HomeMy WebLinkAboutItem 4.03 DublinHousingAdminCDBG Fund (2)
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: November 19, 1996
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SUBJECT:
Contract with the Dublin Housing Authority for Administering
Community Development Block Grant (CDBG) Fund Expenditures
(Report Prepared by Carol R. Cirelli, Senior Planner)(j.1/
EXIllBITS ATTACHED:
Exhibit A:
Contract with the Dublin Housing Authority
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RECOMMENDATION:
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Authorize the Mayor to sign the contract with the Dublin Housing
Authority for administering CDBG fund expenditures
FINANCIAL STATEMENT:
(See discussion below)
DESCRIPTION:
In May of 1996, the City of Dublin, as an Urban County City, entered into an agreement with the
Alameda County Housing and Community Development Department (County RCD) for administering
CDBG funds for the CDBG Program Year 1996-1997. The total amount of CDBG funds allocated for
this program year is $93,870.
One of the projects the City Council approved for funding under the City's CDBG allocation was
the Arroyo Vista Handicap Accessibility Renovation project. The amount allocated for this project was
$21,910. The City must now enter into a contract with the Dublin Housing Authority that describes the
conditions under which the $21,910 may be expended.
Staff recommends that the City Council execute the contract with the Dublin Housing Authority
for purposes of administering CDBG fund expenditures.
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COPIES TO: In-House Distribution
ITEM NO. 4"S
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DUBLIN HOUSING AUTHORITY
Respond To:
Arroyo Vista Office 0
6700 Dougherty Rd. #151
Dublin, CA 94568
(510) 828-3132
Administrative Office 0
22941 Atherton St.
Hayward, CA 94541
(510) 538-8876
November 8, 1996
Carol Cirelli, Senior Planner
City of Dublin Planning Department
100 Civic Plaza
Dublin, CA 94568
Dear Ms. Cirelli:
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Per your request, attached is a completed contract agreement for $21,910 in Community
Development Block Grant funds for fiscal year 1996-97. The funds will be used to make
Americans with Disabilities Act modifications at the Arroyo Vista complex. Upon the
approval of Ci ty Council and execution of the agreement, please return a signed copy for
the Housing Authority's files.
It is my understanding that my secretary, Ty Armstrong, will be in toud1 with you next
Wednesday or Thursday regarding the required reimbursement form. 1 '"vould also note
that since we are executing this agreement in November, it is presumed that the
requirn1ent for the September 30 quarterly report is waived. Thank you for your
assistance. Tfyou have any questions, please contact me.
Very truly yours,
\~~1\~
Op 1elia . . Basgal C
E .\\ D.
xecutl ve~ lrector
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AGREEMENT BY AND BETWEEN
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AND
THE CITY OF DUBLIN
THIS AGREEMENT is made and entered into this ~~ay Of~ ". , 199~, by and between the City
of Dublin, a body corporate~d politic of the State of California, (hereinafter referred to as "City"), and
/)(,,( 8LltJ 110lJ..tt;/AlG- TH., (hereafter referred to as "Contractor").
WHEREAS, City is receiving funds pursuant to the Community Development Block Grant Program, funded by
the U.S. Department of Housing and Urban Development; and
WHEREAS, City is desirous of contracting with Contractor for the provision of certain services, a description
of which are presented in Exhibit A, attached hereto; and
WHEREAS, Contractor is willing and able to perform duties and render services which are determined by the
City of Dublin to be necessary or appropriate for the welfare of residents of City; and
WHEREAS, City desires that such duties and services be provided by Contractor, and Contractor agrees to
perform such duties and render such services, as more particularly set forth below:
NOW THEREFORE, FOR AND IN CONSIDERATION OF THE PROMISES HEREINAFTER MADE, CITY
AND CONTRACTOR DO MUTUALLY AGREE AS FOLLOWS:
I. ST A TEMENT OF WORK
Contractor will perform or arrange for the performance of the work under this Agreement in the manner and
time provided herein and in accordance with: the budget; the scope of wor)c and any specifications and
drawings; and all related documents and provisions attached hereto as Exhibit A and incorporated herein by
reference.
