the Grant, the acquisition
cost shall be reduced by the amount of the excess.
(C) Special Provisions Relating to Sale or Lease of Land. If the Project proposes that the Public Body lease or sell
all or part of the land, the Public Body must first obtain written approval of the Secretary before such leasing or sale is under-
taken. Approval will be given only if such leasing or sale is consistent with the Project and adequate controls are embodied in
the lease or deed to assure the preservation of the open -space use or uses of such land as set out in Section 2(b) of Part I of
this Contract.
(D) Use of Land
(1) No change in the use of the land to a use other than the open -space uses set out in Section 2(b) of Part I
of this Contract will be permitted without the prior written approval of the Secretary. Before such approval will be
given, the Public Body must demonstrate to the Secretary's satisfaction that:
(a) The conversion is essential to the orderly development and growth of the urban area involved;
(b) The conversion is in accord with the comprehensively planned development of the urban area; and
(c) The open -space land is being or will be replaced, without cost to the Federal Government, by other
open -space land of at least equal fair market value at the time of conversion, and of as nearly as feasible
equivalent usefulness and location
(2) The Public Body shall not discriminate upon the basis of race, creed, color, or national origin in the sale,
lease, or rental or in the use or occupancy of the land or any improvements erected or to be erected thereon, or any
part thereof.
(3) The Public Body shall not restrict the use of the land, as developed, on the basis of place of residence,
except that a reasonable fee charged nonresidents over and above any fee that may be charged residents shall not be
interpreted as a restriction of the use of such land.
(E) Transfer of Public Body's Interests in Land to Another Public Body. Before the Public Body transfers its
interests in the land to another Public Body, it shall require its transferee to enter into a contract with the Secretary agreeing
in writing to be bound by all of the applicable terms and conditions of this Contract.
SEC. 105. PAYMENT OF GRANT
(A) Advance or Progrctis Payments. Under or subject to such conditions as the Government may, in writing, specify
which are not inconsistent with applicable law, the Government may, in its discretion, make advance or progress payments to
the Public Body on account of the Grant, or on account of the increase with respect to the Grant provided for in Section 4 of
Part I of this Contract, at such time or times prior to the completion of the Project and the final determination of the total
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M-31 90b '
(6.69) ;
cost thereof as, in view of the status of the Project and the matters relative thereto, the Government may deem appropriate,
but no such advance or progress payment will be made unless and until the Public Body shall have filed its written request
with the Secretary for such advance or progress payment: Provided, That the Public Body is not in default on any of the
terms of this Contract. The Public Body shall deposit such advance payment funds in a bank or banks which are members of
the Federal Deposit Insurance Corporation.
(B) Bcquisition for Grant Payment. The Public Body shall file its requisition for payment of Crant, including the
increase provided for in Section 4 of fart I of this Contract, on a form or forms prescribed by the Secretary. Such requisition
shall be accompanied by the Public Body's certification of purposes, demonstrating the need, at the time, for the funds
requisitioned; that the amount sought is reasonable; and that the purposes for which it proposes to expend the funds are
within the purview of this Contract.
(C) Acquisition, Development, and Demolition Costs. Payment of the Grant provided for in Section 3 of Part I of
this Contract shall be based on acquisition, demolition, and development costs which have been determined by the Secretary
as eligible Project costs, in the light of applicable Federal law and in accordance with the Secretary's rules and regulations
implementing that law. The acquisition costs shall not include (1) ordinary State or local governmental expenses; (2) costs of
acquiring land located outside the urban area for which the Public Body exercises (or participates in the exercise of) open -space
responsibilities; (3) the cost of land acquired prior to the notification of the Public Body by the Secretary of his approval of
the Application or of the acquisition of such land; or (4) the cost of land acquired with the assistance of funds received di-
rectly or indirectly from the Government, or any agency or instrumentality thereof, other than under the terns of this Con-
tract. The development cost shall include only those costs which are necessary to prepare the land for open -space use and
shall not include (1) the cost of development undertaken prior to the notification of the Public Body by the Secretary of his
approval of the Application or of the development of the land or (2) the cost of specialized major recreation facilities. The
demolition cost shall include only those costs which are necessary for the demolition and removal of buildings and structures
from developed land acquired as part of the Project.