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II. COMMENCEMENT AND COMPLETION REQUIREMENTS
The term of this ~reement begins on 7- I - 9{." ,and ends on
"-.30 - 9/ ' or when all contract terms have been completed.
E.
A.
B.
It shall be the responsibility of the Contractor to coordinate and schedule the work to be
performed so that commencement and completion will take place in accordance with the
provisions of this Agreement. The City may extend the time for completion of the Agreement
in writing, if it determines that delay in the progress of work is not attributable to the
negligence of the Contractor and that such delay was due to causes beyond the control of the
Contractor.
C.
Any time extension granted to the Contractor to enable the Contractor to complete the work
shall not constitute a waiver of rights the City may have under this Agreement.
D.
Should the Contractor not complete the work by the scheduled date or by an extended date,
granted by the City in writing, pursuant to previously stated conditions, the City shall be
released from all conditions of this Agreement.
Upon completion of performance under this Agreement and a determination of final costs,
Contractor shall submit to the City a certificate of completion for construction projects and a
requisition for final payment for service projects, unless otherwise provided in this Agreement.
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III.' SUBCONTRACTS
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A.
Any subcontract funding under this Agreement shall be submitted to City for review and
approval prior to its execution.
B. In the event subcontractor is a private non-profit or neighborhood-based non-profit
organization, or a local development or small business investment corporation, Contractor is
required to comply with the procurement procedures of Office of Management and Budget
(OM B) Circular A-I 10 and A-Ill (incorporated herein by reference) for the procurement of
supplies and services in connection with activities funded under this Agreement.
C. Any subcontract funded under this Agreement shall be subject to the terms and conditions of
this Agreement.
IV. BUDGET
All requested modifications to the Budget attached to this Agreement and incorporated as part of this
Agreement, shall be reviewed and approved by City. All budget modifications require the prior written
approval of City. Budget modifications shall not alter: 1) The basic scope of services required to be performed
under this Agreement; 2) the time period for the services to be performed under this Agreement; and, 3) the
total amount of the authorized budget of this Agreement (see Exhibit A), subject to future amendments as
approved by the Dublin City Manager or his/her designee. The individual line item budget for a particular cost
category may be exceeded by ten percent of its approved budget, provided the additional funds are used from
unused line item budgets and the total contract amount does not exceed the budget.
V. RECORDS AND REPORTS
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A.
All original documents prepared by Contractor in connection with the work to be performed
under this Agreement shall be the property of the City. -
B. Contractor's records must be made available for review upon request by the City prior to the
release of funds. Contractor shall be responsible for maintaining all records pertaining to this
Agreement, including subcontracts and expenditures, and all other fmancial and property
records in conformance with OMB circular A-llO.
C. Records must be kept accurate and up-to-date. Failure of Contractor to comply with this
provision could result in termination of this Agreement or Contractor's repayment of funds
previously awarded under this Agreement.
VI. PROGRAM MONITORING AND EVALUATION
A. Contractor shall be monitored and evaluated in terms of its effectiveness and timely
compliance with the provisions of this Agreement and the effective and efficient achievement
of the Program Objectives.
B. Contractor must undertake continuous quantitative and qualitative evaluation of the Scope of
Services as specified in this Agreement and shall make quarterly written reports to City.
1. The quarterly written reports shall include, but shall not be limited to the following
data elements:
a.
Title of program, listing of components, description of activities/operations.
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b.
Service area (i.e., citywide, etc., including applicable census tracts).
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c.
Goals - the projected goals, indicated numerically, and also the gOals.
achieved (for each report period). In addition, identify by percentage and
description, the progress achieved towards meeting the specified goals;
additionally, identify any problems encountered in meeting goals.
d.
Beneficiaries - provide the following:
i) Total number of direct beneficiaries.
ii) Percent of total number of direct beneficiaries who are:
Low and moderate income
Low income
Black, not Hispanic origin
White, not Hispanic origin
Hispanic
American Indian! Alaskan Native
Asian or Pacific Islander
Female Headed Households
e. Other data as required by City.
2. The quanerly repon shall be due on the fifteenth day of the month immediately
following the report quarter, except for the end of the program year report which is
due within thirty days.
c.
The City shall have ultimate responsibility for overall project monitoring and evaluation, to.
assist Contractor in complying with the scope and contents of this Agreement, and to provide
management infonnation which will assist the City's policy and decision-making and
managers.
D.
The Contractor shall follow audit requirements of the Single Audit Act and OMB Circular A-
128.
VII. PROGRAM INCOME
A. Program income shall be recorded as part of the financial transactions of the grant program
and disbursed in accordance with OMB Circular A-llO, with prior approval or consent of
City.
B. Program income received by Contractor shall be returned to City for future application to
Contractor projects.
C. Program income from urban county program actIVities undenaken by or within Contractor
which thereafter terminates its participation in the urban county shall continue to be program
income of the City. City may transfer the program income to Contractor, upon ils termination
of urban county participation, provided that Contractor has become an entitlement grantee and
agrees to use the program income in its own CDBG entitlement program.
VIII. UNIFORM ADMINISTRATIVE REQUIREMENTS
Contractor shall comply with Uniform Administrative Requirements as described in Federal Regulations, .
Section 570.502 as applicable to governmental entities.
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IX.
RELIGIOUS ACTIVITY PROHIBITION
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There shall be no religious worship, instruction, or proselytization as part of, or in connection with the
performance of this Agreement.
X.
REVERSION OF ASSETS
A. Upon the expiration of this Agreement, Contractor shall transfer to City any CDBG funds on
hand at time of expiration and any accounts receivable attributable to the use of CDBG funds.
B. Real property in excess of $25,000, obtained in whole or in part with CDBG funds must be
used to meet one of the national objectives for a minimum of five years after the expiration of
this Agreement or disposed of in a manner that results in City being reimbursed at fair market
value less value attributable to non-CDBG expenditures.
XI. OTHER PROGRAM REOUIREMENTS
Contractor certifies that it will carry out each activity in compliance with all Federal laws and regulations
described in 24 CFR, Part 570, Sub-part K (570.600-570-612) and relates to a) Non-discrimination, b) Fair
Housing, c) Labor Standards, d) Environmental Standards, 3) National Flood Insurance Program, f) Relocation
and Acquisition, g) Employment and Contracting Opportunities, h) Lead-based paint, i) Use of Debarred,
Suspended or Ineligible Contractors or Sub-recipients, j) Uniform Administrative Requirements and Cost
Principals, k) Conflict of Interest, and I) Displacement.
XII.
TERMINA nON OF THIS AGREEMENT
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City may terminate this Agreement in whole or in part immediately for cause, which shall include as example
but not as a limitation:
A. Failure, for any reason, of Contractor to fulfill in a timely and proper manner its obligations
under this Agreement, including compliance with City, State and Federal laws and regulations
and applicable directives;
B. Failure to meet the performance standards contained in other sections of this Agreement;
C. Improper use of reporting of funds provided under this Agreement; and
D. Suspension or termination by HUD of the grant to the City under which Agreement is made,
or the portion thereof delegated by this Agreement.
Approved as to form:
By:
Elizabeth H. Silver, City Attorney
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CONTRACTOR:
CITY OF DUBLIN
By:
Signature of Contractor
By:
Taxpayer ID: 94-~O;:(I:34o
Attest:
City Clerk
. Date:
Date:
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EXHIBIT A
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WORK PROGRAM BETWEEN
THE CITY OF DUBLIN
AND
THE DUBLIN HOUSING AUTHORITY
7/1/96
THRQUGH 6/30/97
1. Hire architectural firm to conduct site survey and prepare necessary
drawings and construction documents.