SEC. 106. LABOR AND CONSTRUCTION PROVISIONS
(A) Contract and "Force Account" Work. The Public Body may elect to carry out any necessary demolition, con-
struction, or development activities as a part of the Project by utilization of its own employees or it may have such work done
under written contracts let by it. Any contracts entered into for Project work shall contain appropriate provisions to require
compliance with all applicable Federal laws and regulations pertaining to such contracts, to the work to be performed there-
under, and to the persons employed in the carrying out of such contracts.
. (B) Competitive Bidding. The Public Body will give full opportunity for free, open, and competitive bidding for
each contract to be let by it calling for construction, demolition, or other similar work, as a part of the Project, or for the
furnishing of any materials, supplies, or equipment for or use on, the Project 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,
j 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 Public Body 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 $2,500 or less, and con -
tracts in amounts of $2,500 or less calling for construction, demolition, or other similar work, as a part of the Project, may,
except where contrary to the requirements of State or local law, be made from time to time by the Public Body without
! negotiation or competitive bidding and without observance of the other provisions of this subsection.
(C) Provisions To Be Included in Certain Contracts. Before the Public Body receives bids or proposals for, or other-
wise negotiates for, a proposed contract which calls for the performance of any work on tine Project which will entail, for such
work, the employment by the contractor or his subcontractors of laborers or mechanics, the Public Body shall include in the
proposed contract documents appropriate wage schedules (including applicable wage determinations of the Secretary of Labor.
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(6-69)
United States Department of Labor) and other provisimns which are consistent with the provisions embodied in that document
entitled "Federal Labor Standp rds Provisions" attached hereto marked IIUD -3200 and made a part hereof. Such schedule.,,
wage determinations, and other provisions, as included in such proposed contract documents, shall also be included in the
contract documents as executed. The Public Body will include in each contract mentioned in the preceding sentence of this
subsection :m appropriate provision requiring the contractor to insert in each of his subcontracts which will entail the employ.
ment by such subcontractor of laborers or mechanics, as aforesaid, wage and other provisions which are consistent with such
contractor's contract with the Public Body.
(D) Slate or Local Laws Concerning Wage Bates for Laborers and Mechanics. If State or local laws require that
laborers or mechanics who are employed by the Public Body's contractors, or by such contractors' subcontractors, in the
development of the Project, be paid not less than the wages which are established pursuant to such laws and if such wages so
established are higher than the wages which are determined by the Secretary of Labor, United States Department of Labor,
pursuant to the aforesaid Davis -Bacon Act, to be the wages prevailing in the locality in which the Project is situated, nothing
in this Contract is to be construed as intended to relieve the Public Body of its obligation, if any, to require payment of such
higher wages.
(E) Equal Employment Opportunity
(1) Activities and Contracts Not Subject to Executive Order 11246. In the carrying out of the Project, the
Public Body will not discriminate against any employee or applicant for employment because of race, color,
religion, sex or national origin. The Public Body will take affirmative action to ensure that applicants are employ ed,
and that employees are treated during employment, without regard to race, color, religion, sex 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 Public Body 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 Public Body will, in all solicitations or advertisements for employees placed
by or on behalf of the Public Body, state that all qualified applicants will receive consideration for employment
without regard to race, color, religion, sex or national origin. The Public Body will incorporate the foregoing re-
quirements of this subparagraph (1) in all of its contracts for Project work, except contracts governed by subparagraph
(2) of this Section 106(E) 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 Project work.
(2) Contracts Subject to Executive Order 11246. The Public Body hereby agrees that it will incorporate or
cause to be incorporated inty any contract for construction work, or modification thereof, as defined in the regula-
tions of the Secretary of Labor at 41 CFB Chapter 60, which is paid for in whole or in part with funds obtained from
the Federal Government or borrowed on the credit of the Federal Government pursuant to a grant, contract, loan,
insurance„ or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insur-
ance, or guarantee, the following equal opportunity clause:
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, color, religion, sex, or national origin. The contractor will take affirmative action to insure that
applicants are employed, and that employees are treated during employment without regard to their race.
color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employ-
ment, 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 Public Body setting forth the provisions of this nondiscrimination clause.
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0 -3180b y'?(
(6.69)
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(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, color, religion, sex, 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 advising the said
labor union or workers' representative of the contractor's commitments under this section, and shall post copies
of the notice in conspicuous places available to employees and applicants for employment. rs v°
(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, or pursuant thereto, and will permit access to his books, records, and ac-
counts by the Public Body, 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.
ec n
(6) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract
or with any of the said 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 or federally
assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of Septcm-
-ber 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 pro.
vidcd by law.