2. Review and approve construction documents and prepare bid package including
required HUD wage rate and Section 3 requirements.
3. Advertise for bids.
4. Evaluate bids and make recommendations to the Dublin Housing Commission.
5. Award contract.
6. Oversee construction through project completion.
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Proiect Description - Arroyo Vista Improvements
The pr.oposed proj~ct is to make the Arroyo Vista public housing development fully
~ccessIble to handIcapped persons. The exterior appearance of the complex will be
Improved, a~d employ~ent opportunities for public housing residents will be provided
through SectIOn 3 reqUirements in construction contracts.
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PROGRAM BUDGET
DUBLIN HOUSING AUTHORITY
7/1/96
Line Item
1. Design and Engineering
2. Construction Contracts
GR.:\ND TOTAL
THROUGH 6/30/97
Imal
$ 6.520
15.390
$21,910
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EXHIBIT B
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CONDITIONS FOR PAYMENT BETWEEN
CITY OF DUBLIN
AND
DUBLIN HOUSING AUTHORITY
1. CLlEJ\1'f CONFIDENTIAL INFORMATION:
City shall be allowed to review case work history information. The purpo~e of the City's review is to see
randomly selected client information to determine the adequacy of record keeping and quality of services
performed.
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2.
BlLINGUAL ASSISTANCE
Contractor will provide bilingual professional staff as needed to serve its clients.
3. MEWOD OF PAYMENT
All requests for reimbursement will be in a format approved by the City and shall be submitted to the City on a
monthly basis with supporting documentation of acrual costs incurred. Requests for reimbursement must be
received within 30 days of the end of each claim month.
Any adjustments made by the fiscal auditors at the year-end audit, under the AICP A guidelines and other
relevant federal regulations should be brought to the attention of City staff for reconciliation.
Monthly invoices should include, by line item, documentation of the expendiIDre of matching funds on the c..-'!
of Dublin contract. . '.',.;:
4.
REQUESTS FOR ADJUSTMENTS TO BUDGET LINE ITEMS
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Once the line item budget has been approved through the execution of this cornract, there can be' no more than-
four (4) requests for adjustments to budget line item amounts during the COlJIract period, including any final
adjustments dODe at the end of the program year, June 30, 1997
5.
COMPUANCE WITH FEDERAL REGULATIONS
Contractor's administrative procedures must be in compliance with the following regulations:
A.
OMB Circular A-l22, Cost Principles for NOD-Profit Organizations.
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B. OMB Circular A-II 0, Uniform Administrative Requirements for Grant and Other Agreements
with Instirutions of Higher Education, Hospitals and Other Non-Profit Organizations.
C. Paragraph (b) of Section 570.502 of sub-pan J of 24 CFR 85, Common Rule of Uniform
Administrative Requirements for Grants and Cooperative Agreements with State and Local
Governments.
D. Section 44.6 of 24 CFR Part 44 (Non-Federal Government Audit Requirements), Common
Rule of Uniform Administrative Requirements for Grants and Cooperative Agreements w.
State and Local Governments '
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EXHIBIT C
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INSURANCE REQUIREMENTS
1. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of the work hereunder by
the Contractor, his agents, representatives, employees or subcontractors. The cost of such insurance shall be included in
the CODtraCror's bid.
a. Minimum Scope of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office form number GL 0002 (Ed.l/73) covering comprehensive General
Liability and Insurance Services Office form number GL 0404 co..vering Broad Form
Comprehensive General Liability; or Insurance Services Office Cornmelcial General Liability
coverage ("occurrence" form CG 0001.)
(2) Insurance Services Office form number CA 0001 (Ed. 1/78) covering Automobile Liability,
code 1 "any auto" and endorsement CA 0025.