(7) The contractor will include the portion of the sentence immediately preceding paragraph (1) and
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 con-
tractor will take such action with respect to any subcontract or purchase order as the Public Body or the Sec-
retary of (lousing and Urban Development may direct as a means of enforcing such provisions, including sane-
tions for noncompliance: 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 Public Body, the
contractor may request the United States to enter into such litigation to protect the interests of the United
States.
The Public Body 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 Public Body 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 Public Body agrees that it will assist and cooperate actively with the Secretary of (lousing and Urban
Development 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 Secretary of Labor, that it
will furnish the Secretary of (lousing and Urban Development and the Secretary of Labor such information as
they may require for the supervision of such compliance, and that it will otherwise assist the Secretary of Hems-
ing and Urban Development in the discharge of his primary responsibility for securing compliance.
IME
HM -3180b
'•69)
The Public Body further agrees that it will refrain from entering into any contract or contract h.._. iica-
tion 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 Secretary of (lousing and Urban De-
velopment or the Secretary of Labor pursuant to Part II, Subpart D of the Executive order. In addition, the
Public Body agrees that if it fails or refuses to comply with these undertakings, the Secretary of (lousing and
Urban Development may take any or all of the following actions: Cancel, terminate, or suspend in whole or in
part this grant contract; refrain from extending any further assistance to the applicant under the program with
respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been re-
ceived from such Public Body; and refer the case to the Department of justice for appropriate legal
proceedings.
SEC. 107. DEFAULTS AND REMEDIES
(A) Termination or Suspension of Contract. The Government may terminate or suspend this Contract at its dis-
cretion upon the happening of any of the following:
(1) The failure of the Public Body to complete the Project within the time prescribed in Section 5 of Part 1
of this Contract;
(2) The making of any misrepresentation by the Public Body in its Application or in the furnishing of any
information to the Secretary;
(3) The violation of any of the terms or conditions of this Contract;
(4) Any event which makes the accomplishment of the Project by the Public Body impossible, improbable,
infeasible, or illegal; or
(5) The commencement of any litigation challenging the performance by the Public Body of any of its duties
or obligations which may jeopardize or adversely affect the Project, this Contract, or the Grant.
(B) Forfeiture of Grant
(1) If the Public Body should change the use of the land from the use or uses designated in Section 2(b) of
Part I of this Contract without the prior written approval of the Secretary, or should it transfer its interests in the
land to another Public Body without requiring the transferee to execute the contract with the Secretary provided for
by Section 104(E) of this Part II, the Public Body shall at the request of the Secretary repay to the Government the
amount of the Grant.
(2) For any other violation of any of the terms of this Contract, the Secretary may, in addition to such other
remedies as may exist at law or in equity, rejuire repayment of all or part of the Grant to the Government.
(C) When Rights and Remedies Not Waived. In no event shall the making by the Government of any Grant payment
to the Public Body 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 Public Body, 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.
IWM
HUD -3180b
(6.69)
SEC. 108. MISCELLANEOUS PROVISIONS
(A) Interest of Public Body Personnel and Other Local Public Officials. The Public Body shall adopt and enforce
measures to assure that no member of its governing body and no other officer or employee of the Public Body and no member
of the governing body or other public official of any other local public body in the urban area in which the Project is situated,
who exercises any functions or responsibilities in connection with the carrying out of the Project, shall, prior to the comple-
tion of the Project, voluntarily acquire any personal interest, direct or indirect, in any property included in the Project or in
any contract or proposed contract in connection with the undertaking of the Project. If any such member, employee, or
officer presently owns or controls, or in the future involuntarily acquires, any such personal interest, he shall immediately
disclose such interest to the Public Body. Any member, employee, or officer who shall have or acquire such interest shall
not participate in any action by the Public Body affecting the undertaking of the Project, unless the Public Body shall de-
termine that, in the light of the personal interest disclosed, the participation of such individual in any such action would not
be contrary to the public interest. The Public Body shall promptly advise the Secretary of the facts and circumstances con -
ceming any disclosure made to it pursuant to this provision and the action taken by the Public Body upon being made aware
of said facts and circumstances.
(B) Interest of Certain Federal Officials. No Member of or Delegate to the Congress of the United States, and no
Resident Commissioner, shall be admitted to any share or part of this Contractor to any benefit to arise from the same.