(3) Workers' Compensation Insurance as required by the Labor Code of the State of California
and Employers Liability Insurance.
b. Minimum Limits of Insurance. Contractor shall maintain limits no less than:
(1)
General Liability: 51,000,000 combined single limit per occurrence for bodily injury,
personal injury and property damage. If commercial General Liability Insurance or other form
with a general aggregate limit is used, either the general aggregate limit shall apply separately
to this projectllocation or the general aggregate limit shall be twice the required occurrence
limit.
e:,
(2) Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and
property damage."''--
(3) Workers' Compensation and Employers Liability: Workers' Compensation limits as required
by the Labor Code of the State of California and Employers Liability limits of $1.000,000 per
accident.
c. Deductihles and SeIf~Insured Retentions. Any deductibles or self-insured retentions must be declared to
and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials and employees; or the
Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
d. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the followii1g
provisions:
(1) General Liability and Automobile Liability Coverages.
(a)
The CITY, its officers, officials, employees and volunteers are to be covered as
insureds as respects: liability arising out of activities performed by or on behalf of the
Contractor; products and completed operations of the Contractor, premises owned,
occupied or used by the Contractor, or automobiles owned, leased, hired or borrowed
by the Contractor. The coverage shall contain no special limitations on the scope of
the protection afforded to the City, its officers, officials, employees or volunteers.
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(b)
The Contractor's insurance coverage shall be primary insurance as respects the City.
its officers, officials. employees and volunteers. Any insurance or self-insurance .
maintained by the City. its officers, officials, employees or volwneers shall be e:x.cess
of the Contractor's insurance and shall not contribute with it.
(c)
Any failure to comply with reponing provisions of the policies shall not affect
coverage provided to the City, its officers, officials, employees or volunteers.
(d)
The Contractor's insurance shall apply separately to each insured against whom claim
is made or suit is brought, except with respect to the limits of the insurer's liability.
(2) Workers' Compensation and Employers Liability Coverage.
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The insurer shall agree to waive all rights of subrogation against the City, its officers,
officials, employees and volunteers for losses arising from work perfonned by the Contractor
for the City.
(3) Professional Liability.
Contractor shall carry professional liability insurance in an amount deemed by the City to
adequately protect the Contractor against liability caused by negligent acts. errors or omissions
on the pan of the Contractor in the course of performance of the services specified in this
Agreement.
(4) All Coverages.
Each insurance policy required by this clause shall be endorsed to state that coverage shall not
be suspended, voided, canceled by either pan)', reduced in coverage or in limits except afte.
thirty (30) days' prior written notice by certified mail, return receipt requested, has been giver... - .
to~a~ .....
e. Acceptability of Insurers. Insurance is to be placed with insurers with a Bests' rating of no less than
A:VII.
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f. Verification of Covera~e. Contractor shall furnish City with cenificates of insurance and with original
endorsements effecting coverage required by this clause. The cenificates and endorsements for each
insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf.
The certificates and endorsements are to be received and approved by the City before work
commences. The City reserves the right to require complete, certified copies of all required insurance
policies, at any time.
g. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall
furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors
shall be subject to all of the requirements stated herein.
h. The Risk Manager of City may approve a variation in those insurance requirements upon a
determination that the coverages, scope, limits and forms of such insurance are either not commercially
available or that the City's interests are otherwise fully protected.
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EXHIBIT D
ALAMEDA COUNTY AFFIRMATIVE ACTION PLAN
UNDER SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968
PURPOSE
To insure that to the greatest extent feasible, projects fmanced by the Alameda County Housing and Community
Development Program provide business and employment opportunities for businesses in the Alameda County project
areas funded by Community Development Block Grant.
In all contracts for work in connection with a Community Development project, the following clause (referred to as the
Section 3 Clause), will be included:
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1. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and
Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to
ensure that employment and other economic oppornmities generated by HUD assistance or HUD-assisted
projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income
persons, panicularly persons who are recipients of HUD assistance for housing.
2. The parties to this contract agree to comply with HUO's regulations in 24 CFR pan 135, which implement
section 3. As evidenced by their execution of this contract, the panies to this contract certify that they are under
no contracrual or other impediment that would prevent them from complying with the pan 135 regulations.