(C) Bonus or Commission. The Public Body shall not pay any bonus or commission for the purpose of obtaining
the Secretary's approval of the Application or any other approval by the Secretary which may be necessary under this Contract.
(D) Government Not Obligated to Third Parties. The Government shall not be obligated or liable under this Con-
tract to any party other than the Public Body.
(E) How Contract Affected b Provisions Being held Invalid. If any provision of this Contract is held invalid, the
remainder of this Contract shall not be affected thereby if it is in conformity with the terms and requirements of applicable
law.
(F) Provisions Concerning Certain 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 haws.
(Rev. 6.69) HUD - Wash.. D.C.
'B.
0
sl
U.S. DEPARTMENT 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 Slates of
America and the following Pederal Labor Standards Provisions are included in this Contract pursuant to the provisions ap-
plicable to such Federal assistance.
2. MINIMUM WAGE RATES FOR LABORERS AND MECHANICS
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 re-
lationship 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 1 (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, rem, dar 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 the full amount of wages required by this Contract. The amount so withheld may be disbursed by the Local Pub-
lic Agency or Public Body, for and on account of the Contractor or the subcontractor (as may be appropriate), to the respec-
tive 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 stand-
ards of the Davis -Bacon Act have been met. The Secretary of Labor may require the Contractor to set aide 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 of the findings.
-I-
HUD -3200
18.69)
5. OVERTIME COMPENSATION REQUIRED BY CONTRACT WORK HOURS STANDARDS
ACT (76 Stat. 357 -360. Tillc 10 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 8 hours in any calendar day or
in excess of 40 hours in such workweek unless such laborer or mechanic receives compeitsation at a rate not lets than one
and one -half times his basic rate of pay for all hours worked in excess of 8 hours in any calendar day or in excess of 40
hours in such workweek, as the case may be.
(h) Violation; liability for unpaid wages; ligtuir aced damages. In the event of any violation of the clause set forth in
1
paragraph (a), the Contractor and any subcontractor reslansuble therefor shall be liable to any affected employee for his un-
paid wages. In addition, such Contractor and subcontractor shall be liable to the United Slates 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 8 boos or in excess of the standard workweek of 40 hours without payment of the overtime wages
required by the clause set forth in paragraph (a).
(c) Withholding for liquidated damages. The Local Public Agency or Public Body shall withhold or cause to be with-
held, from any moneys payable on account of work performed by the Contractor or subcontractor, such sums as may admin-
istratively 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 miter into, together with a clause requiring this insertion in any further subcontracts that may in turn be made.
6. EMPLOYMENT 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 journeymen 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. Any employee listed on a
payroll at an apprentice wage rate, who is not registered as above, shall be paid the wage rate determined b) the Secretary of
Labor, United States Department of Labor, for the classification of work he actually performed. The Contractor or subcon-
tractor shall furnish the Local Public Agency or Public Body with written evidence of the registration of his program and ap-
prentices, 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
reference) of the Secretary of Labor, United Stales Department of Labor, made pursuant to the so- called "Anti- Kickback Act"
of june 13, 1934 (48 Stat. 948; fit Slat. 862; Title 18 U.S.C., Section 874: and Title 40 U.S.C., Section 276c), and any amend-
ments or modifications thereof, shall cause appropriate pro%isions to be inserted in subcontracts to insure compliance therewith
-2-
N
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d -691
by all subcontractors subject therelo, and shall be responsible for the submission of affidatils required by subcontractors thee.
under, except as said Secretary of Labor may specifically provide for reasonable limitations, variations, tolerances, and exemp.
tions from the requirements thereof.
9. EMPLOYMENT OF LABORERS OR MECHANICS 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
j Secretary of Housing and Urban Development, to the Secretary of Labor for final determination.
10. FRINGE BENEFITS NOT EXPRESSED AS HOURLY WAGE RATES
Tito 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 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 recommenda-
tion 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 determination.
11. POSTING WAGE DETERMINATION DECISIONS AND AUTHORIZED WAGE DEDUCTIONS
The applicable wage poster of the Secretary of Labor, United States Department of Labor, and the applicable wage de-
termination 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 em-
ployee 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.
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 in 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 deci,iun 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
.3.
UD -3200
(8 -69)
other pertinent Federal statute, shall be referred, through the Local Public Agency or Public Body and the Secretary of
Housing and Urban Development, to the Secretary of Labor, United States Department of Labor, for said Secretary's appro-
priate 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 in-
structions to be furnished by the Local Public Agency or Public Body. The Contractor shall submit weekly to the Local Pub-
lic 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 t
payrolls and basic payroll records of the Contractor and each subcontractor covering all laborers and mechanics employed
upon the work covered by this Contract shall be maintained during the course of the work and preserved for a period of 3
years thereafter. Such payrolls and basic payroll records shall contain the name and address of each such employee, his cor-
rect classification, rate of pay (including rates of contributions or costs anticipated of the types described in Section 1(b) (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 food 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 resonably anticipated in providing benefits under a plan
or program described in Section 1(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. 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 in-
spection 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 EMPLOYEES
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, sup-
plies, or equipment on the site of the Project or Program to which this Contract pertains by persons employed by the Con-
tractor 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 Con-
tract, provisions which are consistent with these Federal Labor Standards Provisions and also a clause requiring the subcon-
tractors 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.
-4-
I ) y
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 States Department of Labor.
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HUD -3200
(8.69)
j
fj ATTACHMENT TO FEDERAL LABOR STANDARDS PROVISIONS
SO- CALLED "ANTI- KICKBACK ACT" AND REGULATIONS PROMULGATED
PURSUANT THERETO 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 EMPLOYEES
Whoever, by force, intimidation, or threat of procuring dismissal from employment, or by any other manner whatso-
ever induces any person employed in the construction, prosecution, completion or repair of any public building, public work,
financed in whole or in part by loans or grants from the United States, to give up any part of the com-
or building or work
pensation to which he is entitled under his contract of employment, shall be fined not more than S5,000 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,
i
63 Stat. 108, 72 Stat. 967, 40 U.S.C., sec. 276c)
The Secretary of Labor shall make reasonable regulations for contractors and subcontractors engaged 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.
--- xxx - --
Pursuant to the aforesaid Anti - Kickback Act, the Secretary of Labor, United States Department of Labor, has promul-
gated 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 reg-
ulations are as follows:
TITLE 29 —LABOR
Subtitle A — Office of the Secretary of Labor
PART 3— CONTRACTORS AND SUBCONTRACTORS ON PUBLIC BUILDING OR PUBLIC WORK FINANCED IN
WHOLE OR IN PART BY LOANS OR GRANTS FROM THE UNITED STATES
Section 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
minimum 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
-6-
i
0 A
69)
(e.g., the College Rousing Act of 1950, the Federal Water Pollution Control Act, and the Housing Act of 1959), and in the
enforcement of the overtime provisions of the Contract Work Hours Standards Act whenever they are applicable to construction
work. The part details the obligation of contractors and subcontractors relative to the weekly submission of statements regard-
ing the wages paid on work covered thereby; sets forth the circumstances and procedures governing the making of payroll tie -
ductions from the wages of those employed on such work; and delineates the methods of payment permissible on such work.
Section 3.2 Definitions.
As used in the regulations in this part:
(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, power -
lines, 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 furnish-
ing of materials, articles, supplies, or equipment (whether or not a Federal or State agency acquires title to such materials,
articles, supplies, or equipment during 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 transport-
ing 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 construction, prosecution, com-
pletion, 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 build-
ing or work for whose construction, prosecution, completion, or repair, as defined 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 loan guarantees or insurance.
(e) Every person paid by a contractor or subcontractor in any manner for his labor in the construction, 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 "army affiliated person" includes a spouse, child, parent, or other close relative of the contractor or sub-
contractor; a partner or officer of the contractor or subcontractor; a corporation 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 Stales, the District of Columbia, and all executive departments, in-
dependent establishments, admini,trathe agencies, aiid 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.
Section 3.3 Weekly 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.
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HUD -3200
18-69)
(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 Slates, shall
furnish each week a statement with respect to the wages paid each of its employees engaged on work covered by 29 CFI{
Parts 3 and 5 during the preceding weekly payroll period. This statement shall he executed by the contractor or subcon-
tractor or by an authorized officer or employee of the contractor or subcontractor who supervises the payment of wages, and
shall he on form WII 3411, "Statement of Compliance ", or on an identical form on the back of NH 3.17, "Payroll (For Con-
tractors Optional Use)" or on any form with identical wording. Sample copies of NII 347 and W11 3,18 may be obtained from
the Government contracting or sponsoring agency, and copies of these forms may be purchased at the Government Printing
Office.