3.
The Contractor agrees to send to each labor organization or representative of workers with which the Contractor
has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or
workers' representative of the Contractor's commitments under this section 3 clause, and will post copies of the
notice in conspicuous places at the work site where both employees and applicants for training and employment
positions can see the notice. The notice shall describe the section 3 preference, availability of apprenticeship
and training positions, the qualifications for each; and the name and location of the person(s) taking applications
for each of the positions; and the anticipated date the work shall begin.
4. The Contractor agrees to include this section 3 clause in every subcontract subject to compliance with
regulations in 24 CFR part 135, and agrees to take appropriate actions, as provided in an applicable provision of
the subcontract or in this section 3 clause, upon a fmding that the subContractor is in violation of the regulations
in 24 CFR pan 135. The Contractor will not subcontract with any subcontractor where the Contractor has
notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR pan 135.
5. The Contractor will certify that any vacant employment positions, including training positions, that are fIlled (1)
after the Contractor is selected but not before the contract is executed, and (2) with persons other than those to
whom the regulations of 24 CFR pan 135 require employment opporrunities be directed, were not fIlled to
circumvent the Contractor's obligations under 24 CFR part 135.
6. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract
for default, and debarment or suspension from furore HUD assisted contracts.
7.
With respect to work performed in connection with section 3 covered Indian housing assistance, section 7(b) of
the Indian Self-Determination and Education Assistance Act (25 U.S.C. 405e) also applies to the work to be
performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and
opporrunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts
and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. parties to this
contract that are subject to the provisions of section 3 and section 7(b) agree to comply with section 3 to the
maximum extent feasible, but not in derogation of compliance with section 7(b).
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SECTION 3 EMPLOYMENT PLAN
!\:\ME OF CONTRACTOR: DUBLIN HOUSING AUTHORITY
Services to be Provided: Oversee the removal of architectural barriers to
Arroyo Vista's sidewalks and office and community
room to meet disability accessibility requirements.
Work will involve architectural design and
actual construction work.
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Contract Amount:
$ 21,910
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Contract amount does not exceed Section 3 dollar threshold. Section 3
requirements do not apply.
Contract does not include housing rehabilitation, housing constrUction or other
public constrUction. Section 3 requirements do not apply.
Section 3 requirements go apply. Contractor has been notified of Section 3
requirements and has completed the anticipated work force analysis below.
The following work force is anticipated to be necessary to satisfactorily complete this work:
Job Classifications
ExistinV Work Force
hmicipated New Hires
All work will be subcontracted. 'We will require the services of
an architectural firm and general contractor.
Contractor agrees to undertake a good faith effort to comply with all of the provisions of Section of the Housing
and Urban Development Act of 1968.
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EXHIBIT E
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PROPERTY MANAGEMENT STANDARDS
1.
This ar.achroent prescribes uniform standards governing the utilization and disposition of property
furnished by the Federal Government or acquired in while or in part with Federal funds by State and
local governments. Federal grantor agencies shall require State and local governments to observe these
standards under grants from the Federal Government and shall not impose additional requirements unless
specifically required by Federal law . The grantees shall be authorized to use their own property
management standards and procedures as long as the provisions of this attachment are included.
2.
The following definitions apply for the purpose of this attachment:
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a. Real propem'. Real property means land, land unprovements, structures and
appurtenances thereto, excluding movable machinery and equipment.
b. Personal property. Personal property means property of any kind except real property.
It may be tangible __ having physical existence, or intangible - having no physical
existence, such as patents, inventions, and copyrights.
c.
Nonexpendahle personal prQpeny. Nonexpendable personal property means tangible
personal property having a useful life of more than one ye'll" and an acquisition cost of
$300 or more per unit. A grantee may use its own definition of nonexpendable
personal property provided that such defInition would at least include all tangible
personal property as defmed above.
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d.
Expendable personal propertY. Expendable personal property refers to all tangible
personal property other than nonexpendable property.
e. Excess prQpert:". Excess property means property under the control of any Federal
agency which, as determined by the head thereof, is no longer required for its needs.
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3. Each Federal grantor agency shall prescribe requirements for grantees concerning the use of real property
funded partly or wholly by the Federal Government. Unless otherwise provided by stamte, such
requirements, as a minimum, shall contain the following:
a. The grantee shall use the real property for the authorized purpose of the original grant
as long as needed.
b. The grantee shall obtain approval by the grantor agency for the use of the real property
in other projects when the grantee determines that the property is no longer needed for
the original grant purposes. Use in other projects shall be limited to those under other
Federal grant programs, or programs that have purposes consistent with those
authorized for support by the grantor.
c.
~'hen the real property is no longer needed as provided in a. and b., above, the grantee
shall return all real property furnished or purchased wholly with Federal grant funds to
the control of the Federal grantor agency. In the case of property purchased in part
with Federal grant funds, the grantee may be permitted to take title to the Federal
interest therein upon compensating the Federal Government for its fair share of the
property. The Federal share of the property shall be the amount computed by applying
the percentage of the Federal panicipation in the total cost of the grant program for
which the property was acquired to the current fair market value of the property.
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Standards and procedures governing ownership, use, and disposition of nonexpendable personal property
furnished by the Federal Government or acquired with Federal funds are set forth below:
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a. Nonexpendable personal propertV acquired with Federal funds. When nonexpendable
personal property is acquired by a grantee wholly or in part with Federal funds, title
will not be taken by the Federal Government except as provided in paragraph 4a(4), but
shall be vested in the grantee subject to the following restrictions on use and disposition
of the property:
(1) The grantee shall retain the property acquired with Federal funds in the grant
program as long as there is a need for the property to accomplish the purpose
of the grant program whether or not the program continues to be supported by
Federal funds. When there is no longer a need for the pro~erty to accomplish
the purpose of the grant program, the grantee shall use the property in
connection with other Federal grants it has received in the following order of
priority:
(a) Other grants of the same Federal grantor agency needing the property.
(b) Grants of other Federal agencies needing the property.
(2) When the grantee no longer has need for the property in any of its Federal
grant programs, the property may be used for its own official activities in
accordance with the following standards:
(a)
Nonexpendable property with an acquisition cost of less than 5500 and .---
used four vears or more. The grantee may use the property for its
own official activities without reimbursement to the Federal
Government or sell the property and retain the proceeds.
(b) All other nonexpendable propertY. The grantee may retain_ the
property for its own use provided that a fair compensation is made-ro
the original grantor agency for the latter' s share of the property. The
amount of compensation shall be commuted by applying the
percentage of Federal participation in the grant program to the current
fair market value of the property.
(3) If the grantee has no need for the property, disposition of the property shall be
made as follows:
(a) None,;,pendab1e property with an acquisition cost of 51.000 or Jess.
Except for that property which meets the criteria of (2)(a) above, the
grantee shall sell the property and reimburse the Federal grantor
agency an amount which is computed in accordance with (iii) below.
.
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.
e.
..-
(b)
Nonexpendable properlY WiTh an acquisition CO~1 of over $1 000. The
grantee shall request disposition instructions from the grantor agency.
The Federal agency shall determine whether the property can be used
to meet the agency's requirement. ]f no requirement exists within that
agency, the availability of the property shall be reported to the
General Services Administration (GSA) by the Federal agency to
determine whether a requirement for the property exists in other
Federal agencies. The Federal grantor agency shall issue instructions
to the grantee within 120 days and the following procedures shall
govern:
(i) ]f the grantee is instructed to ship the property elsewhere, the
grantee shall be reimbursed by the benefi~ Federal agency
with an amount which is computed by apprying the
percentage of the grantee's participation in the grant program
to the current fair market value of the property, plus any
shipping or interim storage costs incurred.