(c) The requirements of this section shall not apply to any contract of $2,000 or less.
I
(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.
[29 F.R. 95, Jan. 4, 1964, as amended at 33 F.R. 10186, July 17, 19681
Section 3.4 Submission of weekly statements and the preservation and inspection of weekly payroll records.
(a) Each weekly statement required under § 3.3 shall be delivered by the contractor or subcontractor, within seven
days after the regular payment date of the payroll period, to a representative 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 Slate agency at the site of the building or work,
the statemenL-shall be mailed by the contractor or subcontractor, within such time, to a Federal or State agency contracting
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
1 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 payroll 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.
Section 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:
i
(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 bona 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 employed 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 deduction is in favor of the
contractor, subcontractor or any affiliated person, or when collusion or collaboration exists.
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00
(d) Any deduction constituting a contribution on behalf of the person employed to funds established by the employer
or representatives of employees, or both, for the prupose of providing either from principal or income, or both, medical or
j hospital care, pensions or annuities on retirement, death benefits, compensation for injuries, illness, accidents, sickness, or
disability, or for insurance to provide any of the foregoing, or unemployment benefits, vacation pay, savings accounts, or
similar payments for the benefit of employees, their fmnilics and dependents: Provided, however, That the following standards
are met: (1) The deduction is not otherwise prohibited by law; (2) it is either: (i) Voluntarily consented to by the employee
1 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 (ii) provided for in a bona fide collective bargaining agreement be-
tween 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 (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 Funds, and similiar 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.
0) Any deduction not more than for the "reasonable cost" of board, lodging, or other facilities meeting the require-
ments 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 § 516.27 (a) of this title shall be kept.
Section 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 per-
mitted under § 3.5. The Secretary may grant permission whenever he finds that:
i
(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 advance 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 bargaining agreement between the contractor or subcontractor and representatives of its
employees; and
(d) The deduction serves the convenience and interest of the employee.
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HUD -3200
18 -rgl
jSection 3.7 Applications for the approval of the Secretary of Labor.
Any application for the making of payroll deductions under § 3.6 shall comply with the requirements prescribed in the
I following paragraphs of this section:
f
(a) The application shall be in writing mid shall be addressed to the Secretary of Labor,
l
(b) The application shall identify the contract or contracts under which the work in question is to be performed. Per-
mission will be given for deductions only on specific, identified contracts, except upon a showing of exceptional circumstances.
(c) The application shall state affirmatively that there is compliance with the standards set forth in the provisions of
§ 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 laborers or mechanics from whose wages the proposed deduction would be made.
(e) The application shall state the name and business of any third person to whom any funds obtained from the pro-
, posed deductions are to be transmitted and the affiliation of such person, if any, with the applicant.
Section 3.8 Action by the Secretary of Labor upon applications.
I
1 The Secretary of Labor shall decide whether or not the requested deduction is permissible under provisions of § 3.6;
and shall notify the applicant in writing of his decision.
i
i Section 3.9 Prohibited payroll deductions.
i Deductions not elsewhere provided for by this part and which are not found to be permissible under § 3.6 arc prohibited.
Section 3.10 Methods of payment of wages.
The payment of wages shall he by cash, negotiable instruments payable on demand, or the additional forms of compensa-
tion for which deductions are permissible under this part. No other methods of payment shall be recognized on work subject
to the Copeland Act.
Section 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 ap-
plicable. In this regard, see § 5.5 (a) of this subtitle.
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e U. S. GOVERN- Ps-G OFFICE : 1070 0 - 300 -323 (33)
CORPUS CHRISTI, TEXAS
y� DAY OF j
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; 1, 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, -
YO TG'ljY OF CORPUS CHRISTI, TEXAS
THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE:
'- RONNIE SIZEMORE
CHARLES A. BONNIWELL
ROBERTO BOSQUEZ, M.D.
-- REV. HAROLD.T. BRANCH
-' • r THOMAS V. GONZALES --
GABE LOZANO, SR.
_
J. HOWARD STARK
THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING
RONNIE SIZEMORE
CHARLES A. BONNIWELL _
• ROBERTO BOSQUEZ, M.D.
REV. HAROLD T. BRANCH
THOMAS V. GONZALES
GAGE LOZANO, SR.�
J. HOWARD STARK
� d