(ii) If the grantee is instructed to otherwise dispose of the
property, he shall be reimbursed by the Federal grantor
agency for such costs incurred in its disposition.
(iii)
]f disposition instructions are not issued within 120 days after
reponing, the grantee shall sell the property and reimburse
the Federal grantor agency an amount which is computed by
applying the percentage of Federal participation in the grant
program to the sales proceeds. Funber, the grantee shall be
permined to retain 5100 or 10 percent of the proceeds,
whichever is greater. for the grantee's selling and handling
expense.
(4) Where the grantor agency determines that property with an acquisition cosruf
$1,000 or more and fmanced solely with Federal funds is unique, difficult, or
costly to replace, it may reserve title to such property, subject to the following
provisions:
(a) The property shall be appropriately identified in the grant
agreement or otherwise made known to the grantee.
(b) The grantor agency shall issue disposition instructions within 120 days
after the completion of the need for the property under the Federal
grant for which it was acquired. ]f the grantor agency fails to issue
disposition instructions within 120 days, the grantee shall apply the
standards of 4a(1), 4a(2)(b) and 4a(3)(b)-
b.
Federallv-owned nonexpendabJe perl'onal property. Unless statutory authority to
transfer title has been granted to an agency, title to Federally-owned property (property
to which the Federal Government retains title including excess property made available
by the Federal grantor agencies to grantees) remains vested by law in the Federal
Government. Upon termination of the grant or need for the property, such property
shall be reponed to the grantor agency for funher agency utilization or, if appropriate,
for reponing to the General Services Administration for other Federal agency
utilization. Appropriate disposition instructions \\'ill be issued to the grantee after
completion of Federal agency review.
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5.
The grantees' property management standards for nonexpendable personal property shall also include the
followL,g procedural requirements.
.
a. Property records shall be maintained accurately and provide for: a description of the
property; manufacturer's serial number or other identification number; acquisition date
and cost; source of the property; percentage of Federal funds used in the purchase of
property; location, use, and condition of the property; and ultimate disposition data
including sales price or the method used to determine current fair market value if the
grantee reimburses the grantor agency for its share.
b. A physical inventory of property shall be taken and the results reconciled with the
property records at least once every two years to verify the existenc~, current
utilization, and continued need for the property. ...
c. A control system shall be in effect to insure adequate safeguards to prevent loss,
damage, or theft to the property. Any loss, damage, or theft of nonexpendable
property shall be investigated and fully documented.
d. Adequate maintenance procedures shall be implemented to keep the property in
good condition.
e. Proper sales procedures shall be established for unneeded property which would provide
for competition to the extent practicable and result in the highest possible return.
6.
When the total inventory value of any unused expendable personal property exceeds $500 at the
expiration of need for any Federal grant purposes, the grantee may retain the property or sell the
property as long as he compensates the Federal Government for its share in the cost. The amount of
compensation shall be computed in accordance with 4a(2)(b).
.
7 _ Specified standards for control of intangible property are provided as follows:
. ~:--
a. If any program produces patentable items, patent rights, p::-ocesses, or inventions, in the
course of work aided by a Federal grant, such fact shall be promptly and fully reponed
to the grantor agency. Unless there is prior agreement between the grantee and grantor
on disposition of such items, the grantor agency shall determine whether protection on
such invention or discovery shall be sought and how the rights in the invention or
discovery - including rights under any patent issued thereon - shall be allocated and
administered in order to protect the public interest consistent with "Government Patent
Policy. (President's Memorandum for Heads of Executive Departments and Agencies,
August 23, 1971, and Statement of Government Patent Policy as printed in 36 F.R.
16889).
b. Where the grant results in a book or copyrightable material, the author or grantee is
free to copyright the work, but the Federal grantor agency reserves a royalty-free,
nonexclusive and irrevocable license to reproduce, publish, or otherwise use, and to
authorize others to use the work for Government purposes.
.:.
